A2P messaging Market Analysis and Global Forecast 2023-2033

A2P messaging Market Overview

The A2P messaging Market Size is expected to reach USD 87.65 Billion by 2033. The A2P messaging industry size accounted for USD 71.52 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 5.14% from 2023 to 2033. The A2P (Application-to-Person) messaging market involves the transmission of automated messages from an application to an individual’s mobile device. It encompasses various industries such as banking, retail, and healthcare, where messages are used for notifications, alerts, and marketing purposes. Growth is driven by increasing smartphone penetration, demand for real-time communication, and the effectiveness of SMS for customer engagement. Key players include telecom operators, messaging aggregators, and platform providers offering secure and scalable solutions. Regulatory compliance, evolving technology, and the shift towards richer content formats like RCS (Rich Communication Services) are shaping its future trajectory.

Global A2P messaging Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic has led to supply chain disruptions leading to supply shortages or lower demand in the A2P messaging market. The travel restrictions and social-distancing measures have resulted in a sharp drop in consumer and business spending and this pattern is to continue for some time. The end-user trend and preferences have changed due to the pandemic and have resulted in manufacturers, developers, and service providers to adopt various strategies to stabilize the company.

A2P messaging Market Dynamics

The major factors that have impacted the growth of A2P messaging are as follows:

Drivers:

Ø  Technological Advancements

Innovations in mobile technology, messaging platforms, and network infrastructure continue to enhance the capabilities of A2P messaging. Technologies like Application Programming Interfaces (APIs), cloud-based solutions, and the adoption of RCS (Rich Communication Services) for richer content delivery are expanding the functionality and appeal of A2P messaging.

Restraint:

• Market Saturation and Maturity

In some mature markets, the A2P messaging market may face saturation, with established players dominating market share and limited opportunities for new entrants. Consolidation among service providers and evolving customer preferences towards newer communication technologies further intensify competition and limit growth prospects.

Opportunity:

⮚     Rising Demand for Customer Engagement

Businesses increasingly recognize the value of personalized and timely communication with customers. A2P messaging offers a direct and effective channel for delivering transactional and promotional messages, enhancing customer engagement, satisfaction, and loyalty across various industries such as retail, banking, healthcare, and travel.

A2P messaging Segment Overview

By Vertical

Based on Vertical, the market is segmented based on Banking & Financial Services, Retail and eCommerce, Healthcare, Others. The Banking & Financial Services vertical typically dominates the A2P messaging market. This segment relies heavily on A2P messaging for transactional alerts, account notifications, OTP (One-Time Password) delivery, and other secure communications, driven by regulatory requirements and the need for reliable, real-time customer interactions in financial transactions.

By Application

Based on Applications, the market has been divided into the Authentication Services, Promotional and Marketing Services, Interactive Messages, Others. Promotional and Marketing Services are typically dominant. This segment leverages A2P messaging for promotional campaigns, customer engagement, and marketing communications across various industries, driving significant revenue and demand due to its effectiveness in reaching and interacting with large audiences.

Global A2P messaging Market Regional Analysis

Based on region, the global A2P messaging market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. Asia-Pacific is projected to dominate the use of the A2P messaging market followed by the and Europe regions.

Asia-Pacific Market

Asia-Pacific holds a dominant position in the A2P messaging Market. With a market value of USD 28.6 billion in 2021, the Asia-Pacific A2P messaging market is projected to grow at a substantial compound annual growth rate (CAGR) during the course of the study. The region’s internet subscriber base, the spread of online services, and the rising smartphone penetration all contribute to the rise. Due of their sizable consumer bases, China and India present new market potential for A2P companies.

North America Market

The North America region has indeed emerged as the fastest-growing market for the A2P messaging industry. The second-largest market share is held by the A2P messaging market in North America. The A2P industry’s major players, such as AT&T, Genesys, and TWILIO INC., have played a significant role in propelling the sector’s expansion. Moreover, several businesses are creating cloud-based messaging solutions that enable end-to-end communication encryption, which is fueling the expansion of the A2P industry.

Competitive Landscape

The global A2P messaging market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• AT&T
• Sinch
• China Mobile
• Infobip
• Orange
• Route Mobile
• Comviva
• Twilio
• BICS
• MONTY MOBILE

Key Development

June 2023:  The phrase “artificially inflated traffic” (AIT) refers to the fraudulent transmission of Application to Person (A2P) messages in order for rogue mobile network operators (MNOs) or another rogue participant in the value chain, such as an SMS aggregator, to profit from the increased traffic. Often, the unknowing business ends up bearing the price.

Scope of the Report

Global A2P messaging Market, by Product

• Banking & Financial Services
• Retail and eCommerce
• Healthcare
• Others

Global A2P messaging Market, by Application

• Authentication Services
• Promotional and Marketing Services
• Interactive Messages
• Others

Global A2P messaging Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: USD 87.65 Billion
CAGR (2023-2033)	5.14%
Base year	2022
Forecast Period	2023-2033
Historical Data	2021 (2017 to 2020 On Demand)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Vertical, Application
Geographies Covered	North America, Europe, Asia-Pacific, South America, Middle East, Africa
Key Vendors	AT&T, Sinch, China Mobile, Infobip, Orange, Route Mobile, Comviva, Twilio, BICS, MONTY MOBILE.
Key Market Opportunities	·       Increase in mobile subscribers
Key Market Drivers	·       High use of short messaging services (SMS) among enterprises High emphasis on customer acquisition and engagement

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future A2P messaging market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• A2P messaging market historical market size for the year 2021, and forecast from 2023 to 2033
• A2P messaging market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global A2P messaging market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.