Cost-Effectiveness and Higher Reaching Capabilities of A2P SMS to Drive Growth
A2P SMS solutions provide a streamlined and scalable method for enterprises to distribute messages to a wide audience swiftly. Utilizing advanced telecommunications infrastructure, A2P SMS ensures seamless delivery of messages to recipients across various geographical regions with minimal delays and increased reliability. The cost-effectiveness of A2P SMS, especially when compared to alternative communication methods, such as voice calls or email, highlights its appeal to enterprises aiming to optimize communication expenses while ensuring effective outreach. Moreover, the widespread use of mobile devices and the availability of SMS-enabled applications further bolster the enterprise A2P SMS market, enabling businesses to connect with customers through their preferred communication channels.
As per Gartner, text messages report a 45% response rate and a 98% open rate compared to email. Thus, considering the higher reaching capabilities of text messages, the adoption of this type of enterprise SMS in industries is growing rapidly. Therefore, small enterprises and start-ups are rapidly adopting A2P messaging services to create brand awareness and enhance customer experience.
RESTRAINING FACTORS
Growing Security Threats to Hamper the Market
The market is expected to grow significantly across industries over the forecast period. However, the increasing number of privacy and security threats is likely to hamper market growth during the forecast period. One of the prominent threats faced by the industries is the grey route threat. As per the report by Mobilesquared, a loss of USD 5.76 billion was experienced due to the grey route in 2018. Similarly, traffic blending is also creating challenges for the service providers. Various companies, even with installed firewall solutions, witnessed traffic blending issues. This is likely to hinder the growth of the enterprise A2P SMS market.
ENTERPRISE A2P SMS MARKET SEGMENTATION ANALYSIS
By Deployment Analysis
Easy Integration of Services to Drive Cloud-Based A2P Messaging
Based on deployment, the market is bifurcated into cloud and on-premises. The cloud segment is expected to showcase rapid growth and dominate the market with maximum share. The cloud-based A2P messaging services offer a highly engaging and integrated marketing campaign that supports enhancing customer engagement. Also, cloud-based enterprise platforms seamlessly integrate SMS, MMS, voice, and other services to provide a secure mobile messaging experience. This is driving the demand for cloud-based enterprise A2P SMS.
The adoption of on-premises solutions and services is low compared to cloud-based solutions, and large enterprises majorly adopt it as it offers in-house data security.
By Application Analysis
Rising Demand for Enhanced Customer Relationship Management to Fuel Market Growth
Based on application, the market is categorized into pushed content services, customer relationship management services, promotion and marketing, interactive services, and others (information services, workforce management, etc.).
The customer relationship management services segment is expected to lead this segment type after 2025 years. Growing industries, such as BFSI and retail & e-commerce, are adopting A2P SMS for customer relationship management.
The promotion and marketing segment is expected to gain rapid growth after 2025 years. Growing businesses and start-ups are focusing on promotions and marketing by sending application-to-person messages. This helps target a bulk customer base with cost-effective strategies.
Similarly, pushed content services and interactive services are likely to grow steadily owing to the increasing focus on enhanced customer engagement.
