Juniper Research forecasts that A2P (application-to-person) SMS will generate over $78 billion in global revenue by 2027, growing from $61 billion in 2023. Far from being replaced by newer channels, business SMS is expanding — driven by authentication, notifications, and marketing across every industry.
Why SMS Revenue Is Growing
The growth in A2P SMS is driven by several converging trends:
Authentication and Security
The single biggest driver of A2P SMS growth is two-factor authentication. As online services multiply and cyber threats increase, SMS OTPs remain the most widely deployed verification method globally. Juniper estimates that authentication messages account for over 40% of all A2P SMS traffic.
E-Commerce Notifications
Global e-commerce continues to grow, and every order generates multiple SMS touchpoints — confirmation, shipping, delivery, and follow-up. With online retail expected to reach $6.3 trillion by 2027, the notification SMS market grows in lockstep.
Financial Services
Banks, payment providers, and fintech companies rely on SMS for transaction alerts, fraud warnings, and account notifications. Regulatory requirements in many countries mandate SMS notifications for certain financial transactions.
Healthcare
Post-pandemic, healthcare systems worldwide have embraced SMS reminders for appointments, prescriptions, and patient communication. The NHS alone sends millions of text messages annually.
What About Competing Channels?
The rise of WhatsApp Business, RCS, and other messaging platforms hasn't displaced SMS — it's expanded the overall business messaging market. Here's why SMS retains its position:
- No app required: WhatsApp needs the app; RCS needs a compatible device and carrier. SMS works on every phone
- No internet required: SMS works without data connectivity
- Global reach: SMS works in 230+ countries. WhatsApp Business API coverage is limited
- Regulatory acceptance: SMS is the only channel accepted by regulators worldwide for OTP delivery
- Carrier billing integration: SMS integrates with mobile carrier billing in ways OTT apps cannot
The Multi-Channel Reality
Juniper's research shows that businesses aren't replacing SMS with WhatsApp or RCS — they're adding these channels alongside SMS. The most effective messaging strategies use:
- SMS for time-critical notifications, OTPs, and universal-reach campaigns
- WhatsApp for rich customer conversations and support
- RCS for branded, interactive marketing messages
- Email for long-form content and documentation
What This Means for UK Businesses
The UK is one of the most mature A2P SMS markets in the world, and volumes continue to grow. For businesses, this means:
- SMS is a safe, long-term investment — it's not going anywhere
- Building SMS capability now prepares you for multi-channel messaging as RCS matures
- The infrastructure, expertise, and compliance frameworks you build around SMS carry forward into newer channels
Faretext's SMS API is designed with the future in mind — a single integration point that will expand to support RCS and other channels as they mature. Get started today.
