According to new research, the CPaaS sector is projected to grow 80% from $16 billion in 2022 to $29 billion in 2025.
CPaaS report by Juniper Research calls out to leverage substantial growth of 80% over next three years Market Outlook, Emerging Opportunities and Forecast 2023-2027 Urges CPaaS providers to focus on developing services managed through their platforms.
The report advises that the proposed services should enable the creation and management of rich media content across channels such as OTT (‘over the top’) business messaging, using the Internet instead of mobile networks, email and social media.
Sam Barker, Research Writer and Head of Analytics and Forecasting at Juniper Research Said: “CPaaS vendors now compete on the capabilities of managed services to attract SMEs. Many of these small enterprises lack in-house development facilities, so they will choose CPaaS platforms that provide the most comprehensive managed services for rich media channels. provides services.
Crowded CPaaS market needs to focus on SMEs
As the market is getting flooded with CPaaS services, the report suggests that CPaaS providers need to expand deeper into the SME sector. Additionally, the report anticipates that CPaaS providers will focus on delivering value-added capabilities that enable platform users to take advantage of rich media channels, embedding and building tools such as workflow builders and AI-based chatbot solutions. get maximum.
Small and medium enterprises (SMEs) are essential in most economies, especially in developing countries. According to the World Bank, SMEs make up the majority of businesses worldwide and contribute significantly to job creation and global economic growth. They account for about 90% of companies worldwide and more than 50% of their employment.
Formal SMEs contribute up to 40% of national income (GDP) in emerging markets. These numbers are much higher when informal small businesses are included.
An estimated 600 million jobs are needed by 2030 to meet the world’s growing workforce. Hence SME development has become a top priority for many governments across the world. In emerging markets, the majority of formal jobs are created by their SMEs, which account for seven out of ten jobs.
However, access to finance is a significant barrier to the development of SMEs. It is one of the most frequently cited barriers faced by SMEs while growing their business in emerging and developing economies, along with weak economies, tax burdens, competitive practices and demand.
SMS traffic will be half of the revenue
SMS (Short Message Service) has always been the cornerstone of CPaaS revenue. The report estimates that SMS traffic revenue will account for more than 50% of all CPaaS revenue by 2025. This is because it has established trust in end to end traffic such as MFA (Multi-Factor Authentication).
Despite this, the report states that rich media channels such as email and social media will continue to expand, generating more than $10 billion in revenue by 2025.
A big part of this will be interactive messaging by companies with customers. Customers will benefit from instant personalisation, assistance and flexibility with their favorite brands through their smartphones.
This will account for over 40% of the CPaaS market cap. As a result, platforms that do not include managed services for rich media services in their three-year plans risk missing out on the significant growth projected in the CPaaS market.
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