Communications Platform as a Service Industry Analysis in Korea

Studying the Potential of the Communications Platform as a Service Industry in Korea from 2023 to 2033

The communications platform as a service (CPaaS) ecosystem in Korea is poised for substantial growth through 2033. The industry is anticipated to show a robust CAGR of 20.20% through 2033.

The demand for communications platform as a service has evolved into a mainstream industry in Korea, and this trajectory is set to drive the sector to an estimated valuation of USD 225.9 million in 2023.

With a promising outlook and consumers’ growing reliance on online shopping platforms, the demand for communications platform as a service in Korea is expected to reach USD 1,479.20 million by 2033.

Key Insights and Highlights to Understand Emerging and Fast-growing Opportunities

• The CPaaS industry is experiencing substantial growth due to the increasing demand for digital customer engagement solutions. Businesses are leveraging CPaaS to enhance customer communication channels and provide seamless real-time interactions.
• Leading companies in the CPaaS sector are incorporating artificial intelligence (AI) into their communication solutions. AI-based communication offerings are on the rise, allowing for more intelligent and automated interactions.
• The adoption of cloud-based communication technologies, such as video conferencing and contact center platforms, is a significant driver for the CPaaS industry. The cloud offers scalability and flexibility for real-time communication solutions.
• Communication APIs are becoming essential for various business applications, including customer engagement, service management, notifications, industry automation, and business intelligence. CPaaS solutions provide multifactor authentication to enhance security.

Attributes	Details
Industry Size in Korea (2023)	USD 225.9 million
Forecasted Industry Size in Korea (2033)	USD 1,479.20 million
CAGR Estimation (2023 to 2033)	20.20%

Key Trends Influencing Demand for Communications Platform as a Service (CPaaS) in Korea

• The rising demand for customized services and the need for real-time support are fueling the CPaaS industry. Customers now expect simultaneous, personalized conversations, cost efficiency, and elimination of repetitive tasks, further driving the adoption of chatbots in the industry.
• CPaaS solutions, driven by chatbots, are data-driven and scalable, offering increased productivity and efficiency. The trend is driven by businesses seeking to streamline customer interactions and provide quick support through chatbot-driven communication channels.

City-wise Insights

AI Integration Amplifies CPaaS Capabilities in South Gyeongsang

South Gyeongsang has witnessed a rapid expansion in the adoption of CPaaS solutions. The region thriving business sector and a strong focus on digital transformation have accelerated the deployment of CPaaS for improved customer engagement and real-time communications.

Companies in the area are leveraging CPaaS to enhance their customer support services and streamline internal communication processes, leading to increased productivity.

The integration of artificial intelligence (AI) into CPaaS solutions. Organizations in the region are seeking AI-driven communication tools to automate responses, provide personalized customer experiences, and gather insights from communication data. As a result, CPaaS providers are focusing on incorporating AI features into their platforms to meet this growing demand.

Category-wise insights

The table below highlights that in 2023, large enterprises and the IT and Telecommunication sectors are currently leading in terms of enterprise size and industry segment.

Category	Industrial Share in 2023
Large Enterprises	57.40%
IT and Telecommunication	31.70%

Large Enterprises Lead their Way in the Communications Platform as a Service (CPaaS) Sector

The large enterprises segment has taken the lead in the CPaaS industry, accounting for an industry share of 57.40% in 2023. Large enterprises are increasingly recognizing the value of CPaaS, driven by its programmable communications and API integration capabilities. The trend highlights how CPaaS is integral to large enterprise communication strategies.

The demand for cloud communication solutions has surged in large enterprises and small and medium-sized businesses (SMBs) in developed and developing countries.

CPaaS offers a valuable solution by enabling enterprises to manage and enhance their communication features without the need for extensive infrastructure development and maintenance.

The ease of use allows companies to create unique customer communication experiences, reduce costs, and drive innovation in their communication strategies. The CPaaS industry growth is a testament to its potential to revolutionize business communication.

IT and Telecommunication Sector Embraces the Enhanced Customer Engagement in CPaaS Industry

The IT and Telecommunication sector has emerged as a dominant player in the CPaaS industry, holding a significant industrial share of 31.70% in 2023. The adoption of the CPaaS solutions sector reflects the growing importance of real-time and efficient communication in the industry.

In the IT and telecommunications sector, CPaaS technologies provide essential tools for enhancing customer engagement and optimizing internal communications. The ability to integrate programmable communication features into software applications and platforms enables companies in this sector to offer advanced communication solutions to their customers, leading to improved customer experiences.

The IT and Telecommunication sector reliance on cloud-based technologies aligns well with the cloud delivery model of CPaaS. The adoption of CPaaS allows companies in this sector to leverage cloud-based communication capabilities, enhancing their competitiveness and industry position.

Competitive Landscape

Players in the Korea’s CPaaS industry are concentrating strategically on customizing their products to meet the specific needs of the regional industry. To ensure accessibility and broad acceptance, this entails integrating CPaaS functions with well-known Korean messaging and social media sites.

Ensuring data security is of paramount importance, requiring stringent encryption and adherence to Korean data protection regulations to foster user confidence.

Partnerships with regional companies and sectors, AI-enabled automation, and sector-specific solutions fuel growth.

In addition, providing localized customer service, following Korean laws, and marketing affordable plans are essential tactics to obtain a competitive advantage and prosper in this tech-savvy and dynamic industry. Players' positions are further strengthened by ongoing innovation, industry localization, and government collaborations.

Recent Developments Observed in the Communications Platform as a Service (CPaaS) in Korea

• In January 2023, KakaoTalk offered enhanced voice and video calling features for business users, enabling companies to conduct video conferences and provide customer support through the app.
• In March 2023, Naver Line invested in chatbot technology, making it easier for businesses to deploy and manage chatbots on the platform. The chatbots can handle a wide range of customer queries and provide support around the clock.

Report Scope

Attribute	Details
Estimated Industry Size in 2023	USD 225.9 million
Projected Industry Size by 2033	USD 1,479.20 million
Anticipated CAGR between 2023 to 2033	20.20% CAGR
Demand Forecast for the Communications Platform as a Service (CPaaS) Industry in Korea	2023 to 2033
Report Coverage	Industry Size, Industry Trends, Analysis of key factors influencing the Communications Platform as a Service (CPaaS) Industry in Korea, Insights on Global Players and their Industry Strategy in Korea, Ecosystem Analysis of Local and Regional Korea Providers
Key Provinces Analyzed	South Gyeongsang, North Jeolla, South Jeolla, Jeju
Key Companies Profiled	KakaoTalk; Naver Line; SK Telecom; KT Corporation; Daum Communications; Korea Telecom; Nexmo; MessageBird; TeleSign; Infobip

Some of the Key Players in the Communications Platform as a Service (CPaaS) Product in Korea

• KakaoTalk
• Naver Line
• SK Telecom
• KT Corporation
• Daum Communications
• Korea Telecom
• Nexmo
• MessageBird
• TeleSign
• Infobip

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Industry Analysis and Outlook 2018 to 2022 and Forecast, 2023 to 2033
• 5. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Solution
  • 5.1. Software
  • 5.2. Services
• 6. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size
  • 6.1. Small & Medium Enterprises (SMEs)
  • 6.2. Large Enterprises
• 7. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Industry
  • 7.1. IT & Telecom
  • 7.2. BFSI
  • 7.3. Manufacturing
  • 7.4. Healthcare
  • 7.5. Retail & CPG
  • 7.6. Others
• 8. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Region
  • 8.1. South Gyeongsang
  • 8.2. North Jeolla
  • 8.3. South Jeolla
  • 8.4. Jeju
  • 8.5. Rest of
• 9. South Gyeongsang Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 10. North Jeolla Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 11. South Jeolla Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 12. Jeju Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 13. Rest of Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
• 14. Market Structure Analysis
• 15. Competition Analysis
  • 15.1. Avaya
  • 15.2. Twilio
  • 15.3. Mitel Networks Corporation
  • 15.4. Infobip
  • 15.5. Bandwidth Inc.
  • 15.6. Vonage
  • 15.7. TeleSign Corporation
  • 15.8. MessageBird
  • 15.9. IMIMobile Limited
  • 15.10. Telnyx
  • 15.11. Yellow Messenger
  • 15.12. 8x8, Inc.
  • 15.13. Telin
  • 15.14. Kaleyra
• 16. Assumptions & Acronyms Used
• 17. Research Methodology