Us A2p Messaging Market Overview
- The target market is expected to be worth USD 44.4 Billion by 2035.
- The U.S. A2P messaging market size was sized up at USD 27.3 Billion in 2025.
- The market is expanding at a CAGR of 2.8%.
A2P messaging (application to person messaging), also known as enterprise or business SMS, is a type of SMS messaging technique where a text is sent from a software application run by an enterprise to a consumer's device. Increased Mobile Phone Penetration, Rise in Business Use of Messaging for Customer Engagement, Improved Customer Experience, Adoption of Two-Factor Authentication (2FA), Growing E-Commerce and Online Services, and others are factors contributing to A2P messaging market growth in the region.
Us A2p Messaging Market Drivers & Restraints
Key Drivers of Target Market:
Widespread Usage of A2P Messaging in Banking Sector may Assists to Market Growth
A2P SMS allows banks to provide customers with real-time alerts for transactions and account activities. A2P SMS empowers banks to send tailored offers and promotions to individual customers. By analyzing customer data and preferences, banks can send personalized messages that resonate with each recipient. A2P SMS plays a pivotal role in providing efficient customer support. Banks can offer immediate assistance through SMS for common inquiries such as account balances, recent transactions, or even forgotten PIN codes. This convenience reduces customer frustration and enhances their perception of the bank’s service quality.
Restraints:
Market Growth is Disrupted by Rising Termination Rates and Cost Pressures
In recent years, mobile network operator (MNOs) have sharply increased international SMS termination rates, effectively doubling average costs. This has driven major brands to explore more affordable alternatives such as WhatsApp, flash calling, and passkeys. The resulting erosion of trust and reliance on SMS has further destabilized its position as the go-to business messaging channel.
- Counterbalance Statements: In order to address the rising termination rates and cost pressures of A2P messaging, businesses must adopt a multi-faceted approach, incorporating technological innovation, better routing practices, and strategic partnerships.
Opportunities:
Omnichannel Messaging can Unlocks Future Opportunity for the Market
Omnichannel messaging ensures a seamless customer experience across different platforms. By integrating SMS with email, social media, and other communication channels, businesses can maintain consistent messaging. This approach enhances customer satisfaction and loyalty by providing a unified experience.
- For Instance, In January 2025, DIDWW launched its new omnichannel Messaging Platform. This powerful tool enables users to engage with their audience globally through multiple channels, including SMS, social platforms and email. This platform also features automated link shorteners, customizable sender information, and the ability to generate fallback channels to ensure message delivery.
Us A2p Messaging Market Segmentations & Regional Insights
Component, deployment mode, communication channel, enterprise size, application, end-user, and country are segmentations in which the market is classified.
Component
Appertaining to component, the market is grouped into platform and services. The platform segment have a massive A2P messaging market share, caused by its widespread used across many sectors, including travel, media, healthcare, and BFSI.
Deployment Mode
The market, via deployment mode, is separated into on-premise and cloud. Cloud deployment mode contributes to market expansion due to its advantages, such as scalability, cost-effectiveness, ease of implementation, and flexibility, making it the preferred choice for businesses of all sizes, especially when dealing with fluctuating message volumes.
Communication Channels
Counting on communication channel, the market is classified into SMS, operator IP, third-party apps, and others. The SMS segment is superior as compared to others, due to its wide reach, reliable delivery even without an internet connection, and familiarity across most mobile users.
Enterprise Size
The targeted market, by enterprise size, is ranked into large enterprises, small & medium enterprises. However, the large enterprise segment is leading the market due to the increased marketing budgets, investments, and spending.
Application
Pushed content services, interactive services, promotional campaigns, customer relationship management services, and others are application of the market. Within this, customer relationship management services is attributed to rule over the market, as businesses heavily utilize A2P SMS to send personalized messages, and engage with customers in real-time, particularly across sectors, such as retail, banking, and e-commerce.
End-User
The market, by end-user, is sub-divided into BFSI, healthcare, media & entertainment, retail & e-commerce, travel & tourism, and others. The BFSI segment is attributed to lead the market due to its rising usage.
U.S. A2P Messaging Market Report Scope:
Attribute |
Details |
Market Size 2025 |
USD 27.3 Billion |
Projected Market Size 2035 |
USD 44.4 Billion |
CAGR Growth Rate |
2.8% (2025-2035) |
Base year for estimation |
2024 |
Forecast period |
2025 – 2035 |
Market representation |
Revenue in USD Billion & CAGR from 2025 to 2035 |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segmentation:
By Component:
- Platform
- Services
By Deployment Mode:
- On-Premise
- Cloud
By Communication Channel:
- SMS
- Operator IP
- Third-Party Apps
- Others
By Enterprise Size:
- Large Enterprise
- Small & Middle Enterprise
By Application:
- Pushed Content Services
- Interactive Services
- Promotional Campaigns
- Customer Relationship Management (CRM) Services
- Others
By End-User:
- BFSI
- Healthcare
- Media & Entertainment
- Retail & E-commerce
- Travel & Tourism
- Others
By Region:
- North America
- U.S.
- Canada
Us A2p Messaging Market Competitive Landscape & Key Players
The key players operating in the U.S. A2P Messaging Market include Infobip ltd., Route Mobile, Comviva, Tata Communications Limited, and among others. The key players are adopting strategies for the growth of the market such as focus on strict compliance with regulations, robust security measures, personalization, seamless integration with existing systems, and leveraging advanced messaging features, such as RCS to enhance customer engagement while catering to the region's specific industry needs.
List of Key Players in the Market:
- Infobip ltd.
- Comviva
- Tata Communications Limited
- Plivo Inc.
- Twilio Inc.
- Vonage America, LLC
- Syniverse Technologies LLC
- AT&T Intellectual Property
- BICS SA
Us A2p Messaging Market Recent News
- In January 2025, Business Telecommunications Services, Inc. announced its appointment as the exclusive international A2P SMS aggregator for BBIX, Inc. This agreement marks a significant milestone in the five-year partnership between BTS, BBIX, and SoftBank, enabling seamless and innovative international communication solutions. The partnership also ensures the delivery of secure and reliable messaging services by leveraging BTS’s advanced S1 Platform.
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Us A2p Messaging Market Company Profile
Company Name |
Syniverse Technologies LLC |
Headquarter |
Tampa, Florida, U.S. |
CEO |
Andrew Davies |
Employee Count (2024) |
2000 Employees |
FAQs
U.S. A2P messaging market Size was valued at USD 27.3 Billion in 2025 and is expected to reach USD 44.4 Billion by 2035 growing at a CAGR of 2.8%
The market is segmented into component, deployment mode, distribution channel, enterprise size, application, end-user, and region.
The key players operating in the U.S. A2P messaging market include Infobip ltd., Comviva, Tata Communications Limited, Plivo Inc., Twilio Inc., Vonage America, LLC, Syniverse Technologies LLC, AT&T Intellectual Property, and BICS SA.