A2P Messaging Global Market Report 2024

A2P (Application-to-Person) messaging denotes message traffic wherein individuals receive messages from software or application platforms rather than from other individuals, without expecting a response. This type of messaging serves the purpose of allowing businesses to automate the transmission of substantial message volumes. Its primary objective is to facilitate the delivery of business-critical messages efficiently.

A fundamental element of A2P messaging encompasses the platform and A2P services. The platform refers to an A2P messaging services platform, serving as a software tool utilized for the bulk or individual delivery of SMS or MMS messages. These messages can cover national traffic and extend across multiple countries. Deployment modes for this platform include both on-premises and cloud-based setups. Various applications fall under this platform's umbrella, including authentication services, promotional and marketing services, customer relationship management services, pushed content services, interactive messages, among others. These applications find utility across diverse sectors such as banking, financial services, insurance, retail and e-commerce, e-governance, hyperlocal businesses, healthcare, travel and hospitality, and other related industries.

The A2P messaging market research report is one of a series of new reports from The Business Research Company that provides A2P messaging market statistics, including A2P messaging industry global market size, regional shares, competitors with an A2P messaging market share, detailed A2P messaging market segments, market trends and opportunities, and any further data you may need to thrive in the A2P messaging industry. This A2P messaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The a2p messaging market size has grown steadily in recent years. It will grow from $69.96 billion in 2023 to $72.68 billion in 2024 at a compound annual growth rate (CAGR) of 3.9%. The growth observed in the historical period can be attributed to increased internet penetration, the rise in smartphone usage, the evolution of business communication, the integration of SMS in services, and the growing demand for security and authentication solutions.

The a2p messaging market size is expected to see strong growth in the next few years. It will grow to $88.53 billion in 2028 at a compound annual growth rate (CAGR) of 5.1%. The anticipated growth in the forecast period can be attributed to IoT communication, increased usage in banking and financial services, healthcare applications such as appointment reminders, the adoption of chatbots and AI, and industry-specific integrations. Key trends expected in the forecast period encompass compliance with regulatory standards, interactive messaging experiences, the development of vertical-specific messaging solutions, API integration, platform diversification, and the implementation of omnichannel messaging strategies.

The anticipated growth of the A2P messaging market is strongly driven by the increasing penetration of smartphones. Smartphones, being portable electronic devices that connect to the internet and cellular networks, play a pivotal role in facilitating A2P messaging. A2P messaging involves businesses sending messages to smartphone users for marketing or customer service purposes through automated processes. As an illustration, in February 2023, Uswitch Limited, a UK-based financial conduct authority, reported a significant increase in mobile connections in the UK, reaching 71.8 million in 2022, marking a 3.8% rise (approximately 2.6 million) from the previous year. With the UK's population expected to grow to 68.3 million by 2025, it is projected that around 95% (approximately 65 million individuals) will own smartphones. This surge in smartphone penetration is a key factor fueling the growth of the A2P messaging market.

The anticipated growth of the A2P messaging market is closely tied to the expansion of the e-commerce sector. E-commerce involves the online buying and selling of goods and services. A2P messaging plays a crucial role in this sector by providing e-commerce businesses with a versatile and efficient communication channel. It supports various functions such as ensuring transaction security, facilitating customer support, enabling order tracking, and sending appointment reminders. A2P messaging, in turn, contributes to streamlining operations, enhancing customer engagement, and fostering business growth within the e-commerce space. For instance, in August 2023, the United States Census Bureau, a US-based government agency, reported that in the second quarter of 2023, e-commerce estimates increased by 7.5% (or 1.4%) compared to the same period in 2022. In contrast, overall retail sales showed a comparatively modest increase of 0.6% (or 0.4%). This data underscores the significant impact of the expanding e-commerce sector on driving the growth of the A2P messaging market.

Technological advancement stands out as a prominent trend gaining momentum in the A2P Messaging market. Major companies within this market are actively focusing on the development of new technological solutions to bolster their positions. As an example, in July 2021, Dotgo, a US-based company operating in the A2P messaging space, introduced the RichSMS service. This service is built on RichSMS technology, allowing SMS messages to be delivered over Rich Communication Services (RCS) without necessitating any software changes. RichSMS enhances customer loyalty by offering greater security, trust, and branding for business-to-consumer communication. Noteworthy features of RichSMS include the delivery of messages with the company logo and a verified trust mark on RCS-capable phones, providing users with a consistent and trustworthy brand experience. Overall, RichSMS contributes to an elevated customer experience, enhanced branding, and improved security in A2P messaging interactions.

Major companies in the A2P messaging market are increasingly forming partnerships to develop new products and strengthen their market positions. Such collaborations and partnerships in the A2P messaging space are instrumental in fostering innovation, leveraging complementary expertise, and accelerating the development and commercialization of advanced solutions through the combination of resources and capabilities. For example, in June 2021, Du, a telecommunications company based in the UAE, collaborated with Route Mobile Limited, a cloud communication platform service provider in India, to launch an A2P messaging hub. This messaging hub is designed as a scalable solution, fully managed by Route Mobile, and built to handle a higher capacity of SMS terminations. Through this partnership, du aims to utilize Route Mobile's firewall solutions strategically and position them relative to other carriers to mitigate revenue leaks. Route Hub, a carrier-grade, fully scalable SMS hubbing platform developed in-house by Route Mobile, offers managed services to mobile operators globally. The messaging hub is expected to provide businesses, over-the-top (OTT) providers, and mobile network operators (MNOs) with a comprehensive and customized communication service. This collaboration exemplifies how partnerships in the A2P messaging market can drive mutual benefits and enhance the overall capabilities of the involved companies.

In November 2021, Sinch, a cloud communication platform provider headquartered in Sweden, successfully acquired MessageMedia for $1.3 billion. This strategic acquisition aligns with Sinch's goals to enhance its operational efficiency and elevate customer engagement, particularly within the small and medium enterprises (SMEs) segment, while also facilitating international expansion. MessageMedia, based in Australia, specializes in Application-to-Person (A2P) messaging services.

Major companies operating in the a2p messaging market report are China Mobile Limited, AT&T Inc., Orange S.A., Twilio Inc., Sinch AB, Tata Communications Limited, Genesys Telecommunications Laboratories Inc., Syniverse Technologies LLC, Infobip Ltd., MessageBird B.V., BICS SA/NV, Vonage Holdings Corp., Kaleyra Inc., Monty Mobile SAL, TeleSign Corporation, OpenMarket Inc., Comviva Technologies Limited, Route Mobile Limited, Karix Technologies Private Limited, Cequens Ltd., Plivo Inc., Mitto AG, Soprano Design Pty Ltd, Global Message Services S.A., Clickatell (Pty) Ltd., Nexmo Inc. (Vonage API Platform), Summit Tech (Summit Technology Group), Tyntec Silverstreet, Dexatel Global Message Services AG, CLX Communications AB, Esendex Ltd., Fortytwo Telecom AB, Upland Software Inc. (Mobile Messaging Solutions), BulkSMS (a division of Adapt IT), Commify Group Limited, 3Cinteractive Corp. (3C), IMImobile PLC (acquired by Cisco), Kaleyra S.p.A. (formerly known as Solutions Infini), Mogreet Inc.

North America was the largest region in the A2P messaging market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the a2p messaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the a2p messaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The A2P messaging market includes revenues earned by entities by providing messaging services such as two-factor authentication, emergency alerts, and appointment reminders. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

A2P Messaging Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on a2p messaging market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for a2p messaging ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The a2p messaging market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Component: Platform; A2P Service
• 2) By SMS Traffic: National Traffic; Multi-Country
• 3) By Deployment Mode: On-Premises; Cloud
• 4) By Application: Authentication Services; Promotional and Marketing Services; Customer Relationship Management Services; Pushed Content Services; Interactive Messages; Other Applications
• 5) By End Users: Banking, Financial Services, and Insurance; Retail and Ecommerce; E-Governance; Hyperlocal Businesses; Healthcare; Travel and Hospitality; Other End Users
• Companies Mentioned: China Mobile Limited; AT&T Inc.; Orange S.A.; Twilio Inc.; Sinch AB
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.