What was once a quick way to check in with a friend (“You up?”) has transformed into a massive industry worth over $101 billion as of 2023. Here’s the kicker—it’s not slowing down. By 2033, experts predict this market will grow by a whopping 300%, surpassing $443 billion.
Why is texting having its big moment? It’s because no other communication tool combines the immediacy, simplicity, and directness that SMS delivers.
Let’s break down how text messaging became a business powerhouse, what’s driving its growth, and where it’s headed next.
Key Takeaways:
- The global text messaging industry has exploded, growing from $50 billion in 2010 to $101 billion in 2023, and is expected to reach $443 billion by 2033.
- Text messaging remains the most effective communication tool due to its 98% open rate, personal touch, and universal accessibility across all mobile devices.
- Mobile phone ownership has soared, with over 7 billion people worldwide now using mobile devices, driving the rapid growth of SMS communication.
- Businesses are increasingly leveraging SMS for marketing, customer support, and automation, with SMS delivering an impressive return on investment.
- The rise of AI and automation transforms SMS marketing, allowing companies to send personalized messages at scale while enhancing customer engagement.
How Big is the Text Messaging Industry?
Note: This graph is calculated based on the text messaging industry CAGR of 15.9% as of 2024.
Back in the day (say, 2010), the text messaging market was valued at $50 billion. Fast-forward to 2023, and it’s more than doubled to $101 billion. That’s just the beginning. With a CAGR of 15.9%, this industry is on track to surpass $443 billion by 2033.
With countless ways to communicate—emails, DMs, video calls— text messaging reigns supreme. Why? Three reasons:
- It’s Unbeatable for Speed. With a 98% open rate, your message will almost certainly be seen. Compare that to email (where you’re lucky to get a 20% open rate), and it’s no contest.
- It’s Personal. Whether it’s a birthday coupon or a “We miss you!” nudge, texting feels intimate, unlike mass emails.
- It Works for Everyone. Texting isn’t tied to fancy apps or Wi-Fi—if you’ve got a phone, you’re in.
Number of Text Messages Sent Around the World
The sheer scale of the text messaging industry’s growth is mind-blowing, so let’s crunch the numbers:
- In 2022, there were over 8.58 billion mobile subscriptions worldwide—more than the global population of 7.95 billion. This difference is because many people have multiple mobile devices (e.g., a personal and a work phone), and subscriptions often outnumber individual owners.
- On average, each person sends and receives 72 messages daily.
Now, here’s where it gets insane:
- 8.58 billion people × 72 messages = 617.76 billion messages exchanged daily. However, adjusting for unique messages (since one person may send multiple messages daily) results in roughly 23 billion individual texts being sent globally every day, or about 16 million texts every minute!
It’s no wonder the text messaging industry is exploding; these numbers prove that it’s an unstoppable force of communication.
Key Drivers for the Text Messaging Industry Growth
The growth of the text messaging industry is propelled by several key factors that continue to shape its expansion. These key drivers include:
- Increasing Mobile Penetration Worldwide
The surge in mobile phone ownership has transformed the text messaging industry, propelling it to new heights. As of 2024, 70% of the world’s population—over 5.5 billion people—own a mobile device; for many, these phones have become absolute lifelines.
Mobile phones are not just for calls anymore; they’re central hubs for navigating the modern world. From shopping online and staying connected on social media to receiving vital information and updates, these devices have become essential for instant communication, especially through text messaging.
- E-commerce Growth
Gone are the days when texts were just about reminders. Now, they’re marketing gold.
- Got an abandoned cart? Send a text.
- Flash sale starting? Text them.
The results speak for themselves: SMS marketing can deliver a jaw-dropping $71 return on every $1 spent.
- Automation = Bigger Campaigns, Less Work
Automation is a powerful driver behind SMS marketing growth, and tools like the mass calling system from DialMyCalls are making it easier than ever for businesses to manage large-scale communications. With AI stepping in to help personalize those texts, companies can send “just for you” messages at scale—without feeling robotic.
Future Trends for Massaging via Text
As we move into the future, text messaging is poised to become even more powerful. Here’s what’s next:
1. AI-Powered Conversations
Think of chatbots, but much smarter. With the power of AI, businesses can elevate customer service through SMS, responding to queries more efficiently. In fact, by implementing chatbots, businesses can save up to 30% on customer service costs, making this approach particularly impactful for quick and effective communication.
Here are sample scenarios on how AI-powered text messaging can be used for customer service:
- Product Recommendations: “Hey [Name], based on your recent purchase, check out this new item!” Personalized, on-the-spot suggestions.
- Instant FAQs: “What’s your return policy?” “Returns are accepted within 30 days. Reply ‘Return’ to start the process.” Quick, direct answers.
- Appointment Scheduling: “I need to reschedule.” “What time works for you? Reply with your preferred time.” Effortless scheduling at your fingertips.
- Order Tracking: “Your order is on the way! Expected delivery: Tomorrow by 3 PM.” Receive real-time updates, from “Out for delivery” to “Your package has arrived.”
2. Omnichannel Marketing’s Secret Weapon
Customers crave smooth, uninterrupted experiences. In fact, 76% of consumers now expect brands to engage with them across multiple touchpoints.
The secret ingredient that ties everything together is texting. Picture this:
- You get an email about an exciting sale.
- Then, a vibrant social media ad catches your attention.
- But it’s the text that tips the scales—a message with a special coupon code that you simply can’t resist, making it impossible not to hit “buy.”
Text messaging takes the final step, effortlessly turning interest into action, ensuring the experience feels personal and seamless.
3. Hyper-Personalization
Your customers don’t just want texts; they want texts that feel tailored to them. Whether it’s a birthday message or a follow-up on their last purchase, hyper-personalization will drive engagement (and sales).
Challenges and Ethical Issues of the Text Messaging Industry
The potential of SMS marketing is noticed, but at the same time, several significant challenges accompany it, posing a hurdle for businesses to collaborate successfully. Significant challenges have been discussed as follows:
Challenge #1: The Spam Epidemic
In 2021, over 47 billion spam texts were sent worldwide, flooding consumers’ inboxes. As a result, people became more cautious about SMS messages, even from legitimate businesses.
Spam frustrates recipients and undermines trust in SMS as a marketing channel. This creates a steep uphill battle for ethical businesses to differentiate themselves and gain consumer confidence.
Challenge #2: Stricter Privacy Laws
Laws like GDPR in Europe and TCPA in the U.S. have imposed stringent rules on SMS marketing practices. These regulations require businesses to:
- Obtain clear consent
- Provide easy opt-out options
- Ensure transparency in how consumer data is used
A breach of privacy laws can have significant implications as non-compliance penalties can be €20 million in GDPR or $1,500 per violation in TCPA. Apart from potential financial risks, a breach can cause considerable damage to a company’s:
- Reputation
- Eroding consumer trust
- Brand Credibility
Challenge #3: Balancing Between Automation vs. Personalization
Automation is crucial for scaling SMS marketing efforts, but relying too heavily on it can backfire. Customers may view automated messages as impersonal, irrelevant, or even intrusive.
When customers develop this negative perception, the brand risks appearing uncaring or spammy, which can lead to higher opt-out rates. Striking the right balance between efficiency and a personalized, human touch remains one of the biggest challenges for marketers in SMS marketing.
Conclusion
Text messaging has become a cornerstone of modern communication, impacting everything from business marketing to personal connections. Whether a retailer sends a flash sale alert or a doctor reminds you of an upcoming appointment, SMS has seamlessly integrated into daily life.
As mobile phone usage continues to rise and AI-driven automation makes texting even more powerful, the text messaging industry grows in influence. In the years ahead, it will continue to redefine how we communicate, shop, and engage with the world around us.
FAQs
- When did text messaging become popular?
Text messaging gained mainstream popularity in the early 2000s thanks to affordable texting plans and widespread mobile phone adoption. - Is SMS marketing growing?
Yes, SMS marketing is one of the fastest-growing digital channels, with an average open rate of 98% compared to 20-30% for email.
- How does SMS compare to other communication tools?
SMS stands out due to its immediacy, cost-effectiveness, and high engagement. It’s ideal for time-sensitive notifications, unlike email or social media, which often have lower visibility.
Florence is a dedicated wordsmith on a mission to make technology-related topics easy-to-understand. With her sharp editing skills and knack for crafting engaging content, she effortlessly breaks down complex tech concepts into bite-sized, relatable pieces.