The rapid growth of the mobile subscriber base and online marketing activities are projected to drive the A2P SMS messaging market to US$101 billion by 2030, private research revealed.
Transparency Market Research forecasted the A2P SMS messaging market between 2021 and 2030. It used 2019 as the base year, 2020 as the predicted year, and made data in 2018 as the historical information.
Key Takeaways from the Study
Based on the research, the value of the industry will attain US$101 billion by 2030, up from US$64.6 billion in 2019. Furthermore, the global A2P sector will progress at a 4% compound annual growth rate (CAGR) in the forecast period.
A lot of business players utilize A2P SMS for tapping into significant online marketing campaigns in e-commerce, especially via mobile phones. In the field of application, the customer relationship management services sector will push the industry even further. Whilst in the case of the end-use industry, the retail sector is projected to make up most of the industry between 2021 and 2030.
Another point from the study is that Asia Pacific will uphold the biggest market for A2P SMS in the world. At the end of 2019, for instance, the market in the region had US$26.3 billion in value.
The research further suggests providers of A2P SMS, including our company, to invest in innovative solution development. The strategy will particularly address end-user special needs as the would-be stimulant for the sector in the near-term.
A2P SMS and the COVID-19 Pandemic
The COVID-19 pandemic has paralyzed various industrial sectors around the world, including the A2P SMS market. As many countries around the world have lockdowns in place, the average interaction and A2P SMS traffic have decreased substantially.
In 2020, the marketing sector that suffered the worst losses during the pandemic was the retail sector. However, traffic for online transactions, alerts, and notifications has actually increased, mainly due to large-scale activity in e-commerce. Increased one-time password (OTP) sending and warning traffic is expected to provide opportunities for vendors during the COVID-19 pandemic. Government agencies and other related institutions are also expected to be able to utilize A2P SMS, as a tool to create awareness about the COVID-19 disease.
Also read: Detailing A2P SMS Market in Asia Pacific