CPaaS market to reach US$29bn by 2025: Juniper

The value of the communication platform-as-a-service (CPaaS) market is tipped to hit US$29 billion globally within the next two years, according to new research.

In a new Juniper Research study, the CPaaS market was valued at US$16 billion in 2022.

To capitalise on this growth of 80 percent, the authors of the report noted that CPaaS vendors need to focus on the development of managed services over their platforms.

These services must enable the creation and management of rich media content over channels such as OTT business messaging, email and social media, they said.

CPaaS leaders include Twilio, WhatsApp and Telegram.

As markets become increasingly saturated with CPaaS service provision, CPaaS vendors must expand deeper into the SME sector.

In addition, the report predicts that CPaaS vendors will further focus on the provision of value-added features that enable platform users to fully maximise the benefits of rich media channels through the inclusion of tools, including workflow builders and AI-based chatbot solutions.

Sam Barker, author of the report said, “CPaaS vendors now compete on the capabilities of managed services to attract SMEs. As many of these smaller enterprises lack in-house development facilities, they will choose the CPaaS platform that provides the most comprehensive managed services for rich media channels.”

SMS has historically been the cornerstone of CPaaS revenue. The report predicts that SMS traffic revenue will still account for over 50 percent of all CPaaS revenue by 2025; owing to its established reliability in termination for traffic such as multi-factor authentication.

However, the report forecasts that rich media channels, such as email and social media, will continue to expand, and account for over $10 billion of revenue by 2025; representing over 40 percent of the CPaaS market value. As a result, platforms that fail to include managed services for rich media services in their three-year plans risk missing out on the substantial growth predicted for the CPaaS market.