A2P SMS

Active mobile phone usage increasingly becomes the standard. For many industries, this info was an indicator that selling their products and services on mobile platforms is the right way to go. After all, if so many people are into using their mobile devices all day long, they will surely be more susceptible to advertising which is utilized through the mobile platform itself.

One of the more successful and prominent means of mobile marketing strategies is SMS marketing. It is an already proven channel of direct communication with consumers that allows marketers to send short, concise, and personalized messages. These messages can reach a vast audience with a high open-rate. Thus, the effect of this marketing channel is quite powerful, targeted, and most importantly, profitable.

What is A2P SMS?

A2P is an application to person messaging service. An A2P SMS is a type of a text message which is specifically sent from a web-based application to the mobile user. There are many ways of using an A2P messaging service: offering notifications, alerts, and mobile contextual marketing, which can include updates, new offers, coupons and etc.

Businesses can use A2P messaging in several technical modes in order to communicate with consumers, authenticate users of online services, or deliver time-sensitive alerts. In all cases, A2P SMS communication is initiated from a business application, and not the individual’s mobile phone. Different corporations have already deployed A2P messaging to increase the efficiency of their messages and to improve communication without any additional hustle.

In fact, many financial institutions have been using A2P SMS for over 15 years now, by delivering automated, event-based SMS notifications to their clients’ mobile phones. Some examples are anti-fraud alerts, payment reminders, balance statements, and withdrawal notifications. As you can see, some industries have already found the appeal of this service and are already using it to its full potential. In doing so, businesses have managed to automate some of their services properly and have an increase in quality.

A2P Messaging Market Size

According to Market Watch and Reuters Plus, the rapid evolution of mobile technology has been changing the consumer enterprise. Additionally, the expected growth of the population will directly impact on mobile subscriber base market growth, Market Watch writes. By the year 2020, the mobile subscriber base is expected to reach 4.6 billion, and major contributors to that number are the emerging undeveloped countries.

The A2P market is expected to reach 50.1 billion USD by 2023 with a CAGR (compound annual growth rate) of 4.6% during the forecast period, according to Reuters Plus. The A2P messaging market growth is attributed to a large number of telecom services providers offering mobile value-added services.

Additionally, the A2P SMS market size is experiencing rapid development because of the advancements in digitalization, increasing adoption of digital transactions, and the rise in digital payments. Furthermore, the extensive popularity of artificial intelligence and analytics integration is going to have a positive impact on the A2P SMS market.

The A2P SMS market size is colossal. The global largest market is the Asia Pacific, according to Market Watch. The Asia Pacific mainly includes Japan, China, India, and Southeast Asia. The secondary market is the USA. It has managed to reach a revenue of 14446 million USD in 2016, with a revenue share of 24.27%. According to Market Watch over the next five years, the Enterprise A2P SMS market will register a 4.1% CAGR in terms of revenue, numbers which are almost the same as predicted by Reuters Plus. The global market size is expected to reach 78500 million USD by 2014, from 61500 million USD in 2019.

The A2P SMS market dynamics are as follows according to the Market Watch. In the next five years, A2P SMS is set to be the golden era for players to enhance the business or to capture the revenue in this market.