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Premium Messaging Market – Analysis, Size, Business Growth, Trends & Future Scenario Along with Top Key Players

Premium messaging is a process of sending mobile messages, such as short message service (SMS) and multimedia messaging service (MMS) from an application to a mobile user. It includes application to person messaging (A2P) typically used for alerts, notifications, and marketing messages; and person to application messaging (P2A) commonly used for various SMS lottery campaigns, TV voting campaigns, subscriptions, competitions, and others.

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Rise in mobile subscriber base, focus on enhancing customer interaction and surge in adoption of A2P (two-factor authentication) drive the market, providing lucrative growth opportunities for prominent players operating in the premium messaging market. However, the massive rise in messages being sent through illegitimate routes and an increase in mobile messaging spam are anticipated to hamper the premium messaging market growth during the forecast period.

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The banking and financial institutions segment dominated the market in 2016, followed by retail sector. Further, these segments collectively accounted for around 52% share of the overall market revenue in 2016, owing to an increase in the need for two-factor authentication messaging services and a rise in the popularity of premium messaging services for sales, marketing, and promotions. Moreover, the market in the healthcare sector is anticipated to grow at the second-highest CAGR of around 5.7%.

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The cloud application programming interface (API) messaging platform segment is projected to grow at the CAGR of around 72% during the forecast period. This platform is the latest enterprise messaging solution, which enables end-users to integrate SMS into existing code, and allow mobile or web application to trigger automated messages for one-time password deliveries, notifications, and delivery confirmation. The Traditional & managed messaging services segment dominated the market in 2016 but is anticipated to witness a significant decrease in its market share, owing to end-users shift toward cloud-based messaging platforms.

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Key industry players – Verizon, Mblox, Twilio, Inc., AT&T, Beepsend, CLX Communications, Dialogue Communications Ltd., Infobip Ltd., Mahindra Comviva, and Tata Communications Ltd.

Key Findings of the Premium Messaging Market:
  • The cloud API messaging platform segment is expected to grow at the highest CAGR during the forecast period.
  • The banking and financial institutions segment dominated the market in 2016.
  • Asia-Pacific was the highest contributor in the overall premium messaging market size in 2016 however in terms of growth, the market in LAMEA is estimated to grow at the highest CAGR.
  • U.S. led in terms of spending on premium messaging services in 2016.

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  1. Messaging Security Market

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