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Communications-Platform-as-a-Service Market Upside

Mobile communication apps have experienced significant usage growth across the globe. Modern smartphone software applications provide various forms of voice and data communications that have transformed telecom service delivery.

Furthermore, mobile channels have become important for organizations to connect with customers, as online service providers now offer a comprehensive communication solution. These are emerging cloud-based Communications-Platform-as-a-Service (CPaaS) offerings.

CPaaS Platform Market Development

According to the latest worldwide market study by Juniper Research, the CPaaS market will reach $25 billion in 2025 -- rising from $7 billion in 2020.

CPaaS platforms provide a centralized management service for outbound communications including short message services (SMS), over-the-top (OTT) business messaging, rich communication services (RCS) and voice-over-IP (VoIP) services.

The study identified the ability to make payments over services such as RCS and OTT messaging as a key future driver of global CPaaS revenue during the next five years.

Juniper analysts predict that, despite enabling new capabilities, over 95 percent of CPaaS revenue will be attributable to SMS in 2020, due to the ubiquity of texting adoption among mobile subscribers.

However, by 2025, SMS will drop to 70 percent of service provider revenue, as alternative rich media messaging solutions gain traction in the CPaaS marketplace.


The research findings forecast that RCS Business Messaging will be the second-highest source of CPaaS revenue within the next five years -- accounting for 15 percent of global revenue by 2025.

The latest advancements highlight the ability to support multiple communication technologies. CPaaS vendors can now increase the value proposition of their platforms by providing a centralized management service for multiple outbound mobile communication technologies.

Juniper predicts that the 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 during the next five years.

Outlook for CPaaS Applications Growth

"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," said Sam Barker, lead analyst at Juniper Research.

There are varying methods of monetization with these services, however, Juniper analysts believe the key to success for CPaaS platforms should not be measured by network traffic, but by the number of communication platforms it can offer.

Indeed, in the future, Juniper Research says that the introduction of chatbots, financial services, payment services and expansion into other sectors will be instrumental for CPaaS providers to increase their upside revenue potential.

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