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Global Overview on Enterprise A2P SMS Market

11-27-2017 12:23 PM CET | IT, New Media & Software

Press release from: Coherent Market Insights

​The global enterprise A2P SMS market was valued at US$ 59.8 billion in 2016 and is projected to reach US$ 108.2 billion by 2025, exhibiting a CAGR of 6.1% over the forecast period (2017-2025). The growing e-commerce industry contributes to major growth of this market. High adoption of SMS technology by e-commerce companies for payment confirmation, password reset, signup details, delivery status, sale details, special offers, and product launches helps in safe online transitions and customer retention. According to Coherent Market Insights, the North America e-commerce market generated revenue of US$ 372 billion in 2016 and is projected to reach US$ 554 billion by 2022. Similarly, implementation of SMS technology in the banking and finance industry helps business to improve communication with customers. Banks provide SMS services to its customers for purposes such as transition alerts, payment reminders, updates regarding latest and altered banking rules and regulations, documentation details related to banking, real time alerts on ATM cash withdrawal, verification and access control processes, and account balance enquiries. Owing to the significance of SMS service in the banking industry, in turn boosts the enterprise A2P SMS market.

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Increasing number of network devices also plays a major role in growth of the enterprise A2P SMS market. According to Coherent Market Insights, around 17.1 billion network devices were used globally in 2016, the number for which, is projected to reach 24.1 billion network devices by 2021. Increasing number of network devices, in turn, is expected to provide immense opportunities for growth of the market.

The customer relationship management segment holds a dominant position in the enterprise A2P SMS market

On the basis of application, the enterprise A2P SMS market is diversified into pushed content services, promotional campaigns, interactive services, and customer relationship management services. The customer relationship management service segment held a dominant position in the market in 2016, owing to high focus on customer engagement and adoption of digitalization by various business organization.

North America holds a dominant position in the global enterprise A2P SMS market

According to Coherent Market Insights, on the basis of geography, the enterprise A2P SMS market is segmented into North America, Europe, Asia Pacific, Latin America, Africa, and Middle East. Asia Pacific enterprise A2P SMS market held dominant position in 2016 and is projected to retain its dominance throughout the forecast period. In 2016, this market in Asia Pacific generated revenue of US$ 28.2 billion with 44.2% market share. Increasing number of mobile phone users drives significant growth of the enterprise A2P SMS market in Asia Pacific. According to cisco, around 2500 million mobile phone users were present in Asia Pacific, in 2016, this number is projected to reach 3000 million by 2021. Thus, the enterprise A2P SMS market in the region is expected to experience rapid growth. India, China, and Japan are some of the major countries driving growth for this market in Asia Pacific. In India, growing e-commerce industry significantly contributes to growth of this market. According to “India Brand Equity Foundation organization” in 2016, India e-commerce industry generated revenue of US$ 15 billion and is projected to reach US$ 64 billion by 2020. Moreover, Indian e-commerce industry is projected to exhibit a CAGR of 44.6% over the forecast year. Thus, expected to fuel growth of the market for enterprise A2P SMS, in India.

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About Coherent Market Insights:

Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.

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