Application-to-person messaging has been one of the many evolutionary needs for a vast number of industry verticals to broaden their horizons in terms of customer care and marketing activities. The ecommerce industry is expanding at a brilliant pace and is taking other relevant markets along with it, the global A2P SMS market included. Smartphones are getting cheaper, Internet speeds are getting faster, cloud computing is on the rise, and web-based and mobile payment platforms are present everywhere. These factors putting the global A2P SMS market in an extremely favorable position currently.
The global market for A2P SMS is projected at a CAGR of 4.2% in terms of revenue, within a forecast period from 2016 to 2024. The calculated revenue in 2015 was US$57.27 bn and is expected to reach US$83.03 bn by the end of 2024. In terms of volume, this market is expanding at a CAGR of 4.1% from 2016 to 2024.
Q. What Scope do A2P SMS Providers Have in CRM?
Customer relationship management has always been a key factor that drives the demand for A2P SMS services. By 2024, this application segment is expected to take up 33.7% of the global A2P SMS market, after expanding at a CAGR of 4.7% from 2016 to 2024. This is because the scope of CRM is not only expanding in its current industry verticals, but is also finding greater need in other verticals. Industries such as healthcare and hospitality are finding a greater scope of use of A2P SMS services for the purpose of CRM, thereby boosting the global A2P SMS market.
Q. Is A2P SMS Use about to Saturate in the Banking and Financing Sector?
The global A2P SMS market finds users and clients in several end-user industries, more commonly in hospitality, healthcare, travel and transport, BFSI, media and entertainment, and retail. Of these, retail and BFSI have consistently been among the leading contributors to revenue in the global A2P SMS market. A lot of industry verticals have already been making a great deal of use of A2P SMS for various purposes, but the finance and banking sector has only been making large-scale use of these services in the past few years. Despite that, this sector has already become a very important contributor to the demand pool for A2P SMS services and platforms. That said, the scope of application of A2P SMS services in finance and banking is growing at a very rapid pace and is showing no signs of slowing down.
The global A2P SMS market is primarily finding a massive scope of use in finance and banking due to the high growth rate of the global population, coupled with a high rate of urbanization in all countries. As economies are improving, the amount of disposable income held by each individual is increasing as well, thereby giving the finance and banking sector a greater impetus towards the use of A2P SMS services for better customer care and promotional events.
Q. Will Asia Pacific Maintain its Lead in Demand for A2P SMS?
In 2015, Asia Pacific dominated the global A2P SMS market by taking up 40.4% of the total revenue. The second place in terms of share size at the time was taken up by North America at 27.6% of the global revenue. Asia Pacific looks more than likely to continue dominating the global A2P SMS market till 2024 and a key reason for this is the introduction of highly innovative platforms for messaging. These platforms are making it incredibly easy for companies to make use of A2P SMS services as well as making them more affordable for smaller scale companies to access them. This has pushed the demand for A2P SMS service platforms in Asia Pacific to new heights, where their application ranges from CRM, promotional campaigns, interactive services, and push content services.
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North America is expected to continue using A2P SMS services for messaging in banks and other financial institutions. At the same time, there is an increasing demand for A2P SMS in other sectors, a demand which is being met by a large presence of some of the prominent players in the global A2P SMS market. These include Syniverse Technologies, LLC, Route Mobile Limited, and AMD Telecom S.A.