Market Insights
The use of Short Messaging Service (SMS) for advertising and other promotional activities in varied verticals, including healthcare, entertainment, transport, and finance, has been gaining a lot of interest in recent years. This has further augmented the role of SMS as a carrier technology for media, utility, and communication services. We expect SMS to continue as a carrier technology for the next two years, at least because of its reliability and ubiquitous nature.
Thus, the advent of mobile wallet technology resulting in increased mobile payments and mobile-based transactions through one-time password service is expected to drive the A2P SMS market during the forecast period 2015 – 2022. These factors are expected to contribute toward a compounded annual growth rate (CAGR) of 4.9% during the forecast period 2015 – 2022. The A2P SMS market is expected to exceed US$ 78.0 Bn by 2022.
1.1 Market Scope and Segmentation
This report analyzes the global A2P (Application-to-Person) SMS market in terms of applications, end-use industry verticals, and geographical distribution. On the basis of applications, the market is segmented into Customer Relationship Management (CRM) services, push content services, promotional campaigns, interactive services, and other services (query and search-based services).
Similarly, on the basis of end-use, the A2P SMS market is further classified into retail, BFSI (Banking, Financial Services, and Insurance), travel and transport, utilities, healthcare, education, and others (entertainment, gaming, etc.). The geographical distribution of the global A2P SMS market considered in this study encompasses regional markets such as North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
1.2 Report Description
Purpose of the Report
The purpose of this strategic research study titled “Global A2P SMS Market – Growth, Share, Opportunities, and Competitive Analysis, 2015 – 2022” is to offer industry investors, company executives, and industry participants in-depth insights to enable them to make informed strategic decisions related to the opportunities in the global A2P SMS market.
Target Audience
- Industry Investors
- SMS aggregators and bulk SMS providers
- SMS gateway providers
- Telecom operators
Application Segmentation Analysis
Based on application, the global Application-to-Person (A2P) SMS market is categorized into the following segments:
- Customer Relationship Management (CRM) Services
- Push Content Services
- Promotional Campaigns
- Interactive Services
- Other Services (Query and Search-based Services)
In the base year of 2014, Customer Relationship Management (CRM) services accounted for the majority of the global A2P SMS market revenue share. The demand can be attributed to the growth of e-commerce, banking, and insurance sectors, especially in developing economies. The segment is expected to remain the largest contributing application segment by 2022, exhibiting robust growth. The use of SMSs for verification and confirmation purposes in the form of Time Passwords (OTP) over e-commerce websites is expected to drive the demand for CRM services over the forecast period 2015 – 2022. Promotional campaign service is the other key application segment.
It is expected to witness healthy growth over the forecast period 2015 – 2022, majorly on account of the increased use of SMSs for promotional activities by enterprises across the globe. The interactive services used for activities including contestant voting, charity, or any activity requiring communication among wide audiences are expected to witness comparatively sluggish growth. The sluggish growth can be attributed to the widespread acceptance of OTP messaging services for such initiatives and activities.
End-use Vertical Segmentation Analysis
A2P SMSs are increasingly used across multiple industry verticals. On the basis of the end-use industry vertical, the global Application-to-Person (A2P) SMS market is categorized into the following segments:
- Retail
- BFSI (Banking, Financial Services, and Insurance)
- Travel and Transport
- Utilities
- Healthcare
- Education
- Others (Entertainment, Gaming, etc.)
In the base year of 2014, BFSI (Banking, Financial Services, and Insurance) was the largest revenue contributing segment to the global A2P SMS market. A majority of this demand comes from the use of application-based SMSs for confirmation of financial transactions through two-factor authentication. Over the forecast period, the segment is expected to witness robust growth on account of the optimistic outlook of the BFSI (Banking, Financial Service, and Insurance) sector.
Other segments, including healthcare, travel and transportation, utilities, and retail, are also expected to witness steady growth, especially in the first half of the forecast period, 2015 – 2022. While the application-based SMSs are used by the healthcare fraternity to give reminders of appointments and test results to patients, SMS-based ticketing has been gaining momentum across all modes of transport. Apart from ticketing, application-based messages are also used for freight monitoring, delivery tracking, and navigation details.
On the basis of geography, the global Application-to-Person (A2P) SMS market is segmented into the following regions and countries.
- North America
- Europe
- Germany
- France
- UK.
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of the Middle East and Africa
In the base year of 2014, Asia Pacific was the largest Application-to-Person (A2P) SMS market in terms of both revenue and SMS traffic. The region accounted for over 40 percent of the global Application-to-Person (A2P) SMS revenue in 2014. The trend is expected to continue over the forecast period 2015 – 2022, with the region retaining its leading position. The huge feature phones market in the region is offering substantial opportunities for mobile advertisers.
In addition, the proliferation of e-commerce services supporting promotional campaigns through mobile advertising is also expected to support the market growth during the forecast period 2015 – 2022. The advent of IoT technology in smart homes, connected cars, and mobile commerce is also expected to have a positive impact on the market growth in Asia-Pacific. The region is also anticipated to exhibit comparatively better growth, with countries including China, India, Singapore, Indonesia, South Korea, and Malaysia witnessing the growing adoption of A2P CRM services.
