Global Application-to-Person (A2P) SMS and API Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Application-to-Person (A2P) SMS and API Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

A2P SMS is an Application to Person SMS service in which SMSs are sent from an application programming interface (API) based application or platform on a person’s mobile/smartphone. A2P SMS typically includes sending SMS for appointment reminders, notifications, marketing, and pin codes among others.

Market Overview:

The latest research study on the global Application-to-Person (A2P) SMS and API market finds that the global Application-to-Person (A2P) SMS and API market reached a value of USD 54053.35 million in 2022. It’s expected that the market will achieve USD 73603.41 million by 2028, exhibiting a CAGR of 5.28% during the forecast period.

Due to the ability of COVID-19 to spread rapidly, the global coronavirus outbreak has declared a pandemic in March 2020. the number of confirmed cases in Worldwide has exceeded 10 million. The number of confirmed cases in North America has exceeded 2 million, The COVID-19 pandemic has brought many challenges to industrial manufacturers, especially those who depend on workers who cannot complete work remotely. According to a recent survey by the National Association of Manufacturers (NAM), in USA, approximately 80% of manufacturers expect a pandemic to have a financial impact on their business. Some major industrial companies have closed factories and considered the scope of layoffs to help curb the spread of the virus, as well as for economic reasons. This has also caused a higher unemployment rate in the history of the United States. And the bankruptcy of the enterprise and high unemployment rate will definitely destroy the supply chain of Application-to-Person (A2P) SMS and API's downstream market and bring serious losses to Application-to-Person (A2P) SMS and API providers.

Secondly, Application-to-Person (A2P) SMS and API is mainly used in industries such as BFSI, Entertainment, Tourism, Retail, Marketing and Healthcare. And affected by epidemic isolation, contact industries like Tourism, Retail, Entertainment and others are the most affected. the COVID-19 pandemic will continue to cripple different industrial sectors worldwide, the A2P SMS market is anticipated to witness a sluggish period during 2020. As more number of governments across the world continue to fight the COVID-19 pandemic by enforcing lockdowns and announcing national quarantines, the average engagement and SMS traffic have experienced a considerable decline. It is expected that during the pandemic, the retail industry will still be hit hardest. However, due to the strengthening of network technology and IT infrastructure, telecommuting and online e-commerce activities are showing large-scale and trending. Therefore, the flow related to online transactions, alerts, and notifications is increasing. One-time passwords (OTP) and increased alarm traffic are expected to provide suppliers with a window of opportunity during the COVID-19 pandemic.

Limitations

First, Rapid market changes require companies to continuously improve their capabilities. The enterprise cloud communications market translates to technological advances, the addition of new or alternative services, and rapid changes in customer needs, which may require significant investment in research and development. This requires leveraging its capabilities to adapt to this rapidly changing market by improving the functionality and reliability of existing services and solutions by developing, releasing and marketing new features, services, solutions and customized customer needs. It is a big challenge for players in the industry.
Second, players in the industry rely on their technology systems and infrastructure to provide customers with services and solutions. Players' operations may be hindered by damage or malfunction of the company's technical systems, infrastructure and software, and may be affected by malfunctions of the customer, mobile operator or service provider's network, system, infrastructure, software or hardware. This can lead to loss of revenue and loss of existing and potential customers, which can have a significant adverse impact on the business, revenue and financial position of players in the industry.

Market demand for SMS services will rise further

For Internet companies, customer engagement and customer experience are increasingly affecting their development and success. Enhancing engagement through personalized messaging, voice and video can greatly increase consumer acceptance, accelerate growth and business profitability. The key to success is understanding the strengths of each channel and how each individual interaction contributes and drives business value as part of a seamless overall customer journey. Therefore, it is especially important for companies to use the right channels to connect with the right individuals at the right time.
Although other communication channels have sprung up and grown up, the SMS service is still widely used, and it is still one of the most important communication channels.

Company Overview:

CLX Communications is one of the major players operating in the Application-to-Person (A2P) SMS and API market, holding a share of 0.63% in 2022.

CLX Communications

CLX Communications is a service enterprise of telecommunications and cloud communications platform, whose quarter is located in Stockholm, Sweden. moreover, there are over 30 offices belong to CLX worldwide.

Syniverse Technologies

Syniverse Technologies provides telecommunication services. The Company offers services such as mobile data, roaming, fraud, carrier access billing solutions, and other services. Syniverse Technologies operates worldwide.

Segmentation Overview:

By type, Traditional API segment accounted for the largest share of market in 2021.

Based on technology, the market is divided into cloud API and traditional API. The traditional API market dominates the market, and cloud APIs are expected to grow at a faster rate. In the next few years, the cloud API market may grow as the company mainly adopts cloud technology to improve efficiency and the cost is low. Cloud technology is the fastest-growing technology, and the cloud API acts as a gateway by providing direct and indirect cloud infrastructure. Several companies provide API platforms to support analysis functions. The company is using cloud APIs to provide security and data loss services.

Application Overview:

The market's largest segment by application is the segment Bulk SMS Providers, with a market share of 41.76% in 2021.

SMS Aggregators

An SMS aggregator sits in between brands and wireless carriers. An SMS aggregator does the work of sending a text message to every carrier to be delivered to a customer on behalf of the brand.

Bulk SMS Providers

Bulk messaging is commonly used for alerts, reminders, marketing but also for information and communication between both staff and customers. Bulk messaging is the dissemination of large numbers of SMS messages for delivery to mobile phone terminals. It is used by media companies, enterprises, banks (for marketing and fraud control) and consumer brands for a variety of purposes including entertainment, enterprise and mobile marketing. Bulk SMS Providers are located between brands and SMS aggregators. SMS aggregators require their customers to sign a large number of contracts; they need to set up very complex products and require a minimum price, which many brands cannot meet alone. Therefore, Bulk SMS Providers can work with thousands of brands to help them easily connect with customers through SMS messages.

Marketers/Resellers

The Application-to-Person (A2P) SMS and API also exist in the Marketers/Resellers market according to the application field. Marketers/Resellers may limit the purchase of goods to one product or brand, or provide multiple products and brands.

Telecom Operators

Telecommunications operator, is a kind of communications service provider (CSP), more precisely a telecommunications service provider (TSP), that provides telecommunications services such as telephony and data communications access.

Key Companies in the global Application-to-Person (A2P) SMS and API market covered in Chapter 3:

Tyntec
FortyTwo Telecom AB
CLX Communications
Syniverse Technologies
OpenMarket
Ogangi Corporation
Twilio
Nexmo

In Chapter 4 and Chapter 14.2, on the basis of types, the Application-to-Person (A2P) SMS and API market from 2018 to 2029 is primarily split into:

Cloud API
Traditional API

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Application-to-Person (A2P) SMS and API market from 2018 to 2029 covers:

SMS Aggregators
Bulk SMS Providers
Marketers/Resellers
Telecom Operators
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)