A2P SMS Market Size, Share, Growth | Global Report [2025]

The A2P SMS Market accounted for US$ 44.12 Billion in 2017 and is expected to grow at a CAGR of 4.1% during the forecast period 2017 to 2025, to account for US$ US$ 60.55 Billion in 2025.

The A2P SMS market has experienced significant growth and adoption rate in the past few years and is expected to experience notable growth and adoption in years to come. The ubiquitous nature of SMS ensuring maximum reach out to customers who stay even in the remotest areas has prompted marketers to switch to this communication channel. The steady inclination towards using SMS for marketing and other allied activities has been very effective and consequently been adopted by various industry verticals. Apart from that, SMS has also been adopted for security authentication purposes proving to be of high worth to BFSI vertical. High adoptions of A2P SMS have resulted in the revenues of A2P SMS crossing P2P SMS and prompting companies to launch innovative products and solutions in it. Asia Pacific A2P SMS market region is expected to witness a CAGR growth rate of 4.7% in the coming years.

Market Insights

Ubiquitous nature of the SMS resulting in direct reach to the end customer

A2P SMS is the communication taking place between an application and a subscriber over messaging services for various purposes. With the evolution of smartphones accompanied with the emergence of OTT players in the market, the MNO’s have seen a sharp dip in the revenues earned from P2P (Peer-to-Peer) messaging services. However, there has been a parallel increase in the A2P SMS revenues for MNOs globally. This factor is strengthening the growth of A2P market.

Creation of Business as a Service platform by A2P messaging vendors

Specialized A2P SMS companies have the capacities to bring the technology and the business model to operators in a partnership that enables operators to deploy an A2P SMS platform with no CAPEX or OPEX and start enjoying the benefits of A2P SMS almost immediately. In this arrangement, the platform provider takes care not only of the technology but integration and platform maintenance and customer support as well. Despite the opportunities presented to them, operators sometimes aren’t capable to take advantage of A2P SMS. A2P SMS delivery and management is resources and time intensive but network operators would not prioritize it so high and invest in new technologies to take care of the above mentioned two factors.

A2P SMS Market – Type Insight

Based on the types, A2P SMS market is categorized into Traditional and Managed Messaging Services, Cloud API Messaging Platform. In the present time, A2P SMS is attaining high acceptance among various businesses and enterprises for reaching out to the masses and attaining marketing objectives. A new emerging technology for sending bulk SMS to end users which when exploited to its full potentials can give effective and efficient results to the operators. Cloud API is used to build applications in the cloud computing space. It provides a platform where the data can be stored, applications can interact with each other via data. Both vendor specific as well as cross platform interactions can take place through this interface. The added advantage with this type of message delivery for an organization is to use the benefits of cloud services. The major reason behind the high growth rate and adoption is that it provides end users ease and facility to quickly and easily develop applications in short period of time and achieve chargeability like per message fees. Thus, the cloud API messaging platform in A2P SMS market is projected to provide numerous lucrative business opportunities for the market players in the forecast period.

A2P SMS Market – Application Insight

The A2P SMS’s have an broad and extensive application portfolio and have been used in various activities such as interactive, pushed content services, promotional campaigns, CRM services and various other services. The application segment of global A2P SMS market is broadly classified into pushed content services, interactive services, promotional campaigns, CRM services and other services which includes Information Services, Workforce Management. The interactive services involve the response from the customers to complete a certain query or a task. Generally, the best use of interactive services in A2P SMS is done for 2-factor authentication for opening various social networking accounts. Checking the authenticity of the user via SMS tool proves to be the most effective method. Interactive services second biggest users are marketing campaigners. They use it to their great effect by connecting to the masses. Media & Entertainment, Banking, and Finance, and retail sector are among the largest users of interactive services of SMS to connect with their customers today. This factor is significantly driving A2P SMS market.

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A2P SMS Market: Strategic Insights

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The market initiative and new development was observed as the most adopted strategy in global A2P SMS market. Few of the recent strategies by some of the players operating in A2P SMS market landscape are listed below-

2018:CLX closes the acquisition of Unwired Communication ApS, (Copenhagen, Denmark) and purchased for DKK 148 mn on a cash and debt-free basis.
2017:CLX acquires Dialogue Group Ltd. Dialogue Group is the competitor of CLX especially in Australia and the UK countries. The acquisition enables CLX to be a mobile cloud communications market
2016:DIMOCO acquires premium SMS business of a leading Hungarian telecommunications service provider named Telekom New Media zrt.  This further solidifies Dicomo’s position as a leading carrier billing provider in the Hungarian market.

A2P SMS Market Regional Insights

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.

A2P SMS Market Report Scope

A2P SMS Market Players Density: Understanding Its Impact on Business Dynamics

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:

1. Anam Technlogies
2. CLX Communications AB
3. DIMOCO Europe GmbH
4. Infobip Ltd.
5. Trillian Group

Disclaimer: The companies listed above are not ranked in any particular order.

Global A2p Sms Market – Segmentation

Global A2P SMS Market – By Types

• Cloud API Messaging Platform
• Traditional & Managed Messaging Services

Global A2P SMS Market – By Application

• Pushed Content Services
• Interactive Services
• Promotional Campaigns
• CRM Services
• Others Services

Global A2P SMS Market – By End-user

• Small & Medium Enterprise
• Large Enterprise

Global A2P SMS Market – By Vertical

• BFSI
• Media & Entertainment
• Travel & Transport
• Hospitality
• Retail
• Others

Global A2P SMS Market – By Geography

• North America

  • US
  • Canada
  • Mexico

• Europe

  • France
  • Germany
  • Italy
  • Spain
  • U.K
  • Norway
  • Sweden
  • Denmark
  • Hungary
  • Bulgaria
  • Montenegro
  • Serbia
  • Rest of Europe

• Asia Pacific (APAC)

  • Japan
  • China
  • India
  • Australia
  • Pakistan
  • Bangladesh
  • Myanmar
  • Thailand
  • Malaysia
  • Rest of APAC

• Middle East & Africa (MEA)

  • Saudi Arabia
  • South Africa
  • UAE
  • South America (SAM)
  • Brazil

Global A2P SMS Market - Company Profiles

• ANAM Technologies
• CLX Communication AB
• DIMOCO Europe GmbH
• Infobip Ltd.
• Trillian Group
• Tyntec Ltd.
• Syniverse Technologies, LLC
• Tanla Solutions Limited
• Twilio, Inc.
• Nexmo INc.