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A2P Messaging Market Driven by Rising Demand for Secure and Efficient Communication between Businesses and Customers


A2P Messaging Market Report Scope and Overview

The SNS Insider report indicates that the A2P Messaging Market size was valued at USD 70.01 Billion in 2023, and is expected to reach USD 102.5 Billion by 2031 and grow at a CAGR of 4.73% over the forecast period 2024-2031.

The A2P messaging market is experiencing a surge in demand fueled by several factors. Enterprise customers are increasingly utilizing A2P SMS for various purposes, Verification and Authentication A2P SMS plays a crucial role in verifying user identities and providing one-time passwords (OTPs) for secure logins and transactions. Governments and organizations leverage A2P messaging to disseminate public service announcements, emergency alerts, and essential information to citizens. Businesses utilize A2P SMS to send promotional offers, appointment reminders, and delivery updates, enhancing customer engagement and loyalty.

This growing demand for A2P messaging presents a significant opportunity for MNOs to regain revenue lost due to the decline of P2P SMS messaging. MNOs can leverage their network infrastructure and direct operator agreements to offer new in-house services using A2P SMS traffic, generating additional revenue streams.

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Some of the Major Key Players Studied in this Report are:

  • Infobip
  • SAP SE
  • Sinch AB
  • Vonage Holdings Corp
  • Tata Communications
  • Tyntec
  • Twilio
  • Comviva Technologies Limited
  • Route Mobile Limited
  • Others

Impact of the Russia-Ukraine War

Challenges and Increased Costs sanctions on Russia and the warfare itself have inflicted significant damage on communication infrastructure in the region, potentially rendering A2P message transmission more challenging and costly. Heightened Demand for Critical Information the conflict has spurred a surge in demand for A2P messaging to disseminate crucial information. Governments and NGOs utilize A2P messaging platforms to relay alerts, updates, and vital information to residents in the affected regions. With conventional communication channels experiencing disruption, businesses and individuals are gravitating towards A2P messaging as a reliable alternative for maintaining connectivity.

A2P Messaging Market Report

Market Segmentation and Sub-Segmentation Included Are:

On The Basis of Component

  • Platform
  • A2P Service

On The Basis of Deployment Mode

  • On-premises
  • Cloud

On The Basis of Application

  • Authentication Services
  • Promotional and Marketing Services
  • CRM Services
  • Pushed Content Services
  • Interactive Messages
  • Others

On The Basis of Traffic

  • National
  • Multi-country

On The Basis of Vertical

  • BFSI
  • Retail and eCommerce
  • Hyperlocal Businesses
  • Healthcare
  • Travel and Hospitality
  • Others

Key Regional Developments

The Asia Pacific region leads the global market with a share exceeding 40%. This dominance is driven by a vast population, rapidly increasing internet connectivity, and the growing adoption of mobile commerce and digital payments. A2P messaging plays a vital role in facilitating secure transactions, providing OTPs for authentication, and sending payment notifications to customers.

North America is projected to exhibit a significant CAGR in the coming years. Retailers and e-commerce platforms are leveraging A2P messaging to enhance the shopping experience by sending customers order confirmations, delivery updates, and promotional offers. Additionally, healthcare providers are increasingly utilizing A2P messaging for appointment reminders, prescription notifications, and patient communications, streamlining processes and enhancing patient engagement. The growing trend of integrating A2P messaging with other communication channels and technologies further drives the market in North America.

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Growth Potential of the A2P Messaging Market

The increasing global smartphone penetration will further expand the reach and potential of A2P messaging The integration of AI and machine learning into A2P messaging platforms will enhance automation, personalize communication, and improve campaign effectiveness. Stringent regulations like GDPR and CCPA will further drive the demand for secure and compliant A2P messaging solutions.

Recent Developments

In June 2023: The rise of “artificially inflated traffic” (AIT) poses a threat to the A2P messaging market. Rogue MNOs or aggregators inflate message traffic to generate fraudulent revenue, leaving businesses with inflated bills.

Key Takeaways

  • A2P messaging offers a secure and cost-effective communication channel for enterprises, driving market growth.
  • A2P messaging presents a lucrative revenue stream for MNOs, offering new in-house services and increased pricing.
  • Asia Pacific and North America lead the market due to high mobile penetration, e-commerce growth, and healthcare sector adoption.
  • AI and machine learning integration will revolutionize A2P messaging, enhancing automation and campaign effectiveness.
  • Regulations like GDPR and CCPA will continue to drive the demand for secure and compliant A2P messaging solutions.

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Table of Contents- Major Key Points

  1. Introduction
  2. Research Methodology
  3. Market Dynamics
    • Drivers
    • Restraints
    • Opportunities
    • Challenges
  4. Impact Analysis
    • COVID-19 Impact Analysis
    • Impact of Ukraine- Russia war
    • Impact of Ongoing Recession on Major Economies
  5. Value Chain Analysis
  6. Porter’s 5 Forces Model
  7. PEST Analysis
  8. A2P messaging Market Segmentation, by Component
    • Platform
    • A2P Service
  9. A2P messaging Market Segmentation, by Deployment Mode
    • On-premises
    • Cloud
  10. A2P messaging Market Segmentation, by Application
    • Authentication Services
    • Promotional and Marketing Services
    • CRM Services
    • Pushed Content Services
    • Interactive Messages
    • Others
  11. A2P messaging Market Segmentation, by Traffic
    • National
    • Multi-Country
  12. A2P messaging Market Segmentation, by Vertical
    • BFSI
    • Retail and eCommerce
    • Hyperlocal Businesses
    • Healthcare
    • Travel and Hospitality
    • Others
  13. Regional Analysis
    • Introduction
    • North America
    • Europe
    • Asia-Pacific
    • The Middle East & Africa
    • Latin America
  14. Company Profile
  15. Competitive Landscape
    • Competitive Benchmarking
    • Market Share Analysis
    • Recent Developments
  16. USE Cases and Best Practices
  17. Conclusion

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