A2P Messaging Market Predicted to Grow $72.8 Billion by 2025 at 3.2% CAGR

A2P messaging Market size expected to grow from $62.1 billion in 2020 to $72.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 3.2%.


Northbrook, IL -- (SBWIRE) -- 05/19/2021 -- According to a new market research report "A2P Messaging Market by Component (Platform and A2P Service), Application (Authentication, Promotional and Marketing, and CRM), Deployment Mode, SMS Traffic (National and Multi-Country), End User, and Region - Global Forecast to 2025" published by MarketsandMarkets™, the global A2P messaging market size to grow from USD 62.1 billion in 2020 to USD 72.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 3.2% during the forecast period.

The global A2P Messaging market shows a significant growth in the forecast period. A2P messaging is a powerful medium for businesses or enterprises in the communication industry to connect with mobile consumers. Businesses use text messaging to notify the users about updates for improving the user experience, which results in the revenue growth of the company. SMS helps in generating leads, increasing sales, and building better customer relationships across a wide range of industries, such as BFSI, retail and eCommerce, travel and tourism, hyperlocal business delivery services, eGovernance, and healthcare. In a hyper-converged connected world, enterprises' business model has changed radically that demands a robust and resilient infrastructure to cope with changing customer behavior.

Factors contributing to the high growth rate in these regions are growing number of mobile subscribers, increasing number of advertising and marketing companies, and growing use of A2P messaging among major industries. These factors are also expected to shape the future of the global A2P messaging market. However, the market also faces several challenges, including the increasing competition from global OTT vendors, and SMS fraudulent activities, such as SMS phishing, and SMS spamming.

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Among end user, the e- Governance segment is expected to grow at the highest CAGR during the forecast period

Based on end user, the e- Governance segment of the A2P messaging market to hold a higest CAGR during the forecast period. A2P messaging helps government enterprises inform citizens by a simple communication channel. Governments use the A2P messaging service to send messages to public users; use cases are security monitoring, smart cities, environmental monitoring, animal tracking, asset tracking, and real-time notification. A2P messaging can also be used to alert public and private administrators across the country about emergency crisis or national disasters. It is a fast and ubiquitous channel to address all people across a country. Through SMS services, the government can inspire citizens toward the social and economic development of the weaker sections. Two-way messaging service via mobile enables the government sector to enable its citizen to access information on any topic, be it a new government scheme, traffic information, or critical alerts.

By deployment mode, cloud segment is expected to dominate the market during the forecast period

By deployment mode, cloud segment segment of the A2P messaging market is expected to record a large market size during the forecast period. The cloud deployment model is very reliable, scalable, secure, and cost-effective. It also provides a variety of services and support functions for the A2P messaging application. It is expected to benefit the end users and A2P software application providers, in terms of operational and maintenance costs. The cloud platform is available on the public, private, and hybrid clouds. The cloud-based A2P messaging solution can help MNOs and SMS aggregators secure the illicit SMS traffic, prevent the grey route and Subscriber Identity Module (SIM) box, and improve spoofing spam detection.

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Middle East and Africa(MEA) to record the highest CAGR during the forecast period

The MEA A2P messaging market is estimated to have strong growth rate in the future. The GCC Arab States lead the region in terms of subscriber penetration. Mobile data consumption in MEA will grow rapidly, supported by increased smartphone adoption and the availability of high-speed networks. MEA has observed a growth of A2P business, with players appearing as aggregators and resellers, penetrating the market with illegal routes, and opening room for fraudsters to make illegitimate profits from this business. The growing mobile subscriber base, adoption of advanced technologies across businesses, increasing government initiatives for digitalizing society, rising Foreign Direct Investment (FDI), and growing economy of the region are expected to fuel the growth of the A2P messaging market in MEA.

Market Players

Major vendors in the A2P messaging market include AT&T(US) ,Sinch(Sweden), China Mobile (China), Infobip(UK), Orange (France), Route Mobile (India), Comviva (India), Twilio(US), BICS (Belgium), Monty Mobile (UK), Syniverse (US), Global Message Services (Switzerland), Tyntec(UK), Silverstreet (Singapore),Vonage (US), Genesys (US), TATA Communications(India),Cequens (Egypt),Mitto(Switzerland),ClearSky Technologies (US), Sify Technologies (India), MSG91 (India), Textlocal (UK), Clickatell (US), Kaleyra (Italy), MessageBird (The Netherlands).

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