Though lesser known than P2P messaging, another area of texting is A2P. These messages have been gaining immense popularity over the last few years.
Simply put, A2P, or ‘Application to Person’, is a term for messaging that is sent from a software application run by a business to a consumer’s device. Businesses use these applications for marketing messages, appointment reminders, chat bots or virtual assistants, notifications, one-time passwords or PIN codes and many other messaging occasions.
We noticed that the efficacy and popularity of SMS messaging in the clear language of hard data.
The numbers tell the tale of increasing A2P messaging traffic, which was projected to grow from 2,393 billion in 2019 to 3,136 billion in 2020, with a CAGR (Compound Annual Growth Rate) of 6.99% during the period of 2019 – 2023.
The volumes of cash flows on the global A2P messaging market are also showing significant growth and have increased from $23.4 billion in 2014 to $31.8 billion in 2018, showing a CAGR of 7.97% year-on-year between 2014 and 2018. The research material indicates that this growth has continued in the ensuing years.
Even before the radically different conditions of the pandemic, which is likely to have been favourable to the growth of the sector, the A2P medical messaging market alone was valued at $4.51 billion in 2018. According to further projections, the total market size is expected to expand to $5.70 billion by 2023, up from $4.72 billion at the end of 2019, with a growth rate of 4.83% over the period of 2019 – 2023. This growth is being attributed to recent events and the rising demand for modern medical services and supporting software applications.
All in all, the global A2P messaging market is predicted to grow at a CAGR of 7.54% to a total of $46 billion by 2023, up from $34.4 billion in 2019.
The reasons for such tremendous positive dynamics are quite clear, as it is evident that medical services are catching up with modern communication methods and the efficiency of mass messaging as a tool to reach an audience that is overwhelmingly equipped with mobile phones. It is logical to assume that the market will continue developing as per the projections of the above mentioned data or, in light of recent events, even faster.