Data from Synergy Research Group shows the communications platform-as-a-service market continues to expand
Synergy Research says this momentum provides 'a solid foundation" for increased development of communication and software technologies, creating and enhancing new customer interactions and experiences.
The latest 2Q 2021 market share report shows 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.
Source: Synergy Research Group
Local expertise propels
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 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 $5 billion (€4.25 billion) in 2021with each of the major four regions driving the strong growth. In 2Q 2021, APAC clocked the fastest year-on-year growth exceeding 55%.
Fazil Balkaya, Principal Analyst at Synergy Research Group, commented, “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 $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”.