The use of Short Messaging Service (SMS) for advertising and other promotional activities in varied verticals including healthcare, entertainment, transport, and finance has been gaining lot of interest in the recent years.  This has further augmented the role of SMS as a carrier technology for media, utility, and communication services. We expect SMS to continue as a carrier technology for the next two years at least because of its reliability and ubiquitous nature. Thus, the advent of mobile wallet technology resulting in increased mobile payments and mobile-based transactions through one time password service is expected to drive the A2P SMS market during the forecast period 2015 – 2023. These factors are expected to contribute towards a compounded annual growth rate (CAGR) of 4.9% during the forecast period 2015 – 2023. The A2P SMS market  is expected to exceed US$ 78.0 Bn by 2023.

1.1    Market Scope and Segmentation

This report analyzes the global A2P (Application-to-Person) SMS market in terms of applications, end-use industry verticals, and geographical distribution. On the basis of applications, the market is segmented into Customer Relationship Management (CRM) services, push content services, promotional campaigns, interactive services, and other services (query and search-based services). Similarly, on the basis of end-use, the A2P SMS market is further classified into retail, BFSI (Banking, Financial Services, and Insurance), travel and transport, utilities, healthcare, education, and others (entertainment, gaming, etc.). The geographical distribution of the global A2P SMS market considered in this study encompasses regional markets such as North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

1.2    Report Description

Purpose of the Report

The purpose of this strategic research study titled “Global A2P SMS Market - Growth, Share, Opportunities, and Competitive Analysis, 2015 – 2023” is to offer industry investors, company executives, and industry participants with in-depth insights to enable them make informed strategic decisions related to the opportunities in the global A2P SMS market.

Target Audience

• Industry Investors
•  SMS aggregators and bulk SMS providers
• SMS gateway providers
• Telecom operators 

USP and Key Offerings

The report titled “Global A2P SMS Market- Growth, Share, Opportunities, and Competitive Analysis, 2015 – 2023” offers strategic insights into the global A2P SMS industry along with the market size and estimates for the duration 2013 to 2023. The said research study covers in-depth analysis of multiple market segments based on applications, end-use industry verticals, and cross-sectional study across different geographies. In order to help strategic decision makers, the report also includes competitive profiling of the leading industry participants, their SCOT (Strength, Challenges, Opportunities, and Weaknesses) analysis, market positioning, and key developments. Other in-depth analysis provided in the report includes:

• Current and future market trends to justify the forthcoming attractive markets within the A2P SMS market
• Market fuelers, market impediments, and their impact on the market growth
• In-depth competitive environment analysis
• Ecosystem Analysis
• Trailing 2-Year market size data (2013 – 2014)
• SRC (Segment-Region-Country) Analysis

Overall, the research study provides a holistic view of the global A2P SMS market, offering market size and estimates for the period from 2015 to 2023, keeping in mind the above mentioned factors.

A2P SMS Market : Application Segmentation Analysis

The contribution of these application segments to the global Application-to-Person (A2P) SMS market in 2014 and 2023 is as shown in the figure below

In the base year of 2014, Customer Relationship Management (CRM) services accounted for the majority of the global A2P SMS market revenue share. The demand can be attributed to the growth of e-commerce, banking, and insurance sectors, especially in the developing economies. The segment is expected to remain the largest contributing application segment by 2023, exhibiting robust growth. The use of SMSs for verification and confirmation purpose in form of One Time Passwords (OTP) over e-commerce websites is expected to drive the demand for CRM services over the forecast period 2015 – 2023. Promotional campaign service is the other key application segment. It is expected to witness healthy growth over the forecast period 2015 – 2023, majorly on account of increased use of SMSs for promotional activities by enterprises across the globe. The interactive services used for activities including contestant voting, charity, or any activity requiring communication among wide audiences are expected to witness comparatively sluggish growth. The sluggish growth can be attributed to the widespread acceptance of OTP messaging services for such initiatives and activities. 

A2P SMS Market : End-use Vertical Segmentation Analysis

In the base year of 2014, BFSI (Banking, Financial Services, and Insurance) was the largest revenue contributing segment to the global A2P SMS market. A majority of this demand comes from the use of application-based SMSs for confirmation of financial transactions through two factor authentication. Over the forecast period, the segment is expected to witness robust growth on account of optimistic outlook of the BFSI (Banking, Financial Service, and Insurance) sector. Other segments including healthcare, travel and transportation, utilities, and retail are also expected to witness steady growth, especially in the first half of the forecast period 2015 – 2023. While the application-based SMSs are used by the healthcare fraternity to give reminders of appointments and test results to the patients, the SMS-based ticketing has been gaining momentum across all modes of transport. Apart from ticketing, the application-based messages are also used for freight monitoring, delivery tracking, and navigation details. 

Geography Segmentation Analysis

In the base year of 2014, Asia Pacific was the largest Application-to-Person (A2P) SMS market in terms of both revenue and SMS traffic. The region accounted for over 40 percent of the global Application-to-Person (A2P) SMS revenue in 2014. The trend is expected to continue over the forecast period 2015 – 2023, with the region retaining its leading position. The huge feature phones market in the region is offering substantial opportunities for mobile advertisers. In addition, the proliferation of e-commerce services supporting promotional campaigns through mobile advertising is also expected to support the market growth during the forecast period 2015 - 2023. The advent of IoT technology in smart homes, connected cars, and mobile commerce is also expected to have positive impact on the market growth in Asia-Pacific. The region is also anticipated to exhibit comparatively better growth, with countries including China, India, Singapore, Indonesia, South Korea, and Malaysia witnessing growing adoption of A2P CRM services.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of A2P SMS market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the A2P SMS market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of A2P SMS market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the A2P SMS market?
• Which is the largest regional market for A2P SMS market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving A2P SMS market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the A2P SMS market worldwide?