SMS is a universal technique of reaching everyone using basic feature phone. Application-to-person (A2P) SMS is a type of SMS service sent from an application, mainly web application to a mobile subscriber. A2P SMS service finds applications in various industries such as tourism, ecommerce, entertainment, healthcare, and financial institution.
Pushed Content Services
In this, A2P SMS is sent for requested content/updates or information to users.
In this segment, A2P SMS is sent for acknowledgment to the end user during voting contest, polls, charity donations, and TV shows.
This segment includes all transactions A2P SMS from banking and financial institutions and associated services such as one-time password.
This segment is typically used for advertising and promotional campaign for brands, products, and events.
This segment includes A2P SMS for inquiry and search related services such as address list, phone number inquiries, and price search services. The global enterprise A2P SMS market is estimated to account for US$ 30,687.8 Mn in terms of value by the end of 2019 Market Driver Growing adoption of desktop-fist to mobile-first strategy is expected to drive the global enterprise A2P SMS market growth during the forecast period Enterprises in the industry are leveraging mobile platforms for consumer and marketing service operations. Mobile is the most personalized way of connecting with consumers wherein enterprises are allocating additional budget for in-mobile centric activities as compared to traditional television advertising or web-based endorsement. According to surveys conducted by various IT companies such as CA Technologies and Oracle Corporation, average expenditure on mobility as part of overall IT expenditure is expected to increase by over 50% in the near future.
Market Opportunity Emergence cloud API messaging is expected to offer lucrative growth opportunities for market players Cloud API messaging is a mobile notification service where third party application developers send notification data or information from a developer-run servers to applications. It is a sophisticated manner of sending messages for advertising and alerts, which in turn, is expected to offer lucrative growth opportunities for market players in the near future.
Market Restraint Increasing use of illicit routes to send SMS is expected to restrain the global enterprise A2P SMS market during the forecast period As adoption of A2P SMS services has increased, there has been rise in messages being sent through illegitimate routes also known as grey routes. Such routes evade the billing systems of operators, leading substantial loss in revenue. Enterprise have to increase price per SMS, which is discouraging enterprise expenditure on A2P SMS. According to Groupe Speciale Mobile Association (GSMA), international spam messages being delivered without payment can result in loss of over US$ 4 million per year for mobile network operator with around 16 million subscribers.
According to GSMA, by the end of 2014, Japan’s mobile penetration rate was 92% and is expected to grow gradually. The subscriber growth rate remains timid, though revenue from A2P SMS is expected to show promising signs during the forecast period Presence of various OTT players such as WeChat, WhatsApp, Line, and more have adversely impacted P2P messaging revenue. However, these platforms have opened a new avenue for enterprise A2P SMS market in the form of APIs in the region.
Key countries holding dominant position in the Eastern Europe enterprise A2P SMS market are Czech Republic, Poland, and Russia. These countries are witness steady growth in subscriber count and are expected to retain positive market prospects during the forecast period. According to ’ analysis, in 2014, the mobile phone penetration across Poland and Russia was 69.5% and 72.9% respectively. This rate is expected to grow further along with increasing penetration of ecommerce industry. Moreover, promotional campaign application of the enterprise A2P SMS market in Eastern Europe is expected to expand at a CAGR of 6.0% over the forecast period.
Competitive Section Key players operating in the global enterprise A2P SMS market are Infobip Limited, OpenMarket Inc., AMD Telecom S.A., Syniverse Holdings Inc., FortyTwo Telecom AB, Twilio Inc., Mblox Inc., Nexmo Inc., and CLX Communications AB.