Twilio, Vonage and Sinch driving the CPaaS market with record high growth
The CPaaS market continues to demonstrate strong market growth, according to Synergy Research Group’s data. This momentum provides a solid foundation for increased development of communication and software technologies, creating and enhancing new customer interactions and experiences. According to Synergy’s Q2, 2021 market share report, CPaaS market grew over 40% worldwide with Twilio maintaining its number one market share ranking. Synergy has measured sevenfold market growth for the CPaaS market over the last 18 quarters.
While Twilio is the clear worldwide market share leader, vendors like Vonage, Sinch, bandwidth, MessageBird, and 8x8 have stronger market share positions across the regional markets driven by their successful focus on areas of local expertise. This is illustrated in the APAC region where Vonage is the #1 CPaaS vendor followed by Twilio and Sinch. The CPaaS market is on track to exceed USD 5B in 2021 with each of the major four regions driving the strong growth. In 2Q 21, APAC clocked the fastest year-on-year growth exceeding 55%.
“Today the primary application for CPaaS is consumer-based SMS, providing transactional connectivity between mobile devices and emerging cloud services. We believe the technology is poised to provide significant enhancements to business communications and sophisticated customer service applications, driving this market to the USD 14B 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” said Fazil Balkaya, Principal Analyst at Synergy Research Group.