PUBLISHER: The Business Research Company | PRODUCT CODE: 1674239
PUBLISHER: The Business Research Company | PRODUCT CODE: 1674239
A2P (Application-to-Person) messaging denotes message traffic wherein individuals receive messages from software or application platforms rather than from other individuals, without expecting a response. This type of messaging serves the purpose of allowing businesses to automate the transmission of substantial message volumes. Its primary objective is to facilitate the delivery of business-critical messages efficiently.
A fundamental element of A2P messaging encompasses the platform and A2P services. The platform refers to an A2P messaging services platform, serving as a software tool utilized for the bulk or individual delivery of SMS or MMS messages. These messages can cover national traffic and extend across multiple countries. Deployment modes for this platform include both on-premises and cloud-based setups. Various applications fall under this platform's umbrella, including authentication services, promotional and marketing services, customer relationship management services, pushed content services, interactive messages, among others. These applications find utility across diverse sectors such as banking, financial services, insurance, retail and e-commerce, e-governance, hyperlocal businesses, healthcare, travel and hospitality, and other related industries.
The A2P messaging market research report is one of a series of new reports from The Business Research Company that provides A2P messaging market statistics, including A2P messaging industry global market size, regional shares, competitors with an A2P messaging market share, detailed A2P messaging market segments, market trends and opportunities, and any further data you may need to thrive in the A2P messaging industry. This A2P messaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The A2P messaging market size has grown steadily in recent years. It will grow from $70.96 billion in 2024 to $72.88 billion in 2025 at a compound annual growth rate (CAGR) of 2.7%. The growth in the historic period can be attributed to internet penetration, rise in smartphone usage, business communication evolution, SMS integration in services, security and authentication needs.
The A2P messaging market size is expected to see strong growth in the next few years. It will grow to $95.92 billion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to IoT communication, banking and financial services usage, healthcare and appointment reminders, adoption of chatbots and AI, industry-specific integration. Major trends in the forecast period include compliance with regulatory standards, interactive messaging experiences, vertical-specific messaging solutions, API integration and platform diversification, omnichannel messaging strategies.
The rising penetration of smartphones is expected to drive the growth of the A2P messaging market in the future. A smartphone is a portable electronic device that connects to both the internet and cellular networks. A2P messaging enables smartphone users to receive messages from business applications for marketing or customer service purposes, primarily through an automated process. For example, according to Ericsson, a Sweden-based telecommunications company, smartphone subscriptions increased to 6,930 in 2023, up from 6,570 in 2022, which reflects a growth of 360 subscriptions over the year. Thus, the increasing penetration of smartphones is fueling the expansion of the A2P messaging market.
The anticipated growth of the A2P messaging market is closely tied to the expansion of the e-commerce sector. E-commerce involves the online buying and selling of goods and services. A2P messaging plays a crucial role in this sector by providing e-commerce businesses with a versatile and efficient communication channel. It supports various functions such as ensuring transaction security, facilitating customer support, enabling order tracking, and sending appointment reminders. A2P messaging, in turn, contributes to streamlining operations, enhancing customer engagement, and fostering business growth within the e-commerce space. For instance, in August 2023, the United States Census Bureau, a US-based government agency, reported that in the second quarter of 2023, e-commerce estimates increased by 7.5% (or 1.4%) compared to the same period in 2022. In contrast, overall retail sales showed a comparatively modest increase of 0.6% (or 0.4%). This data underscores the significant impact of the expanding e-commerce sector on driving the growth of the A2P messaging market.
Major companies in the A2P messaging market are concentrating on the development of advanced solutions such as A2P SMS platforms to improve communication reliability. An A2P SMS platform is a system that allows businesses to send automated, application-generated text messages directly to customers for purposes such as notifications, alerts, and promotions. For example, in May 2023, Twilio, a US-based communications company, launched a compliance initiative for Application-to-Person (A2P) messaging, specifically requiring the registration of U.S.-based 10DLC (10-digit long code) messaging traffic. This initiative, aimed at reducing spam and fraudulent messages, mandates that all brands register their messaging campaigns and traffic to continue using the platform. Supported by wireless carriers, this effort seeks to establish a verified, transparent messaging ecosystem where only registered brands can send messages, thereby enhancing trust and engagement with end-users.
Key players in the A2P messaging market are forming partnerships to create new products and strengthen their market positions. Collaborations in the A2P messaging sector encourage innovation, leverage complementary expertise, and expedite the development and commercialization of advanced solutions by combining resources and capabilities. For instance, in August 2023, Route Mobile Limited, an India-based mobile network operator, partnered with Vodafone Idea Limited, a telecommunications company also based in India. This partnership aims to enhance Vodafone Idea's capabilities by implementing advanced A2P SMS monetization solutions, focusing on utilizing Route Mobile's expertise in AI-driven analytics to boost customer security and optimize revenue generation on the VIL network.
In January 2023, Tofane Global, a France-based digital platform, acquired DIMOCO Messaging for an undisclosed sum. This acquisition seeks to bolster iBASIS's mobile services by broadening direct access to Central European markets and enhancing its capabilities in the international messaging space. This strategic move positions iBASIS as a leading Tier One partner for mobile operators and enterprises globally. DIMOCO Messaging is an Austria-based SMS aggregator specializing in application-to-person (A2P) messaging services.
Major companies operating in the A2P messaging market include China Mobile Limited, AT&T Inc., Orange S.A., Twilio Inc., Sinch AB, Tata Communications Limited, Syniverse Technologies LLC, Infobip Ltd., MessageBird B.V., BICS SA/NV, Vonage Holdings Corp., Kaleyra Inc., Monty Mobile SAL, TeleSign Corporation, OpenMarket Inc., Comviva Technologies Limited, Route Mobile Limited, Karix Technologies Private Limited, Cequens Ltd., Plivo Inc., Mitto AG, Soprano Design Pty Ltd, Global Message Services S.A., Clickatell (Pty) Ltd., Nexmo Inc. (Vonage API Platform), Summit Tech (Summit Technology Group), Tyntec Silverstreet, Dexatel Global Message Services AG, CLX Communications AB, Esendex Ltd., Fortytwo Telecom AB, Upland Software Inc. (Mobile Messaging Solutions), BulkSMS (a division of Adapt IT), Commify Group Limited, 3Cinteractive Corp. (3C), IMImobile PLC (acquired by Cisco), Kaleyra S.p.A. (formerly known as Solutions Infini), Mogreet Inc.
North America was the largest region in the A2P messaging market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the a2p messaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the a2p messaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The A2P messaging market includes revenues earned by entities by providing messaging services such as two-factor authentication, emergency alerts, and appointment reminders. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
A2P Messaging Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on a2p messaging market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for a2p messaging ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The a2p messaging market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.