A2P Messaging Market by Component (Platform and A2P Service), Application (Authentication, Promotional and Marketing, and CRM), Deployment Mode, SMS Traffic (National and Multi-Country), End User and Region - Global Forecast to 2028
A2P Messaging Market Forecast & Statistics, Global Size
The size of the worldwide A2P messaging market is predicted to increase from USD 68.3 billion in 2023 to USD 78.2 billion by 2028, with a Compound Annual Growth Rate (CAGR) of 2.8% from 2023 to 2028.
A2P (Application-to-Person) messaging involves sending automated messages from applications or software to individual recipients' mobile devices. It enables businesses and organizations to deliver important information, notifications, and promotional offers to customers or employees. A2P messaging is commonly used for transactional updates, appointment reminders, and secure authentication. It provides a convenient and personalized communication channel, utilizing SMS, MMS, or other messaging platforms. Overall, A2P messaging facilitates real-time, automated, and targeted communication between applications and individuals. Increasing mobile penetration and the need for secure, real-time communication drive the growth of the A2P messaging market
To know about the assumptions considered for the study, Request for Free Sample Report
To know about the assumptions considered for the study, download the pdf brochure
A2P Messaging Market Dynamics
Driver: The growth of eCommerce
Ecommerce is one of the key drivers behind the growth of the A2P (Application-to-Person) messaging market. With the rise of ecommerce, businesses are increasingly using A2P messaging to communicate with their customers. eCommerce businesses are adopting A2P to drive sales. ECommerce businesses are adopting A2P messaging platforms and services to send targeted promotions, discount codes, and other incentives to encourage customers to make a purchase. By sending personalized messages to customers based on their purchase history or browsing behavior, businesses can increase customer engagement and conversions.
Restraint: Stringent government regulations and policies
The A2P messaging market operates under strict regulations, including compliance with data protection and privacy laws such as the General Data Protection Regulation (GDPR) in Europe and the Telephone Consumer Protection Act (TCPA) in the United States. These regulations impose limitations on how organizations can collect, store, and use customer data, and failure to comply can result in hefty fines and reputational damage. Industry governing bodies such as Cellular Telecommunications and Internet Association (CTIA), National Regulatory Authorities (NRAs), TRAI, and Federal Communications Commission (FCC) have implemented complex rules and regulations on the use of text messaging. The degree of rules and regulations varies from country-to-country, which impacts the A2P messaging market.
Opportunity: Increased adoption of A2P SMS by OTT players to drive revenue for MNOs
A2P traffic is rapidly growing from enterprise customers. With the steady growth of OTT platforms, and online services, the adoption of A2P SMS by the OTTs and enterprises for verification, public services, and notification alerts among MNOs to generate revenue has increased. Enterprises such as BFSI, tourism, and healthcare are adding complementary SMS services to keep updating their customers. Thus, revenues are expected to witness an upsurge with the increase in A2P SMS traffic. Since the customer base of the A2P messaging market is huge, globally, it can act as an opportunity for MNOs to regain revenues in case of revenue losses. MNOs have their network connectivity and direct operator agreements to integrate new profitable in-house services using A2P SMS traffic. A2P messaging is one of the biggest contributors to SMS revenue. As the P2P SMS messaging market is being impacted by OTT players, A2P messaging offers opportunities for MNOs to capture revenue from enterprise customers. Moreover, they are making A2P SMS more secure and filtering messaging traffic that has resulted in increased A2P pricing, which further increases the revenue for MNOs..
Challenge: Difficulty in maximizing monetization of A2P messaging
With the decline of Person-to-Person (P2P) messaging, enterprises have rapidly turned to A2P messaging as part of their customer outreach strategy as a high volume of messages are sent through A2P messaging. A2P messaging presents a great opportunity for operators to maintain and grow their messaging revenue. However, many operators fail to monetize this messaging opportunity due to its lack of visibility and control in their network. To successfully monetize A2P messaging services, operators need to install an SMS firewall that helps MNOs safeguard Application to Person (A2P) and Person to Application (P2A) messaging traffic against all malicious attacks and provide end-to-end protection to text messages over the telecom network. The SMS firewall solution proactively detects, filters, and secures illicit national and international SMS traffic. It is a pre-emptive measure taken by MNOs to improve customer experience, reduce grey route traffic, and drive business revenue.
A2P Messaging Market Ecosystem
Among applications, authentication services segment to grow at the highest CAGR during the forecast period
Under the applications segment, authentication services segment is expected to grow at the highest growth rate during the forecast period. With the rise in cyber threats, fraud attempts, and privacy concerns, businesses are prioritizing the implementation of authentication services to safeguard sensitive information and verify the legitimacy of messages. Authentication services provide an additional layer of security by verifying the identity of both the sender and the recipient, ensuring secure and reliable communication. By employing authentication services, organizations can mitigate the risk of unauthorized access, protect their brand reputation, comply with industry regulations, and provide customers with a secure messaging experience, thereby driving the adoption of authentication services in the A2P messaging market.
Among vertical, the BFSI segment is expected to dominate the market during the forecast period
Based on vertical, the BFSI segment of the A2P messaging market is projected to hold a larger market size during the forecast period. the need for real-time transactional notifications, emphasis on security and authentication, customer engagement and support initiatives, fraud prevention measures, compliance with regulations, cost efficiency through automation, and the growth of mobile banking and financial services. These drivers collectively contribute to the increasing adoption of A2P messaging solutions in the BFSI sector, enabling effective communication, enhanced customer experiences, and streamlined operations.
By component, the services segment is expected to dominate the market during the forecast period
Based on component, the services segment of the A2P messaging market is projected to hold a larger market size during the forecast period. A2P messaging services leverage SMS (Short Message Service), MMS (Multimedia Messaging Service), or other messaging platforms to ensure effective and efficient communication between applications and individuals. A2P messaging services are widely used by businesses, organizations, and service providers to deliver important information, notifications, alerts, and promotional messages to their customers.
APAC to account for the largest market size during the forecast period
APAC is estimated to hold the largest market share in 2023. The A2P messaging market in the Asia Pacific region is driven by factors such as the rapid growth of mobile subscribers, the prevalence of a mobile-first culture, the expansion of e-commerce and mobile banking, the increasing demand for notifications and alerts, the regional expansion of enterprises, technological advancements, infrastructure development, and the cost-effectiveness and reach of A2P messaging. These factors collectively contribute to the adoption of A2P messaging services, enabling businesses to effectively engage with customers, deliver real-time updates, and facilitate secure transactions in the region.
Key Market Players
The report includes the study of key players offering A2P messaging solutions and services. It profiles major vendors in the global A2P messaging market. The major vendors include AT&T (US) ,Sinch (Sweden), Infobip (UK), China Mobile (China), Orange (France), Route Mobile (India), Comviva (India), Twilio(US), BICS (Belgium), Monty Mobile (UK), Syniverse (US), Global Message Services (Switzerland), Tyntec(UK), Silverstreet (Singapore),Vonage (US), Genesys (US), TATA Communications(India),Cequens (Egypt),Mitto(Switzerland),ClearSky Technologies (US), Sify Technologies (India), MSG91 (India), Textlocal (UK), Clickatell (US), Kaleyra (Italy), MessageBird (The Netherlands) TeleWhale (Cyprus).
These players have adopted various strategies to grow in the global A2P messaging market. The study includes an in-depth competitive analysis of these key players in the market with their company profiles, recent developments, and key market strategies.
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Request Sample Scope of the Report
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
|
Report Metrics |
Details |
|
Market size value in 2023 |
USD 68.3 billion |
|
Revenue forecast for 2028 |
USD 78.2 billion |
|
Growth Rate |
2.8% CAGR |
|
Market size available for years |
2018 – 2028 |
|
Base year considered |
2022 |
|
Forecast period |
2023-2028 |
|
Forecast units |
Value (USD Billion) |
|
Segments covered |
Component(Platform and A2P Service), Deployment Mode (On-premise and Cloud),Application (Authentication Services, Promotional and Marketing Services, Customer Relationship Management Services, Pushed Content Services, Interactive Messages, and Others), SMS Traffic(National and Multi-country), End User (Banking, Financial Services, and Insurance, Retail and eCommerce, Hyperlocal Businesses, Healthcare, Travel and Hospitality, and Others) and Region |
|
Regions covered |
North America, Europe, APAC, MEA, and Latin America |
|
Key Market Drivers |
|
|
Key Market Opportunities |
|
|
Companies covered |
AT&T(US) ,Sinch(Sweden), China Mobile (China), Infobip(UK), Orange (France), Route Mobile (India), Comviva (India), Twilio(US), BICS (Belgium), Monty Mobile (UK), Syniverse (US), Global Message Services (Switzerland), Tyntec(UK), Silverstreet (Singapore),Vonage (US), Genesys (US), TATA Communications(India),Cequens (Egypt),Mitto(Switzerland),ClearSky Technologies (US), Sify Technologies (India), MSG91 (India), Textlocal (UK), Clickatell (US), Kaleyra (Italy), MessageBird (The Netherlands), TeleWhale (Cyprus) |
This research report categorizes the A2P messaging market to forecast revenue and analyze trends in each of the following submarkets:
Based on Component
- Platform
- A2P Service
Based on Deployment Mode:
- On-premises
- Cloud
Based on Application:
- Authentication Services
- Promotional and Marketing Services
- Customer Relationship Management Services
- Pushed Content Services
- Interactive Messages
- Others
Based on Traffic:
- National
- Multi-country
Based on Vertical
- Banking, Financial Services, and Insurance
- Retail and eCommerce
- Hyperlocal Businesses
- Healthcare
- Travel and Hospitality
- Others
Based on Region:
-
North America
- US
- Canada
-
Europe
- UK
- Germany
- Rest of Europe
-
APAC
- China
- India
- Rest of APAC
-
MEA
- GCC Countries
- South Africa
- Rest of MEA
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In June 2021, AT&T partnered with Google Cloud to offer RCS messaging to businesses. The partnership would enable businesses to use Google's RCS business messaging platform, which offers features such as chatbots and rich media messages, to communicate with customers over AT&T's network
- In November 2020, Twilio acquired Segment, the market-leading customer data platform, at USD 3.2 billion. This acquisition helps developers and companies to access the world’s leading cloud communications platform to effectively manage customer communications, including SMS, Messaging, Voice, Video, Email, and Internet of Things (IoT).
- In September 2020, Infobip partnered with Span to help Span build connected customer experiences through Infobip’s entire customer engagement and experience portfolio, thereby onboarding new customers looking to accelerate digital transformation.
- In June 2020, Sinch announced to acquire ACL Mobile Limited, thereby expanding its operations in India. ACL Mobile limited is one of the leading providers of cloud communications services in India and Southeast Asia and with the acquisition of ACL Mobile limited, Sinch enters into the world’s second-largest mobile market. ACL Mobile limited has helped more than 500 clients to interact with their customers through multiple channels, including SMS, voice, email, IP messaging, and WhatsApp.
- In May 2020, Infobip launched Conversations, a new contact center solution, enabling businesses to integrate the world’s most popular communication channels. All the messaging services, including Facebook Messenger, WhatsApp, Live Chat, SMS, and in-house chatbots can be managed through Conversations.
Frequently Asked Questions (FAQ):
What is the projected market value of the global A2P messaging market?
The global A2P messaging market size to grow from USD 63.8 billion in 2023 to USD 78.2 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 2.8% during the forecast period.
Which region has the largest market share in the A2P messaging market?
APAC is estimated to hold the largest market share in A2P messaging in 2023. China, Japan, and India are the major countries contributing to the growth of the A2P messaging market in APAC. Owing to a massive mobile subscriber base, enterprises in this region are becoming more competitive, and are focusing on offering customer service in A2P messaging solutions.
Which application is expected to hold a larger market size during the forecast period?
Among applications, customer relationship management services segment is expected to hold a larger market size during the forecast period as it is used to offer billing and transaction-related information to the customers.
Which deployment mode is expected to hold a larger market size during the forecast period?
Among deployment mode, the cloud segment is expected to hold a larger market size during the forecast period compared to large number of end users contacting SMS aggregators and software application providers for using the A2P messaging platforms which in turn take services from cloud service providers.
Who are the major vendors in the A2P messaging market?
Major vendors in the A2P messaging market are AT&T(US) ,Sinch(Sweden), Infobip(UK), China Mobile (China), Orange (France), Route Mobile (India), Comviva (India), Twilio(US), BICS (Belgium), Monty Mobile (UK), Syniverse (US), Global Message Services (Switzerland), Tyntec(UK), Silverstreet (Singapore),Vonage (US), Genesys (US), TATA Communications(India),Cequens (Egypt),Mitto(Switzerland),ClearSky Technologies (US), Sify Technologies (India), MSG91 (India), Textlocal (UK), Clickatell (US), Kaleyra (Italy), MessageBird (The Netherlands) TeleWhale (Cyprus).
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved four major activities in estimating the current size of the A2P messaging market. Exhaustive secondary research was done to collect information on the logistics industry. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and sub segments of the A2P messaging market.
Secondary Research
In the secondary research process, various secondary sources, such as D&B Hoovers, Bloomberg BusinessWeek, and Dun & Bradstreet, were referred to identify and collect information for this study. These secondary sources included annual reports, press releases, and investor presentations of companies; whitepapers, certified publications, and articles by recognized authors; gold standard and silver standard websites; regulatory bodies; trade directories; and databases.
Primary Research
The A2P messaging market comprises several stakeholders, such as A2P messaging service providers, SMS aggregators, venture capitalists, government organizations, regulatory authorities, policymakers, and financial organizations, consulting firms, research organizations, academic institutions, resellers and distributors, and training providers. The demand side of the A2P messaging market consists of all the firms operating in several industry verticals. The supply side includes A2P messaging providers, offering A2P messaging services. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Given below is the breakup of the primary respondents:
To know about the assumptions considered for the study, download the pdf brochure
A2P Messaging Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the size of the global A2P messaging market and various other dependent submarkets in the overall market. An exhaustive list of all the vendors offering various applications in the A2P messaging market was prepared while using the top-down approach. The market share for all the vendors in the market was estimated through annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. Each vendor was evaluated based on its application (Authentication Services, Promotional and Marketing Services, Customer Relationship Management Services, Pushed Content Services, Interactive Messages, and Others). The aggregate of all companies’ revenues was extrapolated to reach the overall market size.Further, each subsegment was studied and analyzed for its global market size and regional penetration. The markets were triangulated through both primary and secondary research. The primary procedure included extensive interviews for key insights from the industry leaders, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), directors, and managers.
Bottom-Up Approach
The bottom-up approach was employed to arrive at the overall size of the A2P Messaging market from the revenue of the key players and their share in this market. The revenue of the key players was analyzed to determine the overall size of the A2P Messaging market.
Approach for capturing the market share using bottom-up analysis (demand side)
Top-Down Approach
In the top-down approach, the overall market size was used to estimate the size of the individual market segments through percentage splits obtained from secondary and primary research.
For the calculation of specific market segments, the most appropriate immediate parent market size was used to implement the top-down approach. The bottom-up approach was implemented for the data obtained from secondary research to validate the market size of various segments.
The market share of each company was obtained to verify the revenue share used in the bottom-up approach. Through data triangulation and validation of data with the help of primary research, the overall parent market size and each market segment size were determined.
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
A2P Messaging Market Definition
A2P SMS messaging can be defined as the process of sending professional SMS by businesses for communicating with their current and potential customers through business applications, and technical modes, such as SMS API integration. A2P messaging includes sending promotional and marketing messages, authentication messages, alerts and notifications, reminders, push messages, and notifications to customers in huge amounts, therefore catering to a large audience in one instance. A2P messaging is directed by telecom operators to the users and are subjected to national and international regulations set by telecom regulation authorities that cause an impact on setting up the service in different countries, and on customers due to restraints, such as message filtering and delayed message delivery.
Key Stakeholders
- Network infrastructure enablers
- Technology vendors
- Mobile Network Operators (MNOs)
- Communication Service Providers (CSPs)
- System Integrators (SIs)
- A2P platform vendors and software application providers
- Resellers
- Value-added resellers (VARs)
- Compliance regulatory authorities
- Government authorities
- Investment firms
- Cloud service providers
- A2P messaging alliances/groups
- Original Design Manufacturers (ODMs)
- Original Equipment Manufacturers (OEMs)
- Enterprises/businesses
Report Objectives
- To describe and forecast the size of the A2P messaging market, by application, by component, SMS traffic, deployment mode, end user, and region
- To describe and forecast the size of the market segments with respect to five main regions: North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East and Africa (MEA)
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the A2P messaging market
- To analyze micromarkets with respect to the individual growth trends, prospects, and contributions to the overall A2P messaging market
- To analyze opportunities in the market for stakeholders by identifying the high-growth segments
- To profile key market players, including top vendors and startups, provide comparative analysis based on business overviews, regional presence, product offerings, business strategies, and key financials, and provide a detailed competitive landscape of the market
- To analyze competitive developments, such as Mergers and Acquisitions (M&A); new product launches and product enhancements; agreements, partnerships, and collaborations; expansions; and Research and Development (R&D) activities in the market
Available Customizations
Along with the market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Company Information:
- Detailed analysis and profiling of additional market players (Up to 5)
Geographic Analysis:
- Further breakdown of the India A2P messaging market
- Further breakdown of China market
- Further breakdown of UK market
- Further breakdown of Brazil market
Generating Response ...
Growth opportunities and latent adjacency in A2P Messaging Market
Yet, the popularity of A2P (Application-to-Person) communications has been rising recently, and this trend is probably going to continue, according to trends through 2021. Up until 2021, some of the major themes in A2P messaging include the following: • Increased adoption of Rich Communication Services (RCS) • More personalized messaging • Continued growth in chatbots and AI-powered messaging • Enhanced security and privacy • Integration with other technologies
What are the trends in A2P messaging in 2023?