A2P SMS and CPaaS Market Share and Forecast by 2031

Historic Data: 2021-2022   |   Base Year: 2023   |   Forecast Period: 2024-2031

A2P SMS and CPaaS Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Solution and Services), Channel [Message (Chat Apps and SMS), Voice, Email, Web push, and Others], Enterprise Size (SMEs and Large Enterprises), and Industry (IT & Telecom, BFSI, Retail & E-commerce, Healthcare, and Others) and Geography

  • Report Date : Sep 2025
  • Report Code : TIPRE00029689
  • Category : Technology, Media and Telecommunications
  • Status : Data Released
  • Available Report Formats : pdf-format excel-format
  • No. of Pages : 150

The A2P SMS and CPaaS market size is projected to reach US$ 134.13 billion by 2031 from US$ 75.48 billion in 2023. The market is expected to register a CAGR of 7.5% during 2023–2031. Integration of A2P SMS and CPaaS in customer support and service is likely to remain a key trend in the market.

A2P SMS and CPaaS Market Analysis

The A2P SMS and CPaaS market includes growth prospects owing to the current market trends and their foreseeable impact during the forecast period. The A2P SMS and CPaaS market is growing owing to factors such as the increasing need to automate communication workflows & processes and the growing demand for CPaaS solutions among customers. The emergence of advanced technologies such as AI provides lucrative opportunities for A2P SMS and CPaaS market growth.

A2P SMS and CPaaS Market Overview

Application-to-Person SMS (A2P SMS) is a software application used to send SMS messages to a person’s phone. A2P SMS is also referred to as business SMS, professional SMS, or enterprise SMS. Receiving an SMS of account balance from the bank, a discount code from an online store, or an appointment reminder from a doctor are some examples of A2P SMS messages. CPaaS is a configurable SMS platform that helps to manage the connectivity between SMSC, applications,  and other messaging entities. CPaaS offers an extensive framework to manage real-time communication with the capacity to transmit tens of thousands of messages per second while eliminating the need to manually configure each instance every single time.

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A2P SMS and CPaaS Market: Strategic Insights

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A2P SMS and CPaaS Market Drivers and Opportunities

Increasing Need To Automate Communication Workflows And Processes to Favor Market

There is an increasing need to automate communication workflows and processes amongst consumers to keep up with the communication demands. Hence, enterprises are increasingly adopting A2P SMS and communication platform as a service (CPaaS) solution. A2P SMS and CPaaS provide a comprehensive set of tools and APIs for integrating real-time communication features like SMS, voice, and chat into applications and services. Organizations are increasingly leveraging automated text message notifications to keep customers informed of their orders, promote products and services, and also to send meeting reminders to employees.

Emergence of Advanced Technologies, Such as AI

AI is increasingly being integrated into CPaaS and A2P SMS platforms to enable more effective orchestration across the channel mix and make engagement more meaningful for both customers and businesses. AI can anticipate the needs of different customers at various points in their journey, generate targeted content for each customer, and enable them to communicate with the brand on their own time and through a channel of their choice. CPaaS solutions bring live analytics capabilities through AI – like the ability to infer customer sentiment during a voice call/text, and recommendations for actions to enhance CSAT with each interaction. Finally, AI can help businesses build a 360-degree picture of all interactions with a customer and build continuity in fragmented conversations across channels.

A2P SMS and CPaaS Market Report Segmentation Analysis

Key segments that contributed to the derivation of the A2P SMS and CPaaS market analysis are.

  • Based on the component, the A2P SMS and CPaaS market is divided into solutions and services. The solution segment will hold a significant market share in 2023.
  • By channel, the market is segmented into message (chat apps and SMS), voice, email, web push, and others. The message (chat apps and SMS) segment is expected to hold a significant market share in 2023.
  • In terms of enterprise size, the market is segmented into SMEs and large enterprises. The large enterprises segment held the largest market share in 2023.
  • In terms of industry, the market is segmented into IT & telecom, BFSI, retail & e-commerce, healthcare, and others. The IT & telecom segment is expected to hold a significant market share in 2023.

A2P SMS and CPaaS Market Share Analysis by Geography

The geographic scope of the A2P SMS and CPaaS market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

The A2P SMS and CPaaS market in North America is experiencing significant growth, propelled by various factors such as rising demand for A2P SMS and CPaaS solutions amongst North American businesses and technological advancement.

A2P SMS and CPaaS Market Regional Insights

The regional trends and factors influencing the A2P SMS and CPaaS Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses A2P SMS and CPaaS Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

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  • Get the Regional Specific Data for A2P SMS and CPaaS Market

A2P SMS and CPaaS Market Report Scope

Report Attribute Details
Market size in 2023 US$ 75.48 Billion
Market Size by 2031 US$ 134.13 Billion
Global CAGR (2023 - 2031) 7.5%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Component
  • Solution
  • Services
By Channel
  • Message
  • Voice
  • Email
  • Webpush
By Enterprise Size
  • SMEs
  • Large Enterprises
By Industry
  • IT & Telecom
  • BFSI
  • Retail & E-commerce
  • Healthcare
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • 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

  • A2P SMS and CPaaS Market Players Density: Understanding Its Impact on Business Dynamics

    The A2P SMS and CPaaS Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

    Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

    Major Companies operating in the A2P SMS and CPaaS Market are:

    1. 8x8 Inc.
    2. AVAYA Inc.
    3. IntelePeer Cloud Communication
    4. MessageBIRD B.V.
    5. Plivo Inc.
    6. Cisco System

    Disclaimer: The companies listed above are not ranked in any particular order.


    a2p-sms-and-cpaas-market-cagr

    • Get the A2P SMS and CPaaS Market top key players overview

    A2P SMS and CPaaS Market News and Recent Developments

    The A2P SMS and CPaaS market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the A2P SMS and CPaaS market are listed below:

    • Syniverse, "the world's most connected company,"® has been selected by DOCOMO PACIFIC, the regional leader in innovation, telecommunications, and entertainment, as its primary provider for terminating application-to-person (A2P) traffic into its network in Guam and the Commonwealth of the Northern Mariana Islands. This agreement with Syniverse enables DOCOMO PACIFIC's subscribers in both Guam and the CNMI to receive one-time passcodes, appointment reminders, and other critical SMS messages more reliably from businesses and other organizations. (Source: Syniverse, Press Release, April 2024)
    • Route Mobile Limited (“Route Mobile”), a leading CPaaS company, has entered into an exclusive partnership with Vodafone Idea Limited (“VIL”) to deploy and implement its suite of end-to-end A2P monetization solutions for all A2P SMS traffic on the VIL network (including erstwhile Vodafone and Idea networks). As part of this arrangement, Route Mobile will provide comprehensive A2P monetization solutions to VIL by deploying its Artificial Intelligence/Machine Learning (AI/ML) driven analytical firewall solution  (Source: Hitachi, Ltd, Press Release, August 2023)
    • International connectivity enabler BICS has launched its Communications Platform as a Service (CPaaS) offering, giving enterprises a customizable toolbox to easily integrate communications services like voice, SMS, and WhatsApp messages into their services and workflows via APIs.  (Source: BICS, Press Release, October 2023)

    A2P SMS and CPaaS Market Report Coverage and Deliverables

    The “A2P SMS and CPaaS Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

    • A2P SMS and CPaaS market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
    • A2P SMS and CPaaS market trends, as well as market dynamics such as drivers, restraints, and key opportunities
    • Detailed PEST/Porter’s Five Forces and SWOT analysis
    • A2P SMS and CPaaS market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
    • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the A2P SMS and CPaaS market
    • Detailed company profiles

    Frequently Asked Questions

    What are the future trends of the A2P SMS and CPaaS market?

    Integration of A2P SMS and CPaaS in customer support and service is anticipated to play a significant role in the global A2P SMS and CPaaS market in the coming years.

    What is the expected CAGR of the A2P SMS and CPaaS market?

    The global A2P SMS and CPaaS market is expected to grow at a CAGR of 7.5% during the forecast period 2024 - 2031.

    Which are the leading players operating in the A2P SMS and CPaaS market?

    The leading players operating in the A2P SMS and CPaaS market are 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.

    What are the driving factors impacting the global A2P SMS and CPaaS market?

    The increasing need to automate communication workflows & processes and the growing demand for CPaaS solutions among customers are the major factors driving the A2P SMS and CPaaS market.

    Which region dominated the A2P SMS and CPaaS market in 2023?

    North America is expected to dominate the A2P SMS and CPaaS market with the highest market share in 2023.

    What would be the estimated value of the A2P SMS and CPaaS market by 2031?

    The A2P SMS and CPaaS market size is projected to reach US$ 134.13 billion by 2031.

    Ankita Mittal
    Ankita Mittal
    Manager,
    Market Research & Consulting

    Ankita is a dynamic market research and consulting professional with over 8 years of experience across the technology, media, ICT, and electronics & semiconductor sectors. She has successfully led and delivered 100+ consulting and research assignments for global clients such as Microsoft, Oracle, NEC Corporation, SAP, KPMG, and Expeditors International. Her core competencies include market assessment, data analysis, forecasting, strategy formulation, competitive intelligence, and report writing.

    Ankita is adept at handling complete project cycles—from pre-sales proposal design and client discussions to post-sales delivery of actionable insights. She is skilled in managing cross-functional teams, structuring complex research modules, and aligning solutions with client-specific business goals. Her excellent communication, leadership, and presentation abilities have enabled her to consistently deliver value-driven outcomes in fast-paced and evolving market environments.

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