The Middle East & Africa Communications Platform as a Service (CPaaS) market is projected to grow at a CAGR of around 20.47% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The growing demand for real-time communication by different enterprises has supported the market growth during the historical period. CPaaS solutions are more cost-effective than building & maintaining a proprietary communication infrastructure, which is one of the factors that has contributed to the industry's expansion. Several countries are introducing new policies for the digital transformation of business, which would lead to the adoption of these solutions in different enterprises during the forecast period.
Additionally, countries in the region, like Saudi Arabia, the UAE, Qatar, etc., are heavily investing in the digital transformation of business by means of various government initiatives like ScaleUp Digitize, The National Strategy for Digital Transformation, etc., in the region to improve their competitiveness on the global stage. These government initiatives would raise awareness of the benefits of CPaaS solutions among businesses in the Middle East. This would encourage more businesses to adopt these solutions to improve their communication capabilities during the forecast period.
Moreover, the business in the region is increasingly focused on improving customer engagement & providing personalized experiences, which have pushed the demand for these solutions. This surging demand has led to the launch of new companies & partnerships between these solutions providers & other entities, such as software vendors, cloud providers, and telecom operators. For instance, in 2022, Etisalat, a telecommunications company based in the United Arab Emirates (UAE), Launched engageX, a CPaaS ecosystem that customizes customer experience journeys with seamless, multi-channel communications., further states the research report, “Middle East & Africa Communications Platform as a Service (CPaaS) market Analysis, 2023.”
SMS to Continue to Hold Major Market Share
Based on the communication channels, the market is further bifurcated into Outbound Voice Calls, Inbound Call Routing, SMS, Multimedia & Video Messaging, and Others. Businesses throughout the region have increasingly been integrating CPaaS on SMS channels, which is assisting market growth. A growing number of businesses are utilizing messaging apps to communicate with consumers as messaging applications are increasingly used by consumers. In 2023, Infobip partnered with valU to provide a WhatsApp business solution to enhance the customer experience & send its important deals, reminders, and notification over WhatsApp.
By leveraging messaging applications, businesses can improve client engagement & sales by communicating with their customers on an intuitive platform. Hence, with the rising partnerships & collaborations between businesses & these providers to integrate SMS channels on messaging applications, the segment would experience considerable growth during the upcoming years.
The UAE to Hold Significant Share in the MEA CPaaS Market
Geographically, the UAE held a significant share in the past years & would also witness rapid growth during the forthcoming years as well due to the rising adoption of cloud-based solutions & demand for real-time communication tools. As businesses in the UAE continue to embrace digital platforms, CPaaS providers like Vonage are extending their services to meet growing demand & expanding their offerings for various applications. Furthermore, the UAE government's investment in digital transformation initiatives & promotion of cloud-based technologies is expected to support the growth of the market in the country during the forecast period.
The UAE government has been focusing on diversifying the economy away from its dependence on oil & gas under the initiatives such as Dubai Industrial Strategy 2030, etc. This is expected to improve the business activities in the country by promoting the establishment of new businesses, thereby enhancing the growth opportunity in the regional market during the forthcoming period.
Competitive Landscape
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Infobip, RouteSms Solutions FZE, CM.com, Telesign Corporation, Unifonic Inc., Ericsson (Vonage), Telestax, Kandy Communications LLC, Karix Mobile Private Limited, CEQUENS, Twilio, CometChat, and Others are looking forward to strengthening their market position.
Key Questions Answered in the Research Report