how a2p messaging is impacting the service industry

Enterprise application to person (A2P) is a leading-edge technology that sends short messaging services (SMS), using a unique application system. A2P generated SMS are usually compatible with all mobile handsets and supports popular operating systems such as iOS, Android, Symbian and Windows. Considering the expanding base of mobile subscribers, A2P SMS technology is likely to get more popular in the years to come. Currently, the BFSI sector has emerged as one prominent end-users of A2P messaging and is expected to have more application of the technology as time progresses. Transactional notifications such as one time password (OTP) can be a leading example of A2P messaging service. Some of the other primary applications of A2P SMS include inquiry and search-related services, pushed content services, customer relationship manager (CRM), business services, marketing/promotional campaigns and interactive services.

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Enterprise A2P technology is also used for establishing large communication channels between receivers and senders during public announcements, mass voting for contests and charity among others. In addition, enterprise A2P messaging services are an effective way of conducting promotional campaigns as well. As per Future Market Insights’ latest study, the global market for enterprise A2P SMS is set to increase at 6% CAGR between 2015 and 2025. Factors such as increasing transaction through mobile application, mobile market activities and mobile banking leading to generation of massive volumes of A2P messages. Moreover, technological advancements and arrival of latest SMS platforms having integrated application programming interfaces (APIs) are likely to boost the enterprise A2P SMS market.

A2P messages are easy and convenient to use, especially with arrival cutting-edge platforms integrated with messaging gateways and APIs. These gateways and platforms ease up the process for transferring A2P SMS for enterprises. Improvement in end-user experience and development of more secure and reliable networks are further encouraging its adoption. Adoption of A2P messaging is at rampant, especially in enterprises. Most of the companies require an effective messaging system, which can make an impact when reaching prospective clients. A2P messaging is quite effective in processing OTPs or confirmation messages. A2P technology comes in two basic format - managed messaging services and cloud API messaging platforms. The latter is expected to be more popular in the near future, owing to its technological superiority as well as affordability.

Amongst regions, the market for enterprise A2P SMS in Asia Pacific is highly lucrative. The mainly attributed to increasing demand for CRM messaging services and promotional application. Moreover, the region has a high percentage of population that uses mobile phones, which further encourages enterprises to use A2P SMS for reaching their target audience. With remarkable growth opportunities in several emerging countries in the Asia Pacific region, multinational companies are laying stronger emphasis on penetrating the region’s market in order to further increase customer base. The aforementioned factors are projected to create lucrative business opportunities for SMS aggregators, SMS marketers and A2P SMS platform providers over the next couple of years.

The global market for enterprise A2P SMS is highly fragmented with service providers raging from SMS gateway providers, telecom operators, SMS aggregators, bulk SMS providers, to marketers or resellers who play an important role in the market. At present, SMS aggregators along with telecom operators and other associated stakeholders collectively account for a large share of the market.

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