The premium A2P and P2A messaging market size is estimated to grow from USD$55.49 billion in 2016 to USD$71.60 billion by 2021, according to a new market research report. Mahindra Comviva, AT&T and SAP are cited as among the key providers in this segment.
Increased mobile marketing by marketers and application developers, growth in mobile payment and mobile banking applications, ability to receive messages without data connection, and rapid increase in mobile subscriber base are some of the driving forces of the premium A2P and P2A messaging market.
An A2P SMS is an SMS message which is sent from an application- typically a web-based one-to a mobile subscriber. The common uses of A2P bulk SMSs include notifications, alerts and mobile contextual marketing messages such as flight alerts, banking updates or new offers from merchants. Meanwhile, an A2P text messages can also be sent in another direction, from a mobile subscriber to a web-based application, where it is known as P2A SMS (person-to-application messaging).
Among the applications, CRM services segment is expected to hold the largest market share during the forecast period 2016 to 2021 as they are used to offer billing and transaction related information to the customers. This growth is primarily driven by the growth in the eCommerce and Banking, Financial Services, and Insurance (BFSI) industries.
Premium A2P and P2A messaging services have been used across various industry verticals, including government, BFSI, IT & telecom, healthcare, travel & tourism, retail & eCommerce, and others.
The retail and eCommerce vertical is expected to hold the largest market share during the forecast period owing to constant growth in the number of internet users, proliferation of smartphones, and the increasing number of tech-savvy consumers.
APAC is expected to hold the largest market share in the premium A2P and P2A messaging market during the forecast period 2016 to 2021. This is due to the large-scale acceptance of premium A2P and P2A messaging services by the enterprises in the APAC region. In addition, the increasing developments in regulations and technologies are benefiting all the stakeholders present in the premium A2P and P2A messaging market ecosystem and a huge number of mobile subscribers base present in this region.