Consumer data platforms (CDPs) are specialised software that enable businesses to collect and manage customer data from various sources. 

CDPs are surging in demand, with a global market value expected to hit almost £6 billion by the end of the decade at a compound annual growth rate (CAGR) of 17.9%, according to research from Extrapolate. 

According to Juniper Research, retail and digital media enterprises will account for over £1.1bn of global CDP spending in 2023, exceeding 70% of the current global market value. 

Juniper predicted that CDPs will become more popular in tandem with communication platforms-as-a-service (CPaaS), which is a cloud service model that helps business developers integrate communication functionalities into their applications and services. 

CPaaS are in the midst of a transformational period as well, with a global market value of approximately £9.7bn, and an expected market value of £35.3bn in just five years for a compound annual growth rate (CAGR) of 29.4%, according to a report from markets and markets. 

While CDPs and CPaaS are traditionally completely separate services, Juniper suggests that the two together could provide more personalised services. CPaaS with fully integrated CDPs in their platforms will allow them to centralise the management of outbound communications and marketing campaigns, they say. 

“Enterprises will not be able to fully realise the benefits of a CDP unless it has full access to user traffic data provided by CPaaS platforms,” said Elisha Sudlow-Poole, author of the Juniper report. 

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“The retail and media spaces are prime examples, as CDPs provide targeted communication and personalised recommendations; a key differentiator in these highly competitive markets.”

In terms of implementation, CPaaS are faced with two main options: pre-built CDPs or a custom build. The report suggests that pre-built CDPs may not meet the specific business needs of a CPaaS platform, and therefore recommends they develop their own CDP to align with their specifications.