MarketsandMarkets forecasts the global “A2P Messaging Market by Component (Platform and A2P Service), Application (Authentication, Promotional and Marketing, and CRM), Deployment Mode, SMS Traffic (National and Multi-Country), End User, and Region — Global Forecast to 2025”, size to grow from USD 62.1 billion in 2020 to USD 72.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 3.2% during the forecast period. The global A2P Messaging market shows a significant growth in the forecast period. The A2P messaging services are used in various applications, such as, promotional campaigns by enterprises in order to promote events, brands, and other activities. Promotional and Marketing services, which include messaging-enabled services that can be availed by users by feeding in certain information, is also gaining traction in the emerging regions, such as APAC and MEA, owing to the growing customer base of mobile phones. The major end-users of the A2P Messaging market include banking and financial institutions, gaming, retail & e-commerce, hyperlocal businesses and healthcare. A2P messaging services are also used for applications, such as mass voting for contests, announcements, charity and other such uses, which necessitate establishing a wide communication channel between the sender and the receiver.
Factors contributing to the high growth rate in these regions are growing number of mobile subscribers, increasing number of advertising and marketing companies, and growing use of A2P messaging among major industries. These factors are also expected to shape the future of the global A2P messaging market. However, the market also faces several challenges, including the increasing competition from global OTT vendors, and SMS fraudulent activities, such as SMS phishing, and SMS spamming.
Among vertical, the BFSI segment is expected to dominate the market during the forecast period
Based on vertical, the BFSI segment of the A2P messaging market is projected to hold a larger market size during the forecast period. Increasing subscriber base brings an opportunity for the BFSI industry to engage with their consumers. A2P messaging solution helps them to connect and build a robust connection with customers, from announcing transaction details, and consumer activities, related to retail banking and for and assisting consumers with their needs. Due to constant growth in the number of internet users and the proliferation of smartphones, tech-savvy consumers expect quick service. A2P messaging is witnessing huge growth in BFSI sector.
By deployment mode, on-premises segment to record a higher growth rate during the forecast period
By deployment mode, on-premises segment segment is expected to record a higher growth rate during the forecast period. The on-premises segment and deployment mode is adopted by players who can install the platform at their own end without taking the service from a cloud service provider. In A2P messaging market, most end users take the platform from SMS aggregators who service from cloud service providers. There are very few end users who choose on-premise mode of deployment and therefore, the cloud segment holds a large market share leading to on-premises segment growing at a higher CAGR.
Asia Pacific to record the highest growth during the forecast period
The APAC A2P messaging market is estimated to have strong growth in the future. Due to a massive mobile subscriber base, enterprises in this region are becoming more competitive and focusing on offering better customer service in A2P messaging solutions. Thus, the untapped potential of this region is attracting investments by major companies. The growth in the APAC region is primarily attributed to potential opportunities available for advertisers in APAC, given the high concentration of feature mobile phones in this region. Moreover, several multinational companies are focusing on expanding their business in countries across the APAC. This offers potential growth opportunities for A2P SMS providers to increase brand awareness of business organizations.
Market Players
Major vendors in the A2P messaging market include AT&T (US), Sinch (Sweden), China Mobile (China), Infobip (UK), Orange (France), Route Mobile (India), Comviva (India), Twilio (US), BICS (Belgium), Monty Mobile (UK), Syniverse (US), Global Message Services (Switzerland), Tyntec (UK), Silverstreet (Singapore), Vonage (US), Genesys (US), TATA Communications (India), Cequens (Egypt), Mitto (Switzerland), ClearSky Technologies (US), Sify Technologies (India), MSG91 (India), Textlocal (UK), Clickatell (US), Kaleyra (Italy), MessageBird (The Netherlands).
AT&T (US) is leading players in the A2P Messaging Market
AT&T provides global smart messaging suite for enterprises across the globe. This solution mainly caters to financial services, retail, and government. This suite enables businesses to integrate their existing solutions with powerful messaging APIs and send messages to destinations around the world. The company also offers business messaging that enables businesses to send notifications to groups as large as 20,000 recipients. AT&T RCS portfolio includes advanced messaging, a next-generation messaging service, which enables an individual to send high-resolution photos and larger video files, up to 10MB, per attachment. This service is only available on select smartphones and may not be compatible with certain rate plans.
Sinch offers new and creative ways to use A2P messaging to connect and engage. In A2P and P2A messaging marketspace, the company offers SMS API that enables one-way and two-way SMS, helps its customers’ send bulk business SMS in a snap. The company’s CPaaS platforms combine A2P messaging with an array of other communication channels that include voice, RCS, video calling, and AI-based services, such as chatbots. It also offers A2P monetization service providing full management and control of terminating A2P traffic in enterprise’s network. Sinch also offers RCS, which is the next generation of A2P messaging, thus enabling a richer conversational communication channel between brands and consumers. In addition, it offers managed and professional services for mobile operators. The company serves over 170 million subscribers in more than 40 countries. Sinch has regional offices in the Americas, Europe, APAC, and MEA.
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