A2P Messaging Market Growth Brings New Challenges
The A2P messaging industry has grown significantly in the past two years. Its upward trajectory is unlikely to change for the foreseeable future.
A2P messaging holds a special appeal for companies as it caters to their customer relationships in a cost-effective, secure and unobtrusive way.
This, along with the increase of e-commerce, especially in densely populated regions like Eastern and Central Asia, is likely to further highlight the need for A2P messaging such as billing and transactional confirmation, notifications and other automatically generated texts.
According to Research and Markets, the overall value of the A2P messaging share of the market was $44.12 billion in 2017, and it will grow to $60.55 billion by 2025. Mobilesquared also provides reliable data that a total of 1.67 trillion A2P SMSs were sent worldwide in 2017, with the volume set to rise to 2.80 trillion by 2022. A big chunk of that came from white-route and domestic A2P messaging. And while domestic messaging is set to rise further in the future, its market share is expected to fall in relation to enterprise A2P messaging.
However, the increase in the overall volume of A2P messaging is not likely to go as smoothly as we thought for SMS operators. With higher volumes, they will come to a point when they will face serious challenges in sustaining the quality of their service and in keeping their SMS operations cost-effective.
The reason for this is simple. With the increase of volume of A2P messaging, the margin for each message is likely to fall, as dictated by marketing principles, and this will push cost-effectiveness to the forefront on the list of priorities for A2P SMS providers.
Additionally, as volumes rise, SMS operators would need to invest resources in new hardware and software to secure their infrastructures. And this could prove problematic for small-to-mid A2P market players, who not only will have to spend more money on new equipment but will also have to rely on more and more A2P messaging traffic to make a profit.
There’s a simple solution
The extended saving hand could come from quality stand-alone SMS platforms that can be integrated into third-party software. MediaCore SMS operates reliably and cost-effectively in the face of large volumes of SMS traffic. So, in a way, it’s two birds with one stone.
Now, while stand-alone SMS platforms could provide the solution to the growing SMS volumes, they still remain an expenditure, which could make it difficult for small A2P messaging market players to remain in the business.
The good news is that Speedflow offers the MediaCore SMS platform in a variety of packages, including a renting option. And this eliminates the need to spend lump sums for the full license and for additional hardware.
Stand-alone SMS platforms like MediaCore SMS can deal with future dramatic increases in A2P messaging traffic in an elegant and cost-effective way. They are a great way for operators of all sizes to not only remain in the business but to continue growing amidst drastic market changes.
If you want a reliable, scalable and cost-effective SMS switching, routing and billing solution, you can receive full information and a quote on MediaCore SMS at firstname.lastname@example.org. The solution comes with a proven track record of helping telecom business grow.
Try for yourself and see why.