CPaaS Maintaining Strong Growth Despite Macroeconomic Concerns, Twilio in Lead

RENO, Nev., Oct. 11, 2023 /PRNewswire/ -- Newly published data from Synergy Research Group shows the CPaaS market continues to demonstrate strong market growth. This momentum provides a solid foundation for increased development of communication and software technologies, creating and enhancing new customer interactions and experiences. Our latest 2Q 2023 market share report shows CPaaS market grew over 15% rolling year over year worldwide with Twilio maintaining its number one market share ranking.

Twilio is, and has been the clear worldwide market share leader with over 35% market share for many quarters. There is a fierce competition for #2 within vendors like Vonage, Sinch, Infobip, Bandwidth and MessageBird. Companies like Vonage, 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 reach $8B annual run rate this year.

Synergy tracks two submarkets under CPaaS: Telco APIs and Email APIs. Telco APIs would include API oriented and usage-based business communications such as SMS, Voice & Video, whereas Email APIs would be API and usage-based Emails. Please note that platforms to send bulk SMS or Email as well as passover fees charged by carriers to deliver telco services are disqualified from our research.

"While the primary application for Telco APIs is still SMS, we are increasingly seeing the relevance and importance of higher value APIs such as voice & video." said Fazil Balkaya, Principal Analyst at Synergy Research Group. "The market leaders have long been leveraging a broader CPaaS portfolio for enhanced customer retention to increase the number and type of API driven interactions. We are at a pivotal point of the CPaaS market where usage and API based interactions can prove further value during the current macroeconomic conditions. The CPaaS market maintains a strong double-digit growth and the market is poised to exceed $10B run rate in 2025."

SOURCE Synergy Research Group