Premium Messaging Global Market Report 2025

The premium messaging market size has grown rapidly in recent years. It will grow from $87.13 billion in 2024 to $98.2 billion in 2025 at a compound annual growth rate (CAGR) of 12.7%. The growth during the historic period can be attributed to increasing smartphone penetration, rising adoption of application-to-person (A2P) messaging, growing demand for customer engagement through text communication, rising use of two-factor authentication via SMS, and the increasing number of mobile subscribers.

The premium messaging market size is expected to see rapid growth in the next few years. It will grow to $156.48 billion in 2029 at a compound annual growth rate (CAGR) of 12.4%. The growth during the forecast period can be attributed to growing demand for secure and verified messaging channels, increasing business adoption of omnichannel communication platforms, rising use of premium messaging for transactional alerts, increasing preference for localized and personalized content delivery, and growing utilization of cloud-based messaging solutions. Key trends in the forecast period include advancements in messaging encryption, innovations in cross-platform message delivery, developments in unified communication platforms, technological progress in rich communication services (RCS), and innovation in data privacy and message authentication systems.

The rising incidences of spam and fraudulent messages are expected to drive the growth of the premium messaging market. Spam and fraudulent messages refer to unsolicited or malicious communications sent via SMS, MMS, or other messaging channels that aim to deceive recipients, steal personal information, or commit financial fraud. The increase in such messages is due to growing reliance on digital communications and the widespread use of mobile devices, which expose users to scams, phishing attempts, and impersonation attacks. Premium messaging services help mitigate spam and fraudulent messages by providing secure and authenticated communication channels. They improve mobile messaging ecosystems through advanced filtering and verification systems, enhancing user trust and safeguarding business-to-customer interactions. For example, in July 2025, according to a survey conducted among 9,397 U.S. adults from April 14 to 20, 2025, by Pew Research Center, a US-based government agency, 61% of Americans reported receiving scam text messages at least weekly, with around 21% reporting financial losses due to online scams or attacks. Therefore, the rising incidences of spam and fraudulent messages are driving the growth of the premium messaging market.

Key companies in the premium messaging market are focusing on developing innovative solutions, such as application-to-person short message service (A2P SMS), to enhance customer engagement and communication efficiency. Application-to-person short message service (A2P SMS) is a messaging process where an application or business system sends SMS messages directly to individual users’ mobile phones. For instance, in March 2023, DIDWW Limited, an Ireland-based global telecommunications service provider, launched Alphanumeric A2P SMS services. The service allows businesses to use their brand name as the sender ID for A2P messaging, increasing trust and open rates. It is available in 21 European markets, enabling seamless and recognizable communication with customers across diverse regions without the need for local numeric sender addresses.

In April 2024, Automattic Inc., a US-based web development and publishing technology company, acquired Beeper Inc. for approximately $125 million. Through this acquisition, Automattic aims to strengthen its position in the cross-platform messaging space by integrating Beeper’s universal chat technology into its communication ecosystem, supporting open-source, secure, and interoperable messaging solutions. Beeper Inc. is a US-based messaging technology company that develops cross-platform communication tools enabling seamless, end-to-end encrypted premium messaging across diverse applications.

Major players in the premium messaging market are Orange SA, Amdocs Limited, Sinch AB, Tata Communications Limited, Bandwidth Inc., Syniverse Technologies LLC, CM.com NV, Gupshup Technology India Private Limited, Telesign Corporation, MessageBird B.V., Kaleyra Inc., Route Mobile Limited, Telnyx LLC, Clickatell Corporation, EZ Texting LLC, Plivo Inc, Mitto AG, SMSGlobal Pty Ltd, TextMagic AS, and TXTImpact LLC.

North America was the largest region in the premium messaging market in 2024. The regions covered in premium messaging report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the premium messaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The premium messaging market research report is one of a series of new reports that provides premium messaging market statistics, including premium messaging industry global market size, regional shares, competitors with a premium messaging market share, detailed premium messaging market segments, market trends and opportunities, and any further data you may need to thrive in the premium messaging industry. This premium messaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Premium messaging refers to value-added communication services that allow users to send and receive special text or multimedia messages through mobile networks, often at a higher rate than standard messages. It is widely used for interactive applications such as alerts, payments, subscriptions, and digital content delivery. The service operates within the technology sector, leveraging telecommunications infrastructure to enable secure and efficient mobile communication.

The key types of premium messaging are application-to-person short message service (A2P SMS), application-to-person multimedia messaging service (A2P MMS), person-to-application short message service (P2A SMS), and person-to-application multimedia messaging service (P2A MMS). Application-to-person short message service (A2P SMS) is a messaging service where messages are sent from an application, platform, or business to an individual’s mobile phone. It supports various message types, including text messages (SMS), multimedia messages (MMS), rich communication services (RCS), video messages, and chatbot-based messages, and operates across device types such as smartphones, tablets, and feature phones. It can be deployed on-premises or in cloud-based environments and is applied across industries including banking, financial services, and insurance (BFSI), retail, healthcare, travel and hospitality, media and entertainment, and others, serving end users such as enterprises, service providers, and others.

The premium messaging market includes revenues earned by entities through two-factor authentication messaging, subscription alerts, campaign management, location-based messaging, and message routing and delivery optimization services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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