The IDC CPaaS Marketscape 2023, set to be released this month, sheds light on the latest trends in the Communications Platform as a Service (CPaaS) industry. Kevin Nethercott and Rob Kurver of the CPaaS Acceleration Alliance recently interviewed Courtney Munroe and Melissa Fremeijer-Holtz of IDC to discuss their research findings and provide insights into the future of the CPaaS sector.

IDC Marketscape 2023

Two years after the previous report, the 2023 marketscape analyzes 24 global companies, all of which have at least $50 million in revenue and offer services across multiple countries and continents. The CPaaS industry has seen tremendous growth over the past five years, attracting a diverse range of companies, including IT firms and telecommunications carriers, as well as emerging software companies focusing on AI-driven conversational platforms.

One of the key trends highlighted in the report is the significant amount of mergers and acquisitions (M&A) and consolidation in the market, driven by low interest rates and easy access to capital. Companies like Twilio, Sinch, and Infobip have made substantial acquisitions, resulting in the emergence of billion-dollar entities dominating the industry. However, the economic impact of rapid growth has also led to cost-cutting measures for some companies.

Moving from APIs to Solutions

The shift from API-focused platforms to full-blown solutions in areas such as contact centers, customer services, marketing, and e-commerce has also been evident in the CPaaS sector. The transition towards a more solution-oriented approach caters to a broader audience, from developers to product managers and business users, making it easier for non-developers to build solutions.

The increasing adoption of AI, automation, and low-code tools has transformed the customer experience, enabling more personalized and interactive conversations throughout the customer journey. Additionally, the report highlights the growing importance of partnerships and co-creation between CPaaS providers, telcos, and other industry players.

New Markets and the Telco Opportunity

One of the major trends highlighted was the increasing importance of the telecom industry in driving the adoption of CPaaS solutions. Telcos and MNOs are recognizing the potential of CPaaS to help them transition from traditional communication services to more valuable, innovative solutions. By integrating CPaaS capabilities with existing telco services, they can offer higher-margin offerings and open up new revenue streams. Initiatives like Project Camara, which aims to standardize APIs for telcos, can further facilitate this transition and foster innovation by reducing barriers to entry.

Another key trend discussed in the interview was the rising demand for CPaaS in industries such as e-commerce, healthcare, and finance. CPaaS solutions enable these industries to provide advanced, personalized customer experiences by streamlining and automating communication processes. The increased reliance on remote work and digital services due to the COVID-19 pandemic has only accelerated the adoption of CPaaS technologies.

Additionally, the CPaaS market is experiencing rapid growth in emerging markets such as Asia-Pacific, Latin America, and Africa. These regions represent a significant opportunity for telcos and MNOs to leverage their existing infrastructure and customer base to deliver innovative CPaaS-based solutions.


Looking forward, the IDC experts expect further innovation and diversification in the CPaaS sector as companies continue to integrate advanced technologies and focus on delivering higher-margin solutions. The upcoming IDC research will delve deeper into the adoption and preferences of CPaaS solutions across different regions, providing a comprehensive view of the industry’s future trajectory.


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