Application-To-Person (A2P) Sms Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Germany, UK, Japan - Size and Forecast 2024-2028

Application-to-Person SMS Market Size 2024-2028

The Global Application-to-Person SMS Market size is forecast to increase by USD 13.85 billion between 2023 and 2028, accelerating at a CAGR of 4.36%. The Application-to-Person (A2P) SMS market is experiencing significant growth, driven by several key factors. One of the primary drivers is the increasing number of smart-connected devices worldwide, which has led to a surge in SMS traffic. Businesses are leveraging A2P SMS to engage with their customers in real-time, delivering promotional offers, transactional notifications, and customer support. Additionally, the adoption of chatbots and messaging apps for customer service and marketing purposes is fueling the demand for A2P SMS. This trend is expected to continue as businesses seek to enhance their customer engagement strategies and provide seamless communication channels. The market analysis report provides a comprehensive overview of the market growth factors, trends, and opportunities in the A2P SMS industry.

What will be the Size of the Application-to-Person (A2P) SMS Market During the Forecast Period?

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Market Dynamics

The market refers to the use of SMS technology for businesses to send messages directly to consumers. This market has witnessed significant growth due to the increasing popularity of SMS as a communication channel for various industries. The end-use industries, including chemical, building & construction, and logistics, are major contributors to the market. The chemical sector utilizes A2P SMS for various applications such as order confirmation, delivery updates, and customer engagement. In the building & construction industry, A2P SMS is used for project updates, scheduling, and safety alerts. Logistics companies use A2P SMS for real-time tracking and status updates. Single-use packaging waste is a concern for logistic regulations, and eco-friendly and sustainable packaging solutions are gaining popularity. Lightweight packaging, such as plastic crates and drums, is increasingly being used to reduce the environmental impact of logistics operations. The use of containers for transporting hazardous materials also requires the use of A2P SMS for safety alerts and emergency notifications. In the short term, the A2P SMS market is expected to continue its growth trajectory due to the increasing demand for real-time communication and the convenience it offers to businesses and consumers alike.

Key Market Driver

The remarkable growth of the A2P messaging market can be attributed to the increasing number of smart-connected devices worldwide. It is estimated that the global number of such devices will reach 55 billion by the end of 2025. This rise in connected devices allows for more efficient communication with end-users, making it easier to manage and maintain interactions. Consequently, there is a growing demand for A2P SMS solutions that facilitate streamlined content management and monitoring through effective promotional campaigns.

The expansion of mobile workers, including traveling executives, sales representatives, and field workers, necessitates secure access to confidential company data anytime and anywhere. While mobile devices enhance productivity, they also pose additional risks to sensitive data. A2P messaging services, employing authentication methods, offer protection against malware attacks, safeguarding sensitive information. This surge in demand for A2P SMS solutions is expected to propel the growth of the A2P messaging market during the forecast period.

Significant Market Trends and Analysis

The implementation of BYOD policy in enterprises is the key trend in the market. The market has experienced significant growth due to the increasing use of mobile devices in various industries and sectors. The ease of conducting authentication and the implementation of bring-your-own-device (BYOD) policies have enabled employees to work remotely, reducing operational costs and increasing productivity. Small and medium enterprises (SMEs) have been the primary adopters of this trend, particularly in end-use industries such as chemical, building & construction, and lightweight packaging. In the chemical sector, the use of A2P SMS for communication between logistics and production processes is crucial. Single-use packaging waste, including dunnage bags, layer pads, plastic crates, drums, and other containers, must comply with logistic regulations. A2P SMS facilitates real-time communication between stakeholders, ensuring timely and efficient transportation of hazardous materials like paints, coatings, dyes, and other hazardous substances.

The COVID-19 situation has further accelerated the adoption of A2P SMS, as companies have had to adapt to the changing lifestyles and modernization of their supply chains. In the medium term, sustainability and the use of latest technologies such as fiber drums, PE drums, barrels, and salvage drums in the oil & gas and petrochemicals industries are expected to drive the market growth. The focus on eco-friendly and sustainable packaging solutions is also a significant trend in the packaging industries. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenges

The inferior telecom infrastructure in developing regions is the major challenge that affects the growth of the market. The market holds significant valuation due to its role in facilitating instant communication between businesses and their customers. However, the delivery process of A2P SMS faces challenges, particularly due to the limitations of traditional telecom infrastructure. This infrastructure was not designed to handle the high volume of A2P SMS traffic, leading to delays and increased costs. To support A2P SMS solutions, telecom infrastructure requires integration of intermediaries such as gateway providers, SMS aggregators, and resellers. The use of advanced hardware and software by these intermediaries further complicates the process. In developing countries, the lack of suitable telecom infrastructure poses a major obstacle.

Moreover, industries such as chemical, building & construction, and lightweight packaging are increasingly adopting A2P SMS for various applications. These industries generate a large volume of single-use packaging waste, including dunnage bags, layer pads, plastic crates, drums, and containers. Logistic regulations mandate the use of eco-friendly and sustainable packaging, leading to a growing demand for A2P SMS solutions in the packaging industries. The COVID-19 situation has further accelerated the need for efficient supply chain communication, with A2P SMS playing a crucial role in the global production process. In the medium term, sustainability and latest technologies are driving the market growth. The oil & gas and petrochemicals industries, which use barrels, plastic drums, steel drums, salvage drums, fiber drums, and PE drums, are significant consumers of A2P SMS solutions. In conclusion, the A2P SMS market is witnessing significant growth due to its role in facilitating instant business-to-customer communication. However, the delivery process faces challenges due to the limitations of traditional telecom infrastructure and the need for integration of intermediaries. The market is driven by various industries, particularly those generating large volumes of single-use packaging waste, and the need for efficient supply chain communication. Hence, the above factors will impede the growth of the market during the market forecasting period.

Market Segmentation

The platform is the leading segment to dominate the market.

The market share growth by the platform segment will be significant during the forecast period. The platform segment dominated the global market with the largest share in 2018 and will witness a high CAGR during the forecast period. The extensive use of the A2P messaging platform across numerous verticals, including BFSI, travel and tourism, media and entertainment, and healthcare, should be credited with the platform segment's rise. The A2P platforms offer updates and promotions for a variety of items, notably for small and medium-sized businesses. The chat app offers users direct access to numerous brands and services. They can interact with virtual assistants, due to direct access, which offers businesses several benefits in providing clients with always-on services. The number of virtual assistants has also expanded as a result of the development of AI and chatbot services. Thus, owing to such factors the segment is expected to grow during the market forecast period.

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APAC Holds a Prominent Position in the Application-to-Person (A2P) SMS Market

APAC is estimated to contribute 56% to the growth of the global market during the market growth analysis period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The market in APAC will experience significant growth during the forecast period as several industries, including healthcare and BFSI, are adopting cybersecurity solutions. This is because most of these industries use cloud-based services. Population growth, higher living standards, and increased disposable income have led to a rise in the adoption of connected devices. In addition, there has been an increase in online transactions, especially through mobile devices. It is important to protect security-related data against cyber theft. Therefore, the need to secure data will drive the adoption of AI-based cybersecurity solutions during the market research and growth period.

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 Application-to-Person (A2P) SMS Market Companies Overview

The Application-to-Person (A2P) SMS Market is fragmented in nature. Some significant players include 42 Telecom Ltd and  AMD Telecom SA

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

 BICS, China Telecom Global Ltd., Comviva Technologies Ltd., Genesys Telecommunications Laboratories Inc., Infobip Ltd., Monty Mobile, Route Mobile Ltd., Silverstreet BV, Sinch AB, SMS Global, Syniverse Technologies LLC, Tanla Solutions Ltd., Tata Communications Ltd., tyntec GmbH Hofmannstrasse, Vonage Holdings Corp., Bharti Airtel Ltd., Twilio Inc., and Vodafone Group Plc

Segment Overview

The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Component Outlook
  • Platform
  • Service
• Application Outlook
  • Promotional campaigns
  • CRM
  • Pushed content
  • Interactive services
  • Others
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

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Market Analyst Overview

Application-to-Person (A2P) SMS marketing is a valuable communication channel for businesses looking to engage with their customers in real-time. This marketing strategy involves sending promotional or transactional messages directly to consumers' mobile phones. In the context of packaging industries, A2P SMS marketing can be particularly effective for companies dealing with single-use packaging waste, such as Dunnage bags, layer pads, plastic crates, drums, and other containers. Logistic regulations play a crucial role in the packaging industry, especially in the handling and transportation of chemicals, paints, coatings, dyes, and hazardous materials. With the growing emphasis on sustainability and eco-friendliness, the packaging industry is undergoing modernization, leading to an increase in the production of lightweight and sustainable packaging solutions. The COVID-19 situation has disrupted global supply chains, causing short-term challenges for businesses in the packaging industries.

However, medium-term opportunities exist as changing lifestyles and growing infrastructure drive demand for innovative and efficient packaging solutions. In the chemical sector, companies use various types of containers like barrels, plastic drums, steel drums, salvage drums, and fiber drums for transporting their products. A2P SMS marketing can help these businesses communicate with their customers about product availability, delivery schedules, and other important information, ensuring a smooth logistics process. As the packaging industry evolves, the latest technologies are being adopted to enhance the functionality and sustainability of packaging solutions. A2P SMS marketing can help companies stay connected with their customers and keep them informed about these advancements, ultimately driving growth and success in the industry.

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What are the Key Data Covered in this Application-to-Person (A2P) SMS Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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