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Enterprise A2P SMS refers to application-to-person messages sent from an application to users for various purposes such as advertising, marketing, authentication and other business communications. Enterprise A2P SMS helps organizations to effectively engage with large audience through mobile messaging. Widely used for marketing, authentications and transactional messages by enterprises across various industries like banking, retail, hospitality, healthcare etc.
The Enterprise A2P SMS Market is estimated to be valued at US$ 50.53 Bn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The rising adoption of mobile devices and growing internet penetration have increased the reach of mobile marketing globally. Mobile marketing provides an interactive and personalized experience to customers which is one of the major drivers of Enterprise A2P SMS market. According to GSMA, there were around 7.2 billion unique mobile subscribers globally in 2019 representing a penetration rate of around 95% of total population. Furthermore, growing transaction volume for banking applications, online shopping and travel bookings have increased the demand for authentication and transactional SMS from enterprises.
Segment Analysis
The global enterprise A2P SMS market is dominated by the transactional A2P SMS segment. This segment includes notifications to customers about bank transactions, delivery status updates, travel updates and others. It dominates the market as it contributes to over 60% of the total enterprise A2P SMS traffic. Most enterprises prefer the transactional model to communicate time-sensitive information to their customers which drives the adoption of A2P SMS.
PEST Analysis
Political: Regulations around A2P SMS are complex with varying rules across countries. However, a secure framework is being implemented globally to curb spam messages.
Economic: The economic growth is positively impacting industries that widely use A2P SMS for communications. This is driving the enterprises to invest more in digital marketing campaigns using A2P SMS.
Social: Younger demographics are rapidly adopting smartphones and prefer text messages for instant updates over calls or emails. This has increased the social acceptance of A2P SMS.
Technological: Emergence of Rich Communication Services (RCS) is allowing more interactive and media-rich experiences within text messages. Some enterprises are also exploring RCS to enhance customer engagement.
Key players operating in the enterprise A2P SMS are nfobip Limited, OpenMarket Inc., AMD Telecom S.A., Syniverse Holdings Inc., FortyTwo Telecom AB, Twilio Inc., Mblox Inc., Nexmo Inc., and CLX Communications AB. Twilio leads the market with its strong clientele in communication platforms for enterprises across various industries. Mblox and Nexmo have also captured significant market share with their diverse product offerings and geographical presence.
Key Takeaways
The global enterprise A2P SMS market is expected to witness high growth, exhibiting CAGR of 3.9% over the forecast period 2023 to 2030, due to increasing digital transformation across enterprises. The market size is projected to reach US$ 68.14 billion by 2030 from an estimated US$ 50.53 billion in 2023.
North America is expected to dominate the global market during the forecast period. This is attributed to robust technological infrastructure and high smartphone penetration in US and Canada. Organizations in North America are increasingly utilizing A2P SMS to connect with their customers.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
