The Inner Circle is our monthly, member-only webinar where CPaaSAA’s Analyst Members share the latest research, market signals, and ideas shaping the future of communications.
Last week, Andrew Collinson took members on a fast-paced tour through the State of CPaaS 2025 report — highlighting where the industry stands today, what could take it to $100 billion by 2030, and why “Intelligent Engagement” remains the unifying story we all need to tell better.
From growth potential to growth reality
Andrew began with the question everyone asks: How big can CPaaS really get?
The answer depends less on hype, more on execution. Today’s market sits around $32 billion. If current trends continue, it might double by 2030. But with sharper storytelling, richer use cases, and trust-first innovation, a $100 billion market is within reach.
It won’t happen automatically — it will be built, not ridden. Reaching that scale means focusing on business outcomes instead of infrastructure, and winning share from adjacent budgets in marketing, customer care, and digital transformation.
Intelligent Engagement: the story that sticks
At the heart of the report is a narrative shift.
Instead of selling APIs or “as-a-Service,” CPaaS providers should speak the language of outcomes — faster response, lower churn, higher conversion.
Andrew calls this vision Intelligent Engagement:
real-time, two-way, AI-assisted interactions that blend automation with empathy and data with context.
It’s also a lesson in clarity. Many CPaaS players sell through partners and integrators. The simpler the story, the faster it travels. “Make it easy for partners to retell your story,” Andrew noted. “That’s how ecosystems grow.”
Where the next wave of growth will come from
Messaging upgrades
SMS will stay relevant — especially as the reliable backup channel — but richer formats like WhatsApp and RCS are where the engagement magic happens. They’re multimedia, two-way, and programmable. Adoption, however, still depends on consistent supply, pricing, and ecosystem maturity.
AI-powered voice
Voice is quietly making a comeback. With ubiquitous transcription and generative AI, every conversation becomes searchable and coachable. Andrew argued that voice is undervalued in most forecasts — and his upcoming AI + Voice report will dig into that hidden opportunity.
Network APIs
Momentum is building, but monetization is still early. Operators and GSMA are pushing hard, yet real success stories remain rare. The goal for 2025: document, prove, and scale through repeatable case studies that show ROI and time-to-value.
Trust and compliance
Enterprises won’t scale what they can’t trust. Smishing and AIT fraud remain billion-dollar issues, but solutions that bake in consent, identity, and integrity directly into the product will stand out. Trust is no longer a hygiene factor — it’s a growth feature.
Turning conversations into data: the vCons opportunity
Another highlight was vCons — a standard that turns conversations into structured, compliant data.
Andrew pointed out that while large enterprises can afford custom AI pipelines, mid-market buyers need plug-and-play compliance and analytics. vCons make that possible, creating new value from existing customer interactions and making CPaaS data truly actionable.
Competing — and winning — in the AI era
Will generic AI swallow CPaaS? Not if the industry focuses where it adds unique value.
Andrew referenced a recent MIT/Nanda study: enterprises that succeed with AI demand process-specific customization and judge success by business outcomes. That’s precisely where CPaaS vendors have an edge — they know how communications actually drive conversion, loyalty, and efficiency.
His takeaway: “AI doesn’t erase differentiation — it amplifies it when you know your customer’s process better than anyone else.”
Research roadmap and what’s next
Members also got a look at Andrew’s upcoming research priorities:
- AI Voice Report – coming soon, sizing the real opportunity in voice and data.
- Network API Report – releasing ahead of Mobile World Congress 2026, separating reality from noise.
- Differentiating with AI – Q2 2026, focused on how to sustain advantage as hyperscalers and LLMs mature.
Members are invited to contribute insights and case data for inclusion in these publications.
The Case Directory: proof in practice
Andrew also previewed the new CPaaSAA Case Directory, which turns our 100+ use cases into a searchable library of real outcomes.
The public site highlights examples from across the ecosystem; members get access to detailed breakdowns of challenge, solution, and results — a valuable tool for both go-to-market and product teams.
Final thoughts: what the data says — and what the winners will do
The direction is clear.
Those who lead with measurable results, wrap AI around engagement, and embed trust into every transaction will capture the next phase of growth.
Andrew’s closing words summed it up best:
“We’re not just in the communications business anymore — we’re in the outcomes business. And that’s what will take CPaaS from $30 billion to $100 billion.”
Members:
Watch the full Inner Circle recording in your member portal and explore the Case Directory this month.
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