A2P SMS and CPaaS Market Forecast (2024-2031)
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.
A2P SMS and CPaaS Market Analysis
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.
A2P SMS and CPaaS Market Overview
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.
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A2P SMS and CPaaS Market: Strategic Insights
Market Size Value in US$ 71.07 Billion in 2022 Market Size Value by US$ 101.77 Billion by 2028 Growth rate CAGR of 6.2% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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A2P SMS and CPaaS Market: Strategic Insights
| Market Size Value in | US$ 71.07 Billion in 2022 |
| Market Size Value by | US$ 101.77 Billion by 2028 |
| Growth rate | CAGR of 6.2% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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A2P SMS and CPaaS Market Drivers and Opportunities
Increasing Need To Automate Communication Workflows And Processes to Favor Market
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.
Emergence of Advanced Technologies, Such as AI
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.
A2P SMS and CPaaS Market Report Segmentation Analysis
Key segments that contributed to the derivation of the A2P SMS and CPaaS market analysis are.
- Based on the component, the A2P SMS and CPaaS market is divided into solutions and services. The solution segment will hold a significant market share in 2023.
- By channel, the market is segmented into message (chat apps and SMS), voice, email, web push, and others. The message (chat apps and SMS) segment is expected to hold a significant market share in 2023.
- In terms of enterprise size, the market is segmented into SMEs and large enterprises. The large enterprises segment held the largest market share in 2023.
- In terms of industry, the market is segmented into IT & telecom, BFSI, retail & e-commerce, healthcare, and others. The IT & telecom segment is expected to hold a significant market share in 2023.
A2P SMS and CPaaS Market Share Analysis by Geography
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.
A2P SMS and CPaaS Market Report Scope
A2P SMS and CPaaS Market News and Recent Developments
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:
- Syniverse, "the world's most connected company,"® has been selected by DOCOMO PACIFIC, the regional leader in innovation, telecommunications, and entertainment, as its primary provider for terminating application-to-person (A2P) traffic into its network in Guam and the Commonwealth of the Northern Mariana Islands. This agreement with Syniverse enables DOCOMO PACIFIC's subscribers in both Guam and the CNMI to receive one-time passcodes, appointment reminders, and other critical SMS messages more reliably from businesses and other organizations. (Source: Syniverse, Press Release, April 2024)
- Route Mobile Limited (“Route Mobile”), a leading CPaaS company, has entered into an exclusive partnership with Vodafone Idea Limited (“VIL”) to deploy and implement its suite of end-to-end A2P monetization solutions for all A2P SMS traffic on the VIL network (including erstwhile Vodafone and Idea networks). As part of this arrangement, Route Mobile will provide comprehensive A2P monetization solutions to VIL by deploying its Artificial Intelligence/Machine Learning (AI/ML) driven analytical firewall solution (Source: Hitachi, Ltd, Press Release, August 2023)
- International connectivity enabler BICS has launched its Communications Platform as a Service (CPaaS) offering, giving enterprises a customizable toolbox to easily integrate communications services like voice, SMS, and WhatsApp messages into their services and workflows via APIs. (Source: BICS, Press Release, October 2023)
A2P SMS and CPaaS Market Report Coverage and Deliverables
The “A2P SMS and CPaaS Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- A2P SMS and CPaaS market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- A2P SMS and CPaaS market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- A2P SMS and CPaaS market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the A2P SMS and CPaaS market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Channel, Enterprise Size, and Industry
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Argentina By Channel, Argentina By Component, Argentina By Enterprise Size, Argentina By Industry, Argentina By Message, Australia, BFSI, Brazil, Brazil By Channel, Brazil By Component, Brazil By Enterprise Size, Brazil By Industry, Brazil By Message, Canada, Chat Apps, China, Egypt, Email, France, Germany, Healthcare, India, IT and Telecom, Italy, Japan, Kenya, Large Enterprises, Message, Mexico, Nigeria, Pakistan, RCS, Retail and Ecommerce, SAM By Channel, SAM By Component, SAM By E
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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