The Rise of Mobile Subscribers Within The A2P SMS Market

The Rise of Mobile Subscribers Within The A2P SMS Market
26 Sep

The Rise of Mobile Subscribers Within The A2P SMS Market

Posted by TeleOSS

SMS may be defined as a-160-character- powerful and strong marketing tool. The Short Messaging Service (SMS) is a functionality that's obtainable on any mobile telephone in the globe. Since the very first text message was sent in 1992, there has been no halt in the protocol. And with the increase in application-to-person (A2P) services, SMS will not stop growing. The question should be asked: ‘How can A2P SMS work for your business?”

Over the years, there has been a variety of different products that have tried to compete with the SMS. This ranges from the defunct Mxit to the Facebook-owned Whatsapp and also the microblogging platform—Twitter. All of them have tried to be the be-all and end-all, and go-to messaging platforms. However, none has totally succeeded in leaving SMS providers behind.

The major drawbacks with applications and also the messaging ecosystem is their adoption rates and compatibility with the newest hardware. Mxit, for instance, may take weeks to months to perfectly work on a newly manufactured device, even if it uses the same software as a previous model. To use Whatsapp or facebook, a user needs a smartphone so as to install the app. These aren't possible options for large-scale growth, particularly within the African markets wherein feature phones still remain the dominant mobile system.

Although these platforms have adoption rates which are large, they still can't hold an equal penetration rate as a typical SMS. Additionally, SMSes have an open rate between 98% and 99%. App platforms need approaches that are totally different, like community-driven engagements or AI chatbots.

What of MMS?

Multimedia Messaging Service (MMS) is comparable to SMS as it is a functionality built-in on phones. It utilizes the exact core systems as SMS and is capable of sending over one hundred sixty characters per message, and also the sharing of video and audio files. Although it's robust, it's restricted to the usage of a functional data service. This implies that if a client isn't in a data coverage space, or doesn’t have an active data on their mobile device, they can't receive an MMS.

A2P SMS by the Numbers

According to a report given by Zion Market Research, In 2014, the world A2P SMS market was valued to be US$55-billion. It's expected to increase to US$70-billion by the year 2020. In addition, between 2015 and 2020, the market is anticipated to have a Compound Annual Growth Rate (CAGR) of 4.0%.

This growth is attributed to the approach with which A2P is used. it's enforced across a wide range of companies, although not all of them are tech-based. For instance, medical institutions utilize a two-way communication system via SMS so as to inform and permit the booking of appointments. Commercial banks use this service for their customers to check their balances and to give them notifications regarding their transactions. The aviation companies send out plane tickets and details to passengers for flight details and changes. These types of methods are made easy through SMS aggregators and marketers.

What Is A2P Used for?

Countries and space of operation play vital roles in the expansion of the A2P SMS market. Although in Europe and the US, these are utilized, they still play major roles in rising the markets. for instance, China and India are the main countries behind the A2P SMS push.

The A2P SMS market is additionally a major driving force behind the expansion of the growth of the Internet of Things (IoT). For a visual type of breakdown, check our infographic on the topic out, that details a variety of uses and statistics.


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