December 8, 2024

The Global Enterprise A2P SMS Market is driven by growing demand for digital advertising

 

Enterprise application-to-person (A2P) messaging, also known as enterprise SMS, refers to SMS messages sent from an application as opposed to a person. A2P SMS traffic primarily involves automated messages such as appointment reminders, notifications, alerts, and one-time passcodes for account authentication or password reset. These messages are sent at scale by businesses to customers for various purposes including marketing, authentication, verification, delivery receipts and promotions. The need to efficiently reach customers through mobile devices and improving the overall customer experience digitally has boosted the adoption of A2P SMS among enterprises. A2P SMS offers a cost-effective and instant way for businesses to reach their customers and engage in conversations. Some key advantages of A2P SMS include high open rates of over 98%, near ubiquitous coverage across networks and devices, real-time delivery, and reliable receipts for transactional messages.

The global Enterprise A2P SMS market is estimated to be valued at US$ 50.53 Bn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the enterprise A2P SMS market is the growing demand for SMS firewalls. SMS firewalls help enterprises filter unwanted or unsolicited SMS messages and manage legitimate traffic. They provide tools for comprehensive message filtering, categorization, blocking, monitoring and analytics. SMS firewalls have become essential security tools for businesses to avoid spam SMS and ensure compliant message delivery. With growing regulations around data privacy and cybersecurity, adoption of SMS firewalls is increasing among enterprises to secure SMS channels and safeguard customer data and brand reputation.

Porter’s Analysis
Threat of new entrants: Low economies of scale in the SMS messaging business and established relationships between mobile operators and messaging aggregators create barriers for new entrants.
Bargaining power of buyers: Large enterprises and government agencies that demand high volumes of SMS messages have significant bargaining power over messaging providers and can negotiate lower prices.
Bargaining power of suppliers: A few major mobile operators dominate the channel required to deliver SMS messages globally, giving them strong bargaining power over messaging providers.
Threat of new substitutes: IP-based messaging apps and chat platforms pose a potential threat; however SMS remains ubiquitous with wide device coverage and established adoption levels.
Competitive rivalry: The market has low growth and is saturated in developed markets, leading to intense competition among established providers on factors like price, reliability and advanced features.

Key Takeaways
The global Enterprise A2P SMS market is expected to witness high growth. The global enterprise A2P SMS market is estimated to be valued at US$ 50.53 billion in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030.

Regional analysis: North America currently dominates the Enterprise A2P SMS market due to high mobile penetration and strong demand for advertising and transactional services among major enterprises. Asia Pacific is expected to grow at the fastest pace during the forecast period led by countries like India and China with rapidly expanding economies and digital ecosystems.

Key players: Key players operating in the Enterprise A2P SMS market are nfobip Limited, OpenMarket Inc., AMD Telecom S.A., Syniverse Holdings Inc., FortyTwo Telecom AB, Twilio Inc., Mblox Inc., Nexmo Inc., and CLX Communications AB. nfobip Limited specializes in cloud communication and leads the market with a strong global presence across multiple SMS gateways. Twilio Inc. is another major player known for its flexible cloud-based SMS APIs.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it
Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.

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