Enterprise A2P SMS facilitates communication with large customer bases through applications and websites using SMS as a primary communication channel. A2P SMS helps businesses connect with customers in real-time for transaction alerts, notifications, appointment reminders, and one-time passwords. The market is driven by the benefits offered such as convenience, high delivery rates, and improved interactions with customers.
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 demand for convenient communication solutions is one of the key trends driving the growth of the Enterprise A2P SMS market. With rising internet penetration and hectic schedules, customers prefer receiving notifications on their mobile phones as it is the most accessible channel. Enterprise A2P SMS helps businesses stay connected with customers seamlessly by providing alerts and reminders directly on their phones through text messages. The convenience of interactive communication on phones has accelerated the adoption of A2P SMS solutions among enterprises across industry verticals to enhance customer experience and generate better engagement.
Segment Analysis
The global enterprise A2P SMS market is dominanted by transactional SMS segment. Transactional SMS includes one time passcode, password reset, account alerts, flight status updates, payment notifications etc. This segment occupied over 60% market share in 2022 owing to widespread adoption across banking, fintech, ecommerce and travel industries for authentication and notificaton purposes. With growth in digital transactions and mobile commerce, the transactional SMS segment is expected to witness high growth during forecast period.
Key Takeaways
The global enterprise A2P SMS market is expected to witness high growth during the forecast period of 2023 to 2030. 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:
Asia Pacific region dominated the global enterprise A2P SMS market in 2022 with around 35% share. Countries like China, India and Indonesia have recorded highest mobile subscriptions as well as digital transactions which is driving the adoption of authentication and notification based transactional SMS in this region. With continued growth of ecommerce and mobile banking sectors, Asia Pacific is expected to remain the fastest growing regional market during the forecast period.
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. Nfobip Limited held the leading market share of over 15% in 2022 owing to its global distribution network and partnerships with major mobile operators. Twilio Inc has also strengthened its market position through strategic acquisitions of customer engagement platforms like SendGrid and Segment.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it