The global CPaaS 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. CPaaS providers offer a number of communication services that are available to their clients out of the box or can be implemented with customization. CPaaS offers a high level of customization to meet specific needs of customers without having to subscribe to a bunch of extra services. In addition to being customizable, CPaaS systems are also fully scalable. By using APIs, software developers can reuse existing technical solutions and focus exclusively on new functionality that solves a specific problem. In so doing, they share resources with others, which reduces the need to independently scale up their infrastructure to handle unforeseen spikes in traffic volume and usage.

“By solutions, the video segment is expected to grow at a higher CAGR during the forecast period”
The video segment is expected to grow at a higher growth rate during the forecast period. Video solutions help to build a custom video experience within any mobile, web, or desktop application using Video APIs. Video solutions include video calling, video conferencing, and WebRTC-based video. CPaaS providers are seeing growing demand for video APIs that integrate with industry specific applications such as electronic health records virtual learning platforms.

“By organization size, the large enterprises segment is expected to account for the largest market share”
The large enterprises segment is expected to account for the largest market size. Large enterprises are defined as a business entity with an employee count of more than 1,000. Large enterprises have the ability to invest in latest technologies to run their businesses effectively. These enterprises do not face any budget issues and are always ready to update the technologies to perform better and monitor the customers in real-time.

“By vertical, the retail & eCommerce segment is expected to grow at the highest CAGR during the forecast period”
The retail & e-commerce segment is expected to grow at the highest CAGR during the forecast period. The vertical is focusing on offering an interactive experience to consumers through web and mobile-based retail solutions. Online video advertising and online video campaigns enable retailers to strengthen their brand image in the market. CPaaS solutions facilitate real-time communication between customers and stakeholders, leading to enhanced brand loyalty and increased revenue through effective digital marketing.

The breakup of the profiles of primary participants is given below:

  • By Company: Tier 1 - 38%, Tier 2 - 26%, and Tier 3 - 36%
  • By Designation: C-Level Executives - 28%, Directors - 38%, Others - 34%
  • By Region: North America - 40%, Europe - 25%, Asia Pacific - 19%, Rest of the World - 16%

Note: Others include sales managers, marketing managers, and product managers.
Note: Tier 1 companies’ revenue is more than USD 10 billion; tier 2 companies’ revenue ranges between USD 1 and 10 billion; and tier 3 companies’ revenue ranges between USD 500 million and USD 1 billion.
Source: Industry Experts

Research Coverage
MarketsandMarkets segments the CPaaS market based on Component (Solutions and Services), Organization Size (Large enterprises and SMEs), Vertical (BFSI, Retail & eCommerce, IT & Telecom, Government, Healthcare, Education, Manufacturing, and Other Verticals), and Region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America).
The Solutions segment includes Message (SMS, MMS, social channels, RCS, and Email), Voice (outbound & inbound voice calls, IVR calls, VoIP, SIP Trunking services, and WebRTC-based calling), Video (Video Calling, Video Conferencing, and WebRTC-based Video), and Other Solutions (Security and Reporting & Analytics). Services segment includes Professional Services and managed Services. The Professional Services Segment is further classified into Implementation & Integration, Training & Consulting, And Support & Maintenance.
The report also provides a comprehensive review of the drivers, restraints, opportunities, and challenges in the CPaaS market. It covers the qualitative aspects in addition to the quantitative aspects of the market.

Reasons To Buy the Report
The report would help market leaders and new entrants in the following ways:

  • It comprehensively segments the CPaaS market and provides the closest approximations of the revenue numbers for the overall market and its subsegments across different regions.
  • It would help stakeholders understand the pulse of the market and provide information on the key market drivers, restraints, challenges, and opportunities in the market.
  • It would help stakeholders understand their competitors better and gain more insights to enhance their positions in the market.
  • The competitive landscape section includes a competitor ecosystem, new product launches, product enhancement, partnerships, mergers, and acquisitions.