The Global A2P Messaging Market size is expected to reach $77.1 billion by 2026, rising at a market growth of 3.7% CAGR during the forecast period. SMS is a universal method to reach people by using the basic feature phone without supplementary access to data services. The application-to-person (A2P) SMS is a form of SMS service, which is sent from an application, mostly from a web application to mobile users. This type of SMS service is mainly used for marketing messages, alerts, notifications, and flight alerts. SMS can outreach any network across the world and is centrally invoiced, which makes it the most popular content delivery medium. Sometimes, SMS are sent from the user to the web application; in that case, it is known as person-to-application (P2A) messaging. A2P SMS services are used in many sectors including banking and financial institutions, tourism, e-commerce, entertainment, healthcare, etc.
The telecom industry played an important role during the Covid-19 pandemic as it helped in supporting the digital infrastructure of the nations. Each & every person and the government whether it is state, federal, provincial, or local, were connected with one another to deliver and get real-time information about Covid-19. The healthcare, media & entertainment, telecommunication, utilities, and government institutes are working day and night to cope up with the condition emerged due to the pandemic and provides prerequisite services to individuals.
It’s an important phase for all the vendors of A2P messaging as they helped telecom operators in every possible way. There was a heavy messaging traffic recorded by the telecom operators on the regular basis across the world. During the pandemic, almost every firm is working remotely that develops the complexity to support an on-field telecom engineer to configure and operate SMS firewall deployment. The rise in A2P message traffic and securing messages from unauthorized access create new opportunities for A2P messaging vendors. The A2P traffic is estimated to increase, after the pandemic, because of the increasing utilization of online services around the globe.
Based on Component, the market is segmented into Platform and A2P Service. The A2P SMS services are the mode of communication between the application and its subscribed users for different purposes through messaging. The development of smartphones along with the emerging OTT companies, the MNO’s has recorded a decline in the revenues from P2P messaging services. However, there has been a similar rise in the revenues of A2P SMS for MNOs around the globe. The main factor which drives the demand for A2P SMS in the market is the rising number of mobile phone users across the world, which makes it a universal gadget for all communication purposes.
Based on Application, the market is segmented into Customer Relationship Management Services, Promotional & Marketing Services, Authentication Services, Pushed Content Services and Others. In 2019, the Customer Relationship Management services acquired the largest share of the market. Similarly, Pushed Content Services accounted for the second-largest market size in the same year. Customer Relationship Management (CRM) enables making, allocating, and managing the customer relationship via sending A2P messaging services.
Based on Deployment Type, the market is segmented into On Premise and Cloud. Based on deployment mode, the on-premises segment is estimated to witness a significant growth rate over the forecast period. The on-premises segment and deployment mode is installed by companies who install the platform on their own without availing the service from a cloud service provider. Most of the end-user of the A2P messaging market avail the platform from SMS aggregators, who are taking service from the cloud service providers.
Based on End User, the market is segmented into BFSI, Hyperlocal Businesses, Travel & Hospitality, Healthcare, Retail & eCommerce and Others. The messaging services are broadly used by a huge consumer base in entertainment and social media for catering the rising number of mobile subscribers across the world. The rising focus on mobile health is the main factors which are contributing to the growth of the digital health sector. Additionally, the growing facilities of buying goods from the online platform are also boosting the application of the A2P SMS in the retail sector.
| Report Attribute | Details |
|---|---|
| Market size value in 2019 | USD 59.7 Billion |
| Market size forecast in 2026 | USD 77.1 Billion |
| Base Year | 2019 |
| Historical Period | 2016 to 2018 |
| Forecast Period | 2020 to 2026 |
| Revenue Growth Rate | CAGR of 3.7% from 2020 to 2026 |
| Number of Pages | 275 |
| Number of Tables | 473 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling, Competitive Landscape |
| Segments covered | Component, Application, Deployment Type, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The Asia-Pacific region is expected to witness the largest share of the market during the forecast year. Owing to the increasing mobile subscriber base, players operating in this market are becoming more competitive and also aim to provide the best customer services in A2P messaging solutions. Therefore, the potential of the market is inducing the big giants to invest in this region.
Free Valuable Insights: Global A2P Messaging Market to reach a market size of $77.1 Billion by 2026
The major strategies followed by the market participants are Acquisitions and Partnerships. Based on the Analysis presented in the Cardinal matrix; AT&T, Inc. and China Mobile Limited are the forerunners in the A2P Messaging Market. Companies such as Sinch AB, Infobip Ltd., Twilio, Inc., Proximus Group, Orange S.A., and Tata Communications Limited are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include AT&T, Inc., Orange S.A., Twilio, Inc., Tata Communications Limited (Tata Group), Sinch AB, China Mobile Limited, Proximus Group (BICS), Sify Technologies Limited, Infobip Ltd., and Genesys Telecommunications Laboratories, Inc.
By Component
By Application
By Deployment Type
By End User
By Geography
The A2P messaging market size is projected to reach USD 77.1 billion by 2026.
The major factors that are anticipated to drive the A2P messaging industry include increasing trend of mobile marketing through messaging.
AT&T, Inc., Orange S.A., Twilio, Inc., Tata Communications Limited (Tata Group), Sinch AB, China Mobile Limited, Proximus Group (BICS), Sify Technologies Limited, Infobip Ltd., and Genesys Telecommunications Laboratories, Inc.
Based on the Application category, the authentication services category is estimated to increase at a high growth rate over the forecast period.
The BFSI segment is expected to witness the largest share in the year 2019 whereas the Retail was the second-largest segment in the same year.
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