Communication Platform-as-a-Service (CPaaS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The global Communications Platform-as-a-Service market was valued at USD 4.54 billion in 2020. It is expected to reach USD 26.03 billion by 2026, registering a CAGR of 34.30% during the forecast period (2021 - 2026). With the outbreak of COVID-19 and work at home (WAH) becoming a preferred mode of carrying operations, vendors for the market studied have been active in promoting WAH and expanding their business. For instance, as of April 2020, Teleperformance reached its work at home solutions target, with a penetration rate of 66% of operational staff in its core business, or more than 155,000 agents working from home in April.

• The growing need for easily maintained network systems that can enable effective communications across multiple end-user industries, including healthcare, retail, and manufacturing, among others, is evident, considering the old/obsolete contact centers. In addition, the advent of cost-effective cloud-based solutions witnessed increased adoption from healthcare providers, who are often categorized to have minimum IT budgets. With the subscription-based United Communication services in place, the healthcare contact centers establish their PBX systems and seamlessly address multiple customer requests coming in from various sites.
• The rapidly increasing adoption of the BYOD trend and other mobility solutions is expected to further drive the adoption of CPaaS solutions. Bring Your Own Device (BYOD) emerged as a significant trend in this new era of flexibility and network accessibility for employees worldwide for various organizations, making the workplace more productive.
• According to Cisco, enterprises with a BYOD policy in place save on average USD 350 per year per employee. Moreover, reactive programs can boost these savings to USD 1,300 per year per employee. For Small to Medium Businesses (SMBs), these cost savings can add up fast and enable these SMB’s to protect their bottom line better while improving employee productivity.
• Moreover, Regum, a company working in the educational training and financial investment segment, improved the speed and responsiveness of its customer service by adopting Avaya’s IX solution for cloud-based unified communications and collaboration. The platform helped the company create immediate and seamless communication between its branches irrespective of the branch location and provides support to its customers across geographies without any additional costs.
• Further, in February 2021, Kaleyra Inc., a cloud communications software provider, announced that it signed a definitive agreement to acquire mGage, a mobile messaging provider, for USD 215 million in a cash and stock deal. The combination of these companies is expected to put them into the top global Cloud Communication Platform-as-a-Service (CPaaS) platform, with solid positions in the Americas, Europe, and APAC.
• Furthermore, according to McAfee, a prominent security solutions provider, cybercrimes cost approximately USD 600 billion USD per year. The costs are reported to be not slowing down because cybercriminals are embracing new attack technologies. These costs are in addition to the brand image that is impacted by the data breaches.

Scope of the Report

CPaaS, or communication platform-as-a-service, is a cloud-based platform that embeds voice, video, chat, and messaging applications within an organization’s business applications. CPaaS acts as a middleware offering, wherein companies (vendors) build and distribute real-time communication software. This suggests that agents can communicate within the CRM application or contact center software platform in the context of the contact center.

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Key Market Trends

Retail and E-commerce Industry to Drive the Market Growth

• The rapidly changing customer purchasing trends have resulted in a dynamic shift in the retail industry from the earlier single point of interaction to omnichannel interactions through the web or social media. The increasing demand from consumers has created an enhanced shopping and service experience across all the channels, which caters to innovative communication tools that automate customer service and retail business operations.
• According to a survey by Accenture, more than 73% of customers said they expected customer service to be easier, faster, and more convenient than it currently is. Many retail enterprises saw Omni-channel as a golden opportunity to gain a competitive advantage. However, with most large businesses now operating across multiple channels (online and mobile), customer service has become the critical factor influencing the decision to choose one provider or retailer over another.
• CPaaS is a cloud-based framework that lets businesses synchronize real-time voice, video, and text communication. Using developer-friendly APIs, retailers can add these features to their websites, mobile apps, and social channels.
• Further, Players, such as Voxvalley Technologies Pvt Ltd, provide Vox CPaaS, where one can enhance customer service by filling the gap with promotional messages, delivery tracking and shipping alerts, abandoned cart SMS reminders, and conversational commerce. All this can be achieved within the web or mobile application, and customers can enjoy the ease of communication.
• Moreover, many well-known brands are already using CPaaS to add new communication functionality to their customer journey. Booking.com, one of the largest travel e-commerce companies globally with 198 offices in 70 countries worldwide, uses CPaaS to help integrate voice communication as part of its mobile apps' booking and customer service process.
• Further, Some retailers are also integrating their CRM interfaces with CPaaS, which adds benefits to the customer engagement process. It helps to decode customer queries and redirect them to respective departments for clarification. In addition, Several companies use CPaaS solutions with video capabilities to offer high HD quality video, and seamless connectivity for demonstrating product features and product functionality to customers through video calling empowers a business more comprehensively. Companies such as Croma (Infiniti Retail Limited) launched their first pilot store for online demonstration in Bangalore during the pandemic to retain more customers as most of them preferred to shop online.

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