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Europe A2P Messaging Market

ID: MRFR/ICT/44493-HCR
200 Pages
Garvit Vyas
October 2025

Europe A2P Messaging Market Research Report: By Type (Transactional Services (Unstructured Supplementary Service Data (USSD), One Time Password (OTP) Interactive Services, Two Factor Authentication (2FA)), By Promotional Services (Promotional Campaign Services, Pushed Content Services, Inquiry and Search Services) andBy Vertical (BFSI, Media &, Entertainment, Healthcare, Education &, Research, Retail and E-Commerce, Government, Utilities &, Logistics, IT &, Telecommunications)- Forecast to 2035.

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Europe A2P Messaging Market Summary

The Europe A2P Messaging Market is projected to grow from 12.5 USD Billion in 2024 to 25 USD Billion by 2035.

Key Market Trends & Highlights

Europe A2P Messaging Market Key Trends and Highlights

  • The market is expected to experience a compound annual growth rate of 6.5 percent from 2025 to 2035.
  • By 2035, the market valuation is anticipated to reach 25 USD Billion, indicating robust growth potential.
  • In 2024, the market is valued at 12.5 USD Billion, laying a strong foundation for future expansion.
  • Growing adoption of A2P messaging due to increasing demand for customer engagement is a major market driver.

Market Size & Forecast

2024 Market Size 12.5 (USD Billion)
2035 Market Size 25 (USD Billion)
CAGR (2025 - 2035) 6.5%

Major Players

Apple Inc (US), Microsoft Corp (US), Amazon.com Inc (US), Alphabet Inc (US), Berkshire Hathaway Inc (US), Tesla Inc (US), Meta Platforms Inc (US), Johnson & Johnson (US), Visa Inc (US), Procter & Gamble Co (US)

Europe A2P Messaging Market Trends

There have been notable shifts in the demand of Europe's A2P Messaging Market which is being driven by the need for messaging software from different sectors. Mobile phone and internet usage in European countries are one of the A2P messaging mobile markets. With the increasing usage and penetration, there is a higher adoption of A2P messaging for customer engagement, authentication, marketing campaigns, etc. Additionally, the need for secure communication channels has prompted companies to utilize A2P messaging, fostering trust and reliability in communications, particularly in regulated sectors like finance and healthcare.

Europe also needs to be focused on incorporating AI and Machine learning technologies into A2P messaging systems.

This can improve customer communication strategies tremendously and help businesses gain an edge in retaining customers. The trend of omnichannel marketing is also gaining momentum, whereby A2P messaging is crucial for marketers in establishing the level of interaction with the customers. Furthermore, the introduction of new policies in Europe, like GDPR, has increased the concern about how data is being used, thus affecting the methods in which A2P messaging is carried out. There has been a shift of focus towards compliance and away from restricted messaging services that are used to reach out to people.

The emergence of over-the-top (OTT) service messaging applications influences the A2P market in Europe, and it also shapes the strategies of incumbent mobile network operators to damn innovate and offer greater value. With the importance of business communication and customer engagement understood, the A2P messaging industry is set to further adapt and grow in the European landscape.

Europe A2P Messaging Market Drivers

Market Growth Projections

The Global Europe A2P Messaging Market Industry is projected to experience substantial growth, with estimates indicating a market size of 12.5 USD Billion in 2024 and a potential increase to 25 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 6.5% from 2025 to 2035, reflecting the increasing reliance on A2P messaging across various sectors. The market dynamics are influenced by factors such as technological advancements, evolving consumer preferences, and the integration of messaging solutions in business operations. As organizations continue to prioritize effective communication strategies, the A2P messaging market is likely to thrive.

Rising Demand for SMS Marketing

The Global Europe A2P Messaging Market Industry experiences a notable surge in demand for SMS marketing as businesses increasingly recognize its effectiveness in reaching customers directly. In 2024, the market is projected to reach 12.5 USD Billion, driven by the need for personalized communication strategies. Companies leverage A2P messaging to send promotional offers, alerts, and reminders, enhancing customer engagement. This trend is particularly evident in sectors such as retail and e-commerce, where timely notifications can significantly influence purchasing decisions. As businesses continue to invest in customer relationship management, the A2P messaging market is poised for sustained growth.

Regulatory Compliance and Data Privacy

The Global Europe A2P Messaging Market Industry is shaped by the evolving landscape of regulatory compliance and data privacy. As governments implement stricter regulations regarding data protection, businesses must adapt their communication strategies to ensure compliance. A2P messaging services provide a viable solution for organizations to communicate with customers while adhering to legal requirements. This trend is particularly relevant in the European Union, where the General Data Protection Regulation (GDPR) mandates stringent data handling practices. Consequently, the demand for compliant messaging solutions is likely to drive growth in the A2P messaging market, as organizations seek to balance effective communication with regulatory obligations.

Emergence of Rich Communication Services

The Global Europe A2P Messaging Market Industry is witnessing a transformative shift with the emergence of Rich Communication Services (RCS). This technology enhances traditional SMS capabilities by enabling multimedia content sharing, interactive messaging, and improved customer engagement. As businesses seek to create more dynamic communication experiences, RCS adoption is expected to rise. The integration of A2P messaging with RCS could potentially redefine customer interactions, offering richer and more engaging content. This trend aligns with the broader digital transformation efforts across industries, suggesting that the A2P messaging market will continue to evolve in response to changing consumer expectations.

Growth of E-commerce and Digital Services

The expansion of e-commerce and digital services significantly contributes to the Global Europe A2P Messaging Market Industry. As online shopping becomes increasingly prevalent, businesses utilize A2P messaging to facilitate order confirmations, shipping updates, and customer support. This trend is expected to propel the market to 25 USD Billion by 2035, reflecting a growing reliance on digital communication channels. The convenience of instant messaging enhances customer satisfaction, fostering loyalty and repeat business. Moreover, the integration of A2P messaging in various digital platforms underscores its importance in maintaining competitive advantage in a rapidly evolving marketplace.

Increased Adoption of Two-Factor Authentication

The Global Europe A2P Messaging Market Industry is significantly influenced by the rising adoption of two-factor authentication (2FA) across various sectors. Organizations prioritize security measures to protect sensitive data, leading to an increased demand for A2P messaging services that facilitate secure login processes. This trend is particularly pronounced in the financial services and healthcare sectors, where safeguarding customer information is paramount. As businesses invest in robust security frameworks, the A2P messaging market is likely to witness a compound annual growth rate of 6.5% from 2025 to 2035, reflecting the critical role of messaging in enhancing security protocols.

Market Segment Insights

A2P Messaging Market Type Insights

The Europe A2P Messaging Market is characterized by various Types, with Transactional Services holding a pivotal role in its dynamics. This segment encompasses Unstructured Supplementary Service Data (USSD), One Time Password (OTP) Interactive Services, and Two Factor Authentication (2FA), which collectively contribute to enhancing user engagement and security in various applications. Transactional Services are integral to facilitating real-time communication for businesses that rely on immediate interactions with customers, such as financial institutions, e-commerce platforms, and service providers.

The growth in digital transactions and the increasing reliance on mobile technologies have propelled the demand for USSD, noted for its effectiveness in enabling seamless connectivity, especially in areas with limited internet access. In addition, the implementation of OTP solutions is gaining traction as security concerns become paramount to protect user data and transactions; this method is commonly employed for verifying user identities in critical operations, making it indispensable for organizations prioritizing data protection. 

Moreover, Two Factor Authentication (2FA) is increasingly becoming a standard practice, serving as a key component in safeguarding sensitive information from unauthorized access, thereby bolstering consumer trust in digital services.The significance of these transactional applications in the A2P Messaging sector underscores their vital role in driving the overall growth of the Europe A2P Messaging Market as businesses continue to adopt effective communication solutions that emphasize security and user experience.

As the region transitions towards a more digital-centric economy, the emphasis on transactional services is set to grow further, aligning with user expectations for instant, secure, and reliable messaging solutions across various platforms.

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

A2P Messaging Market Promotional Services Insights

The Promotional Services segment within the Europe A2P Messaging Market plays a vital role in driving engagement and enhancing customer interactions. This segment is characterized by various key offerings, including Promotional Campaign Services, Pushed Content Services, and Inquiry and Search Services. Promotional Campaign Services focus on delivering targeted marketing messages to consumers, often resulting in improved brand awareness and customer retention, which is particularly significant in the highly competitive European market. Pushed Content Services ensure timely content delivery, catering to the increasing demand for real-time information among consumers, proving especially valuable across sectors like retail and entertainment.

Inquiry and Search Services accommodate user requests through automated messaging, streamlining customer support and enhancing user experience, which is critical given the growing consumer expectations for prompt responses. The growth of the e-commerce sector in Europe further reinforces the importance of these services as businesses seek efficient communication strategies to connect with their audience. Collectively, these elements underscore the significance of the Promotional Services segment in shaping effective messaging strategies within the European A2P Messaging landscape.

A2P Messaging Market Vertical Insights

The Europe A2P Messaging Market is segmented into various verticals that play a crucial role in shaping the overall landscape of communication services in the region. The Banking, Financial Services, and Insurance (BFSI) sector significantly utilizes A2P messaging for transaction alerts and customer notifications, enhancing security and improving customer engagement. The Media and Entertainment industry benefits from A2P messaging to deliver timely updates on shows, ticketing confirmations, and promotions, thereby increasing audience interaction.

In the Healthcare sector, A2P messaging is vital for appointment reminders and patient notifications, contributing to improved patient management and care continuity. Education and Research utilize A2P messaging for student notifications and administrative communications, facilitating better connectivity within educational institutions. Retail and E-Commerce businesses leverage A2P messaging for order confirmations, shipment tracking, and promotional campaigns, which are essential for enhancing customer experience and satisfaction. The Government sector employs A2P messaging for public service announcements and emergency alerts, ensuring effective communication during critical times.Additionally, Utilities and Logistics sectors rely on A2P messaging for operational notifications and service updates.

Finally, the IT and Telecommunications industries use A2P messaging for system alerts and customer engagement, highlighting its significance across multiple business functions. Overall, these verticals collectively enhance the value and necessity of A2P messaging within the Europe region, fostering growth and innovation in communication strategies.

Get more detailed insights about Europe A2P Messaging Market

Key Players and Competitive Insights

The Europe A2P Messaging Market is characterized by a dynamic landscape where businesses vie for a competitive edge through the delivery of Application-to-Person messaging solutions that cater to a broad range of industries. With the increase in digital communication and the integration of mobile technology into business operations, companies are striving to offer enhanced messaging services that meet the evolving needs of consumers and enterprises alike. The market is driven by a growing demand for seamless customer engagement, enabling brands to connect with their audience in realtime.

As various messaging service providers continue to innovate and expand their offerings, firms in this region are strategically enhancing their service capabilities to foster customer loyalty and expand their market share.MessageBird stands as a significant player in the Europe A2P Messaging Market, recognized for its robust platform that facilitates omnichannel communication. The company has established a solid presence in the region by leveraging its cloud-based messaging solutions that allow organizations to interact with their customers via SMS, chat, and social messaging apps efficiently.

One of MessageBird's notable strengths is its ability to provide a user-friendly API that simplifies the integration process for businesses looking to adopt A2P messaging solutions. 

This ease of integration, along with a commitment to ensuring high delivery rates and real-time analytics, has helped MessageBird capture a considerable share of the market in Europe. The company's emphasis on customer support and its proactive approach to understanding client needs further amplify its competitive positioning within the A2P messaging landscape.SAP also plays a crucial role in the Europe A2P Messaging Market, leveraging its enterprise software solutions to elevate communication processes for various businesses across the region.

The company offers an array of products and services related to messaging, which are integrated into its broader suite of enterprise resource planning and customer relationship management tools. SAP's strengths lie in its strong brand reputation, comprehensive service portfolio, and ability to scale solutions tailored to diverse organizational needs. The company's strategic focus on partnerships and collaborations has enabled it to enhance its service offerings, creating synergies that allow its clients to adopt A2P messaging seamlessly.

SAP has also made significant strides in the region through mergers and acquisitions that bolster its technological capabilities, integrate innovative solutions, and enhance market share within the competitive A2P messaging space in Europe.

Key Companies in the Europe A2P Messaging Market market include

Industry Developments

The European A2P Messaging Market has witnessed significant developments recently, particularly concerning growth and strategic alignments among key players. In August 2023, MessageBird announced its expansion into new European markets, enhancing its offerings for businesses seeking efficient communication solutions. Meanwhile, SAP has been focusing on integrating its A2P messaging services into its broader cloud ecosystem to streamline customer interactions. In September 2023, Twilio revealed collaborations with local European telecom operators to bolster network connectivity and service delivery.

Additionally, Sinch has reported substantial growth in messaging revenue, highlighting the increasing demand for reliable messaging solutions across various industries.Within the landscape of mergers and acquisitions, there was notable activity in this sector. In July 2023, Infobip completed its acquisition of a European messaging firm, which is expected to strengthen its service portfolio and market position. The combined forces of understanding A2P messaging trends and technological advancements are propelling the industry. Also, Telstra has recently partnered with European-based tech firms to enhance the capabilities of its messaging services.

This concentration of growth and strategic initiatives indicates a rapidly evolving market landscape in Europe.

Future Outlook

Europe A2P Messaging Market Future Outlook

The Europe A2P Messaging Market is projected to grow at a 6.5% CAGR from 2024 to 2035, driven by increasing mobile penetration, demand for customer engagement, and the rise of digital services.

New opportunities lie in:

  • Leverage AI-driven analytics to enhance customer targeting and engagement strategies.
  • Develop partnerships with OTT platforms to expand messaging services and reach.
  • Invest in security solutions to address growing concerns over data privacy and compliance.

By 2035, the Europe A2P Messaging Market is expected to achieve substantial growth, reflecting evolving communication needs.

Market Segmentation

A2P Messaging Market Type Outlook

  • Promotional Campaign Services
  • Pushed Content Services
  • Inquiry and Search Services

A2P Messaging Market Vertical Outlook

  • BFSI
  • Media &
  • Entertainment
  • Healthcare
  • Education &
  • Research
  • Retail and E-Commerce
  • Government
  • Utilities &
  • Logistics
  • IT &
  • Telecommunications

A2P Messaging Market Promotional Services Outlook

  • BFSI
  • Media &
  • Entertainment
  • Healthcare
  • Education &
  • Research
  • Retail and E-Commerce
  • Government
  • Utilities &
  • Logistics
  • IT &
  • Telecommunications

Report Scope

Report Attribute/Metric Source: Details
MARKET SIZE 2018 16.6(USD Billion)
MARKET SIZE 2024 17.9(USD Billion)
MARKET SIZE 2035 29.1(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 4.517% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
MARKET FORECAST PERIOD 2025 - 2035
HISTORICAL DATA 2019 - 2024
MARKET FORECAST UNITS USD Billion
KEY COMPANIES PROFILED MessageBird, SAP, Telesign, Twilio, Sinch, RingCentral, Telstra, Viber, Huawei, Infobip, Plivo, Aculab, Nexmo, Vonage
SEGMENTS COVERED Type, Promotional Services, Vertical
KEY MARKET OPPORTUNITIES Omnichannel customer engagement solutions, E-commerce transaction notifications growth, Mobile banking security enhancements, Enhanced personalization in marketing, Regulatory compliance support services
KEY MARKET DYNAMICS growing demand for customer engagement, increasing mobile penetration rates, regulatory compliance and data privacy, rise of cloud-based communication, expansion of e-commerce sector
COUNTRIES COVERED Germany, UK, France, Russia, Italy, Spain, Rest of Europe

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FAQs

What is the expected market size of the Europe A2P Messaging Market in 2024?

The Europe A2P Messaging Market is expected to be valued at 17.9 USD Billion in 2024.

What is the projected market size of the Europe A2P Messaging Market by 2035?

By 2035, the market is anticipated to reach a value of 29.1 USD Billion.

What is the expected CAGR for the Europe A2P Messaging Market from 2025 to 2035?

The anticipated CAGR for the Europe A2P Messaging Market from 2025 to 2035 is 4.517%.

Which segment of the Europe A2P Messaging Market is expected to hold the largest market share?

The transactional services, particularly One Time Password (OTP) Interactive Services, are anticipated to hold a significant market share.

What is the market value of Transactional Services (Unstructured Supplementary Service Data) in 2024?

The market value for Transactional Services (USSD) is projected to be 6.0 USD Billion in 2024.

What is the expected market size for Two Factor Authentication (2FA) by 2035?

The Two Factor Authentication (2FA) segment is expected to reach a market size of 10.8 USD Billion by 2035.

Who are the key players in the Europe A2P Messaging Market?

Major players in the Europe A2P Messaging Market include MessageBird, SAP, Telesign, Twilio, and Sinch.

What is the projected value of One Time Password (OTP) Interactive Services in 2035?

The One Time Password (OTP) Interactive Services segment is expected to be valued at 8.8 USD Billion by 2035.

What are the primary opportunities driving growth in the Europe A2P Messaging Market?

Emerging trends such as increased digital transactions and enhanced security requirements are driving growth in the market.

How will the current geopolitical scenario impact the Europe A2P Messaging Market?

The current geopolitical scenario may influence regulatory changes and market dynamics, impacting growth and expansion strategies.

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