A2p Sms MarketSize and Trends

Mobile subscriber consumer base of over 5 billion across globe will provide substantial growth potential to A2P SMS market

According to GSM Association (GSMA), the global telecom operators have over 5 billion mobile subscribers, encompassing over two third of the global population. SMS is the most conventional and cost-effective means for communication that can be conveniently utilized as a form of media and promotional purposes. Moreover, increasing reliance of consumer on smartphones for various activities that include social networking, shopping and usage of mobile wallets on daily basis is expected to provide high impetus to the overall A2P SMS market over the forecast period.

A2P SMS Market Taxonomy

On the basis of applications, the global A2P SMS market is classified into:

Customer relationship management services
Pushed Content Services
Interactive Services
Promotional campaigns
Others (Query and search based services)

On the basis of end users, the global A2P SMS market is classified into:

Retail
BFSI
Transportation and transit
Utilities
Education & Healthcare
Others (Media, Gaming and entertainment)

Banking, Financial services and Insurance (BFSI) dominated the end use industry segments owing to various identification, alerts and phone banking related applications

Typical applications of these services in BFSI segment include authentication of users of online services, banking notifications, critical transaction alerts (due payment, balance statements, minimum balance requirements, etc.), SMS banking and promotional campaigns for new BFSI policies. These applications are projected to increase at considerable rates and positively influence growth of the BFSI segment in the A2P SMS market through the forecast period. Moreover, proliferating e-commerce retail industry is expected to provide strong growth prospects. Retail specific applications include location based promotional campaigns, contests, coupons, product discount & sale announcements and enhanced consumer service. Owing to these applications, customer relationship management accounted for the largest A2P SMS market share among application segments.

Asia Pacific to be the key growth engine of the A2P SMS market

According to United Nations Economic and Social Commission for Asia and Pacific (UN ESCAP), Asia Pacific is home to largest consumer base across the globe, accounting for over 60% of the global population. Emerging economies such as China, India, Indonesia, and Saudi Arabia are expected to provide significant growth prospects over the forecast period, owing to the large mobile subscription base in these regions. Moreover, proliferation of smart banking and e-commerce in the regions will provide significant demand surge for A2P SMS market.