The A2P SMS and CPaaS market size is projected to reach US$ 134.13 billion by 2031 from US$ 75.48 billion in 2023. The market is expected to register a CAGR of 7.5% during 2023–2031. Integration of A2P SMS and CPaaS in customer support and service is likely to remain a key trend in the market.
The A2P SMS and CPaaS market includes growth prospects owing to the current market trends and their foreseeable impact during the forecast period. The A2P SMS and CPaaS market is growing owing to factors such as the increasing need to automate communication workflows & processes and the growing demand for CPaaS solutions among customers. The emergence of advanced technologies such as AI provides lucrative opportunities for A2P SMS and CPaaS market growth.
Application-to-Person SMS (A2P SMS) is a software application used to send SMS messages to a person’s phone. A2P SMS is also referred to as business SMS, professional SMS, or enterprise SMS. Receiving an SMS of account balance from the bank, a discount code from an online store, or an appointment reminder from a doctor are some examples of A2P SMS messages. CPaaS is a configurable SMS platform that helps to manage the connectivity between SMSC, applications, and other messaging entities. CPaaS offers an extensive framework to manage real-time communication with the capacity to transmit tens of thousands of messages per second while eliminating the need to manually configure each instance every single time.
There is an increasing need to automate communication workflows and processes amongst consumers to keep up with the communication demands. Hence, enterprises are increasingly adopting A2P SMS and communication platform as a service (CPaaS) solution. A2P SMS and CPaaS provide a comprehensive set of tools and APIs for integrating real-time communication features like SMS, voice, and chat into applications and services. Organizations are increasingly leveraging automated text message notifications to keep customers informed of their orders, promote products and services, and also to send meeting reminders to employees.
AI is increasingly being integrated into CPaaS and A2P SMS platforms to enable more effective orchestration across the channel mix and make engagement more meaningful for both customers and businesses. AI can anticipate the needs of different customers at various points in their journey, generate targeted content for each customer, and enable them to communicate with the brand on their own time and through a channel of their choice. CPaaS solutions bring live analytics capabilities through AI – like the ability to infer customer sentiment during a voice call/text, and recommendations for actions to enhance CSAT with each interaction. Finally, AI can help businesses build a 360-degree picture of all interactions with a customer and build continuity in fragmented conversations across channels.
Key segments that contributed to the derivation of the A2P SMS and CPaaS market analysis are.
The geographic scope of the A2P SMS and CPaaS market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The A2P SMS and CPaaS market in North America is experiencing significant growth, propelled by various factors such as rising demand for A2P SMS and CPaaS solutions amongst North American businesses and technological advancement.
The regional trends and factors influencing the A2P SMS and CPaaS Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses A2P SMS and CPaaS Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 75.48 Billion |
| Market Size by 2031 | US$ 134.13 Billion |
| Global CAGR (2023 - 2031) | 7.5% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The A2P SMS and CPaaS Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the A2P SMS and CPaaS Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The A2P SMS and CPaaS market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the A2P SMS and CPaaS market are listed below:
The “A2P SMS and CPaaS Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
Integration of A2P SMS and CPaaS in customer support and service is anticipated to play a significant role in the global A2P SMS and CPaaS market in the coming years.
The global A2P SMS and CPaaS market is expected to grow at a CAGR of 7.5% during the forecast period 2024 - 2031.
The leading players operating in the A2P SMS and CPaaS market are 8x8 Inc.; AVAYA Inc.; IntelePeer Cloud Communication; MessageBIRD B.V.; Plivo Inc.; Cisco System; Twilio Inc.; Vonage Holding Corp.; VOXIMPLANE (Zingaya, Inc.); and Wazo Communication Inc.
The increasing need to automate communication workflows & processes and the growing demand for CPaaS solutions among customers are the major factors driving the A2P SMS and CPaaS market.
North America is expected to dominate the A2P SMS and CPaaS market with the highest market share in 2023.
The A2P SMS and CPaaS market size is projected to reach US$ 134.13 billion by 2031.