A rise in the use of applications for services such as food delivery, banking, payments, and healthcare has propelled the global A2P SMS market’s growth states Transparency Market Research. BFSI companies are the highest revenue contributors to the market due to growing consumer demand for connectivity to banks and financial institutions. A2P SMS services are already well established in the developed nations, however, developing countries are gradually catching up.
A2P SMS Market to Register a CAGR of 4.2%
The study on the A2P SMS market predicts it to rise from the initial valuation of US$62.01 bn in 2017 to clock in US$86.53 bn in 2025. Consumers highly prefer A2P SMS over traditional P2P messaging due to the ubiquity it offers. It has now become an indispensable that dominates all the enterprises in the world.
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The fact that A2P messaging is “clean” and “secure” unlike emails that increase the cases of spam and fraud has proven to be instrumental in the global A2P SMS market’s growth. This market has essentially given the stakeholders a platform to explore the potential of the next generation rich media. Moreover, the rise in firms providing A2P messaging monetization solutions has helped the operators to leverage the full potential of the global A2P SMS market.
The entertainment and tourism industries are also extensively using A2P SMS services for ticket delivery, leads generation, reservations, and emergency assistance. Moreover, there is a rise in the number of mobile subscribers and the e-commerce industry that essentially thrives on mobile marketing. These factors have served as a focal point for the growth of the global A2P SMS market.
Asia Pacific to Dominate the A2P SMS market
According to TMR’s historical analysis, Asia Pacific accounted for nearly 40% of the global A2P SMS market’s share in 2016. The developing countries such as China, Thailand, and India hold a lion’s share in the market’s growth in this region due to a subsequent rise in the internet subscriber base and booming mobile market. Moreover, changes in the consumer landscape leading to a high preference for mobile applications has compelled the enterprises to enter the A2P SMS bandwagon, thereby propelling A2P SMS market.
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Cost-Effectivity and No Reliance on Internet to Boost Growth
To stay in tune with the current trends, numerous enterprises are upgrading their services to provide personalized customer-centric solutions. Looking at the current consumer trends, it is evident that they would rather choose SMS as a mode of interaction rather than phone calls, thus giving a boost to the global A2P SMS market. Moreover, this market unlocks numerous growth opportunities for the stakeholders as there are several untapped markets when it comes to communication technology.
The cost-effectivity of the A2P SMS platform is another reason for the global A2P SMS market’s global expansion. It has an edge over other internet-based messaging services which increases its popularity in the regions with low to medium internet penetration.
Factors such as phishing and mobile malware may deter the global A2P market’s growth. However, companies are increasingly launching new products that will help to offset the effects of these restraints. For instance, in December 2018, Route Mobile established a partnership with Oracle Marketing Cloud to develop A2P solutions with enhanced consumer capabilities. Similarly, in March 2019, Bandwidth launched a local A2P SMS solution that offers quantifiable results and can handle a high volume of burst SMS messaging.
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