A2P SMS Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2574
A2P SMS Market size market demonstrates a rapid growth owing to the way in which A2P is utilized by various sectors globally where the messages are sent from an application mostly a web app to the mobile subscriber. The rising urbanization and increasing digitalization have resulted in the growth in the number of mobile subscribers across the world. The various initiatives taken up by the governments have increased the dependence on A2P SMS for mobile payments, accelerating the A2P SMS market growth. Changing customer behavior toward communication enables the enterprises to include SMS in their business functioning, thereby fueling the A2P SMS market demand.
Several telecommunication service providers, cloud service providers, and handset vendors are working in collaboration to offer efficient working of A2P SMS market. These enterprises are focusing on accessing mobile platforms for their marketing and promotional strategies as A2P SMS is the most convenient way to personally connect with their customers. Hence, companies are allocating additional funds for in-mobile centric events as compared to Television or web-based promotional advertising activities.
Initially, only private business firms adopted the two-factor authorization feature; however, due to its ease-of-usage such as instant delivery, cost-effectiveness, and high-open rate, the A2P SMS usage has extended to the public sector. This feature is now increasingly utilized by industries for applications such as password resets, new registration authentication, and user profile information, thereby accelerating the A2P SMS market growth.
The lack of effective security tools can pose a challenge for the growth of the A2P SMS market. Numerous mobile network operators across the world are still using firewalls installed a few years ago and are prone to security threats, restraining the market growth. As the messages are limited to 160 characters, it is not possible for the marketing companies to share the rich media content. The marketers cannot share images or audio files and thereby lack creativity in their advertising, failing to grab customer attention and in turn acting as a barrier for the A2P SMS market demand.
Customer relationship management service dominates the A2P SMS market as this application is used for providing transaction and billing-related information to the users, especially in the banking and financial service sectors. Due to the improved standard of living and rapid growth of e-commerce, customers rely more on online payment services rather than physical transactions owing to the ease of transactions offered by these applications, boosting the market growth.
The A2P SMS market has penetration into different end-user segments including BFSI, e-commerce, travel & transport, healthcare, and entertainment. The BFSI sector dominates the market as they use the service to inform customers about their transactions thereby offering cost-effective & reliable communication and sharing of time-critical information, driving the market growth. The medical centers use two-way messaging to notify and allow the user to book appointments. The entertainment and aviation industry notify the user about the timing and ticket details through A2P SMS. The rapid growth in e-commerce and customers’ preference for online payment services also increase the BFSI sector growth in the market.
The Asia Pacific A2P SMS market dominates due to the presence of the largest consumer base in this region. The government of the developing economies of China and India are undergoing various digital transformations resulting in a rise in the number of mobile subscribers, driving the market demand. For instance, in July 2015, the government of India launched the Digital India initiative aimed at transforming India into a digitally knowledgeable economy. The North American market is witnessing a fast growth rate due to improved lifestyle and willingness to pay higher prices for enhanced services. The rise in the IoT technologies, such as identity verification, smart homes, and mobile commerce, also drives market growth.
The A2P SMS market is fragmented with the presence of a substantial number of players AMD Telecom S.A., Angkor Data Communication Group Co., CLX Communications AB, FortyTwo Telecom AB, International Group, Inc., Ogangi Corporation, mBlox, Inc., OpenMarket, Inc., Syniverse Technologies, LLC, Symsoft AB, Silverstreet BV, and Tanla Solutions Ltd. These companies are engaged in allocating budgets to improve their firewalls systems and expand their regional presence, gaining a huge market share.
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