Back to Contents

SMS Firewall Market Will Grow to $8.78-Billion Industry by 2026

The SMS firewall market will continue to grow. According to market intelligence firm Reports and Data, this market is forecasted to grow from $2.77 billion in 2018 to $8.78 billion by 2026, at an annual rate of 22% from 2019 to 2026.

 

What is an SMS firewall?

Some mobile network operators (MNOs) use an SMS firewall to control spam, spoofed, faked, and unsolicited text messages. At first look, an SMS firewall will be beneficial to mobile users, but the tool provides huge benefits to MNOs too. It frees the MNO’s network from unauthorized SMS traffic, allowing MNOs to allocate bandwidth to traffic that generates more revenue.

How does an SMS firewall work? Whenever an SMS reaches the MNO’s network, the SMS firewall scans the message, the sender, and the route. It filters out any unwanted contents and repeated traffic; it will also block questionable routes. The SMS firewall’s settings can be customized; for instance, the rules can be set according to sources, types of traffic, sender ID, or roaming partners.

The drivers of SMS firewall market growth

Based on Reports and Data’s market analysis, these factors are the main drivers of growth in the SMS firewall market:

  • Application-to-person messaging: As A2P is increasingly used in big industries (like banking, finance, and travel), its rise is expected to boost the global growth of the SMS firewall market. Typical uses of A2P messaging include sending alerts and notifications, SMS marketing campaigns, and OTP (one-time password) verifications. Here’s a simple illustration of A2P messaging:

 

 

  • Cloud messaging platform: Many businesses are now preferring cloud-based platform over traditional ones because the former is faster, highly scalable, and cheaper to operate. This rising demand for cloud-based systems is seen to enhance the SMS firewall market.
  • Asia-Pacific region: Among the regions, APAC is forecasted to have the highest growth rate from 2019 to 2026, at 41%. China, Japan, India, and Australia are the region’s emerging players.
  • Controlling illegal SMS traffic: SMS firewalls will address the rising need to control illegal SMS traffic. Without control, MNOs expose their subscribers to messaging attacks, like spamming and fraudulent messages. The unnecessary traffic also burdens the MNO’s network. In some cases, MNOs may have to block their network, which would negatively affect the quality of their services.
  • Government regulations: Strict government regulations will also push the growth of the SMS firewall market. Such rules are designed to protect subscribers’ data and rights.

 

 

As you can see, the growth of A2P and cloud messaging, as well as the rising demand for subscribers’ privacy and security, are viewed as growth boosters of the SMS firewall market in the coming years.

Threats to SMS firewall market growth

There are also factors that negatively impact the SMS firewall market:

  1. Not all MNOs would want to control SMS traffic, especially if they’re focused on their investment returns.
  2. With the latest technology, hackers are getting more powerful in penetrating SMS firewalls.
  3. The lack of awareness and expertise in making more robust firewalls also threaten the market’s growth.

These are issues which can be overcome, but they need to be addressed in order to protect your SMS marketing and your company.

Categories: Statistics,

Jeff M