According to our latest market study, titled "A2P SMS and CPaaS Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Component, Channel, Enterprise Size, and Industry," the market is projected to grow from US$ 71.07 billion in 2022 to US$ 101.77 billion by 2028; it is estimated to grow at a CAGR of 6.2% from 2022 to 2028.
The increasing use of the internet, advanced APIs, and rich communication services (RCS) has increased demand for A2P SMS and CPaaS. With the growing popularity of text messaging, RCS solutions can enhance the client experience. New technologies, such as long-term voice-over evolution, have also contributed to the expanding subscriber base. As a result, businesses are utilizing RCS solutions for digital marketing to reach a wider audience. Moreover, companies are investing more in SMS marketing as it has a large click-through rate (CTR) and a large audience. The development of RCS corporate messaging platforms is expected to replace current A2P messaging systems, further promoting the global adoption of rich communication services.
North America is at the forefront of embracing and advancing emerging technologies globally, thanks to favorable government policies that promote innovation and strengthen infrastructure capabilities. Consequently, any disruptions to industries are likely to significantly impact the region's economic growth. The software industry in North America has also been affected by the COVID-19 pandemic. Nevertheless, the lockdowns and communication restrictions have spurred the adoption of CPaaS through multiple channels.
North America is a vital region for adopting and expanding new technologies, thanks to favorable government policies, a large industrial base, and high purchasing power. Many industries, including manufacturing, electronics, healthcare, and e-commerce, rely heavily on the US market for consumer communication platforms. North America has the highest concentration of engagement platforms per square mile, making it a significant market for CPaaS providers. The work-from-home trend resulting from the COVID-19 pandemic has further propelled the growth and usage of CPaaS by businesses in North America, enhancing overall corporate efficiency. This trend will persist beyond the pandemic as companies adopt customer engagement solutions. The market growth opportunities for CPaaS in North America include the increasing interest in improving communication effectiveness and platform integration on cloud and AI-based architectures. For instance, LINK Mobility's acquisition of Message Broadcast, LLC in June 2021 is a significant development that boosts the demand for CPaaS solutions in North America.
The report on the A2P SMS and CPaaS Market offers comprehensive market insights to aid key players in developing growth strategies for the market in the years ahead. The report also predicts future trends and advancements in the A2P SMS and CPaaS Market.
Key Findings of Study:
The market for A2P SMS and CPaaS is categorized into various segments, including component (solutions and services), channel (message, voice, email, webpush, and others), enterprise size (SMEs and large enterprises), industry (IT & telecom, BFSI, retail & e-commerce, healthcare, and others), and geography (North America, Europe, Asia Pacific, MEA, and SAM). Within the channel segment, message is further divided into chat apps and SMS. The geographical segmentation includes countries such as the US, Canada, Mexico, Germany, UK, France, Italy, Australia, Japan, South Korea, India, China, Pakistan, Saudi Arabia, UAE, South Africa, Turkey, Egypt, Brazil, Argentina, and others.
The A2P SMS and CPaaS Market is witnessing an upsurge in demand owing to the capability of CPaaS to facilitate interactions across multiple platforms such as messaging, voice, video, and social media. The increasing usage of mobile devices for online transactions and communication further drives the demand for this market. The Asia Pacific region, with its significant population and growing adoption of cloud-based technologies, presents a promising market for CPaaS solutions. The region has approximately 2.4 billion smartphone users, which is a crucial factor for the adoption of CPaaS. As more use cases related to customer communication emerge, the adoption of CPaaS is expected to increase further in the region. Enterprises of all sizes in the Asia Pacific can benefit from CPaaS solutions that offer a back-end communication infrastructure. Additionally, the Asia Pacific market played a significant role in helping Twilio, a communications platform vendor, reclaim its leading position in the global A2P SMS and CPaaS Market.
The demand for CPaaS solutions in North America is growing due to the widespread adoption of smart mobile devices and the consumerization of IT, which emphasizes cost-effective and user-friendly communication solutions. To cater to this demand, major players in the A2P SMS and CPaaS Market plan to introduce integrated and unified CPaaS solutions in the region, which is expected to drive market growth further. Soprano, for instance, launched its CPaaS platform in the US market in July 2022 to offer meaningful communication experiences by integrating multiple forms of communication into a single platform that can be integrated with existing applications. The US leads the North American 5G market in investment, adoption, and applications of 5G, with telecom operators such as AT&T and Verizon making significant investments in network infrastructure. The increasing investments in IoT and the telecom sector are also expected to create new growth opportunities for the region's A2P SMS and CPaaS Market.
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