A2P SMS is an Application to Person SMS service in which SMSs are sent from an application programming interface (API) based application or platform on a person’s mobile/smartphone. A2P SMS typically includes sending SMS for appointment reminders, notifications, marketing, and pin codes among others. Over the years as mobile phones have become ubiquitous, it has changed the way communication is conducted; further A2P SMS API has assisted businesses around the globe to reach a significant number of people rapidly and at a very low cost. Furthermore, OTT (Over-the-Top) service providers and online and mobile payment transaction service providers are using A2P SMS API for two factor authentication (2FA) purpose.
The global application-to-person (A2P) SMS and API market has been segmented based on technology, end-users, applications, and geography. Based on technology, the market is segmented into cloud API and traditional API. The traditional API segment dominated the market whereas cloud API is anticipated to grow at a much faster rate. The cloud API market is likely to grow in the coming years as companies are majorly adopting cloud technology for more efficiency and it also has low cost. Cloud technology is the fastest growing technology, cloud API operates as a gateway by providing direct and indirect cloud infrastructure. Several companies to provide API platform so as to support analytical capabilities. Companies are offering security and data loss services with the help of cloud API. Businesses are evolving cloud integration solution with the open platform enabling enterprises to migrate and integrate applications and data. The market in terms of end-users is segmented into SMS aggregators, bulk SMS providers, marketers/resellers and telecom operators. Of these, bulk SMS providers dominated the market in terms of revenue share in 2018, and are expected to continue the dominance during the forecast period. The rising popularity of bulk A2P SMSs as an effective and cheaper mode for undertaking business communications has helped the segment remain at the forefront of the market and the trend will continue in the next few years as well. Based on application, the market is segmented into pushed content services, customer relationship management services, promotional campaigns, interactive services application, and others (inquiry related services). Customer relationship management (CRM) services held the largest market share in the year 2018 and is expected to expand at a significant pace from 2018 to 2026. This growth is primarily attributed to the increasing online trade and rising adoption of ecommerce in corporate and individual user sectors. Moreover, rising use of authentication-related messages adds to the growth of this market over the forecast period.
In terms of region, Asia Pacific led the application-to-person (A2P) SMS and API market in the year 2017 and is expected to remain dominant throughout the forecast period from 2018 to 2026. This is due to the ever-rising base of mobile subscribers in the region. In 2017, Asia Pacific dominated the global application-to-person (A2P) SMS and API market with countries such as China, India, and Japan acting as major markets and key users of A2P SMS marketing. It is anticipated to increase at the fastest speed among key regional markets as well. The region’s importance in the global market is due to factors such as expanding e-commerce industry, rising online transactions, and the rising penetration of smartphones. North America is the second-largest contributor to the market’s revenue and is anticipated to maintain its position in the market in the next few years as well.
The global application-to-person (A2P) SMS and API market is largely driven by product launches and partnerships. For instance, in October 2017, Syniverse Technologies, LLC partnered with Listrak, a digital marketing company, to expand its suite of mobile marketing. The partnership would enable Listrak to integrate messaging service as a part of its cross-channel offerings that include email, mobile engagement, and social media marketing.
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Key players profiled in the global application-to-person (A2P) SMS and API market include Syniverse Technologies, LLC, OpenMarket, Inc., Nexmo Inc., Twilio Inc., Ogangi Corporation, CLX Communications, Beepsend AB, Tyntec Ltd. and FortyTwo Telecom AB.
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