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Application-to-Person (A2P) SMS and API market to Gain on Advanced Cloud-based Applications

Article Description

Application-to-Person (A2P) refers to an SMS message is sent from an application, conventionally from a web app to a mobile subscriber. With exponential increase in smartphone users worldwide, A2P SMS and API is quickly growing into a swift way of consumer engagement for several industries such as retail, banking, healthcare, entertainment, and tourism. According to a research report from Transparency Market Research, which is now available on Market Research Reports Search Engine (MRRSE), the global A2P SMS and API market is expected to expand at a CAGR of 4.1% over the duration of 2016 to 2024, reaching a valuation of US$245.9 mn by 2024. 

Extensive Smartphone Outreach Driving Application-to-Person SMS and API Market

According to TMR, half of the world’s population had at least one mobile subscription by the end of 2014, totaling to nearly 3.6 bn unique mobile subscribers. The number is forecast to reach 1 bn by 2020 globally. This extensive outreach is enabling numerous industry players of distinct sectors to reach out to their end-users in a real-time manner. A2P SMS and API not only helps the players to engage several customers at the same time via bulk SMS, it also paves a way for them to reconnect with the user in future. Customer care services, pushed content services, and promotional campaigns are some of the additional benefits of A2P SMS and API. 

Cloud-based Applications to Further Fuel the Application-to-Person SMS and API Market

Due to deployment across numerous industries, the demand for an advanced mode of A2P SMS and API has developed which can be ideally met by cloud-based applications. The traditional A2P SMS APIs contributed to 55.3% share of the global A2P SMS and API revenues in 2015 but cloud-based applications will soon overhaul the segment due to several factors. For example, cloud-based APIs allow companies to reduce the size of their data centers via automated processes. 

The cost of software is also more flexible than traditional methods as companies only pay for server and infrastructure capacity as and when it is needed. The capacity can be increased for peak times and decreased when no longer needed. Moreover, cloud-based application-to-person SMS and APIs are extremely reliable, exhibiting 99.99% uptime. Improved collaborations between various applications and less environmental impact are some of the other advantages of A2P SMS and API. 

Asia Pacific Leading the Global A2P SMS and API Market

Asia Pacific countries such as China, India, Indonesia, Pakistan, Bangladesh, and Russia contribute to the largest chunk of smartphone subscribers. Asia Pacific is presently the most significant revenue contributor to the global A2P SMS and API market and expanding e-commerce industry as well as increasing adoption of online transactions is expected to further fuel to demand. 

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Data Security Turning into Primary Concern

Communication lines of mobile network operators have become highly vulnerable to security breaches due to lack of effective security tools. According to a report by in 2016, most MNOs still use the outdated firewalls that were installed before 2012. These firewalls are unable to provide the necessary visibility required to detect and negotiate gray routes and other security threats. The report concluded that illicit traffic and security risks will have a substantial impact on the overall profitability of A2P SMS and API market in the next few years.