The Cloud Communication Platform Market is expected to grow at a CAGR of 27.7% over the forecast period 2021 to 2026. Nowadays, companies are experiencing a vital necessity for the adoption of cloud communication platform solutions to keep themselves updated with the technological advancements in the communication market.
- Increasing adoption of connected devices, increasing penetration of the internet of things, and rising adoption of cloud-based services are major factors driving the growth of the market. According to Cisco Systems, in 2022, global consumer IP traffic is expected to reach 333 exabytes per month at a 27% compound annual growth rate, which is anticipated to fuel the growth of the market being studied.
- Additionally, according to Forbes, the total installed base of the Internet of Things (IoT) connected devices is projected to amount to 75.44 billion worldwide by 2025, a fivefold increase in ten years. Also, as per Finch Capital, the global market for IoT end-user solutions is expected to grow to 212 billion U.S. dollars in size by the end of 2019, presenting lucrative opportunities for the cloud communication service providers to tap the untapped market globally, hence is expected to boost the growth of the market.
- Besides, the growing trend of BYOD policies and pay as you use services are some other factors further fueling the growth of the global cloud communication platform market. For instance, according to a survey in 2018 by the Department for Digital, Culture, Media, and Sport (UK), 45% of UK businesses supported bringing your own device (BYOD). Among the total number of UK businesses, 60% of finance or insurance firms (105 firms out of the 1,519 businesses) were also firms where BYOD occurred.
- Factor such as enhanced productivity and decreased costs have enabled enterprises to adopt cloud collaboration solutions for better outcomes. This has given the service providers to focus on cloud-based communication and collaboration solutions and drive this market in the long-run. For instance, according to Datanyze, Microsoft-owned cloud collaboration platform SharePoint accounted for approximately 34.09% of the team collaboration technology market in the UK, in the year 2020. Moreover, as per clutch.co, as of April 2020, more than 36% of employees used Zoom when working remotely, followed by Microsoft Teams, with 19% of workers.
- The cloud services are usually internet-based, therefore the speed of internet connection would affect the global cloud communication platform market. Also, privacy and security concerns regarding confidential data are further hampering the growth of the market, as according to Identity Theft Resource Center, in 2019, the number of data breaches in the United States amounted to 1,473 with over 164.68 million sensitive records exposed.
Key Market Trends
BFSI to Drive the Market
- The Cloud Communication Platform solutions allow investment banks, private equity, venture capital, asset managers, and insurance firms to securely exchange business information with partners, clients, and customers. The evolution of financial technology (fintech) and digital transformation in the BFSI sector is driving the segment’s growth.
- Besides, cloud-based collaborative solutions provide workflow and content governance processes to power banks, insurance firms, and investment and advisory firms. According to a survey among the Asia-Pacific banks by Finastra in 2018, 53% had an intermediate level of private and public cloud adoption. The same survey indicated that 45% of top banks across the region had moved digital channel workloads to the predominantly private cloud.
- The financial sector is undergoing a massive transformation, and it has become the need of an hour to be more agile, innovative, collaborative, and customer-centric. The cloud collaboration vendors such as Box, HighQ, Jive Software, and others enable the BFSI industry to deliver high-end customer experience, decrease operating costs, and meet the regulatory and compliance obligations.
- Cloud collaboration can enhance customer service offerings for this sector via improved online customer care and improved customer self-service. For instance, according to a survey by Microsoft Corporation in 2018, 26% of the respondents in the United Kingdom stated that they prefer to contact customer service by email.
North America to Dominate the Market
- North America dominates the global cloud communication platform market in terms of revenue and is expected to maintain its dominance during the forecast period. This growth is attributed to the increasing adoption of cloud-based services and the availability of several cloud-based services providers in this region. For instance, according to IBM, by 2020, it is projected that 68% of organizations will make use of managed cloud infrastructure services in the United States two-fold increase from 2018.
- The principal reason for the excellent development rate in this region is the growing demand for unified communications, and product segregation is among the service providers. In North America, the UCaaS segment by solutions drives the market to the IVR segment. IVR segment is expected to increase at a greater rate than the video conferencing segment in this region.
The Cloud Communication Platform Market is highly competitive and is characterized by a number of vendors offering comprehensive cloud communication solutions. Market players are actively concentrating on extending product range and service area they offer. In order to deliver application-specific services across industries, companies are placing emphasis on innovation and R&D. Major players in the global cloud communication platform market include Cisco System, Inc., Twilio Inc., 8x8, Inc., Avaya Inc., and NetFortris, Inc. among others.
- July 2020 - Twilio Inc. acquires Electric Imp (Electric Imp provides a secure IoT platform, connecting cloud services with the real world) to bolster its growing IoT market, which is already one of its fastest-growing business units.
- May 2019 - Ozonetel revealed the launch of its voice bot platform. This platform will also enable easy development of voice bots for the various voice endpoints that are a mobile app, telephony, and digital assistants. All of the existing chatbots can also effortlessly be ported to be the voice bot platform.
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Table of Contents
1.2 Scope of the Study?
4.2 Market Drivers
4.2.1 Tremendous Shifts in Communication Market
4.2.2 Rising Trend of Organizations to Implement Flexible Work Opportunities
4.2.3 Growing Demand for BYOD
4.3 Market Restraints
4.3.1 Security and Privacy Concerns
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Industry Value Chain Analysis
4.6 Assessment of Impact of Covid-19 on the Industry
5.2 By Deployment Type
5.2.1 Public cloud services
5.2.2 Private cloud services
5.2.3 Hybrid cloud services
5.3 By Industry Vertical
5.3.3 IT & Telecommunication
5.3.6 Others Industry Verticals (Manufacturing, Travel and Hospitality, Education)
5.4.1 North America
5.4.4 Latin America
5.4.5 Middle East & Africa
6.1.1 Cisco System, Inc
6.1.2 Twilio Inc.
6.1.3 8x8, Inc.
6.1.4 Avaya Inc.
6.1.5 NetFortris, Inc.
6.1.6 West IP Communications, Inc.
6.1.7 Telestax, Inc.
6.1.8 Plivo Inc.
6.1.9 Nexmo, Inc.
6.1.10 Vonage Holdings Corp.
6.1.11 Masergy Communications
6.1.12 Mitel Networks Corporation
6.1.13 Vonage API Developer
6.1.14 CallFire Inc.
6.1.15 Ozonetel Communication Pvt. Ltd
6.1.16 RingCentral, Inc.
A selection of companies mentioned in this report includes:
- Cisco System, Inc
- Twilio Inc.
- 8x8, Inc.
- Avaya Inc.
- NetFortris, Inc.
- West IP Communications, Inc.
- Telestax, Inc.
- Plivo Inc.
- Nexmo, Inc.
- Vonage Holdings Corp.
- Masergy Communications
- Mitel Networks Corporation
- Vonage API Developer
- CallFire Inc.
- Ozonetel Communication Pvt. Ltd
- RingCentral, Inc.