Transactional Messages and Promotional Campaigns to Drive the Growth of A2P SMS Market

SMS is a discreet and ubiquitous technique of reaching everyone using basic feature phone without any additional access to data services. SMS sent from mobile subscribers to web applications is known as person-to-application (P2A) messaging. SMS can also be sent from an application-to-person (A2P) particularly a web application, to a mobile subscriber. The common uses of A2P SMS are alerts, notifications, marketing messages and flight alerts. A2P SMS applications are widely used by banking and financial services institutions, tourism, E-commerce, healthcare, and entertainment industry among others. The A2P SMS is preferred over other content delivery mediums as it offers multiple advantages. The SMS is centrally invoiced and can reach any network globally.

Transparency Market Research, a leading U.S. based market research firm, predicts the global A2P SMS market to grow at a compounded annual growth rate of 4.2% during the period: 2014 to 2020.

Browse full A2P SMS Market research report with complete TOC: http://www.transparencymarketresearch.com/global-a2p-sms-market.html

Various applications of A2P SMS include pushed content services, promotional campaigns customer relationship management (CRM) services, interactive services and search related services. Augmentation in end-user experience and provision of a secure and reliable operator channel are the basic factors responsible for growth of the A2P SMS market. SMS is one of the most attractive and easy to use forms of mobile communication supported by all mobile handsets across all operating systems and mobile networks. A2P SMS market is poised to grow due to factors such as growth in mobile payments and mobile banking, increase in mobile subscribers, increasing mobile marketing activities, technological and product developments, and other macro-economic factors. However, factors such as mobile messaging spam and IP based messaging are hindering the market growth by decreasing profitability of telecom operators. Mobile spam also affects revenue of app developers, advertisers, and subscribers. Increase in smartphone and growth in penetration of internet network has declined the subscription to pushed updates such as news updates, stock updates through SMS; however, there is still enough potential for enterprises to reach developing nations with low penetration of mobile apps and web services.

The CRM services application segment is likely to record the highest growth rate among all the application segments of the A2P SMS market. CRM services are used for wide range of applications such as account balance notifications, transactional messages for e-commerce and BFSI industries, tickets and boarding passes for travel and tourism, and appointment reminders for the healthcare sector. With global economic growth and proliferation of financial services, banks and financial institutions are expected to record rise in transactions due to an increase in the number of account holders. Therefore, CRM services are anticipated to remain the largest application segment during the forecast period. Marketing campaigns (also known as promotional campaigns) also use A2P SMS on a large scale. Event triggered messages and messages for promoting products, brands and services are contributing to the market growth. Moreover, with increasing competition among various retail outlets, this application segment is expected to continue driving the A2P SMS market growth in the near future.

Press Release of A2P SMS Market: http://www.transparencymarketresearch.com/pressrelease/a2p-sms-market.htm

Asia Pacific dominated the A2P SMS market and accounted for the largest market revenue share in 2013. Increasing number of mobile phone users and rise in marketing activities are the key factors driving the growth of A2P SMS in this region. According to the Press Information Bureau of India (PIB), countries such as China and India have the highest number of mobile phone users worldwide. Moreover, low subscription charges offered by telecom operators to the end-users are likely to further fuel number of mobile subscribers during the forecast period. Industries such as Banking, Financial services and Institutions (BFSI) and e-commerce are witnessing high growth rate, owing to which, Asia Pacific is expected to retain its dominance in the long run. Increase in transactional activities, facilities such as one-time password and post transaction notifications are expected to be key driving factors for the market growth.

The global A2P SMS market is highly fragmented with several players such as SMS aggregators, bulk SMS providers, SMS gateway providers, marketers or resellers and telecom operators contributing to the market revenue. Currently, telecom operators along with the marketers and other stakeholders account for major share of the A2P SMS market. SMS aggregators procure SMS in high volume from the telecom operators. The leading companies offering messaging platforms and gateway solutions in the A2P SMS market include Clickatell, mBlox, Inc., Verisign, Inc., AMD Telecom AB, Air2Web, Optimizer International Group, Inc, Silverstreet B.V., Tanla Solutions Ltd, Symsoft AB, Syniverse Technologies, LLC, and OpenMarket Inc.

TMR is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

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This release was published on openPR.