As per the report published by Fior Markets, the global A2P messaging market is expected to grow from USD 60 billion in 2020 and to reach USD 76.01 billion by 2028, growing at a CAGR of 3% during the forecast period 2021-2028.
As the mobile subscriber base increases, companies, MNOs, and app developers have the chance to communicate more effectively with their clients worldwide. By investing more in A2P services, the MNOs intend to raise their revenue. As expected, mobile consumers commonly communicate by message, which allows companies to send notifications, alerts, checks, and promotional messages via this function to their customers. In addition, China and India have substantial market shares in the A2P message services, and due to the increasingly mobile subscriber base, the forecast is predicted to expand during the forecast period.
A2P Messaging is a message word that is sent to a consumer device from a company-run software application. These applications are used by businesses for marketing posts, appointment reminders, chat-bots or virtual helpers, notifications, single passwords (OTP’s) or PIN codes, and for other users of cases. By definition, an A2P message is a one-way communication only, but we also have P2A communications, which include opt-in/opt-out, TV voting campaigns, contests, lottery SMS campaigns, subscription campaigns, etc., where messages come from client devices. Have you heard about P2P? These are easy messages for 2 people using SMS or OTT chat programs on their device. A2P messages are also known as browser messengers, SMS messages app-to-person messages, software SMS, A2P SMS messages, or A2P SMS messages. A2P messages are subject to local national Message rules and such limitations may have delivery consequences, such as message filters by recipient carriers or delayed message delivery, which customers should know about.
As the mobile subscriber base increases, companies, MNOs, and app developers have the chance to communicate more effectively with their clients worldwide. By investing more in A2P services, the MNOs intend to raise their revenue. Messaging for companies contacting consumers at a wider scale is the simplest, simplest, most generally utilized, and most rapid channel. It is most widely utilized in many areas, including banking, finance, retail, medical services, and travel and hospitality. Because of the personal character of text messages and the context conveyed in them, government agencies around the world are strictly regulated. Government regulatory agencies are worried about customer problems relating to the security of the A2P messaging space provided by companies and MNOs. Companies provide clients with immediate notifications, alerts, promotional messages, tickets, and marketing messages with mobile marketing. Mobile marketing, one of the easiest and most cost-effective ways of communication in generating, enhanced sales, and building relationships with customers in industry, has been widely used for industry vertical products such as BFSI, media, entertainment, tourism, retail, the aerospace, health, and insurance. A Grey Route is one of the illegal Messaging Routes through which no business arrangement and/or relations between an entity (sender/receiver) and its operator can be found. Therefore, the sending organization must pay the receiving MNOs no termination charge. In consequence, MNOs will forfeit sending parties’ revenue.
Key players operating in the A2P messaging market are AT&T, Sinch, Infobip, China Mobile, Orange, Route Mobile, Comviva, Twilio, BICS, Monty Mobile, Syniverse, Global Message Services, Tyntec, Silverstreet, among others. The major players in the A2P messaging market focus on expansionary strategies such as mergers & acquisitions, recent developments, joint ventures, collaborations, product innovations and partnerships. These strategies would extract higher market shares for the players and strengthen their position in the global A2P messaging market. AT&T and Route Mobile Systems are some of the biggest manufacturers and suppliers of A2P messaging worldwide.
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The A2P service segment dominated the market and held the largest market share of 54% in the year 2020
Based on the component segment, the global A2P messaging market includes platform and A2P service systems. The A2P service segment dominated the market and held the largest market share of 54% in the year 2020. The smart phone evolution with new OTT firms has shown that revenues from P2P messaging services have declined. However, A2P SMS revenues for MNOs around the world have also increased similarly. An increasing number of mobile phone users worldwide are driven by the need for A2P SMS on the market which makes them a universal device for any communication.
The on premise segment dominated the market and held the largest market share of 58.47% in the year 2020
Based on the deployment type segment, the global A2P messaging market includes on premise and cloud. The on premise segment dominated the market and held the largest market share of 58.47% in the year 2020. The on-premise segment and deployment mode is deployed by organizations that install the platform alone without using a cloud service provider. Most A2P messaging end-users use the SMS aggregator’s platform, which takes services from cloud service providers.
The customer relationship management services segment dominated the market and held the largest market share of 29.47% in the year 2020
Based on the application segment, the global A2P messaging market includes customer relationship management services, promotional & marketing services, authentication services, pushed content services and others. The customer relationship management services segment dominated the market and held the largest market share of 29.47% in the year 2020. The highest market share was gained by customer relationship management services. Likewise, the second greatest market size in the same year was represented by Pushed Content S services. Customer Relationship Management (CRM) allows customer relationships to be established, allocated, and managed through A2P messaging.
The healthcare segment dominated the market and held the largest market share of 21% in the year 2020
The end-user segment includes BFSI, hyperlocal businesses, travel & hospitality, healthcare, retail & ecommerce and others. The healthcare segment dominates the market in terms of shares is 21%. The increasing emphasis on mobile health is key to the expansion of the digital health sector. Moreover, A2P SMS is being used in the retail sector by increasing facilities for the purchase of items through an online platform.