A2P SMS Market
A2P SMS Market (Application: Pushed Content Services, Customer Relationship Management Services, Promotional Campaigns, Interactive Services, and Inquiry Related Services; and End-use Industry: Retail, BFSI, Travel & Transport, Healthcare & Hospitality, Entertainment, and Others) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021 - 2030
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A2P SMS – Revolutionizing Business Communication and Messaging
The short messaging service, popularly known as SMS, has evolved over the years. While consumers worldwide have gradually veered to instant messaging applications, including WhatsApp, WeChat, and Hike, network providers continue to find unique methods to ensure usage of SMS. At present, the overall engagement or user traffic for application-to-person (A2P) SMS type is scaling new heights – a trend that is expected to continue over the upcoming years. Leading top tier and medium-sized companies across the world are increasingly focusing on raising employee and customer engagement due to which, the A2P SMS market has experienced considerable growth.
While A2P SMS continues to fuel and revolutionize business messaging, new A2P SMS technologies are being developed by vendors operating in the current market landscape. Nearly 90 percent of the overall A2P traffic is likely to be driven by SMS during the forecast period due to which, significant developments across the A2P SMS market, in terms of technology, can be anticipated. The exponential surge in the number of mobile users worldwide, growing affinity toward mobile marketing, rising adoption in the banking sector, and two-factor authentication, particularly for web platforms and services, are some of the major factors that are expected to drive the global A2P SMS market, which is expected to reach ~US$ 101 Bn by the end of 2030.
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A2P SMS Emerges as Powerful Marketing Tool as Demand Grows
The adoption of A2P SMS is expected to garner significant traction during the forecast period, as more number of business entities across different domains, including tourism, healthcare, and banking are largely in favor of using A2P SMS as a default channel for marketing communications, employee engagement, and circulating notifications, alert, and reminders. However, as A2P SMS continues to garner impressive traffic, vendors operating in the current A2P SMS market are likely to offer solutions that are highly flexible and scale as per evolving business avenues during the forecast period. Businesses across the world are mainly focused on customizing their engagement strategy and mobile network operators are leaning toward A2P SMS to attain that objective. The adoption of A2P SMS across organizations of different sizes, profit or non-profit, etc., is on the rise, as companies continue to seek different ways to break through the cutthroat competition across different industrial sectors.
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However, vendors operating in the current A2P SMS market are expected to invest in research to assess the evolving landscape of the messaging sphere. Product customization, focus on improving quality, and development of various A2P channels are some of the key areas that vendors are likely to focus on during the forecast period. In addition, as consumers continue to slant toward digital platforms to process their transactions, A2P SMS is set to gain a considerable amount of demand, particularly in nations such as India, Indonesia, Malaysia, etc. The growth of the A2P SMS market is a win-win situation for both – the vendors due to an added revenue channel and for the users as a cost-effective communication and marketing channel. The adoption of A2P SMS is on the rise, as it has played an imperative role in streamlining reminders and appointments to patients. In addition, A2P has more impact than an email, offers a personalization touch, fast, and cost-effective.
Government Bodies and Agencies Lean Toward A2P SMS to Combat COVID-19
While the COVID-19 pandemic continues to cripple different industrial sectors worldwide, the A2P SMS market is anticipated to witness a sluggish period during 2020. As more number of governments across the world continue to fight the COVID-19 pandemic by enforcing lockdowns and announcing national quarantines, the average engagement and SMS traffic have experienced a considerable decline. The retail marketing sector is projected to remain the worst hit during the pandemic. However, traffic pertaining to online transactions, alerts, and notifications is moving in an upward trajectory, owing to a large-scale activity across the e-Commerce sector. An increase in one-time-password (OTP) and alerts traffic is expected to provide vendors a window of opportunity during the COVID-19 pandemic. Government bodies and other agencies are expected to utilize A2P SMS, as an effective tool during emergencies and create awareness regarding the COVID-19 disease.
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The global A2P SMS market is expected to grow at a moderate CAGR of ~4% during the forecast period. The market growth can be primarily attributed to a host of factors, including rise in the number of mobile phone users, high demand from the retail and banking sector, two-factor authentication, and booming telecommunication sector. Market players should focus on customization and providing value to their customers. Due to the COVID-19 pandemic, the adoption from the retail sector is witnessing a steady decline. However, the e-Commerce sector offers abundant opportunities during the COVID-19 pandemic– an opportunity that should be capitalized by market players.
A2P SMS Market: Overview
- The global A2P SMS market is expected to expand at a CAGR of ~4% during the forecast period, primarily driven by increase in mobile subscriber base and growth in mobile marketing activities by marketers and application developers
- The A2P SMS market reached value of US$ 64.6 Bn in 2019 and expected to reach ~US$ 101 Bn by 2030
- In terms of application, the customer relationship management services segment is anticipated to account for notable share as compared to the other components of the A2P SMS market
- In terms of end-use industry, retail segment is set to dominate the market during the forecast period. Additionally, BFSI is likely to remain the fastest growing application during the forecast period.
- Asia Pacific remains a prominent market for A2P SMSs globally, and the market in the region was valued at US$ 26.3 Bn by the end of 2019
- The A2P SMS market report provides analysis of the market for the period 2018 – 2030, wherein 2019 is the base year, 2020 is the estimated year and 2021 to 2030 is the forecast period. Data for 2018 has been included as historical information.
- Providers of A2P SMSs are focused on developing innovative solutions to serve specific requirements of end users, which is expected to drive the market demand in the coming years
Asia Pacific A2P SMS Market Snapshot
- Majority of retailers see mobile as a necessary component of marketing strategy, thus contributing to a huge uptake of SMS technology in the Asia Pacific region. The huge volume of SMS messages sent has the potential to generate significant revenue for operators. The future of A2P SMS is in the partnership of messaging specialists with operators rather than working as separate entities. Therefore, partnership of messaging specialists directly with operators is a significant driver of the A2P SMS market, specifically in Asia Pacific.
Key Drivers of the A2P SMS Market
- Growth in mobile marketing activities by marketers and application developers: Application developers, marketers, and brands together utilize SMS services to strengthen their customer base, by updating their users with breaking news, campaign perks, location-based opportunities, and other important information. Marketers and brands prefer text messaging over other marketing initiatives, as it allows them to re-connect with customers, who have deleted their apps or have not used their apps recently. Impact of mobile marketing activities on the A2P SMS market is currently high due to the growing trend of SMS marketing in banking, financing services, gambling/betting, hospitality, leisure, and advertising industries. Brands are likely to increase their promotional activities, owing to which the impact of mobile marketing activities by marketers is expected to be high in the short and medium term of the forecast period. However, with digitalization and growing Internet penetration, brand promoters are likely to shift from SMS marketing to Email marketing in the long run.
- Proliferation of mobile banking, mobile payments, and mobile health services: SMS is used as a customer engagement tool, customer service tool, activation and authentication mechanism, and a service delivery function by enterprises and organizations. Every handset in the world can send and receive SMS, owing to its simplicity and ease of use without advanced requirements. The simplicity and convenience in using SMS makes it an attractive platform/mode for brands that intend to communicate with their customers regularly. Financial and banking institutions and ticketing services are widely adopting the practice of interacting with their clients through SMS. While other industry verticals have been using SMS for several years, banking and finance industries adopted the practice of using SMS for balance notification only in recent years. It is anticipated to fuel market growth in the near future. Organizations that keep track of the health industry and offer services to drug manufacturers to reach healthcare practitioners and doctors, are also contributing to the market growth. Growth in the e-Commerce industry, availability of low-cost smartphones, along with growing penetration of Internet, mobile payments, and mobile banking is expected to drive market growth during the forecast period.
- Therefore, proliferation of mobile payments, mobile banking, and mobile health services is expected to continue fueling the growth of the A2P SMS market during the forecast period 2020 – 2030
Key Restraints of A2P SMS Market
- Technical anomalies overshadowing bulk SMS: SMS is often associated with basic phone feature and therefore, is overlooked when brand promoters start dealing with smartphones. Bulk SMS service providers have not yet tapped the true potential of messaging technology as a marketing technique. This is primarily due to marketers and brand promoters are anxious about experiences and features that they can offer through apps and the mobile web, which often overshadows the features offered by A2P SMS. However, there are certain challenges such as leveraging SMS that can fit into a broad mobile strategy. Moreover, technical experts are required to set up an SMS program to ensure that permissions are structured properly from wireless carriers. Generating short codes used in SMS campaigns is another challenge for A2P SMS market growth. Since A2P SMS are dependent on the use of dedicated or shared short codes, brand promoters have to deal with ambiguity and complications associated with the set-up of short code, provisioning, and regulations.
A2P SMS Market: Competition Landscape
- In October 2017, Syniverse Technologies, LLC partnered with Listrak, a digital marketing company to expand the suite of mobile marketing. The partnership enables Listrak to integrate messaging service as a part of its cross-channel offerings that include email, mobile engagement, and social media marketing.
- In July 2017, Tyntec introduced a new plan to design a powerful structure in North America that fills the gap between application to person and person to person messaging over short codes. The new structure addresses the new uses and demand for 2-way mobile messaging.
A2P SMS Market: Company Profiles
Syniverse Technologies, LLC: Syniverse Technologies, LLC has been operating as a subsidiary of Buccaneer Holdings, Inc., since January 2011. The company provides mobile telecommunications solutions and transaction processing solutions that provide uninterrupted mobile communications to over-the-top providers (OTTs), mobile network operators (BnOs), and enterprises globally. The company offers A2P messaging gateway to streamline A2P message delivery through a reliable connection to aggregators and large corporations from a centralized point of integration. Syniverse Technologies, LLC offers enterprise mobility solutions, including mobile messaging services for financial, healthcare, hospitality and travel, logistics, and retail industries.
CLX Communications (Sinch): CLX Communications provides customer services and solutions to enterprises and mobile operators, to assist clients with better communication. CLX also provides an interactive service with virtual phone numbers in more than 40 countries, which allows enterprises to receive SMS text messages and in certain cases, voice calls, on the same number (Inbound SMS). CLX Communications offers solutions for delivering messaging, voice, and data services, and customer experience management.
Tanla Solutions Ltd.: Tanla Solutions Ltd. offers end-to-end mobile payment solutions, providing connectivity to more than 100 mobile networks in over 32 countries. The company is engaged in integration of communication technologies and IT systems, and provides integrated solutions to content publishers, mobile application developers, mobile carriers, and distribution channels. The company markets its solutions to customers in telecom services (customer development and product development), offshore software development, telecom infrastructure, and maintenance sectors. The company has over 300 employees worldwide and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
AMD Telecom S.A.: AMD Telecom S.A. is a privately owned mobile services company that provides advanced mobile applications and messaging services across the world. AMD Telecom S.A. covers more than 1,200 networks and has presence in 230 countries worldwide. The company’s client base includes over 25,000 customers. The company is certified by the Groupe Speciale Mobile Association (GSMA) as an Open Connectivity Solution Provider.
A2P SMS Market – Scope of the Report
A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global A2P SMS market, to accurately gauge its potential future development. The study presents detailed information about the important growth factors, restraints, and key trends that are creating the landscape for the future growth of the A2P SMS market, to identify the opportunistic avenues of the business potential for stakeholders. The report also provides insightful information about how the A2P SMS market will progress during the forecast period 2021 to 2030.
The A2P SMS market report provides in-depth analysis of the global A2P SMS market for the period 2018-2030, wherein 2019 is the base year, 2020 is the estimated year, and 2021 to 2030 is the forecast period. Data for 2018 has been included as historical information. The report covers all the prevalent trends playing a major role in the growth of the A2P SMS market over the forecast period. It also highlights various drivers, restraints, and opportunities expected to influence the market’s growth during the forecast period.
The study provides a holistic perspective on market growth in terms of revenue estimates (in US$ Bn) and volume estimates (Billion SMSs), across different geographies, which include North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America. The report provides cross-sectional analysis of the global A2P SMS market in terms of market estimates and projections for all the segments across different geographic regions. The report covers profiles of major players, their growth strategies, their market positioning, and the various recent developments, and includes market positioning analysis of key players operating in the A2P SMS market.
The report also highlights the competition matrix of the A2P SMS market, positioning all the major players according to their geographic presence, market position, key recent developments, and segment growth. The report also provides key recommendations for various new entrants, small and medium, and large market players in the global A2P SMS market.
Key Questions Answered in TMR’s Report on the A2P SMS Market
The report provides detailed information about the A2P SMS market on the basis of comprehensive research on various factors that play a key role in accelerating the growth potential of the market. Information mentioned in the report answers path-breaking questions for companies that are currently functioning in the market and are looking for innovative ways to create a unique benchmark in the A2P SMS industry, so as to help them make successful strategies and take target-driven decisions.
- How are key market players successfully earning revenue out of the advantages of A2P SMSs?
- What will be the Y-o-Y growth of the A2P SMS market between 2020 and 2030?
- What are the winning imperatives of market frontrunners in the A2P SMS market?
- Which component is expected to develop maximum application for A2P SMSs during the forecast period?
Research Methodology – A2P SMS Market
The research methodology adopted by analysts to combine the A2P SMS market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the industry-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the A2P SMS market.
During the primary research phase, analysts interviewed industry stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. On the basis of data obtained through the interviews of genuine resources, analysts have emphasized the changing scenario of the A2P SMS market.
For secondary research, analysts scrutinized numerous annual report publications, white papers, industry association publications, and company websites to obtain the necessary understanding of the A2P SMS market.
A2P SMS Market – Segmentation
TMR’s research study assesses the A2P SMS market on the basis of application, end-use industry, and region. The report presents extensive market dynamics and progressive trends associated with different segments and how they are influencing the growth prospects of the A2P SMS market.