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In terms of revenue, the global A2P messaging market size is expected to grow from 62.2 in 2021 to 89.2 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 4.1% from 2022 to 2028.
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.
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 in order 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.
The global A2P SMS Services Market is segmented on the basis of 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).
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 leading. All these aspects are responsible for the segmental growth of the A2P SMS Services Market.
The BFSI segment accounted for the largest growth of the A2P SMS Services Market in 2021. 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 increasing tech-savvy consumers are accelerating the market growth in the BFSI sector.
Most businesses in almost all sectors have started using SMS messaging in order to expand customer relationship management. In order to reach the 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, cost effectiveness & higher reaching capabilities of A2P SMS is 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 time 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 to 1.5 billion users in 2040.
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 a number of 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 are increasingly focused 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.
The Asia Pacific accounted for the largest market share in 2021
The biggest market share is anticipated to be held by APAC in 2021. 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, a number of 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
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.