The Middle East & Africa Communication Platform as a Service (CPaaS) Market is projected to grow at a CAGR of around 31% in the forecast period of 2022-27, says MarkNtel Advisors in their recent research report. With the increase in the number of mobile & smartphone users across the Middle East & Africa region, the Communication Platform as a Service has gained notable momentum in the historical years. In addition, the rising inclination of the population towards the usage of social media platforms viz., Facebook, Instagram, WhatsApp, WeChat, etc., for communication has positively impacted the CPaaS market in the region.
Moreover, CPaaS helps the developers to provide business solutions with real-time communication features, including software tools, standard-based application programming interfaces (APIs), sample code, and pre-built applications, which has contributed to the growth of the Middle East & Africa CPaaS market. However, with the outbreak of COVID-19 in 2020, the companies looked for remote working solutions, and thus adopted work-from-home policies in order to continue their business operations without interruptions.
Thus, this growing need for real-time communication platforms had surged the demand for CPaaS in order to provide business solutions. Furthermore, these cloud-based remote solutions also help companies to integrate real-time communication features such as voice, messaging, video conferencing, etc., to enhance their day-to-day operations in their existing business.
Small & Medium Scale Enterprises to Lead the Middle East & Africa Communication Platform as a Service (CPaaS) Market
Based on enterprise size, the market bifurcates into Small & Medium Scale Enterprise, and Large Scale Enterprise. Among the two, the Small & Medium Scale Enterprise leads the Middle East & Africa Communication Platform as a Service (CPaaS) market, with the highest share, boosting the economic growth of the region. Furthermore, as the government of Saudi Arabia focuses on Vision 2030, small & medium scale enterprises are investing heavily in Industry 4.0 tools like cloud-based solutions, AI, IoT, digital twin technology, RPA, etc., to cater to the technological need of enterprise, and continue their operations without any halt.
This, as a result, stipulated the requirement for real-time cloud-based communication solutions with cost-effective connectivity services, high availability, and increased quality of operations in SMEs. Thus, proliferating the demand for CPaaS in small-scale businesses in Saudi Arabia.
IT & Telecom Sector is Booming in the Middle East & Africa Communication Platform as a Service Market
Based on the end-user, the market is divided into Healthcare, E-commerce & Retail, IT & Telecom, BFSI, Hospitality, and Others. Of them all, the IT & Telecom end-user have shown considerable growth during 2017-21. The sector is largely driven by cloud-based technologies, extensive data processing, social media, video conferencing platforms, and other cutting-edge technologies, such as Machine Learning, the Internet of Things (IoT), robotics, virtual reality, and 3D printing. Moreover, the rising investments in the IT & Telecom sector by the government, telecommunication sector, financial institutions, etc., have rose the requirement for advanced digital solutions that would be required to transform the companies into a modern business platform.
Besides, it is also expected that the increasing requirement of real-time cloud-based communication solutions for the ease of business processes would further incline the CPaaS market during 2022-27. For instance, in 2019, Zain Jordan, a mobile telecom innovator across the Middle East & North Africa, announced its strategic partnership with Telestax, a CPaaS service provider. The collaboration helped Zain Jordan to make use of programming interfaces for organization omnichannel digital transformation.
Saudi Arabia Witnessed a Sizeable Growth Across the Middle East & Africa CPaaS Market
In Saudi Arabia, the Communication Platform as a Service (CPaaS) market has shown substantial growth during 2017-21. Further, as the economy of Saudi Arabia is adopting digital solutions, the market of CPaaS is also growing at a larger pace. Moreover, the Saudi Arabian ICT market has gained momentum due to the complexity caused by the use of high-cost hardware infrastructure & continuing advancements in ICT services, cloud software, and digital media. Consequently, it has driven businesses to adopt a wide range of ICT services, application & website development, value-added tech services, personalized IVRs, etc., which, in turn, has positively impacted the CPaaS market in the country.
Key Market Competitors
According to MarkNtel Advisors, the leading players in the Middle East & Africa Communication Platform as a Service (CPaaS) market are Infobip Gulf, RouteSms Solutions FZE, CM.com, Telesign Corporation, Unifonic Inc., Ericsson (Vonage), Telestax, Kandy Communications LLC, Karix Mobile Private Limited, CEQUENS, Twilio, CometChat, others.
Key Questions Answered in the Study