CPaaS market to be driven by retail, banking and travel: Juniper

The communications platform as a service (CPaaS) market will be driven by retail and ecommere, banking and finance; and travel over the next four years according to Juniper Research.

These three industries will account for over half of global CPaaS revenue by 2027, retail and ecommerce will make up 28 percent, banking and finance 13 percent and travel and tourism 10 percent.

The new report, CPaaS: Strategies, Opportunities & Market Forecasts 2023-2027, provides the most complete assessment available on the CPaaS market; identifying the key vendors, market trends, and strategies that will shape the industry going forward.

Juniper Research predicts that the biggest CPaaS sector, retail, will account for up to US$10 billion for CPaaS vendors globally by 2027; a substantial increase of 135 percent over 2023, when $4.3 billion will be generated.

The report noted that 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.

Sam Barker, research author at Juniper Research said, “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.”

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 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.