Market Insights - Industry Research Report

A2P SMS Messaging Market

A2P SMS Messaging Market by Component (Platform, A2P Service), by Deployment Mode (On-premises, Cloud), by Application (Authentication Services, Promotional and Marketing Services, Customer Relationship Management Services, Pushed Content Services, Interactive Messages), by Vertical (Retail and eCommerce, Hyperlocal Businesses, Healthcare, Travel, and Hospitality), Geography Analysis and Competitive Landscape: Premium Insights Industry Size, Share, Growth, Research, and Forecast From 2024 to 2032

In terms of revenue, the global A2P SMS messaging market size is expected to grow from 67.40 in 2023 to 96.77 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 4.1% from 2024 to 2032.

A2P Messaging Market Overview

The A2P SMS market is expected to experience significant growth in the coming years, driven by the increasing use of mobile devices and the growing popularity of mobile applications. A2P SMS, or Application-to-Person SMS, is a messaging service that allows businesses to send automated messages to their customers. This service is used for a variety of purposes, including marketing campaigns, notifications, and alerts. The market is also expected to be driven by the increasing adoption of cloud-based services, which provide businesses with a cost-effective and scalable solution for sending A2P SMS messages. Additionally, the market is expected to benefit from the growing demand for mobile payment solutions, which rely heavily on A2P SMS messaging for user authentication and transaction notifications. Overall, the A2P SMS market is poised for strong growth in the years ahead, driven by the increasing use of mobile devices and the growing demand for mobile-based services.

The A2P messaging market is expected to witness substantial revenue growth, with an estimated increase from 67.40 billion in 2023 to 96.77 billion by 2032. This growth is expected to be driven by various factors, including the increasing engagement of key players to enhance customer and employee engagement, the widespread adoption of smartphone and internet services, the rising popularity of over-the-top (OTT) platforms, and the cost-effectiveness and superior reach capabilities of A2P SMS messaging. These factors are expected to contribute to the robust growth of the A2P SMS services market, with a Compound Annual Growth Rate (CAGR) of 4.1% from 2024 to 2032.

Factors such as increasing key player engagement to develop customer & employee engagement, rapid adoption of smartphone & internet services, increasing adoption of OTT platforms, and cost-effectiveness & higher reaching capabilities of A2P SMS are expected to bolster the growth of the A2P SMS Services Market.

A2P SMS Messaging Market Growth

COVID-19 Impact Analysis

After the outbreak of the COVID-19 pandemic, the sudden announcement of lockdown fueled the growth of the A2P SMS Services Market. In addition, the telecom industry is taking a boom across the globe to expand its digital infrastructure. Every individual & government, irrespective of state, central, federal, provincial, and local, has been in constant touch with one other in society to give and acquire real-time information about COVID-19. In recent days, telecommunication, utilities, government institutes, healthcare, and media & entertainment sectors are operating 24/7 to stabilize the condition & provide the prerequisite services to every individual.

Market Segmentation:

The global A2P SMS Services Market is segmented based on Component (Platform and A2P Service), Deployment Mode (On-premises and Cloud), Application (Authentication Services, Promotional and Marketing Services, Customer Relationship Management Services, Pushed Content Services, Interactive Messages, and Others), Traffic (National and Multi-country), and Vertical (Banking, Financial Services, and Insurance; Retail & eCommerce; Hyperlocal Businesses; Healthcare; Travel & Hospitality; and Others).

By Application, authentication service is predicted to grow at the highest CAGR during the projected time frame

The authentication services application segment is expected to witness the largest growth in the A2P SMS Services Market during the forecast period. These services are primarily used to transfer authenticating messages to the customers. In addition, it is majorly used for logging in and registering messages for consumers. All these aspects are responsible for the segmental growth of the A2P SMS Services Market.

By Vertical, the BFSI segment accounted for the largest growth of the A2P SMS Services Market

The BFSI segment accounted for the largest A2P SMS Services Market growth in 2022. Increasing the subscriber base is the key reason for the segmental growth of the market. In addition, the increasing number of internet users, the rising number of smartphone users, and the increasing number of tech-savvy consumers are accelerating the market growth in the BFSI sector.

Market Dynamics:

Drivers:

Cost-Effectiveness & Higher Reaching Capabilities of A2P SMS Drives the Market 

Most businesses in almost all sectors have started using SMS messaging to expand customer relationship management. To reach consumer and retain their attention, SMS has become the most prominent way. These included two-factor authentication (2FA), appointment reminders, notifications, and high-volume alerts to all types of SMS marketing campaigns. Thus, the cost-effectiveness & higher reaching capabilities of A2P SMS are accelerating the growth of the A2P SMS Services Market. In addition, the increasing number of smartphone users and sudden growth in mobile marketing activities will also propel the expansion of the A2P SMS market in the projected period. According to the sources, the number of smartphone users in India was estimated to reach over 748 million in 2020, with the number of smartphone users worldwide forecasted to exceed 1.5 billion in 2040.

Restraint:

Stringent government regulations and policies

The simplest, most popular, and fastest method of communication for businesses reaching out to a wider number of customers is messaging. It is most frequently utilized in some different sectors, including banking, finance, retail, healthcare, travel, and hospitality. Text messages are heavily regulated by governments all around the world because of their private nature and the context they convey. Government regulatory agencies increasingly focus on resolving consumer complaints regarding the security offered by businesses and MNOs in the A2P messaging market. Legal restrictions prevent businesses from sending their clients mass SMS.

Regional Analysis:

The Asia Pacific accounted for the largest market share in 2022

The biggest market share is anticipated to be held by APAC in 2023. Businesses in this region are becoming more competitive and concentrating on providing superior customer service in A2P messaging solutions as a result of a sizable mobile subscriber base. Major corporations are investing in this area as a result of its untapped potential. Given the significant prevalence of feature mobile phones in this region, potential chances for advertisers in APAC are primarily responsible for the sector’s rise. Additionally, several international corporations are concentrating on growing their operations in APAC nations. This presents potential growth opportunities for A2P SMS service providers to raise the brand recognition of commercial entities.

Key Market Players and Competitive Landscape

As of 2023, the A2P SMS market was experiencing growth due to increased adoption in various industries such as banking, financial services, e-commerce, healthcare, and more. Some key developments and players in the market included:

  1. Twilio: Twilio is a leading cloud communications platform that offers A2P SMS services. They provide APIs for developers to integrate messaging capabilities into their applications.
  2. Nexmo (now part of Vonage): Nexmo was a major player providing A2P messaging services. It was acquired by Vonage and became part of the Vonage API platform.
  3. Sinch: Sinch is a global communication platform that offers A2P messaging solutions. They provide messaging, voice, and other communication services for businesses.
  4. Plivo: Plivo is a cloud communications platform that offers A2P SMS and voice services. They provide APIs for businesses to build communication applications.
  5. Infobip: Infobip is a global communications platform that provides A2P messaging, voice, and other communication solutions. They cater to various industries and business sizes.
  6. Tata Communications: Tata Communications offers a range of communication services, including A2P SMS, to businesses worldwide.

The major players engaged in the growth of the global A2P SMS services market are AT&T (US), Sinch (Sweden), Infobip (UK), China Mobile (China), Orange (France), Route Mobile (India), Comviva (India), Twilio(US), BICS (Belgium), Monty Mobile (UK), Syniverse (US), Global Message Services (Switzerland), Tyntec(UK), Silverstreet (Singapore), Vonage (US), Genesys (US), TATA Communications(India), Cequens (Egypt), Mitto(Switzerland), ClearSky Technologies (US), Sify Technologies (India), MSG91 (India), Textlocal (UK), Clickatell (US), Kaleyra  (Italy), MessageBird (The Netherlands), and among others.

This report categorizes the global A2P SMS Messaging market as follows:

  • Component Outlook (Revenue, USD Billion, 2018 – 2032)
    1. Platform
    2. A2P Service
  • Deployment Mode Outlook (Revenue, USD Billion, 2018 – 2032)
    1. On-premise
    2. Cloud
  • Enterprise Size Outlook (Revenue, USD Billion, 2018 – 2032)
    1. Large Enterprises
    2. Small & Medium Enterprises
  • SMS Traffic Outlook (Revenue, USD Billion, 2018 – 2032)
    1. National
    2. Multi-country
  • Application Outlook (Revenue, USD Billion, 2018 – 2032)
    1. Authentication Services
    2. Promotional and Marketing Services
    3. Customer Relationship Management Services
    4. Pushed Content Services
    5. Interactive Messages
    6. Others
  • Vertical Outlook (Revenue, USD Billion, 2018 – 2032)
    1. Banking, Financial Services, and Insurance
    2. Retail and eCommerce
    3. Hyperlocal Businesses
    4. Healthcare
    5. Travel and Hospitality
    6. Others
  • Regional Outlook (Revenue, USD Billion, 2018 – 2032)
    • North America
      • US
      • Canada
      • Mexico
    • Europe
      • UK
      • Germany
      • France
    • Asia Pacific
      • China
      • Japan
      • India
    • South America
      • Brazil
    • Middle East & Africa
A2P (Application-to-Person) SMS Market Trends:
  1. Rise of Rich Communication Services (RCS): RCS is an advanced form of messaging that supports richer content such as images, videos, and interactive elements. The A2P SMS industry was exploring the integration of RCS to enhance user engagement and provide a more interactive messaging experience.
  2. Increased Emphasis on Personalization: Personalized A2P messaging was gaining traction as businesses recognized the importance of delivering targeted and relevant content to users. AI and data analytics were being employed to tailor messages based on user preferences and behavior.
  3. Security and Authentication: With the growing concern for cybersecurity, A2P SMS services were placing a strong emphasis on security measures. Two-factor authentication (2FA) via SMS was widely adopted, and there was a focus on implementing robust security protocols to protect user data.
  4. Chatbots and Automation: A growing trend involved the integration of chatbots and automation within A2P messaging systems. Businesses were leveraging these technologies to streamline communication processes, provide instant customer support, and handle routine queries efficiently.
  5. Global Expansion and Connectivity: A2P SMS providers were expanding their global reach to meet the increasing demand for messaging services in diverse markets. Establishing partnerships with telecom operators worldwide and enhancing network connectivity were key strategies for global expansion.
  6. Compliance with Regulations: Adherence to regulatory frameworks, including data protection laws and anti-spam regulations, was a crucial trend. A2P SMS providers were working to ensure compliance with regional and international regulations to maintain the trust of users and avoid legal complications.
  7. Integration with Other Channels: A holistic approach to communication involved integrating A2P SMS with other channels such as email, voice, and in-app messaging. This cross-channel integration aimed to create a seamless and unified communication experience for businesses and their customers.
  8. Application in Various Industries: A2P SMS found applications in a wide range of industries, including finance, healthcare, retail, and logistics. Businesses were customizing A2P messaging solutions to meet industry-specific needs, such as transactional alerts, appointment reminders, and delivery notifications.

Frequently Asked Questions

The global A2P messaging market size is expected to grow from 67.40 in 2023 to 96.77 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 4.1% from 2024 to 2032.
The Asia Pacific accounted for the largest market share in 2023. China, Japan, and India are the major countries contributing to the growth of the A2P messaging market in APAC.
The major players engaged in the growth of the global A2P SMS services market are AT&T (US), Sinch (Sweden), Infobip (UK), China Mobile (China), Orange (France), Route Mobile (India), Comviva (India), Twilio(US), BICS (Belgium), Monty Mobile (UK) and others.

Share

Get in Touch with Us

Arts and Crafts Market

Arts and Crafts Market Size, Share, Growth & Trends Analysis Report: By Type (Painting and Drawing, Sewing and Fabric, Paper Crafts, Kids Crafts, Arts and Crafts Tools, and Others), By Application (Personal Use and Commercial Use), Segmentation, Key Industry Players, Regional Insights, and Forecast From 2024 To 2033

Read More »
Artificial Intelligence Market

Artificial Intelligence Market Size, Share, Growth & Trends Analysis Report By Solution, By Technology (Deep Learning, Machine Learning, NLP, Machine Vision, Generative AI), By Function, By End-use, By Region, And Segment Forecasts, 2025 – 2033

Read More »