The global A2P SMS market is estimated to be valued over USD XX million by 2025. The primary factor driving the growth of the global market is the substantial escalation of application-to-person (A2P) messages in services such as mobile banking, mobile payments, and mobile health services SMSs are widely used for customer service, activation and verification, customer engagement and as service delivery functions by organizations and enterprises. A2P SMS is a type of service by which a user can send SMS from a web-based application to mobile subscriber. Sectors such as ecommerce, banking and financial services institutions, entertainment, tourism, and healthcare.are extensively using A2P SMS services as they provide reliable and secure operator channel and enhancement in end-user experience.

Based on application, the customer relationship management services segment is projected to offer lucrative opportunity in the coming years. Customer relationship management services are used to offer billing and transaction-related data to the consumers. Additionally, the segment is witnessing rising demand across the banking and financial segment as the customers are dependent on online services rather than physical transactions.

A2P SMSs are in use for several tickets booking applications such as payments for transportation services and to deliver boarding passes in hospitals and transportation firms. A number of finance companies use A2P SMSs for services such as requesting account information, making payments and transferring money. Mobile network operators offer security for these companies by approving the financial service companies to recognize their customers using mobile numbers.

Growth in number of mobile subscribers globally and increasing mobile marketing activities are the key factors driving the global A2P SMS market. Availability of low-cost smart phones, e-commerce industry coupled with increasing use of internet, and the rapid growth in web/cloud supported services such as internet banking and online payments are also expected to positively impact the global market growth in the coming years. The major enterprise verticals such as tourism, marketing, retail, entertainment, banking, financial services and insurance (BFSI), healthcare and be the key growth areas for the global market.

The key players operating in the global A2P SMS market include DIMOCO, Nexmo Inc., LLC, tyntec Ltd., AMD Telecom S.A., Syniverse Technologies, Angkor Data Communication Group Co., Ltd., CLX Communications AB, Route Mobile Limited, Ogangi Corporation, Silverstreet BV, Symsoft AB and Tanla Solutions Ltd. Retailers, banks, and OTT providers cumulatively accounted for 60% of global A2P SMS 2017. For instance, in 2015, Tanla Solutions Ltd. announced that Fastrack handled over 5 bn messages in October month and also claimed to have set a “record” of processing more than 200 mn messages in a single day.

A2P SMSs are broadly utilized for a variety of applications such as breaking news, campaign perks, promotional campaigns, updating the masses about location-based opportunities, and for brand promotion. A2P SMS services are extensively used in broadcasting transactional messages by number of industries such as media, retail, marketing, financial services, banking, tourism, entertainment, and healthcare. Owing to the rise in these industries, the demand for A2P SMSs is also likely to augment. There are certain factors such as technical anomalies, increasing mobile malwares, phishing and spam messages, affecting market revenues of telecom operators that could unfavorably impact the overall growth predictions of the global A2P SMS market.


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