Emerging CPaaS trends in the Indian market

CPaaS providers are integrating features like Gen AI, NLP, bots, and sentiment analysis, enabling powerful customer interactions. These tools work alongside Customer Data Platforms (CDPs), which gather data from various channels and past interactions with the CPaaS customer. 

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CPaaS trends

The Indian Communications Platform as a Service (CPaaS) landscape is witnessing a seismic shift because of the increase in customer demand for seamless communication across industries. So much so that businesses are gearing up to boost their spending on communication platforms by 63%, according to the IDC InfoBrief 2023, commissioned by Infobip. 


However, it's not just about customer demand; the increased investment in CPaaS is driven by rapid digital transformation and the exponential rise in number of mobile internet users. Globally, the market has grown by 30%* in the past five years and the forecast indicates another 30%* jump by next year.    

By 2025, API-enabled CPaaS offerings will be utilized by 95%* of global corporations as a vital IT proficiency to maximize their digital competitiveness. Additionally, at least 40%* of medium-sized enterprises will expand their digital capacities for customer experience through CPaaS tools. 

To meet the increasing demand for API-enabled offerings, CPaaS providers are simplifying integrations with API-first strategies that make integrating communication tools into pre-existing platforms seamless. An example of one such offering is CPaaS X, which makes client onboarding easier and faster with a singular API. It empowers businesses to autonomously manage every client account by allocating essential resources to individual entities and channels via APIs. 


As CPaaS providers advance their offerings, here are some emerging trends from the Indian market: 

End-to-End conversational journeys

Businesses are increasingly offering conversational customer journeys powered by Gen AI, chat apps, and cloud infrastructure. With the rise of end-to-end platforms, users can smoothly navigate through different transaction stages in one chat or messaging app. This includes things like seeing an ad on Instagram, learning about a product, buying it, paying for it, getting updates on delivery, and even giving feedback. 

Now, the goal is to make these whole conversations even better. Meta has started doing this with Flows, which enables businesses create custom chat experiences, and Payments, which lets customers buy things right in the chat. In 2024, we'll see other big tech companies offering a similar experience. 


Increasing adoption of RCS

Rich Communications Services (RCS), also described as "SMS on steroids," provides wider reach and personalized multimedia messaging capabilities. By incorporating high-quality images, videos, and other features, it enhances the customer experience, enabling businesses to strengthen relationships with their user base. 

For Android users, RCS offers an interactive, app-like interface within messaging inboxes. However, in 2024, it is anticipated that RCS will be extending its reach to Apple users as well, following the tech giant's announcement of RCS support on iOS devices. This year will also witness a growing preference for RCS as messaging app-based conversational experiences become central to digital transformation efforts.

Composable commerce

Composable commerce provides businesses with a significant advantage by offering flexibility and scalability. Two key benefits include the ability to create highly personalized solutions and conduct real-time testing, facilitated by seamless collaboration among individual components in the technology stack. 


Beyond retail, sectors such as telecommunications, finance and healthcare are also embracing composable commerce, leading to a more specialized set of use cases and simplified plug-and-play technology setups. The modular design of composable solutions contributes to the democratization of customer experience technologies, with partnership ecosystems playing a crucial role in unlocking businesses' full potential. As composable commerce evolves, AI and predictive models will take centre stage, guided by data to drive innovation, revenue generation, and long-term success.

Use of voice assistants

Chatbots and AI-driven automation are transforming customer interactions in the 21st century, introducing innovative approaches to engaging and conversing with customers. 

According to Gartner's estimates, around 25% of organizations are anticipated to embrace chatbots as their primary customer service channel by 2027. AI assistants can initiate and receive phone calls, mimicking human agents. These voice AI assistants offer significant advantages in enhancing customer journeys, surpassing traditional 'robocalls' by providing a unique, personalized digital assistant with customizable voice personas, genders, and tones. The adaptability and scalability of AI assistants make them invaluable for customer support in ambitious and customer-centric businesses. 


Leveraging Generative AI

Generative AI has taken giant leaps in its ability to create human-like text, opening up exciting possibilities in customer support. It's already being used to automatically craft messages and emails, while AI-powered bots are handling simple inquiries. We will soon witness interactive bots doing things for you. 

For instance, a personal AI assistant could handle activities like shopping for groceries or booking travel arrangements. The emerging trend of Gen AI comprises specialized bots and AI algorithms working together seamlessly to address diverse customer needs. Brands are already integrating these tools into their customer service, marketing, and sales departments. 


CPaaS providers are integrating features like Gen AI, NLP, bots, and sentiment analysis, enabling powerful customer interactions. These tools work alongside Customer Data Platforms (CDPs), which gather data from various channels and past interactions with the CPaaS customer. 

This combined intelligence unlocks valuable insights into customer behavior, preferences, and trends. This translates to brands getting a clear picture of their customers' thoughts, feelings, and actions across different touchpoints. It enables them to make informed decisions for campaigns and personalization of products and services, resulting in maximum impact.

-- Tanmay Midha, Business Lead, Platforms, India, Infobip.