ID: MRFR/ICT/5070-CR | 127 Pages | Published By Ankit Gupta on November 2020
A2P Messaging Market Size was valued at USD 65.5 billion in 2021. The A2P messaging market industry is projected to grow from USD 68.0 Billion in 2022 to USD 88.3 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 3.80% during the forecast period (2022 - 2030). Due to the high use of short messaging services (SMS) among enterprises and the low cost and universal reach of A2P messaging, the market is expected to grow significantly. Furthermore, a high emphasis on customer acquisition and engagement is expected to boost the A2P messaging market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Customers and service providers have used SMS as a communication channel for years. SMS is an omnipresent method of communicating with people using basic mobile handsets without access to additional data services, even though other communication methods, such as phone calls (voice) and emails, are available. In the report Mobile Economy 2022, subscribers continue to grow as mobiles contribute to the economy. By the end of 2021, nearly 5.3 billion people will have subscribed to mobile services, representing 67% of the population. As many adults own and operate mobile phones, the younger population largely determines the A2P messaging market's future growth.
It is expected that 400 million new mobile subscribers will be added by 2025, bringing the total number of subscribers to 5.7 billion (70 percent of the population). As of 2021, mobile technologies and services are expected to generate over US$ 4.5 trillion, accounting for 5% of GDP. Revenues will increase by over US$ 400 billion by 2025. As a result of increased efficiency and productivity and increased adoption of mobile services, the value increased to US$ 5 trillion.
A company may need to negotiate individually with each operator to roll out a service, or it may need to work with various aggregators. Some message exchange providers are highly experienced in managing SMS traffic and blocking spammers from reaching mobile subscribers thanks to their inbuilt high-quality (SS7) direct interconnections and high-quality Signaling System (SS7) direct interconnections. Messaging exchange providers provide operators with a one-stop billing and support experience and guaranteed mobile messaging excellence. Therefore, increasing mobile subscribers has enhanced the A2P messaging market CAGR ly in recent years.
However, there is a growing adoption of A2P messaging in several industries, such as BFSI, healthcare, retail & e-commerce, which contributes positively to the growth of the A2P messaging industry. This is another factor driving the growth of the A2P Messaging market revenue.
The A2P messaging market segmentation, based on service type, includes transactional services (unstructured supplementary service data (USSD), one-time password (OTP) interactive services, and two-factor authentication (2FA). The one-time password (OTP) interactive services segment held the majority share in 2021, contributing to around ~41%-43% of the A2P messaging market revenue. In order to provide services that are reliable, timely, and, most importantly, not prone to data leaks, service providers need carrier-grade delivery technology; this is where carrier-grade messaging stands out. Due to SMS's ubiquitous nature, consumers could receive the services irrespective of their geographical location. In order to provide consumers with holistic and high-quality services, A2P SMS operators and Over-The-Top (OTT) players could work together.
Figure 2: A2P Messaging Market, by Service Type, 2021 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The A2P messaging market data has been bifurcated vertical into BFSI, media & amp, entertainment, healthcare, education & amp, research, retail and e-commerce, government, utilities & amp, logistics, it & amp and telecommunications. The BFSI segment dominated the A2P messaging market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. In the BFSI industry, online A2P messaging is being adopted at an increasing rate as payment transactions increase. As part of payment reminders, balance statements, notifications, one-time passwords, and anti-fraud alerts, financial institutions and banks use A2P messaging. Using an A2P messaging system, banks can announce transaction updates, consumer actions, and retail operations to their customers in order to build a strong relationship with them.
It is expected that the media & entertainment segment will grow at the fastest rate during the forecast period because of the adoption of A2P messaging by the entertainment industry involving voting-based reality shows. To drive engagement with instant media alerts, companies such as Sinch and Proximus provide content distribution solutions that enhance messages with rich content and provide personalized and newsworthy notifications to drive engagement.
By Region, the study provides A2P messaging market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific A2P messaging market accounted for USD 28.6 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. Increasing smartphone penetration, the proliferation of internet services, and the number of internet subscribers in the region all plays a role in the growth. China and India have a large customer base that drives demand and creates new opportunities for A2P businesses.
Further, the major countries studied in the A2P messaging market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
The North American A2P Messaging market accounts for the second-largest market share. It has been largely driven by the presence of large players in the A2P industry, including AT&T, Genesys, and TWILIO INC., which has accelerated the sector's growth. In addition, a number of companies are developing cloud-based messaging platforms for end-to-end encryption of messages, thereby contributing to the growth of the A2P market. Further, the US A2P Messaging market held the largest market share, and the Canadian A2P Messaging market was the fastest-growing market in the North American region
Europe’s A2P messaging market is expected to grow at the fastest CAGR from 2022 to 2030. This is because the market's technological advancements and software developments will attract new end users. Moreover, the German A2P messaging market held the largest market share, and the UK A2P Messaging market was the fastest-growing A2P messaging market in the European region
Major market players are spending on R&D to increase their product lines, which will help the A2P messaging market grow even more. Leading players are also taking various strategic initiatives to grow their worldwide presence, with key market developments such as contractual agreements, mergers and acquisitions, new product launches, increased investments, and collaboration with other organizations. Competitors in the A2P messaging industry increasingly competitive and rising market conditions require cost-effective products to expand and survive.
In the A2P messaging industry marketplace, manufacturers adopt a variety of business strategies to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the A2P messaging industry has provided medicine with some of the most significant benefits. The A2P messaging major market players such as Bharti Airtel Limited (India), China Unicom (Hong Kong) Limited, Tata Communications Limited (India), Sap Se (Germany), and research and development activities are being undertaken by others in order to expand the market demand.
As a telecommunications company, Tata Communications Limited provides international telephone, telex, and telegraphy services, international maritime mobile communications, INTELSAT business services, bureau faxes, and t-faxes. In addition to providing internet access, electronic mail, and electronic data interchange, Tata Communications provides services related to international maritime mobile communication.
Also, The SAP SE multinational software company develops enterprise management and e-business software, provides consulting services on the organization's use of its application software, and provides training services. It markets its products and services worldwide. The SAP SE company is one of the world's leading providers of enterprise resource planning software, with its headquarters in Walldorf, Baden-Württemberg. SAP develops enterprise software to manage business operations and customer relations.
Bharti Airtel Limited (India)
China Unicom (Hong Kong) Limited
Tata Communications Limited (India)
Sap Se (Germany)
Orange Business Services (France)
Vodafone Group Plc. (UK)
Monty Mobile (UK)
Clickatell (US), among others
March 2022: A new integrated SMS and WhatsApp messaging notification feature have been launched by Infobip Ltd. as a way to boost customer loyalty and improve customer experience.
December 2021: Xandr, a digital marketing, advertising, and retail media platform from AT&T, has been acquired by Microsoft. The acquisition will accelerate Microsoft's capability to provide open web solutions for digital marketing, advertising, and retail media.
Transactional Services (Unstructured Supplementary Service Data (USSD)
One Time Password (OTP) Interactive Services
Two Factor Authentication (2FA)
Promotional Campaign Services
Pushed Content Services
Inquiry and Search Services
Retail and E-Commerce
Rest of Europe
Rest of Asia-Pacific
Rest of the World
|Market Size 2021||USD 65.5 billion|
|Market Size 2022||USD 68.0 billion|
|Market Size 2030||USD 88.3 billion|
|Compound Annual Growth Rate (CAGR)||3.80% (2022-2030)|
|Market Forecast Period||2022-2030|
|Historical Data||2018 & 2020|
|Market Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Service Type, Promotional Services, Vertical, and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and Rest of the World|
|Countries Covered||The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||Bharti Airtel Limited (India), China Unicom (Hong Kong) Limited, Tata Communications Limited (India), Sap Se (Germany), Orange Business Services (France), Vodafone Group Plc. (UK), Monty Mobile (UK), ARPUPLUS (Giza), and Clickatell (US)|
|Key Market Opportunities||Increase in mobile subscribers|
|Key Market Dynamics||High use of short messaging services (SMS) among enterprises High emphasis on customer acquisition and engagement|
The A2P messaging market size was valued at USD 65.5 Billion in 2021
The A2P messaging market is projected to grow at a CAGR of 3.80% during the forecast period 2022-2030
Asia-Pacific had the largest share of the A2P messaging market
The key players in the A2P messaging market are Bharti Airtel Limited (India), China Unicom (Hong Kong) Limited, Tata Communications Limited (India), Sap Se (Germany), Orange Business Services (France), and Vodafone Group Plc. (UK), Monty Mobile (UK), ARPUPLUS (Giza), and Clickatell (US).
The BFSI A2P Messaging category dominated the A2P messaging market in 2021.