Global A2P Messaging Market By Component (Platform and A2P Service), By Deployment Mode (Cloud and On-Premise), By Application, By SMS Traffic, By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global A2P messaging market is projected to grow at a CAGR of 3.9%, with its worth expected to increase from USD 69.3 Bn in 2022 to approximately USD 96.9 Bn by 2032.

Application to-person messaging, i.e. A2P messaging, also defined as enterprise or corporate SMS, is a category of SMS messaging procedures where text is led from a software application run through an initiative to a customer’s device. A2P messaging is an innovative method for companies to raise engagement with customers. Current methods of A2P messages comprise marketing appointment reminders, campaigns, and account pin codes.

Various industries, such as telecom, retail, healthcare, and banking, have approved A2P technology. A2P messaging offers a suitable and modified communication channel using SMS, MMS, or other messaging platforms.

Note: Actual Numbers Might Vary in the final report

Key Takeaways

• Market Size: By 2032, A2P messaging market revenue is projected to hit USD 96.9 billion with compound annual growth rate estimated at 3.9% from 2023-2032.
• Driving Factors: E-commerce is one of the main drivers behind A2P messaging market’s expansion.
• Restraining Factors: The increasing number of regulations governing the use of A2P messaging.
  
• By Component Analysis: The platform segment held 62% of market revenue share as of 2022.
• By Deployment Mode Analysis: Cloud deployment accounted for 58% of market revenue share in 2022.
• By Application Analysis: In 2022, authentication services dominated market revenue share with an over 40% market revenue share.
• By SMS Traffic Analysis: National traffic accounts for 56% market share by volume in 2022.
• By End-User Analysis: BFSI segment is expected to experience the greatest revenue share during this forecast period.
• Regional Analysis: Asia-Pacific held 44.2% of A2P Messaging market revenue share due to an increasing smartphone penetration rate.
• Businesses are increasingly using A2P messaging for omnichannel marketing campaigns.
• AI is being used to improve the effectiveness of A2P messaging campaigns.
• Top Key Players: Tata Communications, Chain Mobile Limited, Proximus, Infobip Ltd., Twilio Inc., Genesys, AT&T, Sify Technologies, and Other Key Players
  

Driving Factors

Increase in the Growth of E-Commerce to Drive the A2P Messaging Market Growth

E-commerce is one of the major drivers behind the growth of the A2P messaging market. With the increase in e-commerce, businesses are rising by utilizing A2P messaging to communicate with their consumers. E-commerce businesses are accepting A2P messaging platforms and services to send discount codes, targeted promotions, and other incentives to inspire consumers to send make a purchase.

Additionally, the increased usage of short messaging services amongst enterprises as A2P messaging is low-cost and universal influence. More and more businesses in all industries have started employing SMS messaging for their consumer relationship management. Industries such as e-commerce, financial institutions, and entertainment are extensively used A2P messaging.

Restraining Factors

Strict Government Regulations and Policies Hamper Market Growth

The A2P messaging market operates under stringent regulations, including compliance with data protection and privacy laws such as the General Data Protection Regulation in Europe and the Telephone Consumer Protection Act in the U.S. These regulations impose restrictions on how organizations can store, collect, & use consumer’s data, and failure to comply can result in reputational damage. The degree of rules and regulations varies from country to country on text messaging usage.

By Component Analysis

Platform Segment to Witness Significant Growth

The global A2P messaging market is categorized into platform and A2P service. The platform segment accounted for the largest market revenue share of 62% in 2022.  The growth of the segment is due to the wide use of the A2P messaging platform in several verticals, such as healthcare, BFSI, tourism, media & entertainment. Additionally, the demand for notifications, A2P messaging, and online transactions have increased during the COVID-19 pandemic.

The A2P platforms describe several products and offer updates and elevations, particularly for SMEs. It provides operators with direct access to numerous brands and services within the messaging app. The expansion of AI and chatbot services has increased the numeral of virtual assistants such as Facebook Messenger, Google Assistant, Amazon Echo, and Apple Siri.

The A2P service segment is projected to grow at a high rate during the forecast period. A2P messaging is the means of messaging used for several communications purposes between the application and its subscribing users. The growth of smartphones, and novel businesses have led to a reduction in P2P messaging service income which is rising the acceptance of A2P platforms and services.

By Deployment Mode Analysis

The Cloud Segment Dominates the Market Growth of the A2P Messaging Market

Based on deployment mode, the global A2P messaging market is divided into cloud and on-premises. The cloud deployment accounted for the highest market revenue share of 58% in 2022. Cloud solutions such as Genesys PureCloud, Amazon Connect, and others, provide easy deployment and scalability. Cloud-based A2P messaging offers an efficient, combined presentation campaign that supports rising client interaction. To provide safe mobile messaging knowledge, this platform easily incorporates phone, MMS, and other services which drive the segment’s growth.

The on-premises segment is expected to witness high growth during the forecast period. It requires administration, maintenance, deployment, and scale software and hardware.  Additionally, these resolutions are costly and hard to achieve and organize. Owing to these factors, the approval of cloud-based platforms is estimated to rise in the upcoming years.

Note: Actual Numbers Might Vary in the final report

By Application Analysis

The Authentication Services Segment Hold the Highest Market Revenue Share

Based on the application, the global A2P messaging market is categorized into authentication services, promotional and marketing services, customer relationship management services, pushed content services, and other applications. Among these, the authentication services segment accounted for the maximum market revenue share in 2022.

Due to the increase in cyber threats, privacy anxieties, and fraud attempts, businesses are ordering the application of authentication services to protect complex info and verify the identity of both the sender and the recipient, ensuring safe and consistent communication. Utilizing authentication services offers additional layer of security by confirming the similarity of the sender and the recipient, confirming safe and reliable communication. The customer relationship management segment is anticipated to show significant growth during the forecast period.

By SMS Traffic Analysis

The National Segment Dominated the A2P Messaging Market Revenue in 2022

The market is segmented into national and cross-border based on the SMS traffic. The national segment accounted for a significant market share of 56% in 2022. During the COVID-19 outbreak, national traffic has increased largely. Industries such as retail marketing have undergone loss with outlets and shops closed, while the rise in transactions, alerts, and notifications managed to message traffic in link with e-commerce growth.

The cross-border segment projected to hold the second-largest market share due to the influence of the lockdown was not only in the Asian region but similarly in the Middle East & Africa region, where a nationwide lockdown that was in force for almost 3 months led to a 13% rise in international A2P traffic. Also, the influence on international A2P traffic was insignificant in sizable African nations where the lockdown events applied only to the main cities rather than the whole region.

By End-User Analysis

The BFSI Segment Dominated the A2P Messaging Market

The global A2P messaging market is divided into retail and e-commerce, BFSI, healthcare, travel and hospitality, and others based on the end-user. Among these, the BFSI segment is anticipated to hold the highest revenue share during the forecast period.  The segment’s growth is due to the rising expense transactions and increasing approval of online A2P messaging in the BFSI industry.

The media & entertainment segment witnesses the maximum growth in the market during the forecast period due to the acceptance of A2P messaging by the entertainment business, including voting-based realism displays to reach maximum observers. Market players such as Proximus and Sinch are offering content distribution solutions such as rich content enhancement in messages and newsworthy & personalized notifications to propel appointments with direct media alerts.

Key Market Segments

By Component

• Platform
• A2P Service

By Deployment Mode

• Cloud
• On-Premises

By Application

• Authentication Services
• Promotional and Marketing Services
• Customer Relationship Management Services
• Pushed Content Services
• Other Applications

By SMS Traffic

• National
• Multi-Country

By End-User

• Retail and E-Commerce
• BFSI
• Healthcare
• Travel and Hospitality
• Other End-Users

Growth Opportunity

Increase Adoption of A2P SMS by Market Players Provides Lucrative Opportunities for the Market

A2P traffic is quickly increasing from enterprise consumers. With the slow growth of virtual services, the approval of A2P SMS by the public services, enterprises for authentication and notification alerts amongst MNOs to generate revenue has increased. Several regions have a large consumer base that drives the demand and creates novel opportunities for A2P businesses. Operators have the opportunity to provide a complete service that sums all streams of industry communication.

Latest Trends

Technological Advancement is a Major Trend in the Market

Technological advancement is a major trend in achieving acceptance in the market. Key companies working in the market are focused on developing novel technological solutions to strengthen their position. For example, in July 2021, Dotgo, operating in A2P messaging, launched the RichSMS service, built on Rich SMS technology, which allows SMS messages to be distributed over RCS without demanding any software changes and raising consumer loyalty by offering greater trust, security, and branding for business-to-customers communication.  The rapid growth in online retail is one of the vital factors in the A2P messaging market.

Regional Analysis

Asia Pacific Dominates the Global A2P Messaging Market During the Forecast Period

Asia-Pacific accounted for a significant A2P Messaging market revenue share of 44.2% due to the rising penetration of smartphones, the increasing proliferation of internet services, and the number of internet subscribers in the region. India and China have a wide and distributed consumer base propelling the requirement and creating novel opportunities for market growth.

The growth of the market is prominently owing to the rising approval of A2P messaging in various applications, such as promotional campaigns and customer relationship management, among others. Additionally, multinational companies focus on business expansion across APAC due to the broad consumer base and internet subscribers.

North America is anticipated to register a CAGR of 3.9% in 2022 due to the existence of key market players in the U.S. Various key players, such as TWILO INC. and AT & T which, have fueled the growth. Additionally, a number of companies are developing a cloud-based messaging platform to offer end-to-end encryption of messages, thereby contributing to the market growth.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The market is mainly fragmented and is projected to witness a rise in competition owing to the presence of several key players. Companies are collaborating with advertisers, telecom operators, and local & regional players to achieve a competitive edge to capture a significant industry share. The key players are accepting several strategies, including acquisitions & mergers, collaborations, partnerships, and others.

Top Key Players in A2P Messaging Market

• AT&T
• Tata Communications
• Chain Mobile Limited
• Proximus
• Infobip Ltd.
• Twilio Inc.
• Genesys
• Sify Technologies
• Other Key Players

Recent Development

• March 2022- Infobip Ltd. introduced the incorporation of SMS and WhatsApp messages notifications into Adobe Commerce. The incorporation will allow initiatives and organizations to drive reliability and enhance consumer knowledge through the addition of communication channels.
• December2021- Microsoft declared the achievement of Xandr and AT & T. The achievement will quicken the delivery of digital marketing, retail media solutions, and advertising for the open web. 

Report Scope