Enterprise A2P SMS Market Is Expected To Expand At A CAGR Of 6% during the Forecast Period 2015–2025
A2P SMS is a type of SMS service sent from an application, particularly a web application to a mobile subscriber. Introduction of OTT applications such as Whatsapp, Facebook messenger and WeChat have resulted in substantial decrease in P2P (person-to-person) SMS revenue. However, A2P messaging enables businesses and organizations to reach large targeted audiences of every age, and demography (having any type of mobile phone) at low cost.
On the basis of traffic, the enterprise A2P SMS market is segmented as national and multi-country. The multi-country traffic sub-segment was valued US$ 3.1 Bn in 2014 and is anticipated to register a CAGR of 7.5% during the forecast period. This growth is primarily driven by growth in the e-Commerce and BFSI industry. For instance, A2P messaging services are extensively adopted by banks and other financial institutions for issuing one-time passwords (OTPs) for transaction verifications or for processing customer verification for e-Commerce transactions.
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On the basis of messaging tools, the enterprise A2P SMS market is segmented as cloud API messaging platform and traditional and managed messaging platform. Among these, the cloud API messaging platform sub-segment was valued US$ 105.8 Mn in 2014 and has been expected to reach US$ 174.8 Mn by the end of 2015. This growth is driven primarily by the advantages offered by cloud API messaging platform, which includes low-cost, high flexibility and automatically scalable model with reliable services.
On the basis of applications, the enterprise A2P SMS market is segmented as pushed content services, interactive services, promotional campaigns, customer relationship management (CRM) services and others (inquiry and search related services). CRM services segment are further sub-segmented into two-factor authentication (including OTP) and others. Among the applications, CRM services is the largest revenue contributing segment to the enterprise A2P SMS market. A2P SMS is also used for a wide range of applications such as payment confirmations, appointment reminders and to send one-time passwords for two-level verification and offer real-time notification of fraudulent credit/debit card transactions. With growth in global economy, banking and financial institution, advertising and e-Commerce industry are continuously witnessing growth traction. Application developers, marketers and brand promoters are together utilizing SMS to strengthen their customer base, update users with breaking news, conduct campaigns, offer location-based opportunities and other important information.
This report also covers trends driving each segment and offers analysis and insights of the potential of the enterprise A2P SMS market in some key regions including North America, Latin America, Eastern Europe, Western Europe, Asia Pacific (excluding Japan), Japan and Middle East & Africa. Among these regions, Asia Pacific accounted for the largest market share in 2014. The region is expected to observe the highest growth throughout the forecast period, with countries such as India, China, South Korea, Singapore and Malaysia witnessing highest adoption of A2P SMS globally. Additionally, the growth across these countries is primarily driven by expanding e-Commerce industry that leverages promotional campaigns for endorsing their brands to consumers (having mobile phones) of various ages and demography.
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Leading messaging platform providers and gateway solutions providers in the global enterprise A2P SMS market include OpenMarket Inc., SAP SE, Syniverse Holdings Inc., Twilio Inc., Nexmo Inc., CLX Communications AB, and Mblox Inc.
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