The CPaaS market is expected to reach $60 billion in sales by 2032, driven by increasing demand for customer communication and engagement across financial services and retail.
According to Future Market Insights (FMI), market demand will grow at around 25 percent compound annual growth rate (CAGR) from 2022 until 2032. FMI’s report on the CPaaS market estimated its sales value to be about $6.4 billion by the end of 2022, meaning FMI predicts the market will grow to almost ten times its current size.
FMI has said that the growing demand for flexible communication platforms is expected to boost sales of CPaaS solutions, as one Future Markets Insight Analyst commented:
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.”
Retail Demand Spearheading Growth
The report’s other findings are that the increasing adoption of CPaaS in retail is fueling market growth and is expected to continue its dominance soon. Retail firms are using CPaaS solutions to adjust to the hybrid environment of modern-day purchase requirements. The report illustrates that large retail businesses with multiple locations are using cloud-based call routing solutions to ensure accurate routing of calls and SMS depending on location, time and need.
Both online and in-store retailers use CPaaS solutions as the preferred business software because it can “circulate customized information, initiate in-store event registrations, offer segmented discount codes, and send sales alerts,” according to the FMI report. “In addition, the addition of SMS with a voice to the communication strategy ensures an increased product footprint for consumers.”
Financial Services and Healthcare Further Growth Drivers
The FMI report also notes the prominence of banking and financial services adopting CPaaS platforms, underlining that the emergence of Omni-channel methods for customer management is set to increase the demand for CPaaS solutions in this industry. Financial services businesses need a secure platform to provide customers with quick and reliable services while preventing fraud, with CPaaS solutions fulfilling that requirement as a secure real-time communication platform.
FMI highlights that CPaaS solutions are becoming more popular, especially in the banking sector, because they can produce personalized offerings. CPaaS services also allow onboarding features and text reminders to customers, which are valuable to banks as it reduces delinquency risk with compliance and security.
FMI’s report added: “Furthermore, implementing CPaaS solutions results in early fraud detection with an outbound IVR facility. These facilities come with additional options for immediate transfer to agents offering secure environments to customers for financial transactions. Such wide adoption opens new opportunities for key players in the CPaaS market.”
Additionally, the healthcare industry’s investment in CPaaS is estimated to be significant, growing at a CAGR of 31 percent over the next few years.
The Inevitable Spectre of AI
AI has arguably been the defining theme of 2023 for CPaaS. The FMI report suggests it will become even more integral to its growing future, especially in adopting chatbots to enhance customer engagement.
Businesses use chatbots and chat applications, including What’s App APIs to improve real-time customer engagement. FMI cites a CNBC report that estimates bots will handle 75-90 percent of customer questions by the end of 2024. Due to chatbots’ growing adoption and application, the FMI predict that demand for communications platforms as a service solution will surge.
