Growing Influence of CPaaS in India

Market is Expected to grow at a CAGR of 20% for next 5 years.

• CPaaS integrates communication features like voice, video, and messaging into business applications.
• CPaaS has grown as an effective and real-time medium for businesses to communicate with their customers. This communication can be message alerts, OTPs, marketing messages or calls and video-based customer service.
• As per a recent update, UPI transactions reached 10.58 billion in August 2023, a 61% surge compared to the previous month. Almost all the banks and financial entities in India have already deployed CPaaS to communicate in real-time with their banking customers.
• According to the I&B Ministry of India, there are close to 1.2 billion mobile users and 600 million smartphone users in India. The need for omnichannel customer service delivery coupled with increasing mobile-based interactions has prompted businesses to explore new possibilities with CPaaS
• With nearly 10 million Internet users added monthly, India is expected to grow as the second largest base for online shoppers in the world by 2030. The transaction and payment alerts on e-commerce platforms today are facilitated via CPaaS platforms.
• Also, the transactions and voice calls initiated from food delivery platforms like Swiggy and Zomato, along with ride-hailing services like OLA and Uber, have greatly influenced the need for solutions like CPaaS in India.
• Currently, around 60-65% of CPaaS usage by businesses is for transactional messages and around 15% for Over the top (OTT) platforms like WhatsApp, Facebook Messenger, etc.
• While A2P messages are expected to continue dominating the CPaaS market in India, the emergence of technologies like Rich Communication Services (RCS) and OTT will see considerable influence in the near future.

The CPaaS market in India is expected to grow at a CAGR of around 20% for the next five years. The CPaaS market here is experiencing strong consolidation where global players are entering India either by partnering with existing Indian players or through acquisitions. The increasing demand for better and richer customer engagement will push businesses in every industry to embrace CPaaS sooner or later.