CPaaS Market Value in North America to Reach $15 Billion by 2026

CPaaS (Communications Platform-as-a-Service) revenue generated in North America will reach $15 billion by 2026; rising from $3.7 billion in 2021, according to a new study from Juniper Research. Significant demand for mobile channels, such as SMS and mobile voice, from enterprises, has created a highly attractive market for CPaaS vendors. CPaaS platforms offer a centralized service for outbound communications.

The research predicts that this growth will drive investment from leading CPaaS vendors into the North American region. In turn, the region is anticipated to represent 45% of global CPaaS market value by 2026, despite only accounting for 5% of global mobile subscribers. The new study urges CPaaS platforms to invest in AI-based conversational messaging functionality to capitalize on this growth. It anticipates that enabling mobile subscribers to buy digital and physical goods through the native messaging client will further increase the appeal of a vendor’s platform.

CPaaS vendors must then capitalize on the growth of mobile messaging via revenue-sharing agreements that allocate a proportion of commerce sales to their platforms as revenue. To maximize this new revenue channel, the report suggests that CPaaS vendors prioritize the onboarding of key eCommerce retailers in the US and ensure that payment details are stored securely.

The report predicts that, as CPaaS services become increasingly competitive in North America, leading vendors will look to capitalize 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; representing a growth of over 300% over the next 5 years.

“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 research author Sam Barker.