SMS Firewall Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

SMS Firewall Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The SMS firewall market was valued at USD 2.042 billion in 2020, at a CAGR of 10.2% over the forecast period (2021 - 2026). The increase in the adoption of application to person (A2P) SMS will drive the market in the near future due to the growing trend in mobile marketing.

Key Highlights

• For Instance, SAP SMS Firewall 365 creates a secure firewall for the SMS services that you are using. This cloud-based firewall solution can help users to prevent frauds, spams, messaging abuse, SMS spoofing attacks, and other attacks. This solution even enables you to improve the monetization of your messaging services.
• A2P is the primary driver for the growth of the market where the SMS is sent from the application to the person. This type of SMS can be applied in various end-user industries like e-commerce, advertising, healthcare, and others where you need to reach out to your consumers for secure communication.
• The lack of technical knowledge in the users might hinder the growth where they are unaware of the SMS frauds or how to stop unwanted SMS floodings and blocking of fake SMSs and others.

Key Market TrendsIncrease in Adoption of A2P will Drive the Market in the Forecast Period

• The process of sending SMS from an application to a mobile user is known as A2P SMS, also known as Enterprise messaging. Organizations use A2P to reach out to their authentic consumers via SMSs. A2P is taken growth in the BFSI sector since the banking sector is using A2P SMS to send relevant banking notifications and information directly to the user's phone, which has improved efficiency and communication.
• For Instance, Infobip provides the A2P SMS type to provide services like authentication SMS, notification updates, passcode reset links, OTPs, and others. They reach out to customers with more reliable messaging solutions.
• Furthermore, for more than 15years, financial institutions have been using A2P SMS by delivering automated SMS notification to their client's mobile phones to keep them updated. For, e.g., balance statements, payment reminders, withdrawal notifications, and others.
• The primary region to drive this market would be from countries from Asia-Pacific like China, India, Japan, & South Korea, where investors are witnessing interest in IT & Telecom Industries. Also, owing to the advance in the abundance of unique mobile subscribers in this region are also boosting the growth of the market.

Asia Pacific is Expected to Witness Highest Growth in the Market

• The Increase in adoption of A2P in the APAC region is responsible for the growth of the market in the region across various end-user industries like government, BFSI, eCommerce, and others.
• However, due to the extensive geographic coverage, government authorities across the APAC countries are implementing strict rules and regulations for SMS spam traffic, which in return are significant factors driving the growth of the SMS firewall market in the APAC region.
• The increase in security and privacy in SMSs in the region and stringent government regulations are the major factors that are driving the adoption of SMS firewall solutions.
• However, lack of awareness, operators’ focus on quick Return on Investment (ROI), and the vulnerabilities in the existing signaling systems are acting as the challenges in the adoption of SMS firewall solutions.

Competitive Landscape

The market is fragmented due to the presence of the major companies in the market like Tata Communications, Mahindra Comviva, SAP, AMD Telecom, and others. Since hackers are continuously trying to penetrate the SMS firewall, the companies are spending heavily on updating the firmware and firewall software to prevent users from unnecessary attacks and spams.

• May 2019 - Tata Communication with their partnership with Cisco has enabled a global cloud platform for networking among the enterprise within the secure and customized hybrid network.
• Feb 2019 - CLX Communications a global cloud communications leader rebrands itself as Sinch; the products that were branded under CLX, Symsoft, and others are now under a new corporate brand identity with a shared name and visual identity for all business units.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Cellusys Telecommunications
Tyntec Telecommunications
Tata Communications
Syniverse Telecommunications company
Sinch Company
Omobio (Pvt) Ltd.
Route Mobile Limited
AMD Telecom
BICS Telecommunications company
SAP ERP Software Company
Monty Mobile Telecommunications
NewNet Communication Technologies
Mahindra Comviva
Infobip Telecommunications company
Twilio Inc.

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