Monday, May 20, 2024

    $42bn global CPaaS market to be driven by retail, finance & tourism – but social media is the next big addition

    The CPaaS (Communications Platform‑as‑a‑Service) market over the next four years is set to be driven by use in retail and ecommerce, banking and finance and travel and tourism, which together will account for more than half of global CPaaS revenue by 2027.

    According to a new repor from Juniper Researcht, CPaaS: Strategies, Opportunities & Market Forecasts 2023-2027, the biggest CPaaS sector, Retail, will account for up to $10bn for CPaaS vendors globally by 2027; a substantial increase of 135% over 2023, when $4.3bn 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 comments: “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

    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. As predicted by Telemedia News, 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 maximise 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.

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