North America CPaaS market to reach $15bn by 2026
Communications Platform-as-a-Service (CPaaS) revenue generated in North America will reach $15 billion by 2026 up from $3.7 billion in 2021, according to a study from Juniper Research.
The report found significant demand for mobile communications, such as SMS and mobile voice, from enterprises has created a 'highly attractive' market for CPaaS vendors, as CPaaS platforms offer a centralised service for outbound communications.
Further the research predicts that this growth will also drive investment from leading CPaaS vendors into the North American region. Geographically, North America is expected to represent 45% of global CPaaS market value by 2026, while accounting for 5% of global mobile subscribers.
“North America represents an immediate opportunity for CPaaS vendor growth, but long-term growth strategies will require vendors to invest their operations in other regions, as North America becomes saturated,” said Sam Barker, research author.
The study entitled, CPaaS: Future Market Outlook & Emerging Opportunities 2021-2026, encourages CPaaS platforms to invest in AI-based conversational messaging features to capitalise on this growth. By enabling mobile subscribers to buy digital and physical goods through the native messaging client will increase the appeal a platform.
The report then goes on to state that CPaaS vendors must then capitalise on the growth of mobile messaging through revenue-sharing agreements that gives a portion of commerce sales to their platforms as revenue. To facilitate this the report suggests that CPaaS vendors prioritise the onboarding of key eCommerce retailers in the US and ensure that payment details are stored securely.
Lastly, the report predicts 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 region will rise from $2.2 billion in 2021 to over $9 billion by 2026, indicating growth of over 300% over the next 5 years.
In related news, October saw Juniper Research publish its report, Data & Financial Clearing: Emerging Trends, Key Opportunities & Market Forecasts 2021-2026, identifying roaming data and are facing revenue losses of US$484 million this year alone.