The A2P SMS Market was valued at US$ 40.45 billion in 2015 and is estimated to reach US$ 62.10 billion by 2025. The A2P SMS market has experienced high growth and adoption rate in the last few years and is also expected to experience a significant growth and adoption rate in years to come. Importance of marketing and promotional campaigns have prompted marketers to find different communication channels for businesses and thus, A2P SMS has emerged as one the prime revenue sources experiencing high adoption rates. Media & Entertainment industry, Travel & transport industry, Retail industry are the major users of A2P SMS for Interactive services, CRM services and promotional campaigns
Furthermore, A2P SMS market is expected to accelerate at a high growth rate in the coming few years due to technology, communications and BFSI industry verticals’ inclination towards adopting such solutions for more secured communication with an individual user and provide higher security and quick response times and as a result these factors are driving the A2P SMS market by 4.4%% between 2016 and 2025.
BFSI vertical leads the A2P SMS market among the other vertical followed by Retail. The increase use of mobile based services and rise in use of online and card payments by the users’ is propelling the demand for A2P SMS market for BFSI. Also, for tracking orders, shipment details, purchase confirmations and other such activities in retail, business make use of A2P SMS as a tool for sending such information.
The A2P SMS market has been segmented into type, application, business model and vertical categories broadly. Cloud API Messaging platform and Traditional & Managed Messaging Services constitute the type segmentation of the A2P SMS market. In terms of application the market has been segmented into Pushed Content Services, Interactive Services, Promotional Campaigns, CRM services and other services. Small and Medium Enterprises and Large Enterprises are the business models that exist for A2P SMS market. Additionally, the vertical segment for A2P SMS market is bifurcated into BFSI, Retail, Media & Entertainment, Travel & Transport, Hospitality and others. Five major geographical regions considered within the scope of this market are North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South America (SAM).
Some of the major players influencing A2P SMS market are ANAM Technologies, CLX Communications AB, DIMOCO Messaging GmBH, Infobip Ltd., and Syniverse Technologies. Tanla Solutions, Trillian Group Ltd., Twilio Inc. and tyntec are other key companies in the A2P SMS market. Many companies are investing in A2P SMS owing to the potential improvements related to accuracy, security and timely order fulfilment thereby, helping them to enhance customer retention rate and compete efficiently in the market..