Enterprise application-to-person (A2P) SMS messaging, also known as enterprise mobility, enables organizations to communicate securely with large audiences in an easy, simple and effective way. A2P messaging is widely used for purposes like two-factor authentication, marketing campaigns, payment services notifications, password resets and other transactional alerts. The seamless delivery of timely and targeted messages to customers directly on their mobile devices helps businesses enhance customer experience and drive higher engagement.
The global Enterprise A2P SMS Market is estimated to be valued at US$ 50.53 Bn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increased adoption of mobile commerce and digital payments has propelled the demand for A2P SMS messaging for transaction notifications and alerts. Mobile payments for utilities, retail purchases, money transfers, travel bookings and other services generate massive amounts of transactional data that needs to be securely communicated to customers. A2P SMS acts as a reliable and instant mode of communication in this regard. Growing mobile penetration worldwide along with the proliferation of online shopping and banking has boosted the volume of digital payments and transactions, thereby fueling the need for scalable A2P messaging solutions among enterprises. The seamless delivery of payment receipts, order confirmations and other sensitive notifications directly to users on their mobile devices helps increase customer satisfaction and build loyalty.
SWOT Analysis
Strength: The global enterprise A2P SMS market has significant demand from enterprises for communication with their customers via short messaging which helps in business growth and improved customer experience.
Weakness: Privacy and security concerns regarding customer data can negatively impact the adoption of A2P SMS services. High dependency on telecom operators increases the operational costs for vendors.
Opportunity: Increasing usage of mobile messaging globally provides new growth opportunities for A2P SMS service providers. Emerging technologies like Rich Communication Services (RCS) can further enhance messaging capabilities.
Threats: Strict regulations around spam messages pose challenges. Open-source and free communication apps are reducing the usage of traditional SMS.
Key Takeaways
The global enterprise A2P SMS market is expected to witness high growth over the forecast period of 2023 to 2030.The increasing demand for mobile marketing and authenticating services from various end-use verticals is driving the adoption of A2P SMS. The global Enterprise A2P SMS Market is estimated to be valued at US$ 50.53 Bn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030.
Regional analysis – North America dominates the global enterprise A2P SMS market currently due to high mobile phone penetration and technological advancements. Asia Pacific is expected to growth at the fastest pace during the forecast period with increasing internet usage in emerging countries like India, Indonesia and others.
Key players – Key players operating in the enterprise A2P SMS market are nfobip Limited, OpenMarket Inc., AMD Telecom S.A., Syniverse Holdings Inc., FortyTwo Telecom AB, Twilio Inc., Mblox Inc., Nexmo Inc., and CLX Communications AB. These players are focused on expanding in high growth regions and enhancing their service offerings with innovative technologies to remain competitive.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
