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Due to the improved standard of living and rapid growth of e-commerce, customers rely more on online payment services rather than physical transactions owing to the ease of transactions offered by these applications, boosting the market growth. A2P SMS Market size market demonstrates a rapid growth owing to the way in which A2P is utilized by various sectors globally where the messages are sent from an application mostly a web app to the mobile subscriber.
The rising urbanization and increasing digitalization have resulted in the growth in the number of mobile subscribers across the world. Changing customer behavior toward communication enables the enterprises to include SMS in their business functioning, thereby fueling the A2P SMS market demand. Several telecommunication service providers, cloud service providers, and handset vendors are working in collaboration to offer efficient working of A2P SMS market.
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These enterprises are focusing on accessing mobile platforms for their marketing and promotional strategies as A2P SMS is the most convenient way to personally connect with their customers. Hence, companies are allocating additional funds for in-mobile centric events as compared to Television or web-based promotional advertising activities.
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Initially, only private business firms adopted the two-factor authorization feature; however, due to its ease-of-usage such as instant delivery, cost-effectiveness, and high-open rate, the A2P SMS usage has extended to the public sector. This feature is now increasingly utilized by industries for applications such as password resets, new registration authentication, and user profile information, thereby accelerating the A2P SMS market growth.
The government of the developing economies of China and India are undergoing various digital transformations resulting in a rise in the number of mobile subscribers, driving the market demand. The rise in the IoT technologies, such as identity verification, smart homes, and mobile commerce, also drives market growth.
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