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Global A2P SMS market will continue soaring until 2027 although COVID-19 outbreak hits the world economy, a latest survey on A2P revealed. The market will attain US$86.3 billion by that year.

On Dec. 7, 2020, Reportlinker.com released “Global A2P SMS Industry” that examined the condition of the A2P market for this year and seven years ahead. The A2P SMS market will reach US$65.7 billion in 2020. The market will grow at a Compound Annual Growth Rate (CAGR) of 4% between 2020 and 2027.

Country and Service Segment in More Details

The report especially brought up the results of global A2P SMS market in the US and China markets, the two economic superpowers. The A2P SMS market in the US will reach US$19.3 billion in 2020. On the other hand, the same market in China will attain US$15.4 billion in 2027. The CAGR of the analysed period will be 3.8%. Other important markets are Japan and Canada which will grow at 3.7% and 3.3% CAGR, respectively. From the European market, Germany will grow at 3.9% CAGR.

The report also broke down several segments that mostly use the A2P SMS platform. For Pushed Content Services, the survey predicted it will book a 3.5% CAGR and attain US$23 billion at the end of 2027.

For the Customer Relationship Management Services sector, the survey projected the growth will be at 6% CAGR. The data included the pandemic impacts on the international economy.

The A2P SMS mostly influences the promotional campaign sector. The survey predicted the Promotional Campaigns segment to grow at 3.7%. The statistic will be propelled by the segments in the US, Canada, Japan, China, and Europe.

The markets in the countries will enhance the combined market size of the A2P SMS of US$8 billion in 2020. By the end of 2027, the market will have to attain US$10.4 billion in the countries.

A2P market refers to the Application-to-Person Short Message Service (SMS) market that oversees the platform contribution in the business world. The article is specifically discussing the market in Asia Pacific region.

Prior to that, it’s worth remembering the general concept of A2P SMS. A2P is also noted as business or enterprise SMS. The A2P SMS system allows business texts sent from websites to mobile subscribers. Marketers or business players mostly utilize A2P SMS for sending customer transactions, notifications, alerts, promotions, offers, and reminders.

A lot of business players turn to A2P SMS in the wake of changing customer behaviour in line with super rapid smartphone usage. SMS still has a high open rate percentage despite free chatting apps. A2P SMS enables businessmen reaching out to a bulk number of recipients in a more cost-effective scheme. This leads to lower operating expenses and enhanced brand exposure.

Analysis of the A2P Market in the Region

Infoholic Research once revealed that the A2P market in Asia Pacific will grow at a Compound Annual Growth Rate (CAGR) of 6.34% from 2016 up to 2022. The research covers countries in the region, such as India, China, Indonesia, Vietnam, Malaysia, Japan, Philippines, Thailand, Australia, New Zealand, Singapore and South Korea.

The A2P market improves significantly to boost customer relationship management and get higher income. The A2P messaging is mostly used for transactional and promotional services. The transactional service becomes the major driver for the A2P market share in the region. This is due to the increasing demand from Small and Medium Enterprises and large enterprises that wish to adapt the technology to engage their targeted customers in quick and powerful ways.

The region’s developing countries, such as Indonesia, Vietnam, and Malaysia, contributes the biggest portion for the market share. They have a strong internet subscriber base and growth in the mobile market that lead to the large share.

The report further predicts the A2P market will increase in the next few years given the rise in mobile spending and mobile usage. Both individuals and government offices will add their spending on mobile for enlarging their services. Enterprises, too, will depend on the gadget for meeting various goals on their businesses.