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Enterprise A2P SMS Market - Key Growth Factors and Industry Analysis 2015-2025

11-22-2017 07:21 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Future Market Insights

/ PR Agency: Future Market Insights
Application to Person (A2P) enterprise messaging is an advanced technology that uses a specific application for generating Short Message Service (SMS) and transmitting it to a mobile subscriber. SMS is supported by all mobile handsets equipped supporting any of the operating systems including Android, iOS, Symbian or Windows. With increasing mobile subscriber base the future prospects of enterprise A2P SMS market remain progressive. Growing adoption of transactional A2P messages by BFSI industry is one of the primary factor to drive the market growth during the forecast period. Transactional A2P messages are send in the form of post transaction notifications and one time password (OTP) to its customers. Major applications of A2P SMS include: Customer Relationship Manager (CRM) and business services, inquiry and search-related services, interactive services, pushed content services and marketing/promotional campaigns.

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Market Dynamics

Major end-users of enterprise A2P SMS market includes financial institutions and banking, gaming, travel and transport, retail, health and hospitality. Enterprise A2P messaging services are also used for applications which necessitates to establish a wide communication channel between the sender and the receiver, such as mass voting for contests, announcements, charity and other such uses. Additionally, enterprise A2P messaging services are used for promotional campaigns by enterprises in order to promote events, brands and other activities. Search and inquiry-related services segments, which include messaging-enabled services that can be availed by users by feeding in certain information is also witnessing traction countries in emerging regions such as Asia Pacific and Middle East and Africa owing to growing customer base of mobile phones.

Rising volumes of A2P messages, driven by growing transactions via mobile payments, mobile banking, and mobile marketing activities is contributing to the market growth of the enterprise A2P SMS market. Additionally, technological innovations and development of new SMS platform tools with integrated application programming interfaces (APIs) are further contributing to market growth.

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Market Overview

A2P messages are convenient and easy to use with the introduction of advanced platforms integrated with APIs and messaging gateways. These platforms and gateways simplify the process of sending A2P SMS for enterprises. The global enterprise A2P SMS market was valued at US$ 23.4 billion in 2014 and is expected to increase at a CAGR of 6.0% during the forecast period (2015-2025). Enhancement in end-user experience and provision of a secure and reliable operator channel are the basic factors propelling growth of this market.

The report classifies the market based on the traffic as national and multi-country. In the traffic segment, the multi-country traffic sub-segment was valued US$ 3.1 billion 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. A2P messaging services are being extensively adopted by enterprises such as banks and credit card providers for issuing one-time passwords (OTPs) for transaction verifications or for processing customer verification for e-Commerce transactions.

In the applications segment, customer relationships management (CRM) services is one of the promising growth sectors. Messages sent for authentication purposes such as OTPs (One Time Password) and confirmation messages for delivering any service or product across online retail trading is propelling growth of this segment. Promotional campaign service was one of the largest application segments in terms of value in 2014. This growth is attributed to increase in promotional campaigns by enterprises and businesses globally.

The report classifies the market based on the enterprise tools into two segments namely: cloud API messaging platforms and traditional and managed messaging services. The cloud API messaging platform segment was valued US$ 105.8 Mn in 2014. Revenue from this segment is expected to expand at a CAGR of 64.8% during the forecast period. This high growth is primarily attributed to the advantages offered by cloud API messaging platform, which includes low-cost, high flexibility and automatically scalable model with reliable services.

Asia Pacific was the largest market for A2P SMS and held the largest share of the total A2P SMS market in 2014. The growth is primarily attributed to promotional application and customer relationship management service segments. Given the high concentration of feature phones/basic mobile phones in this region, marketers have been promoting their clients (end-user enterprises) by sending advertising SMSs to mobile phone service subscribers. Moreover, with enormous potential in emerging regions such as Asia Pacific, multinational companies are focusing on penetrating this market in order to increase customer base. This is expected to offer potential growth opportunities for A2P SMS platform providers, SMS aggregators and SMS marketers in the near future.

The global enterprise A2P SMS market is highly fragmented with various players such as SMS aggregators, bulk SMS providers, SMS gateway providers, marketers or resellers and telecom operators contributing to market revenue. Currently, telecom operators along with SMS aggregators and other stakeholders account for major share of the A2P SMS market. SAP SE, Syniverse Holdings Inc., OpenMarket, Inc., CLX Communications AB and Mblox Inc. are some of the key players operating in the enterprise A2P SMS market. Other emerging players of this market include: Nexmo Inc., Ogangi Corporation, Twilio Inc., FortyTwo Telecom AB and AMD Telecom S.A.

About FMI

Future Market Insights is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India.

FMI’s research and consulting services help businesses around the globe navigate the challenges in a rapidly evolving marketplace with confidence and clarity. Our customised and syndicated market research reports deliver actionable insights that drive sustainable growth. We continuously track emerging trends and events in a broad range of end industries to ensure our clients prepare for the evolving needs of their consumers.

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