A2P SMS Market : Current Analysis and Forecast (2022-2028)

A2P SMS Market : Current Analysis and Forecast (2022-2028)

A2P SMS helps to facilitate business-critical messages like two-factor authentication, emergency alerts, and appointment reminders as well as more promotional and sales-type messaging, A2P enables enterprises to automate the delivery of massive volumes of messages.

The A2P SMS market is expected to grow at a steady rate of around 5% owing to the increasing focus of organizations on consumer engagement. The market is anticipated to increase as a result of elements such as end consumers' growing emphasis on A2P messaging, the penetration of mobile advertising, and the proliferation of smartphones worldwide. For instance, according to Kepios, the global number of smartphone users reached 5.48 Billion, in 2022. The fast use of internet services and the incorporation of OTT messaging platforms like Facebook Messenger and WhatsApp, enhancing customer engagement and acquisition are also expected to contribute towards the market growth.

• Based on application, the market is categorized into customer relationship management services, inquiry-related services, interactive services, promotional campaigns, and pushed content services. Customer relationship management is expected to gain the largest share of the market in 2021. Through transmitting A2P message services, customer relationship managers enable assigning and managing customer relationships, which in turn increases revenue. End-user messaging enables the use of an expansion of the customer base for all apps and services. The end-user is given access to purchase tracking, survey participation, voucher redemption, video viewing, and a link to a PDF or email announcing a new launch. A2P is used by CRM services to create two-way communication and offer the choice to Opt-Out.
• On the basis of deployment, the market is segmented into on-premises and cloud. The cloud segment is expected to grow with a significant CAGR during the forecast period i.e., 2022-2028. The growth of the segment is mainly attributed to its various benefits such as cost-effectiveness, and better security. Moreover, the application that is deployed on the cloud is accessible from anywhere.
• Based on SMS traffic, the market is bifurcated into national and international. The national segment dominated the A2P SMS market as most of the organizations that are working in local industries are in constant quest of finding a platform to educate their existing and well as potential customers about new launches. Furthermore, the increase in transaction alerts from retailers and the e-commerce industry is expected to propel market growth during the analysis time period.
• Based on industry vertical, the market is segmented into BFSI, healthcare, media & entertainment, retail & e-commerce, travel & tourism, and others. The BFSI segment is expected to hold the largest market share in 2021 and is expected to maintain its domination throughout the forecast period. The growth of the segment is mainly attributed to the growing number of transactions as well as bank alerts across the globe. Moreover, the growing need for transparency between the bank and their customers is expected to influence the market growth during the analysis time period.
• For a better understanding of the market adoption of the A2P SMS industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. APAC is anticipated to grow at a substantial CAGR during the forecast period. The growth in the region is mainly owed to the growing demand for A2P messaging services in various different applications, such as customer relationship management, promotional campaigns, etc. Furthermore, the increasing rate of industries in the region is also expected to significantly influence the market growth during the forecast period. Moreover, the growing mobile phone penetration in the region especially in countries such as India and China, and their large population is expected to contribute towards the market growth.
• Some of the major players operating in the A2P SMS market include TWILIO INC, Dialogue Communications Public Relations Indonesia, Infobip ltd, Sinch, Proximus, Tata Communications, AT&T, China Mobile Limited, Genesys, and VONAGE.