By Sempico Solutions

What you need to know about the growth of the A2P messaging market in 2022?

The further the 21st century moves forward, the more leading positions the technology sector takes. Each of its segments is successfully developing and gaining momentum. But we are most interested in the telecommunications segment and its prospects, because it is on this that our SMS business depends. In the article below, we have prepared a brief analysis of the A2P messaging market based on the Grand View Research report and conclusions on how it can be used in the SMS business.

Key indicators of the A2P messaging market in 2022

The global A2P messaging market was valued at $64.83 billion in 2021 and is expected to achieve a compound annual growth rate (CAGR) of 4.7% between 2022 and 2030. Significant market growth is predicted due to increased use of SMS between businesses as A2P messaging is low cost and versatile. The A2P messaging solution allows businesses to instantly manage bulk messaging services using quality mobile communication routes around the world. Services that sell A2P messaging offer a centralized tool for running messaging services around the world without entering into agreements with all destination carriers. Which, in turn, greatly simplifies the process of communication between enterprises and end customers, because all intermediate actions are performed by the A2P messaging service.

Factors such as increasing end-user focus on A2P messaging, increasing mobile advertising penetration, and increasing smartphone penetration in each country are expected to drive the growth of the industry.

Cloud or local service?

In 2021, the cloud segment had the highest share of revenue at over 56% and is projected to have a CAGR of 5.4% over the forecast period. A2P Cloud Messaging delivers an effective, integrated marketing campaign that drives more engagement with customers. On-premises contact centers require administration, deployment, maintenance, and scaling of hardware and software. In addition, these solutions are expensive and difficult to manage and deploy. Large enterprises mainly use local platforms because they provide internal data security.

Depending on your target audience, you need to understand what type of service you will provide and what is required for this.

Domestic or international market: growth rates

In 2021, the domestic segment accounted for the largest share of revenue at over 55% and a CAGR of 4.2% over the forecast period. During the pandemic, domestic traffic has increased significantly. In terms of international traffic, this segment is expected to show the fastest growth, with a CAGR of 5.4% over the forecast period. The impact of the lockdown was noticeable not only in the Asian region, but also in the EMEA region, where a hard lockdown that lasted almost three months resulted in a 13% increase in international A2P traffic.

According to these data, it can be concluded that it will be most promising to expand the SMS business to the international market, because its growth rates show the best indicators.

Which business uses A2P services the most?

In 2021, the banking, financial and insurance services industry accounted for 29% of A2P services revenue, with a CAGR of 3.5% over the forecast period. The growth of the BFSI segment is attributed to the increase in the number of payment transactions and the growing proliferation of A2P online messaging in this industry. But the media and entertainment industry is expected to show the strongest growth so far, with a CAGR of 6.7% over the forecast period. The growth is due to the introduction of A2P messaging in the entertainment industry, including voting-based reality shows, in order to attract the maximum number of viewers.

With this data, you can approach the formation of the target audience for your service in a different way and focus on these particular business sectors.


Key factors that are driving the growth of the A2P messaging market include an increase in mobile users and an increase in marketing and advertising firms. And this means that the number of A2P services provided should also grow. And this is exactly the chance to enter the market at the stage of its growth. To do this, carefully analyze your service and target audience, make a choice in favor of those business sectors that use A2P more often. Modernize your service so you can provide both cloud and on-premises services. Use a reliable SMPP platform that will provide you with smooth operation and speed in making settings and managing traffic.

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