New Research Report Explore Enterprise A2P SMS Market Expected to Touch a Value of US$ 4551.3 Mn by 2027

New research report offers a comprehensive analysis of the “Enterprise A2P SMS Market: APEJ Projected to be the Largest Regional Market in Terms of Revenue Throughout the Forecast Period: Global Industry Analysis (2012 – 2016) & Opportunity Assessment (2017 – 2027)“ The main objective of this report is to deliver insightful information and clear-cut facts pertaining to the growth trajectories of the market.

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An introduction to the Enterprise A2P SMS market

Enterprise A2P SMS is a type of SMS service sent from an application, particularly a web application, to a mobile subscriber. The general uses of A2P SMS are marketing messages, alerts, notifications and flight alerts. SMS can also be sent from mobile subscribers to web applications, which is known as person-to-application (P2A) messaging. SMS can reach any network globally and it is centrally invoiced; thus, it is mostly preferred over other content delivery mediums. A2P SMS services are widely used in financial and banking services institutions, ecommerce, tourism, healthcare and entertainment among others. Marketers, application developers and brands utilise SMS services to retain and expand their customer base by updating their customers with campaign perks, location-based opportunities, first-hand/breaking news and other important information.

Global Enterprise A2P SMS market is anticipated to witness significant revenue growth owing to growth in mobile marketing activities by marketers and application developers

The global Enterprise A2P SMS market is slated for significant revenue growth in the next 10 years. Several factors are primarily responsible for this growth. Some of the key factors are:

  • A growing mobile subscriber base:SMS is a ubiquitous and discreet technique for reaching people using basic mobile handsets without any additional access to data services. With increasing mobile phone penetration in developing economies of Asia, Africa, Latin America and the Middle East, the mobile subscriber base is projected to grow at a rapid pace in the next 4 to 5 years.
  • Desktop-First to a Mobile-First strategy: Enterprises focus on leveraging mobile platforms for marketing and customer service operations. Mobile being the most personalised way of connecting with customers, enterprises are allocating additional budgets for in-mobile centric activities as compared to conventional television advertising or web based promotional mails.
  • Focus on enhancing customer interaction:Messaging services, especially A2P SMS is being widely adopted by various enterprises including travel and transport, healthcare and hospitality, retail shops, ecommerce and financial institutions for customer communications. Enterprises are adopting SMS as a grid lock solution to native mobile apps in order to enhance customer interaction. Enterprises are using cloud APIs with embedded contextual communications for applications such as CRMs and field service software.
  • Surging Adoption of 2FA (Two-Factor Authentication):Key features of SMS include instant delivery, high-open rate and cost-effectiveness. Despite the fact that only private financial institutions initially adopted two-factor authentication, this feature is now increasingly being implemented by companies across all industry verticals for numerous applications such as new registration authentication, password resets and changes in user profile information.
  • Start-ups leverage APIs and embedded communications to build business:Most start-ups are venture funded. Such enterprises have disruptive business models and plan to facilitate an on-demand service or create an online marketplace. In order to achieve this goal, they require efficient, integrated, scalable and swift communications. Most start-ups who have entered the unicorn club, including Uber, Airbnb and LINE utilise A2P messaging platforms as a scalable communications solution.

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   Regional market attractiveness of the global Enterprise A2P SMS market

Asia Pacific Excluding Japan (APEJ) is the most prominent regional market for Enterprise A2P SMS solutions, owing to a growing mobile subscriber base in the region. The APEJ market is expected to account for 43% share of the overall Enterprise A2P SMS market by the end of the forecast period in 2027. The APEJ market is projected to be valued at US$ 21,714.8 Mn by 2027 end, expanding at a CAGR of 7.3% during the forecast period. North America is predicted to be the second largest player in the global Enterprise A2P SMS market with market revenue expected to be worth US$ 12,113.8 Mn by 2027 end. North America is expected to represent incremental value of US$ 4551.3 Mn between 2017 and 2027.

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