Forecast: CPaaS rich media revenue over $10bn by 2028
June 12, 2024
A study from Juniper Research, experts in the telecommunications markets, forecasts that revenue from Communication Platform as a Service (CPaaS) rich media traffic, including RCS, video and social media, will grow by 190 per cent to over $10 billion (€9.3bn) in the next five years; rising from $3.4 billion in 2023.
It identified two key drivers of this growth:
- Rising SMS business messaging termination fees.
- Apple’s imminent support of RCS business messaging in 2024.
As the price of SMS business messaging continues to rise, the study – titled Global CPaaS Market 2024-2028 – predicted that more enterprises will be forced to explore alternative channels for marketing campaigns and customer interactions in order to reduce costs. Conversely, Apple will begin support for RCS business messaging this year, creating a highly valuable alternative to SMS for enterprises.
By 2028, RCS business messages delivered by CPaaS platforms globally are expected to reach 86 billion; rising from just 2.5 billion in 2024.
Conversational AI to Boost Rich Media Channels
To capitalise on the growth of rich media messaging, the study urges CPaaS platforms to invest in campaign management tools that enable their clients to maximise its true potential. Notably, it identified conversational AI as a highly desired service by enterprises; owing to its ease of deployment into existing business systems.
Research author, Sam Barker, commented: “Conversational AI will provide an immediate benefit to enterprise CPaaS users. Third-party developers will enable enterprises to launch chatbot services over channels like RCS that leverage large language models. However, to maximise adoption, CPaaS platforms must offer front-end solutions allowing enterprises to directly manage their AI implementations.”