CPaaS stands for Communications Platform as a Service. It’s a cloud-based platform that enables developers to add real-time communications features to their own applications without needing to build backend infrastructure and interfaces. CPaaS Market
Traditionally, real-time communications (RTC) have taken place in applications built specifically for these functions. You likely use these apps every day, from a traditional phone to WhatsApp, FaceTime and Zoom.
These dedicated RTC apps have been the standard for a long time because it’s costly to build and operate a communications stack, which includes maintaining real-time network infrastructure, building interfaces, and even working with common programming languages.
This is why, for example, you can easily use your smartphone’s native phone app to call your bank but can’t video chat a representative from within your bank’s app itself.
CPaaS provides the development framework that allows companies to build real-time communications features without having to take the time to actually develop them from scratch.
Juniper Research, foremost experts in mobile messaging markets, have identified the three sectors that will dominate the CPaaS (Communications Platform‑as‑a‑Service) market over the next four years; accounting for over half of global CPaaS revenue by 2027:
- Retail & eCommerce (28%)
- Banking & Finance (13%)
- Travel & Tourism (10%)
Conversational & Rich Media Messaging to Be Key
Juniper Research predicts that the biggest CPaaS sector, Retail, will account for up to $10 billion for CPaaS vendors globally by 2027; a substantial increase of 135% over 2023, when $4.3 billion will be generated. This growth will be largely driven by the integration of new channels into CPaaS platforms. These will enable online retailers to leverage rich media messaging and new conversational abilities for advertising and upselling opportunities.
Research author Sam Barker remarked: “To capitalise on the growth of retail in the CPaaS space, vendors must develop solutions to enable the management of rich media and conversational abilities over RCS (Rich Communication Services) and social media, as these have been identified as two key high-growth channels by the research.”
Social Media – the Next Big CPaaS Opportunity CPaaS Market
Whilst ecosystems for RCS and email are well established, the research predicts that leading online retailers will now demand the integration of social media channels, such as Instagram and Facebook, into CPaaS platforms. Social media platforms provide a substantially different proposition to established channels including SMS, as they do not need to adhere to telecommunications regulations on message content or limits on advertising. To maximize the potential of social media channels, the report urges CPaaS vendors to invest in CDPs (Customer Data Platforms) that enable the identification of users in order to incorporate social media into omnichannel communication strategies.