A2P SMS Market is expected to reach US$ 93.83 Billion by 2031

Increase in Penetration of Mobile Phones and Proliferation of E-Commerce Fuel A2P SMS Market Growth

According to our latest study on “A2P SMS Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, Application, Enterprise Size, Vertical, and Geography," the market 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 report includes growth prospects owing to the current A2P SMS market trends and their foreseeable impact during the forecast period.    

BFSI companies rely on A2P SMS to send important alerts, updates, and reminders to their customers. These messages can range from account balance notifications, transaction alerts, and OTPs to payment reminders. As BFSI infrastructure grows, the need for secure and effective communication channels such as A2P SMS becomes more critical. A2P SMS is commonly used for two-factor authentication (2FA) and OTP verification to protect online banking and payment transactions. The increase in online banking, e-commerce, and digital financial services is creating a greater demand for secure messaging solutions such as A2P SMS. As more consumers embrace mobile-first financial solutions and digital banking services, the demand for secure, efficient, and reliable communication tools would continue to rise. From providing transaction alerts and account updates to ensuring secure logins and facilitating customer engagement, A2P SMS plays a critical role in supporting the evolving financial landscape. With the fintech revolution globally, businesses in the financial sector will increasingly rely on A2P messaging to enhance customer experiences, build trust, and streamline operations. Thus, the growing banking and financial service infrastructure is expected to present significant opportunities for the A2P SMS market growth in the coming years.

A2P SMS Market Analysis — by Geography

Government authorities across the world are focused on building a robust BFSI sector, further adding to the demand for secure, real-time transaction notifications and authentication. For instance, the Canada Infrastructure Bank (CIB) is maximizing the value of public funds by investing in revenue-generating infrastructure projects in the public interest and utilizing innovative financing tools. In January 2024, Google India Digital Services (P) Limited and NPCI International Payments Ltd (NIPL) signed a Memorandum of Understanding (MoU) to expand the transformative impact of UPI to countries beyond India. Thus, the flourishing BFSI sector is expected to bolster the demand for A2P SMS for OTPs and transaction alerts to make transactions secure.  

Twilio Inc, Sinch AB, Infobip Ltd, Telesign, C3ntro Telecom, Clickatell, Intergo Telecom Ltd, Concepto Movil LLC, Tata Communications Ltd, and Route Mobile are among the key players profiled in the A2P SMS market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.

The report includes the A2P SMS market forecast by type, application, enterprise size, and vertical. Based on type, the A2P SMS market is divided bifurcated into traditional and managed messaging services, and cloud API messaging platforms. In terms of revenue, the cloud API messaging platform segment held a larger A2P SMS market share and is expected to record the highest CAGR during the forecast period.

The scope of the A2P SMS Market report focuses on North America (US, Canada, and Mexico), Europe (Russia, UK, Germany, France, Italy, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). Asia Pacific dominated the market in 2024, followed by North America and Europe.

The Asia Pacific A2P SMS market is segmented into Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific. In terms of revenue, China held the largest A2P SMS market share in Asia Pacific. The market in the region is growing rapidly due to the expansion of mobile networks, the increasing use of smartphones, and the need for businesses to engage directly with consumers in real time. In countries such as India and China, the adoption of mobile devices and mobile internet services has increased in the last few decades. According to the GSM Association, the number of unique mobile subscribers in the region reached 1.8 billion in 2023 and is expected to increase to 2.1 billion by 2030. With a mobile-savvy consumer base, businesses in the region increasingly rely on A2P SMS for customer engagement, transaction alerts, marketing campaigns, and customer service. As businesses look to strengthen their customer engagement strategies, the need for efficient and direct international SMS has become a priority. Operators in APAC are partnering with trusted providers to ensure the quality and security of A2P messaging services, which are essential for maintaining effective communication across borders. For example, in August 2024, Almadar Aljadid, the first mobile network in Libya, signed an exclusive interworking agreement with Vox Solutions for the direct termination of international A2P SMS traffic and A2P VOICE (OTP Voice/FLASH Calls) traffic to Almadar Aljadid’s network. This collaboration highlights the growing importance of securing reliable A2P SMS and voice traffic routes. Moreover, the demand for A2P SMS continues to grow rapidly as businesses seek advanced communication solutions to reach their customers across various digital channels. Companies are partnering with global communication providers to offer localized, reliable, and scalable messaging services that integrate SMS, voice, and other communication technologies. For example, in January 2025, Infobip—a global communications platform, partnered with NTT Com Online Marketing Solutions Corporation to support the launch of NTT’s omnichannel communication platform, NTT CPaaS, in Japan. The partnership is meant to provide businesses with an innovative communication solution integrating reliable SMS and Voice delivery and Communication Platform as a Service (CPaaS) technology localized for the Japanese market.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com