How Does CPaaS Traffic Revenue Vary Across Key Sectors?

Communications Platform-as-a-Service (CPaaS) players must ensure they can deliver traffic across the largest variety of customer communication channels, to attract the highest-spending clients. However, as these channels become increasingly complex, the provision of managed services is likely to play a big role in an enterprise’s decision regarding which CPaaS vendor to use.

Historically, SMS has been the predominant source of revenue for CPaaS players; generating a high volume of traffic each year, especially for authentication use cases. However, SMS can no longer be relied on by CPaaS players for future growth potential. We forecast that, in certain use cases, Application-to-Person (A2P) SMS will have already started to fall; being replaced by over-the-top (OTT), Rich Communication Services (RCS), or mobile identity services.

As the CPaaS market progresses, CPaaS players must invest in technologies that will expand their service offerings; enabling them to support rich media channel capabilities, and provide tools to automate customer conversations across channels. This will be essential to CPaaS players being able to create added value for enterprises with rich media messaging.

About the Infographic

The graph illustrates the distribution of CPaaS traffic revenue across six different industry sectors in 2026.

The retail & eCommerce industry is expected to account for the largest share; contributing 32% of total revenue. This highlights the sector's significant reliance on CPaaS solutions to facilitate customer engagement, including messaging, notifications, and other communication services.

Banking services represents the second-largest contributor; accounting for 18% of revenue. This reflects the importance of CPaaS in supporting financial transactions, customer notifications, and secure communications.

Travel & tourism is projected to contribute 6% of CPaaS traffic revenue in 2026. While healthcare accounts for a slightly smaller share of 5%. Both sectors use communication platforms to improve customer interactions and streamline service delivery. In travel, CPaaS supports booking confirmations, itinerary updates, and service notifications, while healthcare providers use these solutions for appointment reminders, patient communications, and other administrative interactions.

The remaining sectors account for comparatively smaller shares of revenue. Government and public services is expected to contribute 3%, while the ticketing sector represents just 1%. Although these industries account for a smaller proportion of overall CPaaS traffic revenue, they continue to present opportunities for communication service providers.

This distribution highlights the dominance of retail and banking in CPaaS traffic revenue, with other sectors contributing smaller, but relevant, shares to the market.

Source: CPaaS Market: 2026-2031

Read the Press Release: CPaaS Market Value to Exceed $50 Billion Globally by 2031, as Infobip, Twilio, and Sinch Identified as Market Leaders

Download the Whitepaper: Rich Messaging, Real Growth: the Rise of RCS and OTT in CPaaS