The global Communications Platform as a Service Market is projected to grow from USD 12.5 billion in 2022 to USD 45.3 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 29.4% during the forecast period, according to a new report by MarketsandMarkets™. The growth of the CPaaS market can be attributed to the growing demand for improved customer service and client engagement. Moreover, the boost in the adoption of CPaaS solutions during the pandemic fuels the growth of the market.
By component, the solutions segment to account for a larger market share during the forecast period
The solutions segment is expected to account for a larger market share during the forecast period. CPaaS solutions allow organizations to add voice, video, and messaging features to their existing business software using APIs. This allows them to cherry-pick real-time communications features and embed them into their apps and services. This feature is attractive to growing companies who already use a cloud-based technology stack and want to customize their communications infrastructure.
By services, the managed services subsegment is expected to grow for a higher growth during the forecast period
The managed services subsegment is expected to account for the highest growth rate during the forecast period. The managed service providers support and manage third-party infrastructure that help organizations to manage their products or services. The need for comprehensive managed services has increased as it has alleviated the workload placed on IT, all while ensuring business continuity and customer communications.
By region, North America is expected to account for the largest market size during the forecast period
North America is expected to account for the largest share in the CPaaS market. North America, for this study, includes the US and Canada. It is one of the most technologically advanced regions in the world. The region is well-connected with advanced infrastructure, which helps CPaaS vendors offer quality services to their clients. It offers the most innovative and fastest services available in the world through its network infrastructure. The CPaaS market in North America is competitive due to the presence of a large number of solution providers. North America is expected to be one of the early adopters of 5G technology, which would boost the adoption of CPaaS solutions in the region. The presence of most key vendors of CPaaS solutions such as Twilio, Avaya, Vonage, Bandwidth, and RingCentral has contributed to the market growth in the region.