CPaaS (communications platform-as-a-service) revenue generated in North America will reach $15bn by 2026, rising from $3.7bn in 2021, according to Juniper Research.
CPaaS is a cloud-based platform that enables businesses to quickly and easily integrate communications capabilities like voice, video and messaging into their own applications, without needing to build back-end infrastructure and interfaces. This enables them to add new capabilities such as chatbots, service agents and contact centres into their customer-facing applications with minimal effort.
Juniper has found that significant demand for mobile channels, such as SMS and mobile voice, from enterprises has created a “highly attractive market” for CPaaS vendors.
The research predicts that this growth will drive investment from leading CPaaS vendors into the North American region. In turn, the region is anticipated to represent 45 percent of global CPaaS market value by 2026 – despite only accounting for five percent of global mobile subscribers.
Juniper anticipates that enabling mobile subscribers to buy digital and physical goods through the native messaging client will further increase the appeal of a vendor’s platform.
CPaaS vendors must then capitalise on the growth of mobile messaging via revenue-sharing agreements that allocate a proportion of commerce sales to their platforms as revenue, it says. To maximise this new revenue channel, Juniper said CPaaS vendors should prioritise the on-boarding of key eCommerce retailers in the US, and ensure that payment details are stored securely.
Juniper Analyst Sam Barker said:
“North America represents an immediate opportunity for CPaaS vendor growth, but long-term growth strategies will require vendors to invest in their operations in other regions, as North America becomes saturated.”
Juniper says that as CPaaS services become increasingly competitive in North America, leading vendors will look to capitalise on future growth in the Asia Pacific region. It forecasts that revenue in the Asia Pacific region will rise from $2.2bn in 2021 to over $9bn by 2026, representing growth of over 300% over the next five years.
