The total value of the CPaaS (Communications-Platform-as-a-Service) market will reach USD 25 billion in 2025; rising from USD 7 billion this year, according to Juniper Research?s study, titled CPaaS: Future Market Outlook & Emerging Opportunities 2020-2025. CPaaS platforms provide a centralized management service for outbound communications including SMS, OTT business messaging, RCS and voice services.
The study identified the ability to make payments over services, such as RCS (Rich Communication Services) and OTT messaging as a key future driver of global CPaaS revenue over the next five years.
Multiple Technology Support – Key to Future CPaaS Success
The new study predicted that, despite enabling new capabilities, over 95% of CPaaS revenue will be attributable to SMS in 2020 owing to the ubiquity of SMS amongst mobile subscribers. However, by 2025, SMS will drop to 70% of revenue, as alternative rich media messaging solutions gain traction in the CPaaS space.
The research forecasts that RCS Business Messaging will be the second highest source of CPaaS revenue over the next five years; accounting for 15% of global revenue by 2025. It highlights the ability to support multiple communication technologies as being critical for CPaaS vendors; helping them to increase the value proposition of their platforms for brands and enterprises, by providing a centralized management service for multiple outbound mobile communication technologies.
CPaaS Vendors Must Implement Payment Capabilities
The research identified payment capabilities as key to maximizing the value of CPaaS services for both mobile subscribers and CPaaS service users over the next five years. It predicts that growth of rich media messaging technologies, such as RCS, will provide the perfect platform to grow mobile payments over messaging channels as the number of RCS-capable mobile subscribers grows over the next five years.
Research author Sam Barker remarked, ?CPaaS vendors must demonstrate the additional value their platforms can provide to brands and enterprises, with payments services being the primary way by which CPaaS vendors can increase their market appeal.?