Application to Person (A2P) enterprise messaging is an advanced technology that uses a specific application for generating Short Message Service (SMS) and transmitting it to a mobile subscriber. SMS is supported by all mobile handsets equipped supporting any of the operating systems including Android, iOS, Symbian or Windows. With increasing mobile subscriber base the future prospects of enterprise A2P SMS market remain progressive. Growing adoption of transactional A2P messages by BFSI industry is one of the primary factor to drive the market growth during the forecast period. Transactional A2P messages are send in the form of post transaction notifications and one time password (OTP) to its customers. Major applications of A2P SMS include: Customer Relationship Manager (CRM) and business services, inquiry and search-related services, interactive services, pushed content services and marketing/promotional campaigns.
Major end-users of enterprise A2P SMS market includes financial institutions and banking, gaming, travel and transport, retail, health and hospitality. Enterprise A2P messaging services are also used for applications which necessitates to establish a wide communication channel between the sender and the receiver, such as mass voting for contests, announcements, charity and other such uses. Additionally, enterprise A2P messaging services are used for promotional campaigns by enterprises in order to promote events, brands and other activities. Search and inquiry-related services segments, which include messaging-enabled services that can be availed by users by feeding in certain information is also witnessing traction countries in emerging regions such as Asia Pacific and Middle East and Africa owing to growing customer base of mobile phones.
Rising volumes of A2P messages, driven by growing transactions via mobile payments, mobile banking, and mobile marketing activities is contributing to the market growth of the enterprise A2P SMS market. Additionally, technological innovations and development of new SMS platform tools with integrated application programming interfaces (APIs) are further contributing to market growth.
A2P messages are convenient and easy to use with the introduction of advanced platforms integrated with APIs and messaging gateways. These platforms and gateways simplify the process of sending A2P SMS for enterprises. The global enterprise A2P SMS market was valued at US$ 23.4 billion in 2014 and is expected to increase at a CAGR of 6.0% during the forecast period (2015-2025). Enhancement in end-user experience and provision of a secure and reliable operator channel are the basic factors propelling growth of this market.
The report classifies the market based on the traffic as national and multi-country. In the traffic segment, the multi-country traffic sub-segment was valued US$ 3.1 billion in 2014 and is anticipated to register a CAGR of 7.5% during the forecast period. This growth is primarily driven by growth in the e-Commerce and BFSI industry. A2P messaging services are being extensively adopted by enterprises such as banks and credit card providers for issuing one-time passwords (OTPs) for transaction verifications or for processing customer verification for e-Commerce transactions.
In the applications segment, customer relationships management (CRM) services is one of the promising growth sectors. Messages sent for authentication purposes such as OTPs (One Time Password) and confirmation messages for delivering any service or product across online retail trading is propelling growth of this segment. Promotional campaign service was one of the largest application segments in terms of value in 2014. This growth is attributed to increase in promotional campaigns by enterprises and businesses globally.
The report classifies the market based on the enterprise tools into two segments namely: cloud API messaging platforms and traditional and managed messaging services. The cloud API messaging platform segment was valued US$ 105.8 Mn in 2014. Revenue from this segment is expected to expand at a CAGR of 64.8% during the forecast period. This high growth is primarily attributed to the advantages offered by cloud API messaging platform, which includes low-cost, high flexibility and automatically scalable model with reliable services.
Asia Pacific was the largest market for A2P SMS and held the largest share of the total A2P SMS market in 2014. The growth is primarily attributed to promotional application and customer relationship management service segments. Given the high concentration of feature phones/basic mobile phones in this region, marketers have been promoting their clients (end-user enterprises) by sending advertising SMSs to mobile phone service subscribers. Moreover, with enormous potential in emerging regions such as Asia Pacific, multinational companies are focusing on penetrating this market in order to increase customer base. This is expected to offer potential growth opportunities for A2P SMS platform providers, SMS aggregators and SMS marketers in the near future.
The global enterprise A2P SMS market is highly fragmented with various players such as SMS aggregators, bulk SMS providers, SMS gateway providers, marketers or resellers and telecom operators contributing to market revenue. Currently, telecom operators along with SMS aggregators and other stakeholders account for major share of the A2P SMS market. SAP SE, Syniverse Holdings Inc., OpenMarket, Inc., CLX Communications AB and Mblox Inc. are some of the key players operating in the enterprise A2P SMS market. Other emerging players of this market include: Nexmo Inc., Ogangi Corporation, Twilio Inc., FortyTwo Telecom AB and AMD Telecom S.A.
Future Market Insights offers a 10-year forecast for the global enterprise A2P SMS market between 2015 and 2025. In terms of value, the market is expected to register a CAGR of 6.0% during the forecast period. This study demonstrates market dynamics and trends in seven regions, which influence the current nature and future status of the enterprise A2P SMS Market over the forecast period.
This research report on the enterprise A2P SMS market provides a detailed analysis of applications of A2P SMS and helps in understanding driving forces behind the popularity of this service across different end-user industries. The report includes extensive analysis of the key industry drivers, restraints, market trends and market structure. The market study provides comprehensive assessment of stakeholder strategies and imperatives for succeeding in the business. The report segregates the market based on traffic, tools, applications and verticals across different geographies such as North America, Latin America, Eastern Europe, Western Europe, Asia Pacific (excluding Japan), Japan and Middle East & Africa.
With increase in marketing initiatives via mobile platforms by enterprises, A2P SMS is emerging as a key market for mobile network operators and SMS aggregators. Growing mobile subscriber base and feasibility of sending A2P SMS to every mobile phone is bolstering growth of the A2P SMS market; benefiting a large group of market participants including premium messaging integrators & aggregators, content and messaging software developers. For organisations such as financial services or ticketing providers, A2P messaging is one of the safest and most instant options for communication.
The enterprise A2P SMS market report starts with an overview of enterprise A2P SMS market in terms of value. In addition, this section includes FMI’s analysis of the key trends, drivers and restraints from the supply, demand and economy side, which are influencing the global enterprise A2P SMS market. Impact analysis of key growth drivers and restraints, based on the weighted average model is included in this report to facilitate clients with crystal clear decision-making insights.
On the basis of traffic, the market is segmented into national and multi-country. On the basis of tools, Enterprise A2P SMS Market is segmented into cloud API messaging platform and traditional and managed messaging services. On the basis of applications, enterprise A2P SMS market is segmented into pushed content services, interactive services, promotional campaigns, customer relationship management (CRM) service and others (inquiry and search related services). CRM services are further sub segmented into two-factor authentication (includes OTP) and others (includes product shipment SMS). On the basis of verticals, Enterprise A2P SMS market is segmented into financial institutions and banking, gaming, travel and transport, retail, health and hospitality. A detailed analysis has been provided for every segment in terms of market size analysis for enterprise A2P SMS market across the globe.
The subsequent sections provide detailed analysis on the traffic, tools, applications, verticals and regions of the Enterprise A2P SMS Market report. The sections provide detailed analysis covering key trends, absolute dollar opportunity and BPS Analysis.
The next section of the report highlights enterprise A2P SMS adoption by regions. It provides a market outlook for 2015–2025 and sets the forecast within the context of the enterprise A2P SMS ecosystem, including new technological developments as well as service offerings in the enterprise A2P SMS market. This study discusses the key region trends contributing to growth of the enterprise A2P SMS market globally, as well as analyses the degree at which drivers are influencing this market in each region. Key regions assessed in this report include North America, Latin America, Eastern Europe, Western Europe, Asia Pacific (excluding Japan), Japan and Middle East & Africa.
All the above sections, by traffic, tools, applications, verticals and by regions, enable evaluation of the present scenario and the growth prospects of the enterprise A2P SMS market for the period: 2015 –2025. We have considered 2014 as the base year and provide data for the trailing 12 months.
To calculate the enterprise A2P SMS market size, we have also considered revenue generated by enterprise A2P SMS service providers. The forecast presented here assesses the total revenue by value across the ecosystem of enterprise A2P SMS market. In order to offer an accurate forecast, we estimated the current market size, which forms the basis of enterprise A2P SMS market during the forecast period. Given the characteristics of the market, triangulation research methodology was adopted, which estimates the outcome of three different types of analyses, based on supply side, downstream industry demand and economic envelope.
In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the enterprise A2P SMS market.
As previously highlighted, the enterprise A2P SMS market is split into a number of segments. The report segments the market in terms of traffic, tools, applications, verticals and by regions. These segments are analysed in terms of Basis Point Share to understand individual segment’s relative contributions to market growth. This detailed level of information is important for the identification of various key trends of the enterprise A2P SMS market.
Also, another key feature of this report is the analysis of all key segments in terms of absolute dollar opportunity. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the enterprise A2P SMS market.
In the final section of the report, A2P SMS market competitive landscape is included to provide client with a Dashboard view, based on categories of provider in the value chain, presence in A2P SMS portfolio and key differentiators. This section is primarily designed to provide clients with an objective & detailed comparative assessment of key providers specific to a market segment in the A2P SMS value chain and the potential players for the same. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on in-depth assessment of capabilities and success in enterprise A2P SMS marketplace. Detailed profiles of the providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the enterprise A2P SMS areas. Key players covered in the scope of this report includes OpenMarket Inc., SAP SE, Syniverse Holdings Inc., Twilio Inc., Nexmo Inc., CLX Communications AB, MBlox Inc., AMD Telecom S.A., and FortyTwo Telecom AB.
Key Segments Covered
Key Regions/Countries Covered