Enterprise A2P SMS Market By Tool (Cloud API Messaging Platforms, Traditional &Managed Messaging Services), Application (Pushed Content Services, Interactive Services, Promotional Campaigns, CRM), End User (BFSI, Gaming, Travel & Transport, Health & Hospitality, Retail) & Region - Forecast to 2018 - 2028
Enterprise A2P SMS Market - Analysis, Outlook, Growth, Trends, Forecasts
- December 2021
- 257 pages
Enterprise A2P SMS Market Outlook – 2022-2028
[257 Pages Report] The global enterprise A2P SMS market demand is projected to reach US$ 100.10 Bn by the end of 2028. Expansion of banking, financial services, and insurance sector and surging demand for CRM software are facilitating the growth in the market.
Enterprise A2P SMS Market Size Value in 2022
US$ 73.4 Billion
Enterprise A2P SMS Market Size Value in 2028
US$ 100.10 Billion
As per a Future Market Insights (FMI) study, the demand in enterprise A2P SMS market is expected to increase at 5.3% CAGR between 2022 and 2028. Increasing need for advanced and automated technology across BFSI, gaming, and heath & hospitality sectors will propel the growth in the market.
Regionally, North America is anticipated to dominate the global market, surpassing US$ 13.8 Bn through 2028. Growth in the region is attributable to the growing adoption of 4G smartphones and strong presence of leading key players in the region.
As per FMI, the global enterprise A2P SMS market is anticipated to account for 60% of enterprise messaging market.
How will Enterprise A2P SMS Market Fare in 2022-208 in Comparison to Growth Registered in 2013-2021?
The global enterprise A2P SMS market is estimated to be valued at US$ 73.4 Bn in 2022. The overall demand for enterprise A2P SMS solutions is slated to rise at 5.3% CAGR between 2022 and 2028.
Historically, sales of enterprise A2P SMS market grew at a healthy 5.5% CAGR between 2013 and 2021. The onset of novel COVID-19 dampened the sales prospects owing to the global lockdown imposed across the globe.
Sales of enterprise A2P SMS dropped slightly by 0.2% as demand in travel & transport and hospitality sector decreased. However, with expedited vaccination drives and expansion of gaming, BFSI, and healthcare sector is expected to boost the market.
Surging penetration of advanced technologies such as internet of things (IoT) and artificial intelligence (AI) in BFSI and gaming sector is propelling the demand for A2P SMS and CRM software services.
With growing digitization across banking sector, end users are focusing on providing improved customer services to gain competitive edge in the industry. Hence, they are extensively adopting customer relationship management (CRM) software to woo the consumers.
Industries are also investing in promotional campaigns on social media platforms such as Instagram, Twitter, and Facebook to increase their sales. On the back of this, application of enterprise A2P SMS services for promotional campaigns and CRM services will increase.
As per FMI, the promotional campaigns segment is expected to hold the second largest share, accounting for over 33.6% of global market. Penetration of e-commerce and online services in industries such as BFSI, gaming, health & hospitality, and travel is expected to create conducive environment for the growth in enterprise A2P SMS market.
How Will Mobile Business Applications in BFSI and Health Sector to Boost the Sales
In spite of the robust trend of online messaging apps, industries such as BFSI, health, and travel are still using SMS as their primary source of digital communication. A2P services are extensively being used in the banking and insurance sector to reach out to wider consumer base.
With baby boomers and millennials still using the SMS application to boost their businesses, key players are leveraging their services through advanced A2P SMS services to increase their revenues.
Additionally, SMS application continues to remain a preferred mode of communication for government messages. For instance, to ensure the proper management of vaccination drive and for communication of key information regarding COVID-19 protocols, governments in developing countries such as India relied on A2P services to reach out to the public.
Hence, growing demand for mobile business applications across aforementioned sectors fueled by the convergence of IP messaging and SMS solutions has spurred the adoption of enterprise A2P SMS services.
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Why is the U.S. Enterprise A2P SMS Market Considered Lucrative?
As per FMI, North America is expected to lead the global market owing to the strong presence of leading players across the U.S. and Canada. Increasing adoption of 4G smartphones and growing demand for A2P messaging platforms across BFSI sector are propelling the growth in the U.S. enterprise A2P SMS market.
Also, with increasing demand for CRM services across leading banks such as JP Morgan Chase, Bank of America, HSBC Bank USA, and others, the market is expected to witness robust growth in the U.S.
Focus on improvement in customer service management and security operator channel in these banks is fuelling the demand for CRM services. Consequently, adoption of interactive services across gaming and entertainment sectors in the U.S. is also projected to improve the demand for A2P SMS services. With increasing use of A2P SMS technology in the U.S. for donation and election, demand for enterprise A2P SMS services will increase.
Why is the Demand for Enterprise A2P SMS Surging in the U.K.?
Expansion of e-commerce and banking sector in the U.K. is facilitating the growth in enterprise A2P SMS market. Besides this, the focus on expanding online presence across healthcare, logistics, banking, and travel sectors is fueling the use of A2P SMS services.
Industries are incorporating cloud API messaging platforms to improve their end-customer support and relation for services such as home delivery in logistics and healthcare sector. They are also using CRM services to incorporate billing and transactional messages to keep the flow seamless and expand their consumer base.
With growing preference for online shopping and extensive application in e-commerce sector, need for API messaging platforms has burgeoned post COVID-19. Against this backdrop, demand for enterprise A2P SMS solutions is expected to increase in the U.K.
How will Expansion of Banking Sector Propel India Enterprise A2P SMS Market?
FMI estimates, the market in South Asia to witness steady growth through 2022 on the back of increasing adoption of enterprise A2P SMS solutions in e-commerce sector. As per the study, India is expected to spearhead the growth of South Asia market during the forecast period.
According to the National Investment Promotion & Facilitation Agency, with over 22 private sector banks, 46 foreign banks, and 43 rural regional banks, India is set to become world’s third largest banking sector by 2050.
Growing establishment of foreign banks in the country and inclination to make the banking services more user friendly, adoption of CRM software services has increased. Key players are eyeing the India market due to its untapped potential in the banking sector.
Some of the leading banks are incorporating cloud API messaging platforms in their banking services for hassle free-transactions and payments. This is expected to create a conducive environment for the growth of the enterprise A2P SMS market in India.
Why are Cloud API Messaging Platforms Most Preferred in Enterprise A2P SMS Market?
In terms of tool type, the market is bifurcated into cloud API messaging platforms and traditional & managed messaging services. As per FMI, the cloud API messaging platforms segment is projected to hold lion’s share in the global market.
With increasing adoption of 4G smartphone and growing technological advancements, demand for cloud API messaging platforms is set to increase across diverse industries.
Adoption of cloud APIs is increasing in diverse sectors. In order to make the user interface more hassle-free and secure, third-party providers in e-commerce industry are adopting cloud API messaging platforms to reach out to wider customer base.
Which is the Chief Application of Enterprise A2P SMS?
According to FMI, the customer relationship management (CRM) services segment is expected to dominate the market. As per the study, over 34.3% of global enterprise A2P SMS solution sales are expected to be contributed by CRM services.
Growth in the segment is attributed to the increasing adoption of CRM software services across BFSI and healthcare sector. To maintain and record service issues, manage marketing campaigns, and for improved customer satisfaction, leading banks across the globe are incorporating CRM services.
To cater to the surging demand, key players are focusing on product launches. For instance, in April 2021, Salesforce announced newly reimagined features and innovations for its service cloud solution. It is designed to accommodate changing expectations in customer service and provide organizations with the technology they need to accommodate the needs of employees and customers alike from a single digital engagement platform.
Why is Demand for Enterprise A2P SMS Services Increasing in BFSI Sector?
As per Future Market Insights, the BFSI segment is expected to surpass million-dollar opportunity, in terms of value, by the end of 2022. Higher penetration of smart phones and need for efficient and user friendly technology for seamless banking transactions will spur the demand for enterprise A2P SMS in BFSI sector.
Besides this, governments in countries such as India and the U.K. have mandated the use of cloud API SMS services to ensure the security and safety of assets. Hence, third-party providers such as online shopping applications, small-scale vendors, and other end-users are adopting A2P SMS services.
Key companies in the market are focusing on adopting innovative approaches and novel technologies to gain competitive edge. They are also collaborating with government and BFSI sector in order to cater to the surging demand for CRM services, especially across emerging economies, to maintain strong foothold in the industry.
- In April 2021, leading player HubSpot introduced Operations Hub, a new addition to its CRM platform and suite of tools. The new program will help companies unify their data, automate processes, and align team members around the core goal of delivering memorable experiences to customers.
- Another leading player, Pipeliner CRM, in April 2021, announced the launch of reporting and analytics solution for its CRM platform. It will provide insights into past, current, and future performance trends and allow consumers to interpret data utilizing descriptive, diagnostic, predictive, and prescriptive analytics.
Scope of Report
Historical Data Available for
US$ Bn for Value
Key Regions Covered
North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan, and MEA
Key Countries Covered
United States, Canada, Brazil, Mexico, Germany, UK, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, others.
Key Market Segments Covered
Tool, Application, End User, and Region
Key Companies Profiled
Available upon Request
Enterprise A2P SMS Market by Category
- Cloud API Messaging Platforms
- Traditional &Managed Messaging Services
- Pushed Content Services
- Interactive Services
- Promotional Campaigns
- Customer Relationship Management (CRM) Services
- Travel & Transport
- Health & Hospitality
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific excluding Japan (APEJ)
- Middle East & Africa