basis is expected to provide high impetus to the overall A2P SMS market over the forecast
period.
Banking, Financial services and Insurance (BFSI) dominated the end use industry
segments owing to various identification, alerts and phone banking related
applications
Typical applications of these services in BFSI segment include authentication of users of online
services, banking notifications, critical transaction alerts (due payment, balance statements,
minimum balance requirements, etc.), SMS banking and promotional campaigns for new BFSI
policies. These applications are projected to increase at considerable rates and positively
influence growth of the BFSI segment in the A2P SMS market through the forecast period.
Moreover, proliferating e-commerce retail industry is expected to provide strong growth
prospects. Retail specific applications include location based promotional campaigns, contests,
coupons, product discount & sale announcements and enhanced consumer service. Owing to
these applications, customer relationship management accounted for the largest A2P SMS
market share among application segments.
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Character limitation and limited audience engagement will continue to act as
potential growth barrier to the industry growth
Advertising space of the service users is limited to 160 characters and the target audience
cannot be efficiently attracted with the use of additional audio or animation content. Moreover,
advertisers find it difficult to engage consumer for text services and end up getting spammed.
Owing to proliferation of many other messenger apps, such as WhatsApp, Facebook Messenger,
QQ Mobile, among others, consumer tendency to rely on text messages has considerably
decreased. These factors are projected to limit the end user inclination towards these services,
which in turn would hinder the overall A2P SMS market growth.
Asia Pacific to be the key growth engine of the A2P SMS market
According to United Nations Economic and Social Commission for Asia and Pacific (UN ESCAP),
Asia Pacific is home to largest consumer base across the globe, accounting for over 60% of the
global population. Emerging economies such as China, India, Indonesia, and Saudi Arabia are
expected to provide significant growth prospects over the forecast period, owing to the large
mobile subscription base in these regions. Moreover, proliferation of smart banking and e-
commerce in the regions will provide significant demand surge for A2P SMS market.