Market Definition
A communications platform as a service (CPaaS) allows developers to add real-time communications features to their applications, such as voice, messaging, video conferencing calls, chatbots, etc., without building backend infrastructure & interfaces. The rising need for contextual communications, including video-enabled help desks, appointment reminders, authentication services, etc., has deepened its application. With numerous businesses using creative digital technologies to interact with their customers, the demand for CPaaS is expected to grow across the region.
Market Insights
The Middle East & Africa Communications-Platform-as-a-Service (CPaaS) Market is projected to grow at a CAGR of 31% during the forecast period, i.e., 2022-27. The growing adoption of a customer-centric approach in businesses to provide a personalized experience to the customers via deep interaction has gained considerable momentum in the Middle East & Africa region. As a result, the demand for CPaaS has witnessed a significant uptick in the previous few years. Further, it provides a complete development framework without building backend infrastructure & interfaces. Additionally, the Middle East & Africa region, during 2017-21, recorded numerous small & medium-sized enterprises (SMEs) implementing CPaaS solutions, which has provided significant growth opportunities to the market. Moreover, to understand the business complexities & other requirements of customers, the demand for professional CPaaS services, including technical support, consulting, maintenance, integration & implementation, etc., has gained popularity
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 31% |
| Country Covered | UAE, Saudi Arabia, Qatar, Israel, Egypt, South Africa & Others |
| Key Companies Profiled | RouteSms Solutions FZE, CM.com, Telesign Corporation, Unifonic Inc., Ericsson (Vonage), Telestax, Kandy Communications LLC, Karix Mobile Private Limited, CEQUENS, Twilio, CometChat, Others |
| Unit Denominations | USD Million/Billion |
Besides, the rapid advancement of digital technologies has encouraged small & medium-sized firms to digitize their business activities & processes by embracing digital transformation for their business & to better connect with their customers. Therefore, the adoption of the CPaaS has enabled companies to improve their organizational effectiveness with greater flexibility & reduced costs. In response to these factors, many countries around the world are moving towards the development of CPaaS software, creating opportunities in the CPaaS market.
Impact of Covid-19 on the Middle East & Africa Communications-Platform-as-a-Service (CPaaS) Market
With the outbreak of COVID-19, companies across the globe frequently adopted remote working solutions in the region. Subsequently, various companies implemented cloud-based solutions to integrate communication platforms viz., voice, messaging, video, etc., and cloud computing features into their existing business solutions. As a result, companies were able to stay in touch with their customers and even resolved queries remotely. Furthermore, to reduce the complexity in business operations, several companies collaborated with CPaaS providers to improve their business communication solutions. For instance:
Further, it is projected that the growing need for communication tools, interactive technologies, and cloud-based technologies will drive the CPaaS market during the period 2022-27.
Market Segmentation
By Enterprise Size:
Of them all, the SME (Small & Medium Scale Enterprises) dominates the Middle East & Africa Communications Platform as a Service (CPaaS) market, as it plays a significant role in boosting economic growth in the region. Moreover, SMEs can leverage global opportunities by reducing costs of transportation, improving the trading of services, and reducing the costs of logistics & operations by embracing digitalization. In addition, SMEs must provide a better communication interface by adopting digital platforms such as video conferencing, messaging apps, and voice calls to transform their business into a digital one. Thus, CPaaS allows SMEs to establish & distribute real-time communication software tools like APIs, sample code, pre-built communication applications, and integrated development environments (IDEs). For instance:
Additionally, the government in various countries such as Saudi Arabia, the UAE, South Africa, Egypt, Nigeria, etc., have taken necessary measures in order to prioritize the technological advancement in SMEs. Besides, the governments of these countries have introduced several digital transformation strategies such as Saudi Arabia Vision 2030, ICT strategy, the UAE National Innovation Strategy, Kuwait Vision 2035, etc., to initialize digitalization as well as technological advancements in SMEs, including sectors like healthcare, IT, telecom, BFSI, automotive, retail, education, etc.
By End User:
Among these, IT & telecom holds the potential share in the Middle East & Africa Communications Platform as a Service (CPaaS) market, as the industry in the Middle East & Africa region grew progressively during 2017-21. It was driven largely by cloud-based technologies, extensive data processing, social media, video conferencing platforms, and other cutting-edge technologies, such as Machine Learning (ML), the Internet of Things (IoT), robotics, virtual reality, and 3D printing. Moreover, the emergence of Industry 4.0 drove the need for modern IT solutions in the telecom sector. Subsequently, in order to satisfy the demand for advanced IT solutions, the launch of 5G networks incorporates digital & wireless transformation solutions that can drive the CPaaS market in the Middle East & Africa region. Thus, in order to cater to the need for faster data processing, seamless connectivity, and easy retrieval & transferring of data, 5G services have served the purpose, thereby positively impacting the growth of the CPaaS market in the region.
Moreover, the rising collaboration between IT & telecom, and CPaaS providers have proliferated the demand for more customized real-time communication platforms to enhance their business operations. Therefore, it is projected that these initiatives would further accelerate the CPaaS market growth during 2022-27. For instance:
Regional Landscape
Geographically, Saudi Arabia has shown considerable growth in the Middle East & Africa Communication Platform as a Service (CPaaS) market during 2017-21. As Saudi Arabia's economy is evolving towards digitalization, the CPaaS market is projected to expand rapidly. 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, small and medium enterprises have adopted a wide range of ICT services, website development, value-added services, customized IVRs, etc., which has positively impacted the country's CPaaS market.
Additionally, the communication platforms enable companies to construct & distribute real-time communication software to provide clients with software tools such as software development kits (SDKs), wrappers, modules, and individual libraries to support the programming process. Moreover, the rising investments in CPaaS by the government, financial institutions, banks, and other companies have created numerous possibilities for many other leading players in the region to take Application Programming Interface (API) services. Probably, the increasing investments around software development for businesses would further elevate the CPaaS market in the forthcoming years.
Recent Developments by Leading Companies
Market Dynamics:
Key Driver
The rising demand for telehealth & telemedicine has shown significant growth for communication platforms as a service during 2017-2021. Telehealth allows the consumer to receive virtual health services at their doorsteps without physically visiting a clinic or hospital. The demand for telehealth was rapidly increased due to the impact of COVID-19. Furthermore, telehealth is a popular choice among the new generation & tech-savvy population in the region due to its cost-saving, convenience, and intelligent features. Notably, the integration of CPaaS in telehealth, including consultation through video conferencing software, has helped healthcare professionals to provide telemedicine consultations to their patients. Thus, the digitalization of healthcare services is expected to boost the market for Communication Platforms as a service. For instance:
Possible Restraint
The Middle East & Africa has been one of the most affected regions in terms of cyber-attacks on websites, servers, applications, among others. As a result, the reluctance of companies to share sensitive information about codes, syntax, APIs, etc., of their applications with the CPaaS vendors would be a hindrance for companies operating in this domain. Consequently, scaling up their offerings in the region will be a significant task for the companies.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Middle East & Africa Communication Platform as a Service (CPaaS) Market is expecting around 31% CAGR during 2022-27.
A. IT & telecom are anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.
A. The growth in digitalization of banking operations, expanding e-commerce activities, growth of penetration of digital platforms in the healthcare industry, etc., would be the key growth opportunities for CpaaS solution providers in the forthcoming years.
A. The advent of COVID-19 increased the adoption of CPaaS services & various organizations implemented cloud-based solutions to integrate communication platforms viz., voice, messaging, video, etc., and cloud computing features into their existing business solutions. Consequently, the demand for CPaaS is anticipated to proliferate the region’s CPaaS market in the forecast years.
