Global A2P SMS Market is valued at USD 65.38 Billion in 2022 and it is expected to reach USD 92.63 Billion by 2029 with a CAGR of 5.1% over the forecast period.
Application-to-person messaging, also known as A2P SMS is referred to as a technique where an enterprise sends texts to its customers via a software application. The message is received on the consumer’s device like mobile phone, allowing businesses to communicate with their consumers through a stable internet connection on their smart devices. It is mostly a one-way communication wherein the receiver might not be able to respond to the messages. Through this technique, businesses can promote their latest products, events, or services to enhance customer engagement. Apart from that, organizations can also send anti-fraud alerts, appointment remainders, shipping notifications, and pin codes, among others through A2P SMS solutions. Some of the prominent sectors which had adopted this messaging technology are BFSI, telecom, travel, e-commerce, and healthcare, just to name a few.
The outbreak of the COVID-19 pandemic pushed the world to adapt to a new normal. Due to the severity of the virus and its communicable nature, governments across various region started imposing stringent lockdowns and travel bans to restrict the mobility of the citizens. Commercial activities were halted and most of the businesses had to shift their operations into the virtual mode. This in turn pushed them to adopted different customer engagement strategies. Traditional strategies involving billboards, banners, kiosks, and promotional events were not effective during the pandemic era. Therefore, enterprises had to opt for online customer engagement tactics. A2P message gained immense popularity during the crisis situation since it allowed businesses to promote their products and services, send shipping notifications, and anti-fraud alters, to their consumers via software applications. This enabled people to stay updated about the ongoing activities of several organizations without stepping out of their homes.
In November 2020, Twilio announced the acquisition of prominent customer data platform, Segment. The duo will work together to enable companies and developers to get access their leading cloud communications platform.
There has been a rising trend of online shopping among the masses. People can get their desired products delivered at their doorsteps just by the click of a button. E-commerce companies are taking extensive efforts to enhance consumer engagement. Apart from traditional promotion strategies, they are adopting innovative strategies. Shipping notifications, discount alerts, product launch notifications, anti-fraud alerts, along with other necessary information are sent to consumers via text messages. These factors together are stimulating the outlook of this marketplace.
Businesses spend a fortune on customer engagement and retention activities. Intially, email services were the most preferred way for organizations to reach their consumers. But it is evident that people tend to ignore marketing mails. Most of these mails either lay on the spam folders or are sent into the trash folder by the receivers without even reading them. But A2P messages come in handy for organizations as they are quite affordable and can easily gain the attention of the customers. Cell phones have become a crucial necessity for people. They tend to go through every notification they receive. Therefore, businesses can use it as an advantage to reach out to their customers without spending much. This in turn is creating lucrative opportunities for this business sphere to prosper.
Widespread digitalization and internet proliferation has created privacy concerns among the users. Data thefts and other forms of cybercrime have become quite popular across the globe. Therefore, governments of numerous nations have implemented rigid regulatory standards ensure user data privacy. The messages and mails sent by organizations for customer engagement are being thoroughly monitored. In fact, enterprises can only send a limited number of messages and mails to the consumers with proper adherence to the regulatory standards. This in turn is hampering the remuneration scope of this market.
North America- This region is reckoned to garner significant returns over the estimated timeline. This is attributable to the increasing number of SMEs, widespread industrialization, rise in the number of mobile users, and rapid internet proliferation.
Asia Pacific- This region is projected to amass notable gains over 2022-2029. This is credited to the booming e-commerce sector, widespread digitalization, prompt economic developments, technological evolution in the field, and surge in the disposable income of the masses.
• Rest of Europe
• South Korea
• Rest Of APAC
• Rest of South America
• Saudi Arabia
• South Africa
• Rest Of MEA
|2015 - 2022
|2021 - 2029
|Market Size in 2022:
|USD 65.38 Billion
|Base year considered
|Forecast Period CAGR %:
|Market Size Expected in 2029:
|USD 92.63 Billion
|Tables, Charts & Figures:
|Syniverse Technologies, LLC, AMD Telecom S.A., FortyTwo Telecom AB, mBlox, Inc., Ogangi Corporation, Silverstreet BV,Tanla Solutions Ltd., Symsoft AB, Angkor Data Communications Group Co. Ltd., Optimizer International Group, Inc., TWILIO INC., Dialogue Communications, Infobip Ltd., Sinch, Proximus, Tata Communications, AT&T, Chain Mobile Limited, Orange, Genesys, Vonage, Route Mobile, China Telecom Corporation Limited, Montnets Cloud Technology, Guodu interconnection, SAP Digital Interconnect, Zenvia, Beijing Emay Softcom Technology, ACL Mobile, and others.
|By Component, By Deployment Mode, By Enterprise Size, By SMS Traffic, By End Use Industry
|North America, U.S., Canada, Europe, Germany, France, U.K., Italy, Spain, Sweden, Netherland, Turkey, Switzerland, Belgium, Rest of Europe, Asia-Pacific, South Korea, Japan, China, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest Of APAC, Latin America, Mexico, Colombia, Brazil, Argentina, Peru, Rest of South America, Middle East and Africa, Saudi Arabia, UAE, Egypt, South Africa, Rest Of MEA
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