Market Trends of Communication Platform-as-a-Service (CPaaS) Industry
Retail and E-commerce Industry to Drive the Market Growth
- The retail business has witnessed a significant transformation mainly due to the fast-changing consumer purchasing preferences, moving from the previous single point of interaction to omnichannel interactions via the web or social media. A better shopping and service experience has been well established across all channels due to the rising consumer demand. Hence, it is being catered to by advanced communication solutions that primarily automate customer service and retail business processes.
- More than 73% of customers stated that they had expected customer service to be quite simpler, quicker, and more convenient than it is now, as per a survey by Accenture. Also, a wide range of crucial retail businesses sees omnichannel as a golden chance to acquire a competitive edge. Customer service has emerged as the most vital criterion in choosing one supplier or store over another since most large enterprises now operate across several channels (online and mobile).
- CPaaS is a cloud-based framework that lets businesses synchronize real-time video, audio, and text communication. By utilizing developer-friendly APIs, retailers can integrate these vital features into their social channels, mobile apps, and websites. Further, key market players, like Voxvalley Technologies Pvt Ltd, offer Vox CPaaS, where an individual can augment customer service by filling the gap with conversational commerce, delivery tracking, shipping alerts, abandoned cart SMS reminders, and promotional messages. All of this can be easily achieved within the mobile or web application, and hence the customers can enjoy the ease of communication.
- Additionally, several well-known organizations are already utilizing CPaaS to enhance their client journey with new communication capabilities. One of the biggest travel e-commerce companies in the world, Booking.com, uses CPaaS to assist in integrating voice communication into its mobile apps' booking and customer care processes. Booking.com has 198 offices across 70 different countries.
- Additionally, several retailers are integrating CPaaS with their CRM (Customer Relationship Management) interfaces, improving the overall customer engagement process. It helps in decoding consumer questions and directing them to the appropriate areas for clarification. Additionally, Several businesses employ CPaaS video solutions to provide high HD quality video and seamless connectivity primarily for demonstrating product features and functionality to clients through video calling. Also, to retain more consumers, as most of them chose to shop online, companies like Croma (Infiniti Retail Limited) opened their first pilot store for an online demonstration in Bangalore during the pandemic.
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North America Accounts for the Largest Share
- North America is expected to dominate the CPaaS market due to the recent increase in mobility and the massive growth in the penetration of smart mobile devices. Moreover, with the rising demand for user-friendly and cost-effective browser-based communication solutions, prominent market players are planning to launch integrated and unified CPaaS solutions in the region, which is expected to augment the market's expansion.
- Additionally, the region's CPaaS market is anticipated to benefit from the growing deployment of IoT in the telecom industry. American telecom providers are utilizing the ability of IoT-based technologies to expedite processes and boost effectiveness. The United States produced 51.55 million exabytes of internet traffic per month in 2020. It is projected that this number will rise to 98.64 million exabytes per month in 2023, according to projections from Telecom Advisory Services.
- Additionally, due to a high investment rate for 5G deployment, the United States is one of the top investors and innovators in the 5G market. The telecom industry in the nation drives a significant portion of the world's 5G technology consumption. The US also controls most of the regional 5G market in terms of investment, adoption, and applications. Moreover, to develop their 5G network infrastructure in the United States, telecom providers, including Verizon, AT&T, and T-Mobile, have signed billion-dollar contracts with network equipment manufacturers like Samsung, Ericsson, Nokia, Huawei, and ZTE.
- In November 2021, to concentrate on creating a global network and communication platform for open innovation, Ericsson announced the acquisition of Vonage for USD 6.2 billion. With the acquisition, Ericsson can better fulfill its stated goal of growing its wireless enterprise clientele globally. Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) are both offered by the Vonage Communications Platform.
- Additionally, the increasing level of collaboration in the area is expected to accelerate market expansion. In March 2022, for instance, iBASIS, a well-known US-based provider of communications solutions for operators and digital players, declared the launch of its Carrier Communications Platform-as-a-Service (CPaaS) offering in collaboration with Mavenir, the Network Software Provider shaping the future of networks with cloud-native software that operates on any cloud and transforms the communication. This unique CPaaS approach allows the frictionless integration of next-generation capabilities into the current processes and software applications through application programming interfaces.
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