TECH SUPPLIER Sep 2020 - Market Analysis Perspective - Doc # US46864820
Market Analysis Perspective: Worldwide Communications Platform as a Service, 2020
This IDC Market Analysis Perspective (MAP) provides an overview of the worldwide communications platform–as-a-service (CPaaS) market. The CPaaS market is forecast to grow from $4.2 billion in 2019 to $17.7 billion in 2024. The CPaaS market continues its rapid growth as enterprises increasingly adopt customized engagement applications. The overall market growth will slow down slightly in 2020, due to the impact of COVID-19 on some sectors. However, an accelerated migration to the cloud will see renewed growth in 2021 and beyond. IDC is forecasting a CAGR of 33% over the five-year forecast period.
While voice and SMS remain critical to CPaaS, video and OTT messaging will assume increasing importance in the coming years. Call center service platforms are increasingly leveraging API-based services. Enterprise demand continues to be driven by enterprise digital transformation requirements. Enterprises are growing more adept at engaging customers with omni-channels including social media and extending applications to include OTT messaging and diverse notification channels.
The market is growing increasingly fragmented with a few large companies dominating the market, followed by a long tail of dozens of companies from various regions. IDC is forecasting increased diversity in the market as telecom carriers step up their activity in this segment and also look to IoT use cases to increase.
"CPaaS is settling into a new growth phase, driven by increased awareness among enterprises and the adoption of AI that drives personalization and differentiation that is pushing the market beyond basic notification," according to Courtney Munroe, RVP for Worldwide Telecommunications Research at IDC.