Enterprise Messaging

With the Global A2P SMS market set to grow by 4.4% per annum to 2025, Sendmode’s award winning SMS Marketing team examines the reasons why there is expected to be such strong growth in the sector.

The Application to Person (A2P) SMS is the process of sending an SMS from an application to a mobile subscriber.

This is different from person to person SMS which is declining due to the proliferation of messaging applications such as Facebook Messenger, WhatsApp and Viber among many others.

In 2015 the global A2P SMS market was estimated at US $40.45 billion. Reports from market research companies such as The Insight Partners expect this value to increase to US $62.10 billion in 2025.

So why is A2P increasing in popularity? Here are three simple reasons.

SMS is ubiquitous

While OTT messaging apps have fragmented the person to person (P2P) market, SMS remains the only messaging application pre-installed on every mobile handset. Therefore a channel is pre-existing for delivery of information from any sector.

Suitable for any industry

A2P SMS services are used across many industry verticals such as BFSI (Banking, Financial services and Insurance), retail, marketing, healthcare, tourism, media and others.

Currently the Banking, Financial Services and Insurance (BFSI) segment has the highest growth among all other verticals owing to increase in the usage of mobile based banking services that includes 2-factor authentication, money transfers, online payments, generating OTPs, transaction notifications, fraudulent activity warnings and checking account balance.

Simple, Reliable, Mature Technology

SMS has been around for over 20 years and trillions of messages have been delivered to handsets over the years. The technology is stable, mature and perfect for delivery of mission critical information.

The report from The Insight Partners is available for further reading here http://www.theinsightpartners.com/reports/a2p-sms-market

Thank you for the taking the time to read this blog. We hope you found it helpful.


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