A2P SMS (Application-to-Person) Market Analysis and Opportunities by 2025

The A2P SMS market is estimated to grow at a CAGR of 4.4% during the forecast period 2016 - 2025 and accounts for US$ 62.10 Bn in the year 2025.

A2P SMS is the communication taking place between an application and a subscriber over messaging services for various purposes. With the evolution of smartphones accompanied with the emergence of OTT players in the market, the MNO’s have seen a sharp dip in the revenues earned from P2P (Peer-to-Peer) messaging services. However, there has been a parallel increase in the A2P SMS revenues for MNOs globally.

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A2P SMS (Application-to-Person) Market: Strategic Insights

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SMS can reach to a customer’s even in the remotest area where there is a network connection and eventually becomes the easiest mode of communication with the customer. Distinct from instant messaging services, SMS service can function on standard and basic mobiles and it doesn’t depend on an internet connection to work. The reach and flexibility of SMS services when compared to online services is much more and the advantage of pre-paid mobile users still receiving text messages even if they’re out of balance gives the mode an upper hand. Some of the key features of messaging is that it achieves higher read rate within minutes and boasts the highest engagement rate when compared to emails and OTT mobile messaging apps. Eventually, with customers more likely to open messages than emails, it is vivid that A2P SMS market would be driven due to this.

Report Coverage

In our study, we have segmented the A2P SMS market by type, application, and business model and vertical. The type segment of A2P SMS market includes Cloud API Messaging Platform and Traditional & Managed Messaging Services. On the basis of applications the A2P SMS market is broadly segmented into Pushed Content Services, Interactive Services, Promotional Campaigns, CRM Services and Other Services. Moreover, the market for A2P SMS is bifurcated on the basis of vertical that have large applications of A2P SMSs that include BFSI, Retail, Media & Entertainment, Travel & Transport , Hospitality and other vertical sectors that find large applications of A2P SMSs. 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).

One of the prime factors that are driving the demands for A2P SMS adoptions is increasing number of mobile phone subscribers globally making it ubiquitous devices for communication purposes. BFSI sector has witnessed large developments in the last decade. Consumer data safety and the importance of marketing strategies has been put forth as the prime factors while designing A2P campaigns for any industry vertical. The ubiquitous nature of SMS services has favored the growth of A2P SMS market significantly A2P messages are being used by banks, healthcare institutions for reminders, mobile event ticketing, One Time Passwords (OTP), flight & train updates, promotional activities and polling contests etc. to name a few. To be assured of maximum reach out to the customers, one can’t rely only on the services of OTT players. Instead, the maximum reach out can be achieved through SMS services. Reason being, globally still in many regions there are mobile phone users who do not subscribe for mobile internet services. As the OTT players generally require internet connection to ensure the delivery of messages, SMS services have been preferred by organizations in the recent past.

A2P SMS

A2P SMS (Application-to-Person) Market Regional Insights

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

A2P SMS (Application-to-Person) Market Report Scope

A2P SMS (Application-to-Person) Market Players Density: Understanding Its Impact on Business Dynamics

The A2P SMS (Application-to-Person) 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 (Application-to-Person) Market are:

1. ANAM Technologies
2. CLX Communications AB.
3. DIMOCO Messaging GmBH
4. Infobip Ltd.
5. Nexmo Inc. (acquired by Vonage)

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

The mobile phone user internet penetration in the world is still on the lower side. While in developed countries, the mobile phone user internet penetration is high, in many developing and under developed countries of the world, the penetration of mobile phone internet is very low and SMS is the best preferred medium for communication to ensure maximum reach. This fact validates the rise in the usage of A2P SMS market. The key players profiled in the report are DIMOCO Messaging GmBH, AANAM Technologies, Twilio Inc., CLX Communications AB, Infobip Ltd., Syniverse Technologies, Vonage, tyntec, Tanla Solutions and Trillian Group Ltd.