How the Pandemic Will Shape A2p Sms Markets for Years to Come ?

The evolution of text messages has reached its tipping point. Many businesses and sectors are adopting text messaging to keep their customers aware and informed about the latest developments. Another reason is the broad reach of A2P SMS, which enables numerous businesses to send notifications or reminders to many customers at the same time. All these benefits will decide the growth trajectory of the A2P SMS market between 2021 and 2030.

The escalating need for deeper employee and customer management among many companies would invite tremendous growth opportunities for the A2P SMS market during the assessment period of 20212030

A2P SMS, also known as professional or enterprise SMS is the process of sending text messages from a specific application to a mobile user. A diverse range of businesses and organizations utilize this process in different technical modes to communicate the right message to the consumers. Banking notifications, two-factor authentication SMS, marketing notifications, automatic booking confirmations, etc., are some of the notable instances of A2P SMS.

Transparency Market Research (TMR) has conducted intensive research on every factor attached to the growth of the A2P SMS market. The experts at TMR expect the A2P SMS market to expand at a CAGR of ~4 percent during the tenure of 20212030. The global A2P SMS market is prognosticated to reach a value of ~US$ 101 bn by 2030, the end year of the assessment period.

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global a2p sms market Infographic

E-Commerce Applications to Boost the Growth Prospects of the A2P SMS Market

Since the COVID-19 pandemic hit across the globe, the e-commerce sector has observed a boom. The enforcement of lockdown restrictions in various countries and the shutting down of numerous retail stores for an extended period are the vital reasons of the prosperity of the e-commerce sector. Thus, as the e-commerce sector flourished, the growth of the A2P SMS market scaled to a new high. All these factors bode well for the A2P SMS market.

Small and Medium Businesses to Account for a Large Chunk of the Growth Share

The coronavirus pandemic has made many people aware of the power of digital marketing. With the COVID-19 induced lockdowns, home delivery became the new mode of trade among many small and medium businesses. In these circumstances, A2P SMS is playing a crucial role. The need for sending notifications about the status of the delivery and information about offers or discounts to the customers has elevated the need for A2P SMS extensively, eventually increasing the growth rate.

Enhanced Security Measures to Accelerate Growth Opportunities

With a rise in digitalization, an increase in the cases of phishing and spamming are also being observed. The growing concerns about tackling cybercrimes have prompted many A2P SMS providers to improve security measures. Features like two-factor authentication help in reducing the risk of cybercrimes. These aspects will sow the seeds of growth across the A2P SMS market.

A2P SMS is serving as a growth vehicle for a plethora of businesses and sectors. The high engagement aspect and the ubiquitous nature will prove to be helpful for the A2P SMS market to expand its horizon of growth. Furthermore, features like an inbuilt SMS firewall, traffic optimization, outstanding delivery rate, and others will accelerate the growth across the A2P SMS market.

A2P SMS Market: Recent Developments

  • UAE telco du recently launched its A2P SMS hub as a new service in the Gulf Cooperation Council (GCC) regions including the United Arab Emirates, Qatar, Saudi Arabia, Oman, Bahrain, and Kuwait. Route Mobile has bagged the management contract for the same.
  • Global Telco Consult (GTC) collaborated with BTS, an international operator, to provide A2P SMS services.

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Global A2P SMS Market: Segmentation

By Application

  • Pushed Content Services
  • Customer Relationship Management Services
  • Promotional Campaigns
  • Interactive Services
  • Inquiry Related Services

By End-use Industry

  • Retail
  • BFSI
  • Travel & Transport
  • Healthcare & Hospitality
  • Entertainment
  • Others

By Region

  • North America
  • Asia Pacific
  • Europe
  • Middle East and Africa
  • South America

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