Asia-Pacific Communication Platform as a Service (CPaaS) Market Research Report: Forecast (2022-27)
CPaaS is a communication-based service including real-time, cloud-based customized communication service. The communication service provides video, audio, text, and Chabot to an existing application. This service helps to improve and integrate real-time communication between an application and users. With the growth in digitalization across end user industries, the enterprises are increasingly focused on integrating CPaaS to provide best in class customer service and reduce the operational cost.
The Asia Pacific (APAC) Communication Platform as a Service (CPaaS) Market is projected to grow at a 33.39% CAGR during the forecast period, i.e., 2022-27. Asia Pacific region is ranked among the global front runner in digitalization in 2022. The consumer proximity towards the adoption of digital solutions in the countries like China, India, etc., in the Asia Pacific region is comparatively higher than in the other parts of the globe. During 2017-20, the governments in the region stressed upon integration of technology across industries to ensure every citizen of respective countries benefits from the government programs. As a result, the sectors such as healthcare, banking, financial services, telecom, education, etc., witnessed robust growth in the adoption of digital platforms. In addition, the tech providers supporting the digital initiatives partnered with several organizations operating in the CPaaS market to ensure customer satisfaction & improved customer experience.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Country Covered||China, India, Japan, South Korea, ANZ Region, ASEAN Region, Others|
|Key Companies Profiled||Twilio, Vonage (Ericson) , Sinch, Tanla Platforms, Route Mobile, Telestax, Syniverse, RingCentral, Others|
|Unit Denominations||USD Million/Billion|
Since 2020, COVID-19 proved to be a strategic inflection point for the CPaaS vendors in the region as the demand skyrocketed, owing to an exponential growth in the digitalization of service delivery channels (both B2B & B2C). The integration of CPaaS soared across logistics, pharmaceuticals & healthcare, financial services, e-commerce, etc. In addition, the governments in the region adopted SMS APIs to connect with their citizens
Key Trends in the Market
Increasing Demand for Blockchain-Enabled Communication Platform as a Service
Various Communication as a Service provider companies are integrating blockchain technology into their platforms due to several advantages, including secure messaging, enterprise-level communication, secure VoIP, CDNs, etc. The blockchain system safeguards the private data of the customers by decentralization method and allows access to the intended users only. Moreover, some companies like TOP Network has developed decentralized cloud communication network on the blockchain that helps companies to provide high-quality services at cheaper rates. Blockchain technology allows the service providers to join the networks transparently. Further, with the help of a decentralized cloud communication network, blockchain technology could build the ideal integrations between applications. Thus, reducing the complexity of communication services. Along with improving customer services, companies also strive to reduce costs associated with it. The Voice over Internet Protocol (VoIP), is preferred over customary telephony due to its low cost. Further, the integration of blockchain technology in communication systems helps to remove the centralized access point used in VoIP solutions currently.
Hence, owing to the above mentioned advantages of blockchain technology in communication as a service platform, various companies are collaborating with other companies to enhance their customer experience by making the services safe, secure, and cost-effective. Thus, these factors would also lead the market growth during the forecast period.
Impact of Covid-19 on the Asia Pacific (APAC) Communication Platform as a Service (CPaaS) Market
Various organizations were finding effective ways to communicate with their customers & use their feedback to further provide better services & products to them before pandemic. However, during the COVID-19 pandemic, the imposed lockdown led to the slowdown in economic activities of numerous sectors, including finance, retail, etc. Hence, the government of various countries of Asia Pacific took several initiatives to encourage their citizens to adopt digital modes of operations like digital payments, online shopping, etc., to resume their economic activities. Therefore, the shift towards the digital mode of operations led to increased demand for the CPaaS in the market during the pandemic period to enhance the customer services.
Moreover, the COVID-19 pandemic also accelerated the growth of virtual healthcare services that required Interactive Voice Response (IVR) solutions in the healthcare sector. It was required to collect patient data & provide related information, with two-factor authentication that includes a one-time password (OTP) to validate the identities of the patients, during online interactions through video calls & telehealth. Moreover, the CPaaS helped the countries in the APAC region to overcome the COVID-19 pandemic. For instance, during the release of the vaccines for the COVID-19, the CPaaS created text alert systems for the vaccine availability, notification for second-dose of vaccine to the recipients, etc. Hence, these digital services required the integration of CPaaS in their platforms for smooth conduct & to provide better services to their customers.
Based on Enterprise Size
In 2021, large enterprises completely dominated the market, owing to their large customer base, extensive investment spectrum, and greater urge to integrate disruptive technologies to streamline their operational activities. The large enterprises in Banking & Financial Services, IT & ITeS, E-Commerce, etc., are increasingly planning to leverage API-enabled CPaaS as a strategic skillset to boost their digital competitiveness. Moreover, these organizations are embedding conversational AI in their applications to improve customer satisfaction & retention. The customization or personalization of marketing campaigns, data privacy regulations, etc., are a few of the other factors boosting the investments of large enterprises in CPaaS platforms. The midsize firms in the BFSI & Healthcare would present opportunities for CPaaS providers, owing to their rising IT budgets & greater geographical aspirations.
Based on End Users
In 2021, BFSI held the major market share in the regional CPaaS market. In the era of digitalization, where industries are forced to adopt digital transformation to stay relevant, the banking sector is no exception. In recent years, with the growth of digital transformation, the APAC Banking industry witnessed remarkable growth. The major reasons for the growth of the segment is largely dependent upon the rising need for smart digital payments & other digital banking services which had necessitated the requirement for digital platforms in the banking & financial sector. In China and India, digital financial services gained momentum due to the collaborative approach adopted by tech-savvy start-ups & traditional players. Thus, rapid adoption of digital platforms by banks, enables them to keep an eye on their customer queries, protect them from cyber security threats as well as improve banking efficiency of operations. It also helps individuals to make ease in doing transactions, check their account balance, transfer money as well as a complaints regarding any issue in real-time. Consequently, to satisfy the customer needs in real-time, banks are pushing themselves to adopt communication platform as a service (CPaaS) software application services to track real-time customer data & better serve customer needs & wants
During 2017-21, China held a significant market share in the communication platform as a service market due to the existence of favorable government policies, rising demand for network connectivity, increasing online transactions as well as increasing use of communication platforms in the business. In the recent years, China has developed a comprehensive digital infrastructure to progress customer engagement & provide unrivaled customer know-how. This digital development enables an organization to better understand business complexities & to have innovative solutions for their business. In lieu of this, various enterprises has adopted high-performance conferencing solutions, which help them enhance their communication platforms, increase their productivity, and mobilize greater visibility across all the parts of the enterprise, thus, widening the scope for real-time communication platforms CPaaS during the historical period.
Recent Developments by Leading Companies
Key Drivers: Growing Digital Ecosystem Owing to COVID-19
Digitalization offers various benefits to enterprises and other public organizations such as providing better services to their customers, helping enterprises to retain them, saving budget & other resource costs, etc. Hence, the governments of various countries in Asia Pacific like India, are focusing on the digitalization of their public sectors to meet the rising demand & expectations of their citizens & businesses. Thus, various initiatives were taken by the government of several countries in the Asia Pacific region to digitalize their services. This further encouraged their citizens to create a digitally empowered economy following faceless, paperless, and cashless modes like the use of digital payments methods using digital payment apps, mobile banking, etc.
However, in 2020, COVID-19 impacted the economic activities of various countries in Asia Pacific countries like India, China, etc., and created havoc among citizens and enterprises. Hence, the COVID-19 pandemic accelerated the adoption a digitalization mode of operations across industries such as healthcare, banking, education, etc., as the enterprises aimed at reaching the end consumer effectively. Also, various organizations like WHO, and the G-20 group also took initiatives to help the impacted countries.
Considering these factors, it is evident that the COVID-19 pandemic created the need for an effective communication platform for every enterprise so as to enhance their customer experience & engagements in an effective way. Thus, CPaaS demand that Communication Platform as a Service (CPaaS) providers engage & have impactful interaction with their customers around the world.
Growth Restraints: Security & Access Control of Data to Restrain the Market Growth
Owing to the various advantages of CPaaS such as improved organization productivity, integration of third-party apps, etc., have encouraged various enterprises to shift from on-premise communications to cloud-based platforms & APIs. However, the use of APIs could possess several challenges, as open APIs could leave the data of enterprises exposed, which could lead to unwanted access of the data.
When the credentials are stolen, the API abuse also becomes a major challenge for the enterprises, as the abuse could even risk the safety of the company budget depending upon the stolen credential's level of access. Hence, choosing an API vendor with poor security could risk the security of the enterprise data.
The wireless internet & mobile apps developers prefe native communication capabilities that could be easily integrated into their platform. The CPaaS allows the enterprises to integrate native communication capabilities with simple API interactions that help developers deploy & customize the services according to their need.
Moreover, as the API security depends upon the security of the CPaaS platform, the codes written by the developers require to have best security practices, including authentication, and the implementation of API, to match the specifications. Hence, poor implementation, could also make the data security vulnerable. Thus, data security is a major concern in the implementation of CPaaS.
Key Questions Answered in the Market Research Report:?
Frequently Asked Questions
A. the Asia Pacific (APAC) Communication Platform as a Service (CPaaS) Market is projected to grow at a 33.39% CAGR during 2022-27.
A. Professional Services are anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.
A. Growth in Digital Transformation across BFSI, Ecommerce and Healthcare industries would present immense opportunities to the companies offering CPaaS Solutions