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North America is expected to account for the largest share in the CPaaS market.
January 3, 2023
Globally, the communications-platform-as-a-service (CPaaS) market should grow to $45.3 billion in the next four years. This is a compound annual growth rate (CAGR) of more than 29%. In 2022, the market was $12.5 billion, according to a new report by MarketsandMarkets.
Demand for improved customer service and client engagement contributes to the growth, the report says. In addition, increased adoption of CPaaS solutions during the pandemic has fueled the growth in the market.
We recently compiled a list of 20 top CPaaS providers offering products and services via channel partners.
The solutions segment should 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 that already use a cloud-based technology stack and want to customize communications infrastructure.
The managed services subsegment will likely be the highest growth rate through 2027. 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.
North America (including the U.S. and Canada) is expected to account for the largest share in the CPaaS market. The region has 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 many 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.
Claudia Adrien is a reporter for Channel Futures where she covers breaking news. Prior to Informa, she wrote about biosecurity and infectious disease for a national publication. She holds a degree in journalism from the University of Florida and resides in Tampa.
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