Customer Experience MetriCast 2023 – Communications Platform-as-a-Service Size and Spending Forecast

This year’s Customer Experience MetriCast 2023 market size and forecast report for CPaaS underscores the importance organizations place on the ability to customize their customer engagement features and add cloud-based apps for improved customer experience.

A total of 39% of organizations are using CPaaS now, and another 24% say they plan to do so by the end of 2023. 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 midsize and large enterprises, ranging in size from 250 to 1,000+ employees: 43.6% to 44.8% of companies in this size range use CPaaS as part of their CX strategy.
• Regionally, CPaaS platforms are most widely adopted in North America (42.8% of companies have adopted), followed by Asia-Pacific (37.2%) and Europe (34.9%).
• The global market size for CPaaS platforms was $8.3 billion in 2022, up 20% year over year (YoY). We are forecasting the market to grow at a 11% 2022-27 CAGR, reaching $13.7 billion by 2027.
• Numerous companies offer CPaaS capabilities, delivering both out-of-the-box and customized, cloud-based applications. This includes CPaaS specialists such as Bandwidth, Infobip, IntelePeer, MessageBird, NUSO (formerly Brightlink), Plivo, Sinch, Twilio, and Vonage, as well as Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) companies such as 8x8, Alcatel-Lucent Enterprise (ALE), Avaya, Cisco, Microsoft, and RingCentral.
• Based on 2022 CPaaS revenue, Twilio is the market share leader, followed by Sinch and Vonage.
• Programmable messaging is the largest driver of CPaaS revenue, followed by voice and then email.
• Among companies that already have adopted CPaaS platforms, 42% 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. High cost tops the reasons for replacement.
• We track the percentage of each provider’s customers that plan to stay with that provider, as well as the percentage of research participants that are evaluating or planning a switch to a new provider. Providers that received the largest number of responses for being under evaluation, in order of mentions include Microsoft, AWS, and Cisco.

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