Cloud to Spur SMS Traffic Shift

PRESS RELEASE – SAN FRANCISCO, Aug. 5, 2015 /PRNewswire/ — Nexmo, the leading cloud communications company, today released market information showing surging growth for the global cloud communications space for the next five years. Nexmo is helping drive this growing market growth with innovative open solutions, superior customer support, global reach and top tier customers like Alibaba, Airbnb, LINE and Viber.

With IDC forecasting global revenue generated by the cloud communications market will grow from $123 million in 2013 to $7.5 billion in 2018 at a 127 percent CAGR, Nexmo presented industry data in an infographic, “The Innovative Future of SMS,” to explain some trends driving this growth. Data from various industry sources shows where the explosion in cloud communications are coming from as more companies rely on cloud communications for their business. Significant takeaways are:

  • Global A2P SMS traffic is poised to grow 63% from 1.4 trillion messages in 2013 to 2.19 trillion messages in 2018
  • Global revenue generated from A2P SMS is projected to grow from $55.04 billion in 2014 to $70.32 billion in 2020, lead by three regions:
    • North America – projected 3.8 percent growth from $15.13 billion to $18.87 billion
    • Europe – projected 3.7 percent growth from $11.65 billion to 14.48 billion
    • APAC – projected 4.6 percent growth from $23.29b to $30.52 billion
  • Over 350 billion global SMS messages are sent every month

“Since 2010 we’ve helped companies like Alibaba and Snapchat navigate the complex communications space with our global cloud communications platform and expertise to more efficiently and reliably communicate with their customers,” said Tony Jamous, CEO and co-founder of Nexmo. “We are excited to keep pushing the envelope of what is possible with cloud communications and help our customers achieve rampant growth.”

While A2P messaging was originally popular among marketers, other fields are increasingly using cloud communications. With retail, finance, hospitality, travel and transport and gaming leading the global volume of A2P SMS, the Nexmo infographic breaks down how each industry uses A2P messaging.

The infographic can be accessed at Nexmo’s blog:

About Nexmo
Nexmo is the global cloud communications platform leader providing innovative communication APIs and SDKs for voice, text, messaging and phone verification services. Nexmo enables applications and enterprises to communicate with their customers reliably and with ease, no matter where in the world they are located. High-volume communication companies such as Alibaba, LINE and Viber send millions of messages per month using Nexmo APIs. Nexmo was recognized by analyst firm Gartner as a 2014 Cool Vendor in Communication Services, has been recognized by Roaming Consulting Company as a Tier 1 A2P SMS Messaging Vendor in 2015 and was selected as an Aragon Research Hot Vendor in Real-Time Communication and Collaboration Platform as a Service in 2015.

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