A2P SMS and CPaaS Market Share and Forecast by 2031

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

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 The 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.

A2P SMS and CPaaS Market Report Scope

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.

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