Global A2P SMS Market to Reach US$74.7 Billion by the Year 2026
The global market for A2P SMS estimated at US$59.1 Billion in the year 2020, is projected to reach a revised size of US$74.7 Billion by 2026, growing at a CAGR of 4% over the analysis period.
Growth in the global market is set to be driven by increased use by large and medium companies across the globe to focus on customer and employee engagement. A2P SMS offers a wide reach, allowing businesses to deliver reminders or notifications to many customers simultaneously. These advantages are likely to shape the A2P SMS market in the next decade.
A2P SMS is used by a wide range of organizations and businesses in various technical modes to send messages to consumers such as banking notifications, marketing notifications, two-factor authentication SMS, and automated booking confirmations, among others.
Other factors driving the market are two-factor authentication for web services and platforms, increasing use of mobile marketing and growing adoption in banking sector. With increasing e-Commerce activity due to the lockdown, there was increase in traffic related to notifications, alerts, online transactions and one-time-password (OTP) alerts.
Thus, the boom in e-Commerce sector can offer abundant opportunities for the market players in this sector. Increasing security concerns in view of cybercrimes have prompted several A2P SMS messaging providers to enhance security measures with features such as two-factor authentication to lower this risk.
Promotional & Marketing Services, one of the segments analyzed in the report, is projected to grow at a 4% CAGR to reach US$24.8 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Authentication Services segment is readjusted to a revised 4.7% CAGR for the next 7-year period.
This segment currently accounts for a 24.7% share of the global A2P SMS market. Growing adoption of two-factor authentication technology among various web-based platforms is expected to fuel demand for A2P SMS messages in the Authentication Services segment.
CRM Services Segment to Reach $15.3 Billion by 2026
Customer relationship management represents a key application of A2P SMS as an increasing number of business organizations adopted digitalization and prioritized customer engagement. Growth in this segment can also be attributed to the growing use of this application in offering billing-related and transaction information to users, particularly by banking and financial services companies.
In the global CRM Services segment, USA, Canada, Japan, China and Europe will drive the 3.5% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$9.3 Billion in the year 2020 will reach a projected size of US$12 Billion by the close of the analysis period.
China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$2.7 Billion by the year 2026.
The U.S. Market is Estimated at $16 Billion in 2021, While China is Forecast to Reach $14.4 Billion by 2026
The A2P SMS market in the U.S. is estimated at US$16 Billion in the year 2021. The country currently accounts for a 26.2% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$14.4 Billion in the year 2026 trailing a CAGR of 4.7% through the analysis period.
Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.1% and 3.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.8% CAGR while Rest of European market (as defined in the study) will reach US$15.1 Billion by the end of the analysis period.
Increasing acceptance of Internet of Things (IoT), digital advertising, and advanced technologies is fueling demand for A2P SMS services in North America. Constantly increasing number of Internet and Smart phone customer base is fueling demand for A2P SMS in the Asia Pacific region.
Burgeoning telecom sector in China and India is opening new avenues of growth for A2P SMS service providers. With a huge subscriber base, enterprises are using A2P messaging solutions for becoming competitive and in improving customer service.
Key Topics Covered:
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
A Prelude to AP2 SMS
A2P SMS Offers Increased Reliability
A2P SMS Offers Enhanced Protection
Impact of COVID-19 on A2PSMS Market
Global Market Prospects and Outlook
Asia-Pacific to Drive Market Growth
BFSI Leads the End-use Market for A2P SMS
Recent Market Activity
2. FOCUS ON SELECT PLAYERS (Total 67 Featured)
China Telecom Global Limited
Global Message Services AG
Route Mobile Ltd.
Sify Technologies Ltd.
Syniverse Technologies LLC
Vonage Holdings Corp.
3. MARKET TRENDS & DRIVERS
Rising Proliferation of Mobile Phone Users - A Major Growth Driver
Rising Adoption in the Banking Sector
Increasing Mobile Marketing Drives the Demand for A2P SMS
CRM Services Emerges as an Effective Approach to Create and Maintain Strong Customer Relations, Creating Market Opportunity for A2P SMS Market
Spectacular Rise in eCommerce and mCommerce Strengthens the Business Case for A2P SMS
Cross-Channel Advertising Hold importance for e-Commerce Market
High Tide in Mobile Advertisement Vertical to Accelerate A2P SMS Market
Cloud to Hold a Major Share in the Market
Artificial Intelligence to Revolutionize A2P SMS
Rich Communication Services - A Key Challenge
Innovation in Mobile Payment and Mobile Banking Apps to Drive Market Growth
Increased Adoption of A2P SMS by OTT Players to Drive Revenue for MNOs
4. GLOBAL MARKET PERSPECTIVE
III. REGIONAL MARKET ANALYSIS
For more information about this report visit https://www.researchandmarkets.com/r/hp63xh
View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005694/en/
Laura Wood, Senior Press Manager
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