Customer Experience MetriCast 2024: CPaaS Market Share & Forecast 3Q24

Metrigy’s Customer Experience MetriCast 2024 market study for CPaaS underscores the importance organizations place on the ability to customize their customer engagement features and add cloudbased apps for improved customer experience.A total of 38.4% of organizations were using CPaaS in early 2024 and another 29.2% had planned to do so by the end of 2024. This report provides details on CPaaS spending, market size and forecast, and vendor selection, along with segmentation by size and global region. Highlights of the study include the following:

• CPaaS platforms are most widely used by large companies with 1,001 to 2,500 employees; 49.3% of companies in this size range are using CPaaS as part of their CX strategy.
• Regionally, CPaaS platforms are most widely adopted in APAC (42.1% of companies have adopted), followed by Europe (40.4%) and North America (35.9%). This is flipped from the 2023 study, showing APAC and Europe catching up to North America’s 2023 adoption. The global market size for CPaaS platforms was $13.6 billion in 2023, up 19% year over year (YoY). We are forecasting the market to grow at a 11% 2023-28 CAGR, reaching $22.5 billion by 2028.
• Numerous companies offer CPaaS capabilities, delivering both out-of-the-box and customized, cloud-based applications. This includes CPaaS specialists such as Alibaba, Bandwidth, Infobip, IntelePeer, Bird (formerly MessageBird, NUSO (formerly Brightlink), Plivo, Sinch, Tata Communications (formerly Kaleyra), Twilio, and Vonage, as well as unified communications as a service (UCaaS) and CCaaS companies such as 8x8, Alcatel-Lucent Enterprise (ALE), Avaya, Cisco, Microsoft, and RingCentral.
• Based on 2023 CPaaS revenue, Twilio is the global market share leader at 23.2% share, followed by Sinch (14.6%), Infobip (under non-disclosure), and Alibaba (6.9%). Twilio remains the market share leader through 3Q24, gaining 3.0 percentage points of market share in 3Q24 (at 25.9%) from 2023.
• Global CPaaS revenue from 1Q24 through 3Q24 is $9.97 billion, putting the market on track for $15.9 billion in 2024.
• Programmable messaging remains the largest driver of CPaaS revenue, followed by voice and then email.
• Among companies that already have adopted CPaaS platforms, 53.6% have no plans to replace their primary provider. The rest are either replacing, have plans to replace, or are evaluating whether to replace their provider, or they are unsure. Product roadmap not aligning with strategy tops the reason for replacement.
• As usage of CPaaS expands, spending rates will increase each year. Slightly more than 43% plan to increase spend in 2025, and 52.5% plan to increase spend in 2026.
• For those companies that plan on decreasing their CPaaS spend, decreasing channels and switching providers are the top reasons.