Twilio Dominates the CPaaS Market, says RiverPark Funds

The investment management firm forecasts Twilio revenue to grow 30 percent every year for the next five years

Twilio Q2 Results Reveal 67% Revenue Boost
Contact CentreInsights

Published: September 6, 2022

Zac Wang

Twilio leads the fast-growing CPaaS market, with analysts predicting it will double its revenue in the next three years. 

RiverPark Funds, an investment management firm, also noted that the company has quintupled its customer base in the past five years, amassing 268,000 customers, while losing less than four percent of customers every year. 

Twilio provides software tools that allow its users to gather and analyze customer data (Twilio Segment) and to run call centers (Twilio Flex) that can leverage this data in customer interactions. 

Yet, RiverPark Funds believes that its CPaaS offering will provide the rocket fuel for its future success. Indeed, while Twilio management believes revenue will increase 30 percent annually until at least 2024, RiverPark analysts are more bullish and put its growth prospects at 30 percent annually until 2027. 

Such estimates are perhaps due to predictions that all communications vendors will eventually pivot towards a CPaaS model, for which Twilio have established a head start. “It’s been my thesis that every communications vendor eventually will become a CPaaS vendor and then you’ll use those CPaaS tools and APIs to build other things,” said Zeus Kerravala, Principal Analyst at ZK Research. 

“As we move into this hybrid world and tools like we’re using today become more and more ubiquitous, we do need to create different experiences, right?” said Kerravala. 

“The way you use it is different than the way a student uses it, which is different than the way a doctor uses it, but no vendor can go build all those different experiences, and that’s why the CPaaS back end is so important.”  

The global CPaaS market was worth $5.3 billion as of 2021, according to Future Marketing Insights (FMI). Twilio took home more than half of that, having announced 2021 revenues of $2.84 billion. 

But with an annual growth rate of 25 percent, FMI predicts the CPaaS market will be worth almost $60 billion by 2032, so Twilio’s dominance only looks set to grow. 

The research firm noted in a funds letter that the CPaaS market is “primarily benefiting from a surge in digital customer engagement, cloud encryption, and digital transformation.” 

“Furthermore, increasing adoption of digital communications such as cloud-based video conferencing and cloud-based contact center platforms is another factor responsible for driving growth in the CPaaS market.” 

Twilio has been on a roll recently, announcing its largest Flex deal ever in August while also expanding into Canada in July. 


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