Increasing penetration of mobile phones and rising subscribers of the phones globally to drive the usage of A2P SMSs whose market is forecasted to grow at a CAGR of 4.4%

Published Date: 03 Oct 2016

Report : A2P SMS Market to 2025 - Global Analysis and Forecasts By Type (Traditional & Managed Messaging Services, Cloud API Messaging Platform); By Application (Pushed Content Services, Interactive Services, Promotional Campaigns, CRM Services, Other Services); By Business Model (Small & Medium Enterprise, Large Enterprise); By vertical (BFSI, Media & Entertainment , Travel & Transport , Hospitality, Retail, and Others)

According to the new research report published by The Insight Partners, titled “A2P SMS Market - Global Analysis and Forecast to 2025”, the global A2P SMS Market is expected to reach US$ 60.55 Bn in 2025, registering a CAGR of 4.1% during the forecast period 2017 to 2025.

In 2016, APAC is estimated to be the fastest growing segment during the forecast period globally.

The ubiquitous nature of SMS ensuring maximum reach out to customers who stay even in the remotest areas has prompted marketers to switch to this communication channel. The steady inclination towards using SMS for marketing and other allied activities has been very effective and consequently been adopted by various industry verticals. Apart from that, SMS has also been adopted for security authentication purposes proving to be of high worth to BFSI vertical. High adoptions of A2P SMS have resulted in the revenues of A2P SMS crossing P2P SMS and prompting companies to launch innovative products and solutions in it. 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.

Today, customers want fast, easy, effective and efficient communication and on the move. Last few years have witnessed a significant rise in the usage of mobile-based banking, healthcare services, and retail and e-commerce transactional services. As the competition increases, service providers tend to add value to their customers by bundling various services. Providing live updates about the location of the shipment, credit and debit messages from bank accounts, healthcare related alerts, and live status updates about the current locations of vehicles are few applications that have witnessed an exponential increase in their usage. Demands are ever increasing and with intense competition, it becomes very tough for a service provider to provide maximum value to its customers while minimizing operating costs and extract the best benefits. They are in a constant effort to evaluate least cost routes. Also, retaining a customer is much cheaper and beneficial for any organization rather than finding new customers. This has paved the way for organizations doing a lot of CRM activities

The A2P SMS market in Asia Pacific is expected to grow at a CAGR of 4.7% during the forecast period 2018 – 2025. APAC broadly has two set of countries, the developed countries and the developing ones. While, we see, volumes of A2P SMS traffic more in the developing economies, while the profit per person earned for operators is in the developed countries. India, China, Philippines, Hong Kong, Vietnam are few developing countries in this region that are focused on socio economic development of their regions. Power of SMS to spread awareness and social welfare is being used to a great extent. In APAC region, mobile commerce is changing the traditional methods of purchasing items and daily financial transactions, and A2P SMS finding a huge application for authentication and promotional campaigning purposes, it is expected that APAC is set to garner the largest market share in the A2P SMS market.

Key findings of the study:

  • From a growth perspective Myanmar in Asia-Pacific region is anticipated to witness the most lucrative CAGR growth rate of 8.4% during the forecast period
  • Traditional & Managed Messaging Services segment accounted for the highest market share in 2016, capturing more than 60% of the market
  • Interactive services market is foreseen to create lucrative business opportunities in A2P SMS market during the forecast period

In our study, we have segmented the A2P SMS market by type, which includes Traditional  &  managed  messaging  services  and  cloud  API  messaging  services. Furthermore, the application segment of the A2P SMS market is segmented into pushed content services, interactive services, promotional campaigns, CRM services and other services which includes Information Services, Workforce Management. On the basis of geography, the A2P SMS market is analyzed into North America, Europe, Asia- Pacific (APAC), Middle East & Africa (MEA) and South America (SAM) regions.

Some of the leading companies in the market are ANAM Technologies, CLX Communication AB, DIMOCO Europe GmbH, Infobip Ltd., Trillian Group, Tyntec Ltd., Syniverse Technologies, LLC, Tanla Solutions Limited, Twilio, Inc., and Nexmo Inc. among others.


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