The global application-to-person (a2p) sms and API market was valued at $47.8 billion in 2021 and it is expected to reach $104.1 billion at a CAGR of 7.00% between 2022 and 2032. Application-to-person also known as A2P is a type of process, which is used to send mobile messages from a business application to a mobile user through an automated process, especially for marketing and service reasons. It is also named business SMS or enterprise SMS, which is used to send a large volume of messages from businesses to facilitate business-critical messages such as two-factor authentication, emergency alerts, and appointment reminder.
By region, Asia-Pacific is expected to hold its dominant position in the global application-to-person sms and API market during the forecast period.
There are several major usages and benefits of A2P messaging such as high priority alerts covering anything from package delivery notifications to real-time anti-fraud alerts, emergency alerts, bad weather warnings, and appointment reminders. Besides these, other major benefits such as two-factor authentication, and marketing messages as part of an omnichannel communications strategy where recipients only receive targeted messages which are relevant to them. Moreover, when sending A2P messages, especially over national boundaries, it is advisable to use a professional enterprise SMS solution that has a built-in global compliance engine that includes all in-country regulations and operator requirements. These are the major factors driving the growth of the A2P SMS and API market across the globe. SMS can be also sent from mobile users to web applications, which is mainly called person-to-application messaging. Hence, A2P SMS services find applications in various industry verticals such as e-commerce, BFSI institutions, tourism, healthcare, entertainment, and more. A2P SMS services are widely preferred by various enterprises such as healthcare sectors, travel and transport, shopping malls, financial institutions, and more. These are estimated to propel the growth of the global A2P SMS and API market in upcoming years.
Source: SAI Research
Based on product type, the global A2P SMS and API market is segmented into cloud API and traditional API. Cloud API is expected to dominate the market during the forecast period due to the rising demand for advanced mode for A2P SMS, cost-effectiveness, flexibility, reliability, and reduced size of data centers using automated methods. Based on applications, the market is categorized into SMS aggregators, bulk SMS providers, marketers or resellers, and telecom operators. Among these, the bulk SMS provider is the biggest contributor to the A2P SMS and API market. This segment has been increasing its popularity due to its cheaper and more effective model for undertaking business communications, which has assisted the segment to remain at the forefront of the A2P SMS and API market in near future. Based on end-users, the global A2P SMS and API market is categorized into BFSI, retail, and commerce, healthcare sectors, travel, and hospitality, among others. The BFSI segment is expected to dominate the market during the forecast period due to the increasing application services such as online services, banking notifications, critical transactions alerts, SMS banking, and promotional advertising for new BFSI policies. Hence, these applications are estimated to increase the growth of the A2P SMS and API market during the upcoming years. However, retail and e-commerce industries are expected to give more strength to the market.
Based on regions, the A2P SMS and API market is segmented into North America, Europe, Asia-Pacific, Latin America, Africa, and Middle East Country. Among these, the Asia-Pacific region is expected to dominate the market with significant growth during the upcoming years. This region holds the largest consumer base across the globe. Developing countries such as India, China, Indonesia, South Korea, and Saudi Arabia are expected to provide significant growth prospects during the forecast period due to the increasing mobile subscriptions, proliferation of smart banking, and e-commerce across this region. It is anticipated to increase at the fastest speed money among key regional markets as well. Therefore, the region’s importance in the global market is due to factors such as expanding e-commerce industry, rising online transactions, and the growing penetration of smart mobile devices. Furthermore, North America is also estimated to be the second-largest contributor to the market’s revenue share and is estimated to maintain its position in the A2P SMS and API market across the globe.
Businesses can use the services provided by the major players in the global market to engage their customers effectively. Recently, AT&T Communications launches a high-speed internet facility for students, which can be used as a student’s home to bridge the digital divide. They have built this to provide high-speed internet connection for students and their families. Therefore, AT&T fiber customers can now access the fastest internet on the fastest-growing fiber network with their new multi-gig speeds. Amdocs recently announced to provide advanced inventory capabilities would provide Vodafone Group with a powerful data foundation as it focuses on continuing to automate its network and services operations for a network spanning multiple countries and innovative network technologies such as 5G. Hence, the company is trying to provide excellent customer service by offering them better connections. Additionally, Amdocs has launched an as-a-service business suite to create game-changing digital experiences for telecom digital brand customers. Sweden-based company Anam has launched advanced A2P along with SMS Firewall, which is a specialist in messaging, security, and analytics for their customers. Therefore, these new and innovative launches are estimated to propel the growth of the global A2P SMS and API market during the upcoming periods.
According to the study, key players such as AT&T Communications (U.S), Amdocs (U.S), Anam Technologies Limited (Sweden), AMD Telecom S.A (Greece), Cinch Computer Software (Sweden), China Mobile Communications Group (China), DIMOCO (Austria), FortyTwo Telecom (Sweden), Genesys (U.S), Infobib (U.K), Messangi (U.S), Mitto (Switzerland), Nippon Telegraph and Telephone (Japan), Orange S.A (France), State-Owned Assets Supervision and Administration (China), Silverstreet BV (Netherlands), SAP SE (Germany), Tanla Solutions (India), Twilio (U.S), Tata Sons (India), Tyntec (Germany), The Carlyle Group (U.S), Vonage Telecommunications (U.S), Vodafone Group (U.K), Zen Integrative Technologies (UAE), among others are leading the global application-to-person and API market.
Scope of the Report:
|Market Size in 2021||US$ 47.8 Billion|
|Market Volume Projection by 2023||US$ 104.1 Billion|
|Forecast Period 2022 to 2032 CAGR||7.00%|
|Historical Data||2019, 2020 and 2021|
|Forecast Period||2022 to 2032|
By Product Type: Cloud API, Traditional API
By Applications: SMS Aggregators, Bulk SMS Providers, Marketers/Resellers, Telecom Operators
By End-Users: BFSI, Retail and Commerce, Healthcare Sectors, Travel and Hospitality & Others
North America, Europe , Asia-Pacific , LAMEA
|Companies covered||AT&T Communications (U.S), Amdocs (U.S), Anam Technologies Limited (Sweden), AMD Telecom S.A (Greece), Cinch Computer Software (Sweden), China Mobile Communications Group (China), DIMOCO (Austria), FortyTwo Telecom (Sweden), Genesys (U.S), Infobib (U.K), Messangi (U.S), Mitto (Switzerland), Nippon Telegraph and Telephone (Japan), Orange S.A (France), State-Owned Assets Supervision and Administration (China), Silverstreet BV (Netherlands), SAP SE (Germany), Tanla Solutions (India), Twilio (U.S), Tata Sons (India), Tyntec (Germany), The Carlyle Group (U.S), Vonage Telecommunications (U.S), Vodafone Group (U.K), Zen Integrative Technologies (UAE), among others|
The Global Application-to-Person and API Market Has Been Segmented Into:
The Global Application-to-Person and API Market – by Product Type:
The Global Application-to-Person and API Market – by Applications:
The Global Application-to-Person and API Market –by End-Users:
The Global Application-to-Person and API Market – by Regions: