The Global A2P SMS API Market Size collected USD 81.0 Billion in 2022 and is set to achieve a market size of USD 121.3 Billion in 2032 growing at a CAGR of 4.7% from 2023 to 2032.

Presently, all the major industries that include retail, tourism, healthcare, banking, financial services & insurance (BFSI), entertainment, and media are approaching the humongous base of mobile phone users via A2P SMSs, to maintain their customer relationships. In the coming years, more than 50% of the world’s population is anticipated to have at least one mobile subscription, which is estimated to cross the milestone of 3600 million distinct mobile subscribers and it is analyzed to grow further in the coming years.

A2P SMS API Market Report Statistics

• Global A2P SMS API market revenue is estimated to reach USD 121.3 billion by 2032 with a CAGR of 4.7% from 2023 to 2032
• Asia-Pacific A2P SMS API market value occupied more than USD 26.1 billion in 2022
• North America A2P SMS API market growth will register a CAGR of around 4.5% from 2023 to 2032
• Among technology, the cloud API sub-segment generated around 60% share in 2022
• Based on end-user, the Bulk SMS providers sub-segment generated US $ 27.5 billion revenue in 2022
• Increased adoption of A2P SMS APIs for customer engagement is a popular A2P SMS API market trend that fuels the industry demand

Global Application-to-Person (A2P) SMS API Market Dynamics

Market Drivers

• Increasing adoption of mobile devices
• Growing demand for mobile marketing
• Rise of e-commerce

Market Restraints

• SMS spamming
• Security concerns
• Competition from OTT messaging services

Market Opportunities

• Availability of cloud-based A2P SMS APIs
• Growing popularity of chatbots

A2P SMS API Market Report Coverage

Market	A2P SMS API Market
A2P SMS API Market Size 2022	USD 81.0 Billion
A2P SMS API Market Forecast 2032	USD 121.3 Billion
A2P SMS API Market CAGR During 2023 - 2032	4.7%
A2P SMS API Market Analysis Period	2020 - 2032
A2P SMS API Market Base Year	2022
A2P SMS API Market Forecast Data	2023 - 2032
Segments Covered	By Technology, By Application, By End-User, And By Geography
Regional Scope	North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Key Companies Profiled	Syniverse Technologies, LLC, OpenMarket, Inc., FortyTwo Telecom AB, Twilio Inc., Beepsend AB, Tyntec Ltd, Ogangi Corporation, Silverstreet BV, Infobip Ltd., and CLX Communications.
Report Coverage	Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis

A2P SMS API Market Growth Factors

Since past few years, the vulnerability of the communication lines of MNO’s (Mobile Network Operators) has grown to a level where threat of security breaching has increased due to lack of efficient security. Also, it is noticed that most MNOs worldwide are still utilizing obsolete versions of firewalls, which in turn are adversely affecting the business and fail to provide needed visibility to inspect and eliminate the grey routes and other security threats. Globally, grey routes account for nearly two-third of the total A2P traffic worldwide, whereas only one-third of the A2P traffic is governed by MNOs. Thus, security risk and illegitimate traffic impose a significant threat upon the overall profitability of A2P SMS and API market in near future. Nonetheless, the increasing adoption of two-factor authentication is anticipated to drive the market in coming years owing to the highly secured environment offered by two-factor authentication. Also, two-factor authentication is preferred over standard OTT messaging application, inclusive of Hike, WhatsApp and messenger.

The escalating usage of card payment and online payment portals have terminated the conventional security protocol, leading to the rising demand for two-step verification. Today, majority of consumers using online card payment portals have smart phones that permits the users for an authentication process based on his/her online credentials along with the user’s mobile number. Furthermore, exhaustive, all day usage of smart phones by almost every modern consumer has subsequently led to the notable prospects for mobile marketing. As other media channels have reached their saturation in terms of knowledge sharing, personalized A2P sms have evolved as the precise mode of marketing endeavors.

Application-to-Person SMS API Systems Market Segmentation

The worldwide A2P SMS API market is categorized based on technology, application, end-user, and geography.

A2P SMS API Market By Technology

• Traditional API
• Cloud API

According to the A2P SMS API industry analysis, the cloud API sub-segment grew significantly in 2021 and is expected to grow further in the coming years. The increasing adoption of cloud computing services in a variety of end-use industries, rising demand for technically sophisticated services among migrating industries, and the need for high operational efficiency and DevOps automation to shorten the time-to-market of a product launch are just a few of the major factors expected to drive Cloud API market growth. The proliferation of cloud computing services, as industries migrate to new technologies and adapt to technological changes, is expected to be a significant factor driving growth in the global cloud API market. Furthermore, increased operational efficiency, as well as the use of DevOps automation to reduce time to market, is driving global cloud API market growth.

A2P SMS API Market By Application

• Pushed Content Services
• Customer Relationship Management Services
• Promotional Campaigns
• Interactive Services
• Others

Customer relationship management services sub-segment generated significant market share in previous years, according to application segment. CRM service providers are constantly targeting this segment to increase their market share as demand for CRM is expected to rise among small and medium-sized businesses. CRM service providers provide organizations with customized solutions to help them increase their market presence. CRM services help to improve A2P SMS API service centre performance through constant monitoring, resulting in increased customer satisfaction.

A2P SMS API Market By End-User

• Bulk SMS Providers
• Marketers or Resellers
• Telecom Operators
• SMS Aggregators

The bulk SMS providers end-user segment is expected to dominate the A2P SMS API market from 2023 to 2032, according to the A2P SMS API market forecast. The growing adoption of artificial intelligence for bulk SMS services is driving the growth of the bulk SMS marketing services market. With the implementation of artificial intelligence, customer communication is becoming smarter. AI chatbots interact directly with customers and can serve multiple customers at the same time. Furthermore, chatbots can send personalized messages to multiple customers at the same time, increasing customer engagement.

A2P SMS API Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

A2P SMS API Market Regional Analysis

Globally, the market is fragmented into 5 major regions that include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa. Among these regions, Asia Pacific is the leading market owing to the rising urbanization followed by North America, which is the second fastest-growing economy. Other regions such as Latin America and the Middle East are also anticipated to grow in the coming years. However, the market will be attaining a pace over its growth during the forecast period. THE A2P API market is highly competitive.

A2P SMS API Market Players

Some of the leading A2P SMS API companies comprise service providers, operations, network providers, etc. Syniverse Technologies, LLC, OpenMarket, Inc., FortyTwo Telecom AB, Twilio Inc., Beepsend AB, Tyntec Ltd, Ogangi Corporation, Silverstreet BV, Infobip Ltd., and CLX Communications are among the other companies.

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