Global Premium Messaging Market Size, Share & Trends Analysis Report By Product (A2P SMS, P2A MMS, A2P MMS, and P2A SMS), By Application (Entertainment & Media, BFSI, Hospitality, Outsourcing, Retail), By Regional Outlook and Forecast, 2024 - 2031

The Global Premium Messaging Market size is expected to reach $129.47 billion by 2031, rising at a market growth of 8.8% CAGR during the forecast period.

With the growing popularity of mobile streaming, gaming, and social media platforms, entertainment companies rely on premium messaging for subscription updates, promotional offers, event notifications, and interactive campaigns like voting and contests. Therefore, the entertainment & media segment acquired 36% revenue share in the market in 2023. Additionally, personalized content recommendations and pay-per-view services are boosting the adoption of A2P SMS and MMS to enhance user engagement and drive monetization. The rise of mobile advertising and influencer marketing also contributes to the growing importance of premium messaging in the media sector.

Improved network infrastructure under 5G ensures greater stability and security in messaging services, reducing the risk of message delays, failures, or fraud. This is particularly beneficial for mission-critical sectors like emergency response systems, remote healthcare, and industrial IoT, where instant and reliable communication can make a significant difference. Furthermore, the integration of AI and edge computation in 5G networks further enhances real-time analytics, enabling businesses to optimize message delivery based on user preferences and behavior. Moreover, the rise in cross-border e-commerce, which UNCTAD estimated at $440 billion in 2019, underscores the importance of reliable communication channels. Premium messaging facilitates seamless interactions between retailers and international customers, providing real-time updates on order confirmations, shipping statuses, and delivery schedules. This level of transparency and immediacy is essential for fostering trust and guaranteeing a positive consumer experience. Therefore, the growth of e-commerce is beneficial for the premium messaging market.

However, for businesses, premium messaging can increase operational expenses, particularly for industries that rely on bulk messaging for customer engagement, transactional alerts, and marketing campaigns. Subscription-based premium messaging services add to these costs, making it difficult for companies to justify their investment in SMS-based communication when cheaper alternatives are readily available. Businesses often hesitate to allocate budgets to premium messaging when they can achieve similar or better engagement through cost-effective digital channels. As a result, many customers and businesses are shifting to more economical alternatives such as push notifications, email marketing, and AI-driven chatbots. Thus, the demand for premium messaging services continues to decline, given the availability of more affordable and feature-rich communication channels.

Product Outlook

Based on product, the market is classified into A2P SMS, A2P MMS, P2A SMS, and P2A MMS. The P2A SMS segment procured 6% revenue share in the market in 2023. The P2A SMS (Person-to-Application SMS) segment is experiencing growth due to the rising adoption of interactive messaging, AI-driven chatbots, and automated customer service solutions. Consumers increasingly use shortcodes, surveys, and SMS-based inquiries to interact with businesses, request information, or provide feedback. Industries such as telecom, travel, healthcare, and entertainment leverage P2A SMS to enable seamless two-way communication between users and service providers.

Application Outlook

On the basis of application, the market is divided into BFSI, entertainment & media, hospitality, outsourcing, retail, and others. The BFSI segment recorded 21% revenue share in the market in 2023. Financial institutions depend on premium messaging for transaction alerts, OTP-based authentication, fraud prevention, and customer service interactions. With the rapid expansion of digital banking, mobile wallets, and fintech solutions, premium SMS is crucial in ensuring secure financial transactions and regulatory compliance. Growing concerns about cybersecurity and identity verification have also strengthened the demand for A2P SMS in multi-factor authentication (MFA) and fraud detection systems.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment garnered 35% revenue share in the market in 2023. The North America segment is primarily driven by high mobile penetration, advanced digital infrastructure, and strong enterprise adoption of premium messaging. The region's well-established BFSI, e-commerce, and media industries heavily rely on A2P SMS for secure transactions, customer engagement, and fraud prevention.

List of Key Companies Profiled

• Deutsche Telekom AG
• Orange S.A.
• Vodafone Group Plc
• China Telecom Corporation Limited
• Twilio, Inc.
• AT&T Inc.
• Sinch AB
• SoftBank Group Corporation
• Vonage Holdings Corp. (Ericsson AB)
• NTT Docomo, Inc. (NTT Data Corporation)

• A2P SMS
• P2A MMS
• A2P MMS
• P2A SMS

• Entertainment & Media
• BFSI
• Hospitality
• Outsourcing
• Retail
• Other Application

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA