Infobip report: AI and SMEs to propel CPaaS market growth
Prevalence of internet access and the widespread use of smartphones have further accentuated the need for personalized experiences across various sectors.
What you need to know:
- Report forecasts that within the next three years, approximately 90 per cent of global enterprises will strategically incorporate CPaaS as an essential IT competency.
- CPaaS offers organizations and developers the capability to seamlessly integrate communication functionalities into their applications.
Global cloud communications leader, Infobip, had predicted a remarkable surge in the communications-platform-as-a-service (CPaaS) market, attributing the growth to the convergence of Artificial Intelligence (AI) and the engagement of small to mid-sized enterprises (SMEs).
According to the "CPaaS Growth Outlook 2023" report released by the CPaaS Acceleration Alliance (CPaaSAA), the CPaaS sector is on track to achieve an extraordinary valuation of Sh14 trillion ($100 billion) by 2030, indicating a substantial leap from the current Sh2.8 trillion ($20 billion).
Infobip's Key Account Executive, Duncan Mochama, highlighted the role of CPaaS technology in facilitating efficient customer engagement for businesses of all sizes.
"The fast-moving pace of the world driven by digital transformation is leading businesses to be more agile, flexible, and scalable by meeting the customer where they are," Mochama said.
The report, developed in collaboration with industry experts and analysts, forecasts that within the next three years, approximately 90 per cent of global enterprises will strategically incorporate CPaaS as an essential IT competency.
Automated communications
CPaaS offers organizations and developers the capability to seamlessly integrate communication functionalities into their applications. The integration is made possible through Application Programming Interfaces (APIs) and software development kits (SDKs).
These platforms enable the seamless embedding of voice, video, chat and messaging into various applications and services. The versatility of CPaaS empowers businesses to effectively employ diverse communication channels, including SMS, voice calls, and popular messaging apps like WhatsApp, Viber, and Messenger, thereby adapting to changing customer preferences.
Innovative use cases of CPaaS include a range of automated communications such as order confirmations, shipping updates, marketing messages, appointment reminders, password reset notifications, and alerts for new device account logins.
These messages can be scheduled or triggered, catering to the real-time needs of both businesses and customers.
The synergy between AI and CPaaS emerges as a key driver for market growth. Mochama noted that AI technologies, including speech recognition and chatbots, have attained remarkable accuracy levels.
Customer-business interactions
These advancements enable critical workflows through phone, chat, and messaging platforms. AI-powered chatbots are transforming customer support experiences, and AI-driven workflow automation detects and addresses potential risks and compliance concerns.
Mochama acknowledged the evolving customer expectations, stating that the modern consumer desires personalized interactions that make them feel valued and heard. As a response, businesses are embracing technologies like CPaaS to cater to this demand.
The prevalence of internet access and the widespread use of smartphones have further accentuated the need for personalized experiences across various sectors, including BFSI, travel and hospitality, e-commerce, retail and healthcare.
CPaaS market's projected growth fueled by AI and SME engagement is poised to reshape customer-business interactions. The convergence of advanced technologies and strategic adoption of CPaaS presents a unique opportunity for businesses to foster customer loyalty through personalized, real-time engagement.
Dynamic digital marketplace
As the CPaaS landscape continues to evolve, organizations must navigate these trends to remain competitive in the dynamic digital marketplace.
The Covid-19 pandemic, according to the report, expedited existing trends in mobility and digitalization for numerous companies, largely facilitated by CPaaS communication channels, connectivity, and automation. A notable example is the surge in popularity of telemedicine services, where patients access medical consultations remotely through video and messaging.
In recent years, in-app communication has increased in popularity, leading to a reduction in traditional telephone SMS and voice call traffic.
According to Kenya’s Economic Survey 2023, the total volume of domestic telephone traffic decreased from 80.1 billion minutes in 2021 to 78.3 billion minutes in 2022. The international SMSs sent and received declined by 29.2 per cent and 3.7 per cent, resulting to 19.8 million and 34.7 million, respectively.
