Over the upcoming half-decade, cloud communications are poised to experience significant expansion. This surge is mainly because enterprises are transitioning from traditional PBX systems to cloud-based communication and preferring a subscription-based payment approach, minimizing initial costs. In light of these trends, projections by analytics giant GlobalData suggest that the market for cloud communications will see an 18.3% CAGR, growing from $78 billion in 2022 to an impressive $180.7 billion by 2027.
The recent study titled “GlobalData Market Opportunity Forecasts to 2027: Cloud Communications,” highlights that in 2022, the US dominated the cloud communications market, contributing to 36.7% of the overall revenue. China came next, accounting for 8.5% of the revenue. Notably, the markets in India and Singapore are predicted to expand the quickest, with anticipated CAGRs of 28.4% and 28.1% over the projected timeframe.
Tejal Hartalkar, Senior Technology Analyst at GlobalData, comments: “Cloud communications is expected to continue its growth significantly due to scalability and adaptability. The technology offers both enhanced user and customer experience. In addition, these platforms often include advanced analytics and reporting features that help businesses gain insights into their communication patterns. This data-driven approach allows enterprises to make informed decisions and improve their communication strategies.”
Per insights from GlobalData, the primary sectors utilizing cloud communications include manufacturing, IT, retail, retail banking, and the governmental sector, together contributing to 33.7% of the total market in 2022. The rising adoption of work-from-anywhere (WFA) practices and bring-your-own-device (BYOD) policies will further bolster the uptake of cloud communications across various industries. The integration of cloud communication APIs is revolutionizing each of these sectors by promoting seamless interactions and improving operational effectiveness.
Gary Barton, Research Director for Enterprise Technology and Services at GlobalData, explains: “Cloud communication platforms have become the default option for most organizations. This trend was boosted by COVID-19 but has continued thanks to cloud-focussed digital transformation strategies by enterprises. The cloud model offers the flexibility that most businesses require as work patterns evolve, and workforces grow and shrink. The cloud model also offers a strong disaster recovery component, The addition of complimentary components such as API plug-ins and AI are increasing the ability of these solutions to offer business value and enhance customer engagement.”
Tejal continues: “AI is shaping how the businesses operate. Enterprises are insistently using AI-integrated cloud communication platforms to empower their customer service and sales agents. AI-powered virtual assistants and chatbots can assist enterprises in automating primitive tasks so that the agents can focus on more critical jobs. Virtual assistants and chatbots have been around for some time, but in the coming years, developments in AI will make their voice exchanges sound more natural and engaging.”
Gary concludes: “Regulatory pressures are increasing in most markets regarding the storage and transfer of employee and customer data. Cloud communication vendors and solution providers are therefore investing in security measures and encryption capabilities, and local hosting options. These features help companies to meet stringent data protection and privacy laws like GDPR and CCPA. This allows businesses to reduce their compliance risks, enabling them to focus on core operations while ensuring transparent data practices. These enhancements ensure the ongoing relevancy of the cloud-hosted collaboration model.”
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