A2P SMS Market – Increased Set of Applications to Lead to Increased Uptake

Press Release

Massive proliferation of application-to-person (A2P) messages in areas such as mobile banking, mobile payments, and mobile health services has led to significant expansion of the global A2P SMS market in the past few years. SMSs are extensively used as effective tools for customer engagement, customer service, activation and authentication, and as service delivery functions by enterprises and organizations.

A2P SMS is one form of service in which SMS is sent from a web based application to a mobile subscriber. Owing to the provision of a secure and reliable operator channel and improvement in end-user experience, A2P SMSs are being widely used in industries such as tourism, banking and financial services institutions, ecommerce, entertainment, and healthcare.

On the basis of end-use Industry, the market has been classified into banking, financial services and Insurance (BFSI), retail, travel and transport, healthcare and hospitality, and media and entertainment (gaming). In industries such as transportation and hospitality, A2P SMSs are used for various ticketing applications such as airlines for delivering boarding passes, and payments for transportation services.

Many financial services companies use A2P SMSs for services such as making payments, requesting account information and account transfers. Mobile network operators provide security for these companies by authorizing the financial service companies to identify their customers using mobile numbers.

Over the report’s forecast period, the segment of BFSI is expected to emerge as one of the most promising revenue opportunity for the global A2P SMS market. The increased consumer preference to online banking services is expected to emerge as the key factor pushing this possibility towards reality.

The global A2P SMS market is driven by factors such as the globally rising number of mobile subscribers, rise in mobile marketing activities by application developers and marketers, and the proliferation of A2P SMS services in mobile banking, mobile health and mobile payments sectors.

The thriving e-commerce industry, availability of low-cost smart phones along with growing penetration of Internet, and the resultant rise in cloud/web enabled services such as mobile payments and mobile banking are also expected to aid market growth for A2P SMSs during the forecast period.

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A2P SMSs are currently widely utilized for a variety of applications such as updating the masses about location-based opportunities, promotional campaigns, campaign perks, breaking news, and for brand promotion. A2P SMS services are also widely used for broadcasting transactional messages by a number of industries such as financial services, entertainment, banking, tourism, marketing, retail, media and healthcare.

As the set of applications of these services swells, the demand for A2P SMSs is also expected to rise. However, certain factors, including the technical anomalies surrounding the concept of bulk SMS, phishing and spam messages, rise in mobile malwares, and illicit routes affecting revenues of telecom operators could negatively impact the overall growth prospects of the global A2P SMS market.


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