Our market

Our offering

Sinch's cloud communication platform enables businesses to connect with customers wherever they are in the world. Businesses use the platform to deliver the right interaction to the right consumer at the right time. Customers choose the channel, including SMS, MMS, RCS, WhatsApp, voice or email and Sinch ensures the content is delivered efficiently, safely and on time.

Most customers embed Sinch into their own digital infrastructure through an Application Program Interface (API), enabling seamless access to communication solutions without the need to build or manage complex infrastructure or hardware. Others choose to use Sinch as a stand-alone application, which offers an easy-to-use interface and minimal start-up time. 

Sinch's business model is primarily transactional, meaning customers pay based on usage without the need to invest in software or infrastructure. 

Market outlook and impact of AI

The current market for digital customer communication is characterized by two developments: the rapid adoption of AI and that messages evolve into conversations. The combination of these forces drives a significant increase in communication volumes. AI allows businesses to orchestrate digital customer communication and deliver more relevant content, while the conversational aspect enables consumers to interact directly with businesses. As a result, end consumers can reply to operational alerts or customer care issues, while agentic AI powers the conversation with relevant content.

AI also enables more capable and responsive voice agents, contributing to a resurgence of the voice channel. This is a significant shift compared to only a few years ago and is expected to drive increased market demand.

AI is expected to drive significant market demand, creating additional opportunities for Sinch. Our Customer Communications Platform and our relationships with fragmented infrastructure providers that deliver content to end consumers are expected to remain stable. This position is built on long-standing agreements with approximately 600 telecom operators and leading email providers across all relevant markets, creating a network that is complex and time-consuming to replicate. The proliferation of AI-powered application-building tools is increasing productivity in software engineering. This is expected to drive increased demand for our communication APIs, while the application offering will face increased competition.

There are also growing issues of trust and reliability, exacerbated by the rise of AI. As end users become ever more vigilant about the real sender's authenticity, customers will increasingly demand the trusted deliverability offered by Sinch.

The value chain

Sinch connects businesses to end users globally through messaging, email and voice by linking its own infrastructure with that of suppliers and businesses. In order to reach the end user, Sinch relies on network operators to deliver communications. The largest category of suppliers are the telecom operators, but alternative ecosystems are also included, such as WhatsApp operated by Meta. The suppliers charge a fee to terminate the traffic and these fees are essentially the cost of services sold for Sinch and our peers. The API platform is the core of Sinch and allow businesses to integrate directly into Sinch communication infrastructure and connect with their customers. As an alternative, a business may also use a Sinch application for customer communication.

In addition to servicing businesses directly, we also have a significant indirect go-to-market channel where Sinch solution is integrated in the offering of a partner or reseller. These can be large tech platforms like the world's leading CRM companies or marketing software developers as well as niche service providers catering for a specific need. In total we estimate that about 45 percent of the market for digital consumer communications goes through this indirect channel.

Recognized leadership

In 2025, Sinch was once again recognized as a leader in the CPaaS market by several independent research firms. For the third year in a row, Sinch was named a leader in the analyst firm Gartner's Magic Quadrant category, noting: "Sinch offers a strong account management service, high-tech support structure and developer ecosystem with good platform stability, adaptability and seamless integration."

The independent research firm International Data Corporation (IDC) also recognized Sinch for the third time as a Leader in the IDC MarketScape: Worldwide Communications Platform-as-a-Service (CPaaS) 2025 Vendor Assessment. IDC based the assessment on Sinch's "strong foundation for reliable performance, quality service support and regulatory expertise." It also acknowledged Sinch's ability to "address the needs of distinctive business sizes and user groups, ranging from an advanced API suite for developers to specific use cases such as marketing campaigns, customer updates, identity and verification and customer service."

Sinch was also named a Leader in the Omdia Universe: CPaaS Platform Providers 2025 report.