A2P SMS Market to Reach $93.83 Billion by 2031, Led by Route Mobile, Telesign, Clickatell, and C3ntro Telecom – The Insight Partners

The A2P SMS market, including the growing use of RCS for interactive and secure business messaging. The rise of mobile penetration, e-commerce expansion, and increased adoption of rich communication services are key factors driving this growth.

/EIN News/ -- US & Canada, March 27, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, A2P SMS Market Size and Forecast (2025 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type, Application, Enterprise Size, Vertical, End User, and Geography”, the global A2P SMS market is observing significant growth owing to rapid pace of digital transformation and adoption of rich communication services. The global market experiences growth owing to rapid pace of digital transformation and adoption of rich communication services.

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The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the A2P SMS market comprises a vast array of component and enterprise size which are expected to register strength during the coming years.

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Overview of Report Findings

A2P SMS Market Growth: The A2P SMS market size was valued at US$ 73.49 billion in 2024 and is expected to reach US$ 93.83 billion by 2031; it is estimated to record a CAGR of 3.8% from 2025 to 2031. An increase in the penetration of mobile phones and the proliferation of e-commerce are the key factors bolstering the A2P SMS market. Further, growing banking and financial service infrastructure is likely to generate significant growth opportunities in the market during the forecast period. The adoption of rich communication services (RCS) is expected to emerge as a noteworthy trend in the market in the coming years.

Adoption of Rich Communication Services: Rich communication services (RCS) are becoming an increasingly popular choice for businesses, replacing traditional SMS with interactive and feature-rich messaging. Businesses seeking to offer personalized customer engagement can leverage RCS to enable multimedia content, enhanced security, and two-way communications. Dotgo, a global leader in RCS business messaging, has announced a significant milestone, surpassing 10 billion RCS messages on its platform in 2024. These stats represent a fivefold increase from 2023, underscoring the growing preference for RCS as a business messaging solution. The platform's rapid adoption spans key markets where RCS has experienced remarkable growth over the past year. In September 2024, Sinch announced the accelerating adoption of RCS. Sinch has consistently delivered secure, branded, and interactive messaging solutions, offering flexible options that include messaging APIs, SaaS tools, and messaging enablement services. These solutions empower both brands and carriers to embrace RCS and transform customer interactions. With Sinch's RCS Upscale solution, businesses can seamlessly transition from SMS to RCS without additional costs or integration changes. As businesses continue to seek more dynamic and secure communication channels, RCS offers a compelling alternative to traditional SMS. Moreover, with enhanced features such as rich media, interactivity, and greater security, these services are poised to play a pivotal role in the future of business messaging. Thus, the adoption of rich communication services is emerging as a significant trend in the A2P SMS market.

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Regional Overview: The A2P SMS market in the MEA is divided into Saudi Arabia, the UAE, South Africa, and the Rest of MEA. With increasing mobile penetration and the growing dependence on digital communications, businesses in the region are adopting A2P SMS for a variety of purposes, including marketing, customer service, transactional notifications, and two-factor authentication (2FA). As the demand for secure, efficient, and personalized communication solutions rises, telecom operators are partnering with technology providers to enhance their A2P messaging capabilities and revenue streams. In the MEA, industries ranging from finance to retail rely heavily on reliable A2P messaging infrastructure and services for secure, timely communications with their customers; this has led to significant collaborations between telecom operators and service providers to improve A2P SMS offerings with regard to security and scalability. For example, in February 2025, Salam announced a strategic partnership with Mada, a leading telecom solutions provider, at Capacity Middle East 2025. Through this partnership, Mada will manage Salam's international A2P messaging services, including 2FA and automated notifications. This collaboration allows Salam to leverage Mada’s expertise to enhance its customer experience and drive A2P messaging revenue. In August 2024, Telecom Egypt announced signing a multi-year agreement with Mada Communications to become its “preferred strategic provider” of international A2P messaging services.

Geographical Insights: Asia Pacific dominated the A2P SMS market in 2024. North America is the second-largest contributor to the global A2P SMS market, followed by Europe.

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A2P SMS Market Segmentation

Key segments that contributed to the derivation of the A2P SMS market analysis are type, application, enterprise size, and vertical.

• In terms of type, the market is bifurcated into traditional and managed messaging services, and cloud API messaging platforms.
• Based on application, the market is segmented into pushed content services, interactive messaging services, promotional and marketing campaigns, CRM services, authentication services, and others.
• On the basis of the enterprise size, the market is bifurcated into SMEs and large enterprises.
• By vertical, the market is divided into BFSI, retail, media and entertainment, travel and transport, healthcare, and others.

Key Players and Competitive Landscape:

The A2P SMS Market is characterized by the presence of several major players, including:

• Twilio Inc                 
• Sinch AB                   
• Infobip Ltd               
• Telesign
• C3ntro Telecom     
• Clickatell                   
• Intergo Telecom Ltd             
• Concepto Movil LLC             
• Tata Communications Ltd.
• Route Mobile

These companies are adopting strategies such as new product launches, joint ventures, and geographical expansion to maintain their competitive edge in the market.

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Competitive Strategy and Development

• Key Players: A few major companies operating in the A2P SMS market include Twilio Inc, Sinch AB, Infobip Ltd, Telesign, C3ntro Telecom, Clickatell, Intergo Telecom Ltd, Concepto Movil LLC, Route Mobile, and Tata Communications Ltd.
• Trending Topics: SMS Marketing, SMS API, Two-Factor Authentication (2FA), and RCS (Rich Communication Services

Global Headlines

• "Route Mobile entered into an exclusive partnership with Vodafone Idea Limited (“VIL”) to deploy and implement its suite of end-to-end A2P monetization solutions, for all A2P SMS traffic on the VIL network (including erstwhile Vodafone and Idea networks). As part of this arrangement, Route Mobile provide comprehensive A2P monetization solutions to VIL by deploying its Artificial Intelligence/Machine Learning (AI/ML) driven analytical firewall solution, an SMS Hub on the VIL network, and aggregating international A2P SMS traffic on the VIL network."
• "Twilio introduced Authentication+, a new identity verification process for public brand registrations within A2P 10DLC. This step applies to new and existing public brands and is designed to prevent brand impersonation and protect against fraud, such as smishing and spoofing."

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Conclusion

Application-to-person (A2P) messaging (also known as business or enterprise SMS) is the automated process of sending mobile messages from a business application to a mobile user, typically for marketing or service purposes. It allows businesses to automate the delivery of large volumes of messages, such as two-factor authentication codes, emergency alerts, appointment reminders, and promotional content. Unlike manual SMS sending, A2P enables companies to communicate with a wide audience through automated systems efficiently. These messages are often sent via short codes, enhancing scalability and operational efficiency.

The report from The Insight Partners, therefore, provides several stakeholders—including mobile network operators (MNOs), A2P SMS aggregators, regulatory bodies/government agencies, and end users —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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