Why We Think Application-to-person (A2P) SMS Market Will Continue To Grow
One of the biggest service markets that are currently experiencing a steady ontogeny is the Application-to-Person SMS. It has been in use by both large and small-scale business owners to increase consumer engagement and to make the customer experience smoother.
As it is expected that the nature of A2P SMS is not efficient or reasonable to be used by individuals in texting themselves. However, when we talk of its importance for business enterprises--it is a big fish--most thriving organizations implementing this can be a witness. Even if they do not, statistics and research will make it evident.
Based on a reputable estimation view that "Zion Market Research" conducted, it was reported that by the year 2020, the A2P SMS market is anticipated to attain the rate of seventy billion US Dollars, increasing at a Compound annual growth rate (CAGR) of about 4.0%.
Currently, "SMS API Integration" continues to gain prominence as the most used form A2P messaging, with commercial enterprises leveraging the techs to provide automated relevant SMS notifications to consumers' inbox.
Reasons behind the prediction of A2P SMS growth
The positive outcome of customer's communication performance after an effective application of A2P SMS in commercial enterprises instigated many other standard firms to start implementing it in their businesses. A2P SMS championship continues in strength, receiving attention from different business sectors and it is now one of the main mobile communication channels in which business organizations link up with their consumers.
We’ve gathered below, a few of the primary constituents contributing to the steady expansion of A2P SMS industry.
1. The demand for mobile phones keeps increasing
Among the key factors that are positively gearing up the expansion of A2P is the increase in the demand for mobile phones. Apart from the fact that all mobile phones come with an SMS feature, the national mobile phone penetration is now 98.6, and also, the phone population is now more than the overall human population. This persuades many institutions like ISPs into incorporating A2P SMS and even other mobile communication media into their businesses.
2. Increase in use of A2P SMS services in the customer-oriented industry
A2P SMS includes one of the fastest and most reliable means companies can reach out to their customers, thereby fostering a good customer experience. For this fact--that customer experience is being fostered--led to its wide application in large institutions including banks, governments, and the retail industry, and more than forty percent has been contributed to the A2P SMS penetration just from these angles.
SMS commercial services and enterprises are getting to discover new ways to apply the A2P SMS. However, it is being used for sending Bulk SMS, customized promotional campaigns, CRM, and interactive services.
3. Inexpensive communication platform
Also, we predict A2P SMS growth based on statistical analysis expatiating on how reliable ( return on investment), cheap and fast it is at getting into the inbox of large audiences anywhere and anytime. Come to look at it; mobile phones double its users, all smartphones pack SMS feature, more than 95% of SMS are checked within 3minutes plus affordability. All these keep the A2P SMS market growing day by day, not even with a little downswing.
4. A2P SMS Does not rely on the internet
SMS does not rely on the internet. Unlike over-the-top messaging services abbreviated as OTT, like Skype, Facebook, WhatsApp, Instagram and the rest of them. Also, It is not a new thing that internet operationality is not efficient in every part of the world. In most developing countries, it is quite obvious that not everyone can afford to get a reliable internet connection or even a smartphone these OTTs are compatible with. So, it is a plus for A2P SMS to get to all phones' inbox without the need for the internet. As this feature drives more and more enterprises to its usage, A2P SMS is expected to grow bigger in the nearest future.
We hope to have established, with statistical facts and real-time reports, how fast the A2P SMS is steadily growing. Therefore, for a company that needs to improve its standardization and also longs for a suave customers' engagement, going to an A2P SMS platform provider like us (TeleOss) for Bulk SMS implementation is a clever step, and we guarantee you a nice experience.