A2P SMS Market

Global A2P SMS Market: Snapshot

Massive proliferation of application-to-person (A2P) messages in areas such as mobile banking, mobile payments, and mobile health services has led to significant expansion of the global A2P SMS market in the past few years. SMSs are extensively used as effective tools for customer engagement, customer service, activation and authentication, and as service delivery functions by enterprises and organizations. A2P SMS is one form of service in which SMS is sent from a web based application to a mobile subscriber. Owing to the provision of a secure and reliable operator channel and improvement in end-user experience, A2P SMSs are being widely used in industries such as tourism, banking and financial services institutions, ecommerce, entertainment, and healthcare.

A2P SMSs are preferred over other content delivery mediums as they offer multiple advantages. An SMS can reach any network globally and is centrally invoiced. SMSs are one of the easiest and most attractive forms of mobile communication as most users are familiar with them. Furthermore, SMSs are supported by all mobile handsets across all mobile networks and operating systems.

TMR analysts suggest that the global A2P SMS market, with a valuation of US$62.01 bn in 2017, will exhibit a healthy 4.2% CAGR from 2017 and 2025 and rise to a valuation of US$86.53 bn by 2025.

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E-commerce and BFSI Industries to Remain Most Lucrative

On the basis of end-use Industry, the market has been classified into banking, financial services and Insurance (BFSI), retail, travel and transport, healthcare and hospitality, and media and entertainment (gaming). In industries such as transportation and hospitality, A2P SMSs are used for various ticketing applications such as airlines for delivering boarding passes, and payments for transportation services. Many financial services companies use A2P SMSs for services such as making payments, requesting account information and account transfers. Mobile network operators provide security for these companies by authorizing the financial service companies to identify their customers using mobile numbers.

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