A2P SMS Market Report: Size, Share and Outlook by 2031

The A2P SMS market is projected to expand from US$ 44.12 billion in 2017 to US$ 60.55 billion by 2025, reflecting a compound annual growth rate (CAGR) of 4.1% from 2018 to 2025. The widespread accessibility of SMS has made it an essential tool for reaching customers, even in the most remote locations, prompting marketers to adopt this communication method. The growing trend of utilizing SMS for marketing and related activities has proven to be highly effective, leading to its adoption across various industry sectors. Additionally, SMS has found significant use in security authentication, particularly benefiting the banking, financial services, and insurance (BFSI) sector. The increasing adoption of A2P SMS has resulted in its revenue surpassing that of P2P SMS, encouraging companies to innovate and develop new products and solutions in this space.

Specialized A2P SMS providers possess the capability to deliver both the technology and business model to telecom operators, facilitating the deployment of an A2P SMS platform without the need for capital expenditure (CAPEX) or operational expenditure (OPEX). This allows operators to quickly reap the benefits of A2P SMS. In such partnerships, the platform provider manages not only the technology but also the integration, platform maintenance, and customer support. However, despite the opportunities available, some operators struggle to capitalize on A2P SMS. The delivery and management of A2P SMS can be resource-intensive and time-consuming, yet network operators often do not prioritize these aspects or invest in the necessary technologies to address them.

The A2P SMS market can be categorized based on type, application, end-user verticals, and geographical regions. The segmentation for this research has been established following comprehensive secondary research and extensive primary research. Furthermore, we have analyzed the market segments offered by leading players in the industry to better understand the commonly used market-specific terminologies associated with each segment. The insights gained from this research have led to the final segmentation of the market.

The overall market size has been calculated using both primary and secondary sources. The research process commences with thorough secondary research, utilizing both internal and external resources to gather qualitative and quantitative data related to the market. Additionally, primary interviews are conducted with industry participants and commentators to validate the data and analysis.

Participants in this research process typically include industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the A2P SMS sector. Some of the prominent players in the A2P SMS market include ANAM Technologies, Beepsend AB (acquired by Twilio Inc.), CLX Communications AB, Dialogue Communications Ltd. (acquired by CLX Communications AB), DIMOCO Messaging GmbH, Infobip Ltd, Nexmo Inc. (acquired by Vonage), Syniverse Technologies, LLC, Tanla Solutions, and Trillian Group Ltd, among others.