Communication Platform-as-a-Service (CPaaS) Market Size

CPaaS Market Analysis

The Communication Platform-as-a-Service Market size is estimated at USD 16.34 billion in 2024, and is expected to reach USD 61.59 billion by 2029, growing at a CAGR of 30.40% during the forecast period (2024-2029).

There is a rising need for easily maintained network systems allowing efficient communications across numerous end-user industries, including healthcare, retail, and manufacturing. In addition, healthcare providers, frequently characterized as having minimal IT budgets, expanded their adoption of cost-effective cloud-based solutions. Nowadays, healthcare contact centers set up their PBX (Private Branch Exchange) systems and handle several consumer requests from different sites without any problems due to the subscription-based United Communication Services.

• The adoption of CPaaS solutions is anticipated to be further accelerated by the fast-growing uptake of the BYOD trend and other mobility solutions. In this new era of flexibility and network accessibility for employees globally for various firms, Bring Your Own Device (BYOD) developed as a significant trend, increasing office productivity. As per Cisco, businesses with a BYOD strategy save, on average, USD 350 annually per employee. Additionally, reactive initiatives and programs can increase these savings to USD 1,300 per employee year. These cost savings for Small to Medium Sized Businesses (SMBs) can mount up quickly and help SMBs better safeguard their bottom line while increasing staff productivity.
• Leveraging the rising need for CPaaS, market vendors are also launching new solutions and services related to the market. For instance, Syniverse introduced a cloud-native, hyperscale digital engagement platform to enhance the enterprises' customer experiences and boost their digital transformations in February 2022. Additionally, Regum, a company engaged in educational instruction and financial investing, increased the responsiveness and speed of its customer service by implementing Avaya's IX cloud-based unified communications and collaboration solution. The platform assisted the business in establishing immediate and seamless communication among its branches, regardless of branch location, and it offers service to consumers worldwide at no extra cost.
• Businesses are now engaging in strategic mergers and acquisitions to obtain a competitive edge in the target market. One of the CPaaS providers in India, Value First, was acquired by Twilio in March 2021. The acquisition unites the CPaaS platform and cloud communication. The decision by Twilio is consistent with the country's rapid advancements in messaging, conversational AI, and mar-tech.
• In addition, in February 2022, Kaleyra Inc., a cloud communications software provider in the API/Communications Platform as a Service (CPaaS) industry, was chosen by Bosch Group, a major international provider of technology and services, as their trusted vendor to power the Bosch Mobility Solutions cloud communications in India.
• Companies in the Forbes Global 2000 have been compelled to quicken their digital transitions in response to the COVID-19 pandemic. For instance, Syniverse announced in March 2022 that it had entered a global partnership with Kore.ai to support its Communications Platform-as-a-Service (CPaaS) strategy by offering conversational artificial intelligence (AI) and expert services to Forbes Global 2000 firms. Syniverse increases its CPaaS portfolio and provides end-to-end capabilities to businesses through a professional services team staffed by Syniverse and Kore.ai, including internet bot design and build, omnichannel selection, campaign management and message delivery, and analytics. The increased market readiness to acquire cloud-based software, including foundational communication platform-as-a-service solutions, resulted in increased overall revenue growth post-pandemic.