The use of CPaaS solutions is becoming popular among organizations globally, and the fast-growing market is estimated to reach up to $25 billion by 2025 – claims a recent study.
With the widespread use of communications-platform-as-a-service (CPaaS), businesses can interact with customers on their applications without any backend infrastructure and interfaces. The latest research study from Juniper Research has revealed that the total value of the CPaaS market will reach $25 billion by 2025 – rising from $7 billion in 2020.
The CPaaS platforms offer a centralized management service for various outbound communications, including OTT-business messaging, RCS, SMS, and voice services. Indeed, it is a rapidly evolving market as more brands are prioritizing advanced communication technology amid the pandemic.
The study found the capability to make payments over services like productive communication services (RCS) as well as OTT messaging – as a primary future driver of CPaaS revenue global in the next five years.
CPaaS Market Growth
As per statistics, regardless of enabling modern capabilities, more than 95% of the CPaaS revenue will be attributable to SMS in 2020. This is due to the omnipresence of SMS marketing among mobile subscribers. However, by the end of 2025, the SMS trend is projected to drop to 70% of the total revenue.
This is most likely to happen as alternative digital media messaging solutions are gaining more traction in the CPaaS market space. In its essence, the RCS business messaging is expected to be the second-highest source for the CPaaS revenue within the next five years. It is estimated to be accounting for 15% of the worldwide revenue by 2025. This highlights the ability to support and carrying out multiple communication technologies as a significant aspect of CPaaS vendors.
Consequently, this will help them in increasing the business value proposition of their platforms for different brands and enterprises. A centralized management service is the need of the hour – on providing that, brands can efficiently execute multiple outbound mobile communication technologies.
CPaaS Provider Need to Execute Payment Abilities
The study indicated that different payment capabilities are the key factor in maximizing the value of CPaaS services over the next five years. This is valid for both mobile subscribers as well as the CPaaS service users.
The market growth of the rich media messaging technologies – including RCS, will provide brands the right platform to grow mobile payments over the traditional messaging channels. This is due to the number of RCS-capable mobile subscribers who will also grow in the next five years.