A2P SMS and CPaaS Market is expected to reach US$ 101.77 Billion by 2028

Increasing Demand for Customer Engagement Usage Encourage Use of CPaaS

According to our latest market study, titled “A2P SMS and CPaaS Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Component, Channel, Enterprise Size, and Industry,” the market is projected to grow from US$ 71.07 billion in 2022 to US$ 101.77 billion by 2028; it is estimated to grow at a CAGR of 6.2% from 2022 to 2028.

Organizations established in Asia Pacific are observing a rise in customer contacts due to greater investments in digital customer engagement. With the need for business units to integrate SMS, application-to-person, voice, and upcoming CPaaS, such as advanced messaging, video, increased security, and digital payments, into applications, software engineering executives are embracing CPaaS. As a result, digital customer service experience and operational efficiency have been enhanced. Many businesses are planning on using a communication platform as a service (CPaaS) to assist them in managing everything related enhancing customer service experience. The A2P SMS and CPaaS market has experienced rapid expansion in recent years and will continue to keep up with changing consumer expectations and engagement strategies according to the new trends in customer-facing communications. The demand for contextual communications that improve customer experience is one of the main development factors of the A2P SMS and CPaaS market growth. With the purchase of Inteliquent and Pathwire in 2021, Sinch, a CPaaS provider, became the industry leader in mobile customer engagement. Sinch can fulfill all communication requirements by offering consumers the broadest range of channels to interact with businesses. Increasing focus of major players in the A2P SMS and CPaaS market over customer engagement is helping to increase the demand for A2P SMS and CPaaS market growth.

The A2P SMS and CPaaS market is segmented into component, channel, enterprise size, industry, and geography. Based on component, the A2P SMS and CPaaS market is bifurcated into solution and services. Based on channel, the A2P SMS and CPaaS market is segmented into message, voice, email, webpush and others. The message segment is further bifurcated into chat apps and SMS. Based on enterprise size, the A2P SMS and CPaaS market is bifurcated into SMEs and large enterprises. Based on industry, the market is segmented into IT & telecom, BFSI, retail & e-commerce, healthcare, and others. Based on geography, the A2P SMS and CPaaS market is segmented into North America (US, Canada, and Mexico), Europe (Germany, UK, France, Italy, and Rest of Europe), Asia Pacific (Australia, Japan, South Korea, India, China, Pakistan, and Rest of APAC), MEA (Saudi Arabia, UAE, South Africa, Turkey, Egypt, and Rest of MEA), and SAM (Brazil, Argentina, and Rest of SAM).

Impact of COVID-19 Pandemic on A2P SMS and CPaaS Market

The COVID-19 outbreak had an adverse impact on the world economy during its peak in 2020, and the crisis significantly impacted the semiconductor & IT industries. Before the onset of the COVID-19 pandemic, the A2P SMS and CPaaS market was experiencing substantial growth due to the rising demand from manufacturing industries and growing usage of home appliances; however, the outbreak led to a notable slowdown in the production activities of these industries. During the COVID-19 pandemic, an abrupt increase in internet traffic was witnessed owing to a few factors, such as increased online shopping, availability of different payment portals, search for hospital availability, and small businesses. These factors have accelerated the organizations to incorporate CPaaS, which increases communication efficiency and helps find better ways to engage customers. With the soaring demand for personalized services with agility, CPaaS will continue to receive impetus in the upcoming years. Furthermore, the emergence of the pandemic has augmented the deployments and investment in cloud-based solutions for CPaaS. Investment in CPaaS by the majority of companies for customer engagement and the integration of AI and cloud-based platforms have fueled the adoption at a faster pace during the pandemic. For instance in May 2020, Virgin Media Business And 8x8 Sign Strategic Partnership To Accelerate Cloud Communications Adoption Across The UK. Similarly in January 2021, Tanla ties up with Microsoft to launch blockchain-enabled CPaaS platform.

8x8 Inc., AVAYA Inc., Intelepeer Cloud Communication, MessageBIRD B.V., Plivo Inc., Cisco System, Twilio Inc., Vonage Holding Corp., VOXIMPLANE (Zingaya, Inc.), and Wazo Communication Inc. are a few of the leading players operating in the A2P SMS and CPaaS market.

A2P SMS and CPaaS Market – by Component, 2021 and 2028 (%)

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com