CPaaS moves to centre stage in digital transformation

• CPaaS providers no longer settle for basic communications APIs—instead, they’re embracing AI, customer data platforms and integration with a broad suite of business applications.
• Telcos have naturally become key players in CPaaS, given their expertise in delivering communications at scale.

Communications Platform as a Service (CPaaS) has evolved far beyond its origins as the foundation for omni-channel communications. Now, it plays a starring role in digital transformation strategies across industries.

Today’s CPaaS providers no longer settle for basic communications APIs—instead, they’re embracing artificial intelligence (AI), customer data platforms (CDPs), and integration with a broad suite of business applications.

The result? Enterprises can now craft customer experiences (CX) that are not just personalised, but also measurable and outcome-driven.

Telcos are also jumping into the CPaaS ecosystem with both feet. Through strategic acquisitions, creative partnerships, and bold advances in network API capabilities, telecom companies are rapidly expanding their influence in the space.

GlobalData, a leader in industry analytics, highlights that this ongoing convergence is reshaping how customer engagement is delivered, optimized, and quantified.

Increasingly, CPaaS firms consider themselves not just as technology vendors, but enablers of change across marketing, sales, operations, and customer service. Deep integration of CDPs, AI—including generative AI—and business applications like CRM, contact centre, and workflow automation means that customer engagement is more targeted and impactful.

Enterprises can measure success using hard metrics such as Net Promoter Score (NPS), Customer Satisfaction (CSAT), and click-through rates, turning engagement into a source of competitive advantage.

Competitive landscape

The CPaaS market remains fiercely competitive, with differentiation driven by innovation, ecosystem collaboration, and global reach. GlobalData recognises Twilio and Infobip as market leaders, while companies such as Proximus Global, Sinch, Tata Communications/Kaleyra, and Vonage hold strong positions with broad capabilities and deep industry partnerships.

Only companies with significant market share, strong customer acceptance, bold vision, and resources to innovate are considered major global competitors. This is reflected in the scope and ambition of their platforms, which increasingly serve as hubs for unified communications, seamless integrations, and innovation at scale.

The new battleground

According to GlobalData Research Director Siow Meng Soh, rapid innovation—especially in AI and agentic AI—has become a differentiator among CPaaS vendors.

These technologies empower businesses to automate customer interactions and deliver hyper-personalised services, strengthening loyalty and operational efficiency.

Trust also commands attention. CPaaS providers are focusing intently on fraud prevention and branded communications, aiming to deliver secure, reliable engagement.

Telcos have naturally become key players in CPaaS, given their expertise in delivering communications at scale. Many telecom companies are now either developing proprietary CPaaS offerings or forging partnerships to provide integrated solutions to enterprise customers.

The mergers and acquisitions trail explains some of this momentum: Tata Communications’ acquisition of Kaleyra, and Proximus Global’s additions of Telesign and Route Mobile, underscore the growing clout of telecoms in the CPaaS sector.

Moreover, industry heavyweights like Vonage, Infobip, Proximus Global, and Sinch are actively extending their CPaaS reach by collaborating with telco partners worldwide.

New capabilities

Ecosystem collaboration continues with alliances involving companies like Aduna and Nokia, aimed at bolstering network API capabilities. The initial push centers on fraud prevention, but the roadmap includes enabling advanced services such as quality-on-demand (QoD) and industrial automation, signaling a wider horizon for CPaaS-enabled innovation.

Soh said  that CPaaS is entering a pivotal era where value is measured not just by technology, but by trusted, outcome-driven engagement at scale.

“The future winners will be those who deftly balance innovation, ecosystem partnerships, and the delivery of tangible business results—while never losing sight of the imperative for trust and security.”