The global market for application-to-person (A2P) SMS is on track for steady growth through 2025, and banks and financial firms are among the most promising sources of demand. That is the outlook in a report from Transparency Market Research (TMR), released in January 2018.
TMR valued the market at US$62.01 bn in 2017. By 2025, revenue is expected to reach US$86.53 bn. Message volume tells a similar story, since it is forecast to rise from about 1,717 bn in 2017 to 2,353 bn by 2025. Both revenue and volume are set to grow at a compound annual rate of 4.2%.
Among applications, customer relationship management services are expected to be the most lucrative. Banks and financial firms use them to send billing and transaction details, while more consumers move to online banking. The report also covers pushed content, promotional campaigns, interactive services and inquiry-related services.
On the industry side, TMR tracks retail, BFSI (banking, financial services and insurance), travel and transport, healthcare and hospitality, and entertainment and media.
Asia Pacific led in 2016 with roughly 40% of global revenue, and it is expected to stay in front through 2025. North America held the second-largest share.
Growth rests on several trends. The number of mobile subscribers keeps rising, and marketers lean more on mobile campaigns. A2P messages are also used more in mobile banking, mobile health and mobile payments. Cheaper smartphones, wider internet access and the spread of e-commerce add to demand.
Even so, the market faces problems. Bulk SMS has technical issues, and phishing, spam and mobile malware are on the rise. Illicit routes also eat into telecom operators’ revenue.
The market is highly fragmented, which means no single vendor holds a notable share. Leading players include Syniverse Technologies LLC, AMD Telecom SA, Fortytwo Telecom AB, Silverstreet BV and Mblox Inc.