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The Enterprise A2P SMS market involves the delivery of SMS from an application to a mobile subscriber. Enterprise A2P SMS help businesses to interact with their customers for transactional alerts, marketing campaigns, authentication codes etc. It is a cost effective communication channel for enterprises. Some common uses of Enterprise A2P SMS include one-time passwords (OTPs), appointment reminders, delivery status updates, payment confirmations and event notifications.
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:
Rise of Digital Transformation – With increasing adoption of digital technologies, businesses are moving their operations and services online. Enterprise A2P SMS plays a vital role in digital transformation initiatives by enabling seamless interaction between businesses and customers via mobile phones. As enterprises across industries accelerate their digital transformation agendas, demand for Enterprise A2P SMS is expected to rise significantly over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the enterprise A2P SMS market as it requires significant investments to establish infrastructure and build brand awareness and customer base.
Bargaining power of buyers: The bargaining power of buyers is high in this market as buyers can easily switch between various service providers based on price and quality of service.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are multiple messaging platform and telecom providers supplying services to enterprise A2P SMS providers.
Threat of new substitutes: The threat of substitutes is low as there are limited alternatives available for SMS services used by enterprises for customer communication and engagement.
Competitive rivalry: The competitive rivalry is high among the key established players operating in the global market.
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. These players are focused on developing innovative cloud-based solutions and strengthening their distribution networks globally to strengthen market position.
Key Takeaways
The global enterprise A2P SMS market size was valued at US$ 50.53 billion in 2023 and is expected to grow at a CAGR of 3.9% during 2023 to 2030. The high growth can be attributed to increasing use of A2P SMS by enterprises across industries for transactional messages, promotional messages, and customer engagement.
On the regional front, Asia Pacific dominated the global market in 2023 and is expected to maintain its lead position over the forecast period. This can be credited to high mobile phone penetration and increasing use of mobile marketing in countries like China, India and Japan. China represents the largest and the fastest growing market for enterprise A2P SMS in the region.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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.
