The global Enterprise A2P SMS Market is estimated to be valued at US$ 28,974.7 Mn in 2018 and is expected to exhibit a CAGR of 6.0% over the forecast period 2019-2027, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Enterprise A2P SMS market refers to the application-to-person (A2P) messaging service provided by enterprises to communicate with their customers using SMS. This messaging service enables businesses to send important notifications, alerts, authentication codes, and marketing messages to their customers in a secure and reliable manner.
A2P SMS offers several advantages, including instant deliverability, high open and read rates, and global reach. It is widely used in various industries such as banking, finance, retail, travel, healthcare, and entertainment sectors. The need for A2P SMS services arises from the growing customer demand for quick and easy communication channels, as well as the need for businesses to effectively reach their target audience.
Market key trends:
One key trend in the Enterprise A2P SMS market is the increasing adoption of SMS for two-factor authentication (2FA). With the rise in online transactions and concerns over data security, businesses are implementing 2FA to provide an additional layer of security. SMS-based 2FA involves sending a one-time password (OTP) to the user's mobile phone, which they must enter during the authentication process. This method ensures secure access to various online platforms, including banking, e-commerce, and social media.
Furthermore, the demand for A2P SMS services is also driven by the increasing adoption of mobile marketing by businesses. SMS marketing offers higher engagement rates compared to email marketing, as SMS messages have a higher open and read rate. Businesses use A2P SMS services to send promotional offers, discounts, and personalized messages to
PEST Analysis:
Political: The political factors in the enterprise A2P SMS market include government regulations and policies that affect the use of SMS services. Governments may impose restrictions on certain types of messages, such as those related to marketing or healthcare services. Additionally, political instability in certain regions may impact the availability and adoption of A2P SMS services.
Economic: The economic factors influencing the market include the overall economic conditions of the regions where these services are used. Economic growth, GDP per capita, and disposable income levels can affect the demand for A2P SMS services. Moreover, the cost of SMS and pricing models offered by service providers will also impact the growth of the market.
Social: The social factors include cultural norms, consumer preferences, and demographic trends that shape the demand for A2P SMS services. Factors such as increased smartphone penetration, changing communication preferences, and the popularity of social media platforms can influence the use and adoption of A2P SMS by businesses and consumers.
Technological: The technological factors impacting the market include advancements in mobile technology, such as the introduction of 5G networks, which can enhance the speed and reliability of SMS delivery. Additionally, developments in artificial intelligence and chatbot technologies can also impact the use of A2P SMS services for automated interactions with customers.
Key Takeaways:
The global Enterprise A2P SMS Market Insights is expected to witness high growth, exhibiting a CAGR of 6.0% over the forecast period. This growth can be attributed to the increasing adoption of SMS as a communication channel by businesses across various industries. The market size was valued at US$ 28,974.7 Mn in 2018.
In terms of regional analysis, North America is anticipated to be the fastest-growing and dominating region in the enterprise A2P SMS market. This can be attributed to the high smartphone penetration, advanced telecommunication infrastructure, and the presence of major technology companies in this region.
Key players operating in the enterprise A2P SMS market include Infobip Limited, OpenMarket Inc., AMD Telecom S.A., Syniverse Holdings Inc., FortyTwo Telecom AB, Twilio Inc., Mblox Inc., Nexmo Inc., and CLX Communications AB. These companies offer A2P SMS solutions and services to businesses, enabling them to reach their customers through SMS messaging.
