A2P SMS Market expanding at a 4.2% CAGR | Key Players include Syniverse Technologies, LLC, AMD Telecom S.A., Fortytwo Telecom AB., CLX Communications AB
According to the study, the global A2P SMS market had a revenue valuation of US$62.01 bn in 2017 and is expected to reach US$86.53 bn by 2025, expanding at a 4.2% CAGR from 2017 to 2025. The global A2P SMS market volume stood at approximately 1,717 bn in 2017 and is expected to rise to 2,353 bn by 2025 by, expanding at a CAGR of 4.2% from 2017 to 2025.
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Demand to Remain High for Customer Relationship Management Services
In 2016, Asia Pacific dominated the market and gathered approximately 40% of the overall market revenue share, followed by North America that accounted for a major share of the global market revenue. The Asia Pacific region is likely to retain its leading position throughout the forecast period, with notifiable rise in global A2P SMS revenue share in 2025.
In terms of application, the segment of customer relationship management services is expected to remain the most lucrative over the report’s forecast period. Customer relationship management services are used to offer billing and transaction-related information to the customers and are finding extensive demand across the banking and financial sector as consumers increasingly rely on online services rather than physical transactions for most of their banking purposes.
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Increased Set of Applications to Lead to Increased Uptake
The global A2P SMS market is driven by factors such as the globally rising number of mobile subscribers, rise in mobile marketing activities by application developers and marketers, and the proliferation of A2P SMS services in mobile banking, mobile health and mobile payments sectors. The thriving e-commerce industry, availability of low-cost smart phones along with growing penetration of Internet, and the resultant rise in cloud/web enabled services such as mobile payments and mobile banking are also expected to aid market growth for A2P SMSs during the forecast period.
A2P SMSs are currently widely utilized for a variety of applications such as updating the masses about location-based opportunities, promotional campaigns, campaign perks, breaking news, and for brand promotion. A2P SMS services are also widely used for broadcasting transactional messages by a number of industries such as financial services, entertainment, banking, tourism, marketing, retail, media and healthcare. As the set of applications of these services swells, the demand for A2P SMSs is also expected to rise.
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However, certain factors, including the technical anomalies surrounding the concept of bulk SMS, phishing and spam messages, rise in mobile malwares, and illicit routes affecting revenues of telecom operators could negatively impact the overall growth prospects of the global A2P SMS market.
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