August 27, 2021
Twilio, Vonage and Sinch are driving the fast-growing communications platform-as-a-service (CPaaS) market with record-high growth, according to Synergy Research Group.
CPaaS is a cloud-based delivery model that focuses on improving communication channels.
The global CPaaS market is now growing at 40% per year. Twilio and Sinch are growing even more rapidly, while Vonage maintains a steady market share.
This momentum provides a solid foundation for increased development of communication and software technologies. Furthermore, this will create and enhance new customer interactions and experiences.
Fazil Balkaya is principal analyst at Synergy Research Group.
Synergy Research’s Fazil Balkaya
“Today, the primary application for CPaaS is consumer-based SMS, providing transactional connectivity between mobile devices and emerging cloud services,” he said.
The technology will provide significant enhancements to business communications and sophisticated customer service applications, Balkaya said. This will drive the market to the $14 billion mark by 2025.
“We believe we are at the beginning of the CPaaS evolution as sophisticated customer engagement and advanced communications can become the key building blocks of future communication tools,” he said.
Twilio maintained its No. 1 market share ranking. Synergy Research Group has measured sevenfold market growth for the CPaaS market over the last 18 quarters.
While Twilio is the clear worldwide market share leader, vendors such as Vonage, Sinch, Bandwidth, MessageBird and 8×8 have stronger market share across the regional markets. Focusing on areas of local expertise is driving that growth. This is illustrated in Asia Pacific where Vonage is the No. 1 CPaaS vendor, followed by Twilio and Sinch.
The CPaaS market is on track to exceed $5 billion in 2021 with each of the major four regions driving the strong growth. During the second quarter, APAC clocked the fastest year-on-year growth exceeding 55%.
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