A2P SMS is an acronym for Application to Person SMS marketing. In this service, the message is sent to a mobile subscriber via a web-based application. A2P SMS helps a business to reach a significant number of people rapidly and at a very low cost. It includes appointment reminders, notifications, marketing messages and pin codes among others.
The end-user industries of this service include BFSI, retail, media & entertainment, travel & transport, hospitality and others. Rapid increase in the growth of mobile phone subscribers coupled with increasing mobile marketing activities is driving the global A2P SMS market. In addition, growth in mobile payments and mobile banking along with significant technological and product developments are bolstering the A2P SMS marketing globally. Mass voting for contests, charity, promoting campaigns, announcements are some of the applications wherein A2P SMS marketing is widely used. This service is further used extensively by banks, credit card service providers and various payment gateways for OTPs (One Time Passwords) in order to verify transactions. In addition, A2P SMS is widely utilized by online trading companies for sending confirmation messages regarding placing orders, processing and delivery notifications.
The global A2P SMS Market is anticipated to grow at a CAGR of 4.4% during the forecast period 2016 – 2025 and accounts for US$ 62.10 Bn in the year 2025.The market for A2P is emerging in the Asia Pacific and the Middle East & Africa regions owing to ever-rising base of mobile subscribers. The development of new SMS tools and technology innovations adds to the increase in A2P SMS market. Asia Pacific leads the global A2P SMS market currently, with countries such as China, Singapore, Malaysia, India and South Korea among key users of A2P SMS marketing. The promotional campaigns by the e-commerce industry further bolsters the A2P SMS market globally.
The A2P SMS market is segmented on the basis of type into cloud API messaging services, and traditional & managed messaging services. Cloud API messaging service is a low-cost, automatically scalable model with reliable services and high flexibility. The global A2P SMS market is further segmented on the basis of application including pushed content services, interactive services, promotional campaigns CRM services and others. The A2P SMS market is segmented by regions into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM).
The major benefit of A2P SMS marketing is that all operating networks and mobile handsets across the world are compatible with the technology and support it. The increasing number of mobile subscribers switching to online payments coupled with marketing activities looking for safety are the key factors driving the global A2P SMS market. However, IP-based messaging and mobile messaging spams restrict the global market for A2P SMS, as it leads to reduction in profitability of telecom operators. However, facilities such as OTP and post-transaction notifications are analyzed to bolster the A2P SMS market in the near future. Beepsend AB, CLX Communications AB, Dialogue Communications Ltd, Infobip Ltd., Tanla Solutions, Syniverse Technologies, LLC, Nexmo Inc., Trillian Group Ltd., Twilio Inc., tyntec among others are some of the chief markets players operating in the global A2P SMS market.