The A2P SMS market size was valued at US$ 73.49 billion in 2024 and is expected to reach US$ 93.83 billion by 2031; it is estimated to record a CAGR of 3.8% from 2025 to 2031. The adoption of rich communication services is likely to be a key trend in the market.
An increase in the penetration of mobile phones and the proliferation of e-commerce are the key factors bolstering the A2P SMS market. Further, growing banking and financial service infrastructure is likely to generate significant opportunities in the global A2P SMS market growth during the forecast period. The adoption of rich communication services (RCS) is expected to emerge as a noteworthy trend in the market in the coming years. Several businesses use A2P for gathering feedback through survey invitations, hotel reservations, check-ins, and special promotions, enhancing guest experiences. Telecom companies send SIM swap notifications with verification codes to ensure secure transactions.
Application-to-person (A2P) messaging (also known as business or enterprise SMS) is the automated process of sending messages on mobile devices from a business application to a mobile user, typically for marketing or service purposes. It allows businesses to automate the delivery of large volumes of messages, such as two-factor authentication codes, emergency alerts, appointment reminders, and promotional content. Unlike manual SMS sending, A2P enables companies to communicate with a wide audience through automated systems efficiently. These messages are often sent via short codes, enhancing scalability and operational efficiency. A2P messaging is used for various essential functions, including high-priority alerts such as package delivery notifications, anti-fraud warnings, emergency alerts, extreme weather updates, and appointment reminders. In security, this type of messaging facilitates two-factor authentication (2FA) by sending OTPs (i.e., one-time passcodes) for transaction verification or account access. In marketing, A2P messages are integrated into omnichannel strategies, delivering targeted content based on customer interactions. Retailers and brands use this messaging to communicate loyalty and reward programs and send updates on exclusive offers and member benefits to improve customer retention. Healthcare providers utilize A2P for appointment confirmations, medication reminders, and test result notifications, promoting patient engagement.
Smartphones have been traditionally capable of sending and receiving standard text messages. In addition, they provide an enhanced experience with features such as multimedia attachments, app notifications, and interactive content; this makes A2P SMS a viable tool for companies seeking to engage with customers directly, send notifications, and promote services. According to the GSM Association, unique mobile subscribers are expected to increase from nearly 1.8 billion in 2023 to ~2.1 billion by 2030. Europe is expected to have approximately 527 million unique mobile subscribers by 2030, which would be 89% of the population compared to the numbers in 2023. By 2030, Latin America is expected to have nearly 465 million unique mobile subscribers, representing an approximately 72% penetration rate compared to the numbers in 2023. With a larger subscriber base, the need for businesses to engage customers effectively through communication increases.
Digital transformation involves automating various business functions, including customer communication, order processing, and marketing. A2P SMS plays a key role in this automation by sending timely, personalized messages to customers automatically; this reduces manual intervention, saves time, and ensures more consistent communication. As more businesses are adopting digital solutions to enhance customer engagement, A2P SMS is becoming a critical tool for improving communication, increasing operational efficiency, and building stronger customer relationships. It delivers automated notifications to customers as businesses streamline their processes through increased automation. For example, e-commerce companies, such as Amazon, use A2P SMS to send customers real-time shipping and delivery updates. The adoption of these tools helps businesses automate and scale communication, which leads to improved operational efficiency. Instead of manually sending notifications or updates, businesses can automatically trigger SMS messages based on customer actions or events, such as orders placed, payment confirmation, delivery tracking, and subscription renewal reminders.
Key segments that contributed to the derivation of the A2P SMS market analysis are type, application, enterprise size, and vertical.
The regional trends and factors influencing the A2P SMS Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses A2P SMS 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 2024 | US$ 73.49 Billion |
| Market Size by 2031 | US$ 93.83 Billion |
| Global CAGR (2025 - 2031) | 3.8% |
| Historical Data | 2021-2023 |
| Forecast period | 2025-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The A2P SMS 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 Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The A2P SMS 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 market are listed below:
(Source: Twilio, Press Release, September 2024)
(Source: Sinch AB, Press Release, September 2023)
The “A2P SMS Market Size and Forecast (2021–2031)” provides a detailed analysis of the market covering the areas mentioned below:
The global A2P SMS market was estimated to be US$ 73.49 billion in 2024 and is expected to grow at a CAGR of 3.8% during the forecast period 2025 – 2031.
Increase in penetration of mobile phones, proliferation of e-commerce, and rapid pace of digital transformation are the major factors that propel the global A2P SMS market.
Adoption of rich communication services is anticipated to play a significant role in the global A2P SMS market in the coming years.
The key players holding majority shares in the global A2P SMS market are Twilo, Sinch, Infobip, Telesign, and Clickatell.
The global A2P SMS market is expected to reach US$ 93.82 billion by 2031.
The incremental growth expected to be recorded for the global A2P SMS market during the forecast period is US$ 20.33 billion.