Application-to-Person SMS and API Market – Population of Mobile Users is Allowing Several Industries for Growth

Global A2P SMS & API Market: Overview

The application-to-person (A2P) SMS and API market report provides an in-depth analysis of the global A2P SMS API market for the period 2014–2024, wherein 2016 is the base year and the years from 2017 to 2024 is the forecast period. Data for 2014 and 2015 have been included as historical information.

Application-to-Person SMS and API Market – Population of Mobile Users is Allowing Several Industries for Growth

The report covers all the prevalent trends playing a major role in the growth of the A2P SMS and API market over the forecast period. It also highlights various drivers, restraints, and opportunities expected to influence the market’s growth during the forecast period. As, the API market is directly linked with the A2P SMS, the estimates for the A2P SMS market based on the application is also covered in report.

The global A2P SMS API market is projected to expand at a 4.1% CAGR over the period between 2017 and 2024. The market, which held an opportunity worth US$186.0 million in 2017, is expected to rise to US$245.9 million by 2024. The global market for A2P SMS is expected to rise at a 4.9% CAGR over the said period and rise from a valuation of US$41.5 billion in 2017 to US$58.01 billion by 2024.

Rising Popularity of Two-factor Authentication (2FA) and Mobile Marketing Stimulate Market Growth

The rising discontent surrounding the conventional ways of ensuring security of crucial consumer data during online transactions has paved way for the two factor authentication (2FA). Owing to the provision of an extra layer of security and authentication to the consumers, 2FA is gradually becoming the first choice for enterprises across the world.

As per a 2015 report published by The Dialogue Group, a leading company operating in the field of A2P SMS traffic monetization software and services, 2FA will become the most preferred security validator for online transactions in the next few years.

The rising preference to 2FA is expected to substantially boost the A2P SMS and API market. Along with this, the increasing usage of A2P SMS for mobile marketing is also expected to drive the A2P SMS and API market in the near future. The rising global population of mobile users is allowing several industries to reach out to a larger base of potential consumers through A2P SMSs.

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Concerns Regarding Security Risks and Less Message Visibility to Restrain Market’s Growth

In the past few years, communication lines of mobile network operators (MNOs) have become highly vulnerable to security breaches owing to the lack of effective security tools. According to an article published on in 2016, most MNOs across the globe still use firewalls that were installed before 2012, which are unable to provide the necessary visibility required to detect and ward off gray routes and other security threats.

The website also suggest that gray routes hold over 2/3rd of A2P SMS traffic across the globe, which essentially highlights the fact that 1/3rd of A2P traffic can be monetized by MNOs. Illicit traffic and security risks are expected to have a substantial impact on the overall profitability of A2P SMS and API market in the next few years.

Key Segments of the Global A2P SMS and API Market 

By Technology Type

  • Cloud API
  • Traditional API 

By End-Users

  • SMS Aggregators
  • Bulk SMS Providers
  • Marketers/Resellers
  • Telecom Operators 

By Applications

  • Pushed Content Services
  • Customer Relationship Management Services
  • Promotional Campaigns
  • Interactive Services
  • Others 

By Geography

  • North America (NA)
  • Europe (EU)
  • Asia Pacific (APAC)
  • Middle East & Africa (MEA)
  • Latin America (LATAM)

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