Market Trends of India Communication Platform as a Service (CPaaS) Industry
This section covers the major market trends shaping the India Communication Platform as a Service (CPaaS) Market according to our research experts:
SMEs to Witness Significant Growth
- The SME sector in India is recognized as the foundation of the country's economy, accounting for 45% of industrial output, 40% of exports, 60 million jobs annually, 1.3 million new jobs annually, and the production of more than 8000 high-quality goods for domestic and international markets.
- The Udyam registration platform registered 12,201,448 MSMEs as of November 25, 2022, according to the data from the Ministry of Micro, Small, and Medium Enterprises, replacing the previous procedure of registering for a Udyog Aadhaar Memorandum. Microbusinesses made 11,735,117 (96.17%) of all registered businesses, while small companies made 426,864 (3.49%) and midsized businesses made 39,467 (0.32%).
- For CPaaS providers, the enormous and rapidly expanding market for SMEs in India offers a significant chance to expand their operations across the ecosystem. A fantastic platform for SMEs is CPaaS (Communication Platform as a Service), which enables businesses to create, manage, and use applications without dealing with the hassle of setting up and maintaining communication infrastructure. It includes a modern customer management platform, redundancy, and multi-layer data security, allowing users complete control over the platform.
- Due to the concentration of Indian MSMEs in smaller towns and cities, there is an increased requirement for multilingual communication with their clients. With the help of CPaaS, small business owners can communicate with their clients in various languages without the expense or requirement for specialized translators or translation tools.
- In addition to assisting MSMEs in maintaining relationships with their current clients in their local areas, CPaaS also enables them to connect with potential clients in India. Cloud and AI-enabled communication solutions allow MSMEs to connect with potential clients in multiple markets with personalized messaging, utilizing numerous channels since digital is rapidly becoming a significant component of business operations for enterprises of all sizes in India. MSMEs may scale their communications strategies up or down as necessary with CPaaS, allowing them to develop and expand at their rate. The investment money that would have been spent on growth and lead-generating services is reduced.
- The investment cost is crucial for SMEs when deploying any technology solution. They can profit from a customized, AI-enabled contextual communications platform with CPaaSwithout investing capital in new infrastructure. If they have any apps, they can easily incorporate them into those and other systems via APIs. CPaaScan increases marketing initiatives' return on investment (ROI) by up to 25% while lowering the cost of engagement for MSMEs by 30%.
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Retail and E-commerce is Expected to Hold Significant Market Share
- India is now a mobile-first economy, and rapid mobile and digital adoption have altered consumer engagement and brand interactions. They demand better end-to-end tailored experiences along with more options to pick from. Customers expect all offers to be individualized, according to ~52% of them. Organizations have been utilizing conversational commerce and other technologies to keep up with these shifting consumer demands, particularly when integrated with cutting-edge artificial intelligence (AI) algorithms.
- The requirement for conversational commerce may also be measured by looking at how willing customers are to use chatbots in their purchasing trips. The research found that 81% of the 15% of customers who used a retail chatbot to make purchases stated they would do it again. However, creating CPaaS capabilities that are simple to combine with SaaS solutions may help conversational commerce succeed.
- The Indian e-commerce sector is expected to grow by 21.5% and reach USD 74.8 billion in 2022. The recent increase in digital literacy has resulted in a surge of investment in e-commerce businesses, leveling the playing field for new companies to establish their bases and generating novel patterns to challenge established behavior. The CPaaS market in India is further fueled by increased investment in retail and e-commerce.
- Moreover, the pandemic altered the retail sector, resulting in regrettable store closures and anxiety regarding the future of the in-store experience. Retailers struggled initially but eventually changed course to serve clients through cutting-edge methods efficiently. For all players, big or small, digital-first and omnichannel experiences have become a need. The industry turned to CPaaS for welcome email-based programs, more intelligent voice-based IVR and customer service solutions, and conventional SMS initiatives.
- According to Global Agriculture Information Network, in 2022, there were around 13 million retail grocery stores in India. Within the category, this encompassed traditional and new retailers. While there has been a constant growth in numbers since 2013, it primarily comprises traditional stores. The rise in the retail stores would increase the demand for the studied market, and the retailers may send the product discount rate and any seasonal sales through messages.
