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Rising Penetration of Smartphones to Shape Future of Premium Multimedia Messaging Services (PMMS) in Premium Messaging Market, says TMR

Posted on Sep 21, 2016

The global premium messaging market is characterized by high competitive rivalry. Companies are trying to maintain a competitive edge in the market by introducing enhanced technological and application innovations, states Transparency Market Research (TMR) in a new study. Some of the key players in the market are OpenMarket, Sybase 365, mBlox, V3Mobi Communications Pvt. Ltd., Angkor Data Communications Group Co. Ltd., and Dialogue Communications Ltd. 

“The companies are adopting strategies such as focusing on untapped rural areas and entering mergers and acquisitions to boost their revenue earnings,” says the author of the report. However, the growth of the premium messaging market will be adversely affected by the high competition created by substitutes such as instant messenger (IM) and wireless application protocol (WAP).

The global premium messaging market volume was 626.96 bn in 2015 and is estimated to reach 1,134.15 bn in 2017, expanding at an impressive CAGR of 36.8% from 2012 to 2017. Based on type, premium SMS (PSMS) will continue to dominate the market through 2017, with a share of 80% of the overall market volume. However, with the rising penetration of smartphones and other PMMS enabled handsets, the PMMS segment will expand at a higher CAGR during the same period. Geographically, Asia Pacific was the leading segment by volume in 2015 and is anticipated to retain its dominance until 2017 due to the presence of a large base of mobile subscribers. South America will rise at a noteworthy CAGR of 48% during the same period.

Increasing Application of Premium Messaging in Marketing to Augur Well for Market Growth

“Premium messaging is an attractive tool for customers to gain access to a pool of entertainment and information services,” says a TMR analyst. The rising demand for mobile data services such as ringtones, games, and videos is likely to fuel the growth of the premium messaging market. Moreover, increasing adoption of premium messages by companies as a key channel to promote their products and services to reach and influence a wide customer base is augmenting the growth of the market. Furthermore, the declining prices of premium SMS are leading to a growth in the number of customers accessing the value added services through these messages.

Lack of Consumer Awareness to Dent Demand for Premium Messaging Services

There is a lack of consumer awareness regarding the tariff structures for premium SMS and availability of content. Network operators are more focused on customer acquisition rather than making customers aware of value-added services. Moreover, the offerings of value added services are not in tune with customer preferences. This factor influences the growth of the global premium messaging market negatively.

Application stores including iTunes and Google Play are increasingly taking over premium messaging for delivery of entertainment services. Credit card payments are more viable for customers than phone based payments. As a result, the customers are losing trust in accessing value-added services through network operators. Furthermore, the traffic volumes increase beyond the capacity of the system during rush hours causing congestion in the system. These factors, collectively, are resulting in revenue loss for mobile operators, thereby impeding the growth of the market.

However, coverage expansion in rural areas by network operators will facilitate the positioning of premium SMS as a multipurpose tool for entertainment, information and communication owing to which the revenues will also increase. Moreover, increasing initiatives by content developers such as rising partnerships with handset manufacturers and marketing are likely to propel the growth of the global premium messaging market in the near future.

The information presented in this review is based on a Transparency Market Research report, titled, ‘Premium Messaging Market - A2P SMS Market, P2A SMS Market: Global Analysis, Trends, Size and Forecast (2007 - 2017).’

The report segments the global premium messaging market as:

Premium Messaging Market, by Type

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

Premium Messaging Market, by Geography

  • Europe
  • North America 
  • Asia-Pacific 
  • Rest of the World 

Premium Messaging Market, by Geography

  • Europe
  • North America 
  • Asia-Pacific 
  • Rest of the World 

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