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A2P SMS Market

Leveraging A2P SMS Market for Your Business During Forecasts-2017 and 2025
Global A2P SMS Market: Snapshot
Massive proliferation of application-to-person (A2P) messages in areas such as mobile
banking, mobile payments, and mobile health services has led to significant
expansion of the global A2P SMS market in the past few years. SMSs are extensively
used as effective tools for customer engagement, customer service, activation and
authentication, and as service delivery functions by enterprises and organizations.
A2P SMS is one form of service in which SMS is sent from a web based application
to a mobile subscriber. Owing to the provision of a secure and reliable operator
channel and improvement in end-user experience, A2P SMSs are being widely used in
industries such as tourism, banking and financial services institutions, ecommerce,
entertainment, and healthcare.
A2P SMSs are preferred over other content delivery mediums as they offer multiple
advantages. An SMS can reach any network globally and is centrally invoiced. SMSs
are one of the easiest and most attractive forms of mobile communication as most
users are familiar with them. Furthermore, SMSs are supported by all mobile
handsets across all mobile networks and operating systems.
TMR analysts suggest that the global A2P SMS market, with a valuation of US$62.01
bn in 2017, will exhibit a healthy 4.2% CAGR from 2017 and 2025 and rise to a
valuation of US$86.53 bn by 2025.
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E-commerce and BFSI Industries to Remain Most Lucrative
On the basis of end-use Industry, the market has been classified into banking,
financial services and Insurance (BFSI), retail, travel and transport, healthcare and
hospitality, and media and entertainment (gaming). In industries such as
transportation and hospitality, A2P SMSs are used for various ticketing applications
such as airlines for delivering boarding passes, and payments for transportation
services. Many financial services companies use A2P SMSs for services such as making
payments, requesting account information and account transfers. Mobile network
operators provide security for these companies by authorizing the financial service
companies to identify their customers using mobile numbers.
Over the report’s forecast period, the segment of BFSI is expected to emerge as one
of the most promising revenue opportunity for the global A2P SMS market. The
increased consumer preference to online banking services is expected to emerge as
the key factor pushing this possibility towards reality.
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Consumer Relationship Management Services, Asia Pacific to Showcase Promising
Growth Opportunities
On the basis of application, the global A2P SMS market is categorized into interactive
services, pushed content services, promotional campaigns, inquiry related services,
and customer relationship management (CRM) services. Of these, the segment of CRM
services is expected to emerge as one of the key consumers of A2P SMSs owing to
increased demand for billing and transactional services across the E-commerce and
BFSI industries.
Geographically, the markets in Asia Pacific and North America, respectively, held the
two leading spots in the global market in 2015. The leading position of the Asia
Pacific market is chiefly attributed to the region’s large population base and the
continuous increase in the number of mobile subscriptions. The thriving BFSI and Ecommerce industries in developing economies in the region have also contributed to
the increased demand for A2P SMS services.
Some of the leading companies operating in the global A2P SMS market profiled in
the report are Syniverse Technologies, LLC, AMD Telecom S.A., Fortytwo Telecom
AB., CLX Communications AB, Ogangi Corporation, Silverstreet BV, Tanla Solutions
Ltd., Symsoft AB, Cybercomm, Infobip Ltd, Route Mobile Limited, Angkor Data
Communication Group Co., Ltd., tyntec, nexmo, and DIMOCO.
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