Global cloud communication revenue expected to hit $180.7 billion by 2027
Cloud communications is expected to see major growth over the next five years as businesses cross over from legacy PBX to cloud platforms. Unlike traditional platforms that require huge upfront investments, cloud solutions offer a pay-as-you-go model which has cost optimization benefits and is, therefore, preferable.
According to the report from GlobalData forecasting future market opportunities, cloud communications market will grow at an 18.3% CAGR from $78 billion in 2022 to $180.7 billion in 2027.
The report notes that while the US and China accounted for the largest share of cloud communications revenue in 2022, 36.7% and 8.5% respectively, India and Singapore should see the fastest growth at 28.4% and 28.1% CAGRs through 2027.
According to Tejal Hartalkar the senior technology analyst at GlobalData, cloud communications will continue significant growth 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,” Hartalkar said.
According to the GlobalData report, consumption of cloud communications will be highest in the manufacturing, information technology (IT), retail, retail banking, and government sectors, which collectively accounted for 33.7% of the overall market in 2022.
The growing implementation of work-from-anywhere (WFA) and bring-your-own-device (BYOD) coupled with the increased use of cloud-based communication API solutions will be key in driving the uptake of cloud communication solutions.
Gary Barton of GlobalData thinks that cloud platforms are now the default for most organizations, thanks to COVID-19 and digital transformation. The flexibility matches evolving work patterns and workforces. And while disaster recovery is a primary benefit of the cloud, add-ons like APIs and AI are offering more business value and customer engagement.
Echoing Hartalkar’s statement, Gary Barton, the research director for Enterprise Technology and Services at GlobalData, said that cloud communication was already a growing trend that received a massive boost during the pandemic.
“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,” Barton said.
Barton also added that cloud solutions also have an added advantage in that they help businesses meet compliance requirements without much effort.