A2P SMS and CPaaS Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Solution and Services), Channel [Message (Chat Apps and SMS), Voice, Email, Webpush, and Others], Enterprise Size (SMEs and Large Enterprises), and Industry (IT & Telecom, BFSI, Retail & E-commerce, Healthcare, and Others)
The A2P SMS and CPaaS market is projected to grow from US$ 71.07 billion in 2022 to US$ 101.77 billion by 2028. It is estimated to grow at a CAGR of 6.2% from 2022 to 2028.
Businesses are widely adopting communications platform as a service (CPaaS) solutions to improve and streamline their customer experience. CPaaS simplifies communication integration from voice messaging and video to transform businesses' interaction with customers in the digital age. There is significant hype about applications-focused businesses since companies in this field offer the potential to dominate the entire CPaaS market across all types of communication. However, the R&D costs required for any company to dominate the market are significantly high. For instance, Twilio is close to such a financial position in the market, having already spent a massive amount on R&D. The company spent US$ 391.4 million on R&D, compared to revenues of US$1.134 billion, with an operating loss of US$369.8 million. After the emergence of the COVID-19 pandemic, several companies have shifted toward digital channels to support customer communications contributing to the A2P SMS and CPaaS market growth
The US, Canada, and Mexico are among the major economies in North America. North America is predicted to register the largest share in the global A2P SMS and CPaaS market. It is because of the increasing rate of adoption of numerous advanced technologies. The increasing use of cutting-edge technologies such as machine learning, industrial automation, and growing digitalization across regional organizations are expected to boost the A2P SMS and CPaaS market growth in the region. Furthermore, North America is becoming a hub for various industrial verticals such as IT & Telecom, BFSI, healthcare, and energy & utilities; these industrial sectors have a large client base, which is expected to provide CPaaS providers with new lucrative opportunities. Several businesses in North America use cost-effective and user-friendly browser-based communication solutions and client feedback through digital means such as social media, contact centers, web portals, and mobile phones. As a result, the North America A2P SMS and CPaaS market is expected to grow during the forecast period.
Several organizations in North America use various digital channels to collect customer feedback data, appointment confirmations and reminders, order confirmations, delivery tracking information, and many others, including web portals, social media, contact centers, and mobile phones. Regarding technology acquiring and supporting infrastructure, the US is a key adopter and innovator of CPaaS, and the region also serves as a profitable market. Thus, these factors are likely to fuel the A2P SMS and CPaaS market growth in the US over the forecast period. Moreover, for example, MessageBird, a company in the US, has a powerful and comprehensive CPaaS solution. Additionally, it reduces entry barriers for first-time CPaaS customers by offering a free-to-use solution tier that gives access to all channels with minor use restrictions. Therefore, the demand for the CPaaS market is growing across North America.
The A2P SMS and CPaaS market is segmented into component, channel, enterprise size, industry, and geography. Based on component, the A2P SMS and CPaaS market is bifurcated into solution and services. Based on channel, the A2P SMS and CPaaS market is segmented into message, voice, email, webpush and others. The message segment is further bifurcated into chat apps and SMS. Based on enterprise size, the A2P SMS and CPaaS market is bifurcated into SMEs and large enterprises. Based on industry, the market is segmented into IT & telecom, BFSI, retail & e-commerce, healthcare, and others. Based on geography, the A2P SMS and CPaaS market is segmented into North America (US, Canada, and Mexico), Europe (Germany, UK, France, Italy, and Rest of Europe), Asia Pacific (Australia, Japan, South Korea, India, China, Pakistan, and Rest of APAC), MEA (Saudi Arabia, UAE, South Africa, Turkey, Egypt, and Rest of MEA), and SAM (Brazil, Argentina, and Rest of SAM).
The overall A2P SMS and CPaaS market has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the A2P SMS and CPaaS market. The process also obtains an overview and forecast for the A2P SMS and CPaaS market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights. Participants in this process include industry experts, such as VPs, business development managers, market intelligence managers, national sales managers, external consultants, valuation experts, research analysts, and key opinion leaders—specializing in the A2P SMS and CPaaS market.
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