A2PSMS is a short text/multimedia message that is sent from an
application, especially a web application, to a mobile user. SMS is a
unique and ubiquitous technique of staying connected with people
using basic feature phones without any additional access to data
services. Worldwide, mobile network operators are mainly focusing on
application-to-person (A2P) SMS applications to increase their
average revenue per user/subscriber (ARPU). SMS, being the most
familiar form of mobile communication, attracts a high proportion of
users to enjoy the benefits of this service.
SMS
– A Reliable and Simplified Source for Operators and End Users
SMS
is a fast and efficient tool for extending customer relationships.
SMS sent from mobile subscribers to web applications is known as
person-to-application (P2A) messaging. While the market for P2A SMS
has declined due to the advent of various web messenger services such
as WhatsApp, Blackberry messenger, and Snapchat, the dependency and
use of A2P SMS application service has remained moderate across the
globe.
With
the help of A2P SMS application service, each communication can be a
secure, private, and personal interaction. It doesn’t require new
platforms or technologies and can be equally accessible on both smart
and feature phones.
According
to a leading market research company, the global A2P SMS market was
valued at US$53.07 billion in 2013 and is expected to grow and reach
US$70.32 billion by 2020. Growth in mobile marketing activities by
marketers and application developers, increase in mobile banking,
mobile payments, and mobile health services, and rise in the mobile
subscriber base are the key drivers of the A2P SMS market. Owing to
these factors, the overall market is expected to rise at a CAGR of
4.2% between 2014 and 2020.
Increase
in Mobile Subscriber Base Fuels Global A2P SMS Market
The
application-to-person (A2P) SMS market is poised for moderate yet
steady growth in the next five years. This growth is mainly on
account of an expansion in the mobile subscriber base across major
regions such as North America, Asia Pacific, and Europe. It is also
due to some of the main advantages of A2P messaging, such as helping
organizations reach out and communicate directly with millions of
mobile subscribers across the globe at cheaper costs.
Rise
in the global mobile subscriber base and SMS traffic is benefiting a
pool of stakeholders such as software developers, mobile content
developers, aggregators, and premium messaging integrators across
many regions in the world.
The
market is also growing due to the widespread implementation of A2P
SMS application services in marketing messages, notifications,
alerts, and flight alerts.
A2P
SMS services find application in various industrial areas such as
entertainment, tourism, ecommerce, healthcare, and banking and
financial services. These industries rely on A2P SMS in order to
reach out to several customers for various reasons. The customer
relationship management (CRM) service is the major segment
contributing the highest share of revenue to the A2P SMS market.
Today, most companies spread across sectors such as travel,
e-commerce, BFSI, and retail use A2P SMS for CRM as an effective way
to increase their average revenue per user/subscriber (ARPU).
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