The top five companies in the global application to person (A2P) SMS and application program interface (API) market accounted for over 61% of the market. Twilio Inc., CLX Communications, and Syniverse Technology are some of the top companies in the market. Companies in the market are following the trend of releasing APIs as open source applications, with an aim to reach out to large developer base across the globe. In order to develop loyalty among developers for their products, A2P SMS and API providers are providing free technical support, thereby resolving technical issues, which may occcur during integration of APIs in an app. The lucrative growth in the market is attracting many new companies and this is expected to make the competition in the market, intense, states a report published by Transparency Market Research (TMR).
According to Transparency Market Research, the global opportunity in the A2P SMS API market is expected to rise from US$171.9 mn in 2015 to US$245.9 mn by 2024, expanding at a 4.1% CAGR between 2016 and 2024. On the basis of end user, the bulk SMS providers segment led in 2015, accounting for 34.1% of the market. On the basis of technology, the traditional API segment accounted for 55.3% of the market in 2015. However, cloud API segment is expected to expand at a 4.3% CAGR, whereas traditional API segment is expected to exhibit at a 3.9% CAGR from 2016 through 2024.
Asia Pacific to Continue to Lead in A2P SMS and API Market
Asia Pacific is leading in the global A2P SMS API market, contributing the highest in terms of revenue. The region is also expected to expand at the fastest pace on account of rising penetration of Smartphone, growing online transactions, and the flourishing e-commerce industry. Cloud API segment is likely to expand at a faster pace than traditional API in Asia Pacific. North America is trailing Asia Pacific in terms of leading in the market.
Growing Adoption of Transactional A2P SMS by BFSI Industry to Boost Market
The global A2P SMS and API market is driven by the growing preference for 2FA and an increasing usage of A2P SMS for mobile marketing. The growing number of mobile users is enabling industries to reach to a larger base of consumers through A2P SMSs, boosting the market. “In addition to this, the increasing adoption of transactional A2P messages by the BFSI industry is also helping the market to grow,” said a TMR analyst. Transactional A2P messages such as one time password (OTP) and post transactional notifications are sent to customers. The applications of A2P SMS are many: customer relationship manager (CRM), pushed content services, business services, interactive services, enquiries and search related services, and promotional and marketing services.
One of the key challenges for the industry is the vulnerability of communication lines of mobile network operators. Traffic and security risks are expected to have a major effect on the A2P SMS and API market. To resolve this problem, service providers should look for reliable carrier technology which is not prone to data leakages. These requirements can be fulfilled by the use of carrier grade messaging. On a positive note, the increasing number of online transactions is expected to ensure a growth of the market in the future.
This review is based on a recent market research report published by Transparency Market Research, titled “Application-to-Person (A2P) SMS and API Market (Technology - Cloud API, Traditional API, End-Users - SMS Aggregators, Bulk SMS Providers, Marketers/Resellers, Telecom Operators; Applications - Pushed Content Services, Customer Relationship Management Services, Promotional Campaigns, Interactive Services) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024Top of Form.”
For this study, the market has been segmented as follows:
Global A2P SMS API Market, By Technology Type
- Cloud API
- Traditional API
Global A2P SMS API Market, By End-Users
- SMS Aggregators
- Bulk SMS Providers
- Telecom Operators
Global A2P SMS API Market, By Applications
- Pushed Content Services
- Customer Relationship Management Services
- Promotional Campaigns
- Interactive Services
Global A2P SMS API Market, By Geography
- North America (NA)
- Europe (EU)
- Asia Pacific (APAC)
- Middle East & Africa (MEA)
- Latin America (LATAM)
Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.
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