A2P Messaging Market Size, Share & Segmentation by Component (Platform and A2P Service), by Deployment Mode (On-premises and Cloud), by Application (Authentication Services, Promotional and Marketing Services, CRM Services, Pushed Content Services, Interactive Messages, Others), by Vertical (BFSI, Retail and eCommerce, Hyperlocal Businesses, Healthcare, Travel and Hospitality, Others), by Traffic (National, Multi-country), by Regions and Global Forecast 2023-2030

Report Scope & Overview:

The A2P messaging market size was valued at USD 63.86 Bn in 2022 and is expected to reach USD 85.93 Bn by 2030, and grow at a CAGR of 3.78% over the forecast period 2023-2030.

A method that includes an application that delivers messages to a mobile/device user is referred to as application-to-person SMS (A2P SMS), enterprise or professional SMS. A2P SMS can be used to engage with consumers (customer care), authenticate users of online services (activation and authentication processes), and provide time-sensitive notifications, among other things. SMS-based two-factor authentication, vital warnings, automated booking confirmations, banking notifications, loyalty programs, and marketing notifications are all instances of A2P SMS. A2P SMS is becoming more popular for communicating business to person through various corporate platforms, support services, and online reservation systems to implement A2P SMS to improve efficiency and communication.

As time and technology progress, text messages are becoming the most convenient mode of communication due to increased user knowledge and support on all phones. A2P SMS is a particularly successful technique to reach a huge number of people, with cellphones spreading to nearly every industry, including healthcare, retail, entertainment and media, banking, financial services and insurance (BFSI), and tourism.

Route Mobile (UK), a wholly-owned subsidiary of Route Mobile, made official arrangements to purchase Masivian, a Latin American company, in October of 2021. Masivian is a Colombian and Peruvian cloud communications platform provider with a substantial presence in both countries. SMS, OTT corporate messaging, email, and phone are all options for Masiv's multichannel notification services. For marketing and operations, the Masiv platform orchestrates and automates A2P messaging and multichannel discussions.

MARKET DYNAMICS:

KEY DRIVERS:

• The A2P business is fueled by a growing mobile subscriber base.

• With a lower cost and more reach, it's a win-win situation.

RESTRAINTS:

• In the A2P messaging arena, there are concerns about the security provided by corporations and MNOs.

• Government policies and regulations are strict.

OPPORTUNITY:

• With the rise of mobile marketing, businesses can now provide quick notifications, alerts, promotional messaging, tickets, and marketing communications to their clients.

CHALLENGES:

• A grey route is an unlawful message path taken by a company that has no business arrangement and/or connection with the operator.

IMPACT OF COVID-19:

While the COVID-19 epidemic continues to affect several industrial sectors throughout the world, the A2P SMS industry is expected to see a slowdown in 2020. The average engagement and SMS traffic have decreased significantly as more governments across the world continue to battle the COVID-19 outbreak by implementing lockdowns and establishing nationwide quarantines. During the pandemic, the retail marketing industry is expected to be the worst impacted. However, as a result of increased activity in the e-Commerce industry, traffic related to online transactions, alerts, and notifications is increasing. During the COVID-19 pandemic, a spike in one-time-password (OTP) and alerts traffic is likely to give suppliers with a window of opportunity. A2P SMS is intended to be used by government entities and other agencies as an effective tool during crises and to raise awareness about the COVID-19 illness.

MARKET ESTIMATION:

Customer Relationship Management Services, Inquiry Related Services, Interactive Services, Promotional Campaigns, and Pushed Content Services are the market segments based on application. In 2021, Customer Relationship Management Services became the dominating type category, and this dominance is expected to continue in the years ahead. Customer Relationship Management Services are useful for analyzing customer trends and habits, which encourages their use. It enables for the creation, management, and assignment of client relationships via A2P messaging services, resulting in increased income. The app includes a link to read a PDF or email on a new product launch, as well as the opportunity to track orders, participate in a survey, claim a discount, and view a video.

Based on vertical, the BFSI sector of the A2P messaging market is estimated to have a larger market size over the forecast period. As its subscriber base expands, the BFSI business will have additional options to engage with their consumers. A2P messaging enables them to interact and maintain a strong relationship with clients, from announcing transaction data to consumer activities in retail banking, as well as aiding customers with their requirements. Because of the steady rise in the number of internet users and the widespread usage of smartphones, tech-savvy customers demand prompt service. In the BFSI industry, A2P communications is exploding.

KEY MARKET SEGMENTS:

On The Basis of Component

• Platform

• A2P Service

On The Basis of Deployment Mode

• On-premises

• Cloud

On The Basis of Application

• Authentication Services

• Promotional and Marketing Services

• CRM Services

• Pushed Content Services

• Interactive Messages

• Others

On The Basis of Traffic

• National

• Multi-country

On The Basis of Vertical

• BFSI

• Retail and eCommerce

• Hyperlocal Businesses

• Healthcare

• Travel and Hospitality

• Others

REGIONAL ANALYSIS:

Asia-Pacific dominates the A2P messaging industry in terms of geography. The amount of digital financial transactions in the nation is increasing at an exponential rate, and as a result, the usage of OTP, 2FA, and single-factor authentication messages is increasingly common. As a result, China now holds the greatest market share in Asia-Pacific A2P messaging, and it is likely to continue to do so during the research period. The US, Canada, and Mexico make up the North American A2P messaging market. By delivering notifications, alerts, adverts, and other promotional activities to customers, A2P messaging has helped firms in the region strengthen their digital brand image.

REGIONAL COVERAGE:

• North America

  • USA

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • The Netherlands

  • Rest of Europe

• Asia-Pacific

  • Japan

  • south Korea

  • China

  • India

  • Australia

  • Rest of Asia-Pacific

• The Middle East & Africa

  • Israel

  • UAE

  • South Africa

  • Rest of Middle East & Africa

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

KEY PLAYERS:

The major key players are Infobip Ltd., SAP SE, Sinch AB, Vonage Holdings Corp., Tata Communications, Tyntec., Twilio Inc., Comviva Technologies Limited, Route Mobile Limited

Frequently Asked Questions (FAQ) :