Communications Platform as a Service (CPaaS) Market is Expected to Surge at ~US$ 60 Bn by 2032

According to Future Market Insights (FMI), demand registered in the market will increase at a CAGR of around 25.0% from 2022-2032. Sales in the communication platform as a service (CPaaS) market are anticipated to reach ~US$ 60 Bn by 2032.

The report states that the market is expected to reach a valuation of ~US$ 6,384.4 Mn by the end of 2022. As per Future Market Insights, the growing demand for flexible communication platforms is expected to boost sales of CPaaS solutions.

Communications platform as a service or CPaaS solutions are referred to as cloud solutions that enable organizations to add real-time communication features to business applications. These solutions are adaptable and scalable, and unite the latest integrated communication services into a single offering.

Communications platform as a service brings together several types of communications, including calls, emails, and SMS for enhanced customer engagement. The emergence of Omni-channel methods for customer management is set to increase the demand for CPaaS solutions in the banking and financial sector. Insurance firms, banks, and payment providers require a secure platform for providing rapid and dependable services to customers while preventing fraud. CPaaS solutions have proved to be a secure real-time communication platform across the BFSI industry.

CPaaS solutions are becoming more popular, especially in the banking sector as these provide personalized offerings. CPaaS services, on the other hand, deliver on boarding features and text reminders to customers, thereby reducing delinquency risk with compliance and security.

Furthermore, the implementation of CPaaS solutions results in early fraud detection with an outbound IVR facility. These facilities come along with additional options for immediate transfer to agents offering secure environments to customers for financial transactions. Such wide adoption is opening new opportunities for key players in the CPaaS market.

Key Takeaways

  • By solution, the CPaaS software segment is predicted to lead the global communications platform as a service market with a CAGR of 2% during the forecast period.
  • By enterprise size, the large enterprise segment is set to dominate with a CAGR of nearly 23% between 2022 and 2032.
  • By industry, the healthcare segment is anticipated to exhibit an astonishing CAGR of 31% in the forthcoming years.
  • By geography, North America had the largest market share of about 2% in the CPaaS industry in 2021.
  • The South Asia & Pacific region is expected to witness the highest growth rate of around 7% throughout the forecast period of 2022-2032.
"Growing demand for customer communication and customer engagement across the BFSI and retail industries is expected to drive the global communications platform as a service market growth," says an FMI analyst.

Increasing Demand for CPaaS in Retail Industry to Drive the Market

Retail firms are utilizing CPaaS solutions to adapt to the hybrid environment of modern-day purchase requirements. Large-scale retail and consumer enterprises with multiple locations add cloud-based call routing solutions to ensure accurate routing of calls and SMS depending on location, time and need.

Several brick-and-mortar, as well as online merchants, utilize CPaaS solutions as the preferred business software. Such software solutions can circulate customized information, initiate in-store event registrations, offer segmented discount codes, and send sales alerts. In addition, the addition of SMS with a voice to the communication strategy is ensuring an increased footprint of products onto consumers.

Up-to-date and flexible real-time integrated communication services enable small- and large-scale retail businesses to embrace the rapidly evolving cloud communications market. Thus, increasing adoption in the retail industry is fueling market growth and is anticipated to continue its supremacy in the near future.

Rising Adoption of Chatbots to Enhance Customer Engagement Will Aid Growth

To enhance the process of interaction on a real-time basis, businesses are deploying chatbots and chat applications that interact with customers in an imaginative way. Chatbots and WhatsApp business APIs are two of the most popular use cases for CPaaS solutions. These chatbots are strategically designed to produce desired results with statistical information from the preceding information. The applicability of chatbots is becoming widespread with increased adoption among businesses for meaningful customer engagement.

Various organizations have integrated self-service chatbots for answering simple questions via conversational interfaces. One of the CNBC reports estimates that bots will handle 75-90% of the questions by the end of 2024. The growing adoption and application of chatbots would surge the demand for communications platforms as a service solution.

These insights are based on a report on Communications Platform as a Service (CPaaS) Market by Future Market Insights
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