According to a new market report published by Credence Research Inc., “A2P SMS (Customer Relationship Management (CRM) services, Push Content Services, Promotional Campaigns, Interactive Services, and Other Services (Query & Search-Based Services)) Market - Growth, Share, Opportunities, Competitive Analysis, and Forecast 2015 - 2022”, the global A2P market is expected to expand at a CAGR of 4.9% from 2015 to 2022, exceeding US$ 78.0 Bn by 2022.
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Service and Market Insights
Short Messaging Service (SMS) is one of the easiest to use and ubiquitous forms of communication. Although SMS technology is no longer the mainstay for peer-to-peer (P2P) communication, its reliability, interoperability, and ubiquitous nature makes it the preferred carrier technology for the application to person communication. The Application-to-Person (A2P) SMS market is matured and is expected to exhibit modest growth over the forecast period 2015 – 2022. The market is expected to witness healthy growth between 2013 and 2017, with A2P SMS traffic exceeding 2 trillion messages by 2017. During this period, the mobile operators and third party service providers are expected to introduce a wide range of services across industries that use A2P SMSs for service initiation, monitoring or control. However, with the swift penetration of smartphones, the balance is expected to shift away from SMS as more products will use the IP network.
The global A2P SMS market is highly fragmented with the presence of large number of participants in the ecosystem. Different participants included in the A2P SMS ecosystem include bulk SMS providers, SMS aggregators, SMS gateway providers, mobile advertisers, and telecom operators. Amongst these, telecom operators offering SMS in bulk to SMS aggregators account for the majority of the market revenue share in 2014. Some of the leading players profiled in the research study include Aicent, Inc. (the U.S.), AMD Telecom SA (Greece), Dialogue Communications Ltd. (UK), mBlox (the U.S.), Syniverse Technologies LLC (the U.S.), Tanla Solutions Ltd. (India), Ogangi Corporation (USA), Angkor Data Communications Group Co., Ltd. (Cambodia), Symsoft AB (Sweden), Optimizer HQ (New Zealand), Silverstreet BV (The Netherlands), and Wavecell Pte., Ltd. (Singapore) among others. Currently, there is a push from telecom operators and SMS service providers to use SMS channels for verticals beyond social networking. This is in the form of SMS-based alerts for ticketing, bill payment, and clinic appointment reminders among others.
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Recommendations for Market Players:
- Service providers should look for a carrier technology which is reliable and not prone to data leakages. Carrier grade messaging can suffice these requirements.
- Work with OTT (Over-the-Top) players through SMS APIs
- Pair SMS with other Technologies like GPS (Global Positioning Systems) and NFC (Near Field Communication)
- Make A2P SMS more user friendly
- Augment the use of A2P SMS for enterprise and SME messaging
- Focus on delivering better service rather than the technology development
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