Spotlight

Report:

Magic Quadrant for Communications Platform as a Service

How does Gartner define the Communications Platform as a Service market in 2025?

Gartner defines communications platform as a service (CPaaS) as a cloud-based platform used by developers, the IT team and other nontechnical business roles to build an array of communications-related capabilities using APIs, SDKs, documentation and no-code/low-code visual builders. The CPaaS tools facilitate access to multiple communications channels spanning voice, SMS, email, messaging apps, video and conversational capabilities, along with security. The purpose of CPaaS is to enable enterprises to improve communications workflows by providing simplified access to multiple communications capabilities. CPaaS enables enterprises to shorten time to market for new products and services, personalize communications, and orchestrate customer journeys across multiple channels. It delivers digital engagement and operationalizes customer experience, while also driving business efficiencies at scale with digital service delivery. It is modular/composable in design and can expand from initial single use cases to many others as additional business units learn of its value.

Key Facts for Magic Quadrant for Communications Platform as a Service in 2025

Strategic Planning Assumptions

How was the Communications Platform as a Service market evolved in 2025?

What product features are required to be included in this year's evaluation?

What are the common features of top products in the Communications Platform as a Service space?

Scope Exclusions

Inclusion Criteria

Vendors must, among other requirements:

Ability to Execute — Relative Weighting

Completeness of Vision — Relative Weighting

FAQs

Q: What does this research cover?

A: This research evaluates CPaaS vendors that meet Gartner's inclusion criteria, offering cloud-based platforms for developers and business roles to build communication workflows. It covers vendors providing core CPaaS capabilities (voice, SMS, DID, identity confirmation, rich messaging) and optional advanced capabilities (messaging channels, conversational bots, advanced voice, video, security, programmable wireless, network APIs, payments, CDPs, AI/LLMs, and advanced support). The research assesses vendors on their Ability to Execute and Completeness of Vision across multiple evaluation criteria.

Q: Who should use this research?

A: CIOs seeking to improve customer relations digitally, enhance business outcomes, drive operational efficiencies and digital transformation should use this research as part of their market evaluation. They should align their strategy with application leaders and business unit teams to identify potential CPaaS use cases to drive operational efficiency, enhance digital customer engagement and scale efficiently. The research helps evaluate vendors based on product features, geographic coverage, compliance support, pricing, platform scalability, developer environment, and professional service support.

Q: What are the mandatory features of vendors included in this market?

A: CPaaS vendors must offer the core standard CPaaS capabilities of APIs for SMS (to send and receive SMS messages), Voice calls (to place and receive voice calls), Local and global direct inward dialing (DID; to route voice calls via DID), Phone number registration for core capabilities, and Identity confirmation via methods such as 2FA/multifactor authentication (MFA) or flash calling. Additionally, CPaaS vendors must offer at least two other rich communication messaging media, such as RCS, Google RCS, MMS, WhatsApp or WeChat, along with email. They must also provide customer service and support for the core CPaaS capabilities, including customer onboarding, technical support and usage dashboards.

Q: What are some reasons for not being included in this report?

A:

  • Vendors did not meet the minimum revenue requirement of U.S. $375 million or more for 2024, or U.S. $250 million to U.S. $374.99 million with 25% or more annual revenue growth
  • Vendors did not have at least $10 million (or $5 million for smaller vendors) in revenue billed in at least three of the five global regions
  • Vendors did not have employee personnel (sales, marketing, customer support and R&D) and proof of operations in the regions where they cited revenue
  • Vendors did not offer all mandatory core CPaaS capabilities (SMS, Voice, DID, Identity confirmation)
  • Vendors did not offer at least two other rich communication messaging channels
  • Vendors did not provide adequate customer service and support for CPaaS capabilities
  • Vendors whose offerings are predominantly focused on a specific CPaaS service, such as video or IoT only
  • Out-of-the-box software providers in areas like UCaaS, CCaaS and CRM, even if they provide APIs to manage those offerings

Q: What differentiates Ability to Execute vs. Completeness of Vision?

A: Ability to Execute evaluates providers on the quality and efficacy of the processes, systems, methods or procedures that enable IT provider performance to be competitive, efficient and effective, and to positively impact revenue, retention and reputation within Gartner's view of the market. It focuses on current execution capabilities including product quality, viability, sales execution, pricing, customer experience, and operations. Completeness of Vision evaluates service providers on their ability to articulate logical statements convincingly about the market's current and future direction, innovations, customer needs, and competitive forces. It rates providers on their understanding of how they can exploit market forces and focuses on strategic elements including market understanding, innovation, product strategy, and business model for future market direction.

Reference

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