CPaaS to see explosive growth as it becomes an AdTech tool, rather than a bulk messaging platform, says study

As competition in customer service heats up, so CPaaS providers are increasingly repositioning themselves as ‘complete customer interaction solutions’ that provide a suite of rich messaging campaign tools, finds s new study.

Research from Juniper Research suggests that the messaging industry is shifting from offering simpler ‘bulk send’ messaging services used for things like one time passcodes (OTPs) towards being more integrated and more sophisticated rich messaging marketing platforms that sit more in the AdTech space.

And it is going to be a boon for CPaaS, with the report predicting that this switch in use will see CPaaS revenues rise 13% a year globally in 2026, up from a $30bn this year to almost $35bn.

An extract from the report, Global CPaaS Market 2025-2029, is available as a free download.

The study identifies partnerships with AdTech platforms as an emerging strategy which will achieve this growth. Specifically, the study identified click-to-chat, an advertising feature allowing enterprises to channel customers from external sources to messaging channels, as a key solution to capitalise on this growing market.

Juniper Research believes that partnerships with AdTech platforms are crucial to the solution’s initial success as they maximise the reach of these external sources. Given the broad reach of advertising networks, CPaaS platforms must compete on how extensive their click-to-chat reach is, offering their clients greater opportunities for user acquisition.

By implementing click-to-chat functionality, CPaaS platforms will drive traffic to monetisable messaging channels and increase their value for customer interaction.

Research author Molly Gatford comments: “We advise CPaaS platform vendors that they must be able to verify customers’ ability to receive messages via rich communication services (RCS) or over-the-top (OTT) apps before broad implementation. Failing to do so will harm the tool’s reputation by providing a solution that does not work for all users.”

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