Premium Messaging Market Size, Share & Trends Analysis growing at a CAGR of 9.1% from 2025 to 2030

The global premium messaging market size was valued at USD 75.44 billion in 2024 and is projected to grow at a CAGR of 9.1% from 2025 to 2030. Extensive use of SMS as a business communication tool for operational and marketing communications and decreasing costs of premium messaging services are major drivers of this market. Premium messaging has become popular across several business sectors due to continued shifts in Customer Relationship Management (CRM) strategies. As smartphone adoption continues to witness positive growth, the use of more advanced messaging formats that these devices can support has also increased sharply. Customers prefer premium messaging services as they are user-friendly, generate interest in the services offered by a business, and provide significant value to every stakeholder.

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Premium messaging holds a substantial appeal among businesses, allowing them to connect directly with customers in a branded, seamless manner. Features including rich media messages (images and videos) and the ability to communicate with customers in real-time are considered critical in creating personalized experiences. According to a report by Mobile Text Alerts published in 2023, 64% of consumers believe that businesses should contact them more frequently through SMS. Furthermore, 75% of users want text messages that contain special offers, highlighting more opportunities for brands to adapt their messages to boost the visibility of their business. Another report by Sender in 2023 found that 98% of consumers stated that they interact with every received text message, with the click-through rate being close to 11.0%. This has made the use of messaging services a highly effective strategy for brands aiming to use targeted marketing campaigns, including push notifications, exclusive offers, and time-bound promotions delivered directly to mobile devices.

Premium messaging services, particularly SMS, provide an immediate and reliable channel to deliver time-sensitive messages, such as order confirmations, transaction alerts, delivery tracking, and marketing offers. Fraud alerts and real-time transaction monitoring are critical to maintaining customer trust, particularly in sectors such as BFSI and e-commerce. A2P messaging allows businesses to send immediate alerts about suspicious activities, unauthorized transactions, or potential fraud, keeping customers informed and minimizing potential losses. The continued rise in the adoption of digital transaction tools has further helped shape positive developments in the market, as premium messaging services are integral for sending secure notifications regarding payment success/failure, transaction amounts, and alerts for digital wallet activity. A prominent application of premium messaging in this segment is Two-Factor Authentication (2FA). Businesses often send one-time passwords via SMS or MMS to verify the identity of users during login or when performing sensitive actions, such as initiating a bank transfer, updating account information, or making a purchase. This ensures extra security and privacy for the involved parties and prevents unauthorized access.

The need to provide a comprehensive and well-rounded brand experience for customers has highlighted the importance of integrating premium messaging with other marketing channels. Premium messaging is considered a vital part of the omnichannel marketing strategy, where retailers ensure consistent messaging across different platforms, such as email, social media, mobile apps, and physical stores. For example, customers can receive a promotional SMS and then have a personalized follow-up through an email or app notification. Another factor encouraging the expansion of the premium messaging industry is the increasing globalization of businesses and the use of cross-border campaigns to engage audiences in different countries or regions. SMS and MMS are universal tools that work across geographies, making them ideal for reaching international customers with localized, relevant content. Premium messaging services also support multilingual communication, which is crucial for retailers operating in multiple countries or regions. Personalized messaging in the local language of customers increases the relevance of the message and improves engagement rates.

Product Insights

The A2P SMS segment accounted for the largest revenue share of 49.8% in the global premium messaging industry in 2024 and is further expected to maintain its leading position during the forecast period. Application-to-Person (A2P) SMS services are widely used for various business communication purposes, including customer engagement, notifications, authentication, marketing, and transactional messaging. The increasing penetration of smartphones globally is a primary driver for the use of A2P SMS services. Mobile messaging is highly effective as it reaches consumers directly on their phones, making it an ideal communication channel for businesses. Businesses are increasingly using A2P SMS to engage customers with personalized promotions, product updates, loyalty rewards, and event invitations. Additionally, A2P SMS is a widely adopted mechanism for two-factor authentication (2FA), as it provides an additional layer of security for users to verify their identity during login or financial transactions.

The A2P MMS segment is expected to advance at a substantial CAGR in the global market from 2025 to 2030. Application-to-Person (A2P) MMS is a form of messaging that allows businesses to send multimedia content such as images, videos, audio files, and rich content to consumers. Consumers increasingly expect rich media, such as images, videos, and infographics, as part of their communication experience. With A2P MMS, companies can send product demos, promotions, or brand messages in a more engaging format, leading to higher interaction rates. Communication service providers are increasingly turning towards this form of messaging to boost their offerings. For instance, in June 2024, the communication platform Infobip began offering A2P RCS Messaging services in the North American region, aiming to enable brands to provide more interactive experiences to their customers.