The Small and Medium Enterprises (SMEs) sector will drive the Communications Platform-as-a-Service (CPaaS) market to reach reach $29 billion globally by 2025; rising from $16 billion in 2022, a new study from Juniper Research has found.
Meanwhile, going by the 80 percent growth in the three years, the report, CPaaS: Market Outlook, Emerging Opportunities & Forecasts 2023-2027, urges CPaaS vendors to focus on the development of managed services over their platforms. These services must enable the creation and management of rich media content over channels such as OTT business messaging, email and social media.
“As markets become increasingly saturated with CPaaS service provision, CPaaS vendors must expand deeper into the SME (Small-to-Medium Enterprise) sector. In addition, the report predicts that CPaaS vendors will further focus on the provision of value-added features that enable platform users to fully maximise the benefits of rich media channels through the inclusion of tools, including workflow builders and AI-based chatbot solutions,” the report noted.
Commenting, Research author Sam Barker stated: “CPaaS vendors now compete on the capabilities of managed services to attract SMEs. As many of these smaller enterprises lack in-house development facilities, they will choose the CPaaS platform that provides the most comprehensive managed services for rich media channels.”
Emerging Channels to Disrupt CPaaS in 2023
SMS has historically been the cornerstone of CPaaS revenue. The report predicts that SMS traffic revenue will still account for over 50% of all CPaaS revenue by 2025; owing to its established reliability in termination for traffic such as MFA (Multi-factor Authentication).
However, the report forecasts that rich media channels, such as email and social media, will continue to expand, and account for over $10 billion of revenue by 2025; representing over 40% of the CPaaS market value. As a result, platforms that fail to include managed services for rich media services in their three-year plans risk missing out on the substantial growth predicted for the CPaaS market.