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The CPaaS market, as it relates to customer engagement, is competitive and volatile. See how vendors cater to business customers and the trends driving innovation.

Communications platform as a service is a critical technology to help companies meet and advance their real-time customer engagement goals — and adoption data confirms this.

In a global customer experience study, Metrigy found nearly 70% of 1,566 participating companies had adopted or planned to adopt communications platform as a service (CPaaS) in 2024. An additional 17.6% planned to use CPaaS or were evaluating it for 2025.

CPaaS remains a highly competitive market. The choice of provider — at least for the core messaging use case — is often determined on a cost basis, with the smallest incremental price changes triggering movement. This means there’s a fair amount of volatility in the CPaaS market. In the Metrigy study, nearly 40% of companies using CPaaS said they have already, plan to or are evaluating whether to replace their CPaaS providers.

This challenge has led many providers in new directions, such as broadening their API portfolios, extending their geographic reach and creating software for customer engagement and other use cases.

Leading CPaaS vendors

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