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The global SMS firewall market shows rapid growth due to both A2P messaging services have increased along with security threats and fraud cases in SMS communications. SMS firewall is used for protecting mobile networks against SMS-based frauds and attacks. The technology offers protection to subscribers against phishing, scams, and smishing and is used by mobile network operators for maintaining a positive reputation. Whitelisting and blacklisting, message filtering, and fraud detection are among the key features offered by these solutions.
The market shows signs of expansion as businesses in finance and healthcare, e-commerce, and others require safe messaging solutions. The A2P SMS market experienced a USD 55 billion value in 2015 and experts projected it to reach USD 60 billion by 2018, according to GSMA.
Rising Cybersecurity Threats to Propel Demand for SMS Firewall Solutions
The increasing amount of SMS spam and phishing attacks has increased the need of SMS-based firewall solutions to defend mobile networks and users. The growing demand for mobile networks protection against spam, fraud, and other security threats fuels the market. Anam Technologies screens hundreds of millions of messages daily to mobile operators supporting more than 350 million subscribers in 65 countries, says GSMA.
High Implementation Costs and Limited Adoption to Restrain SMS Firewall Market Growth
The significant capital needed to deploy the SMS firewall solutions can serve as a deterrent for some organizations. Less than 25% of mobile operators have deployed an SMS firewall since 2012. Mobile operators are still monetizing only a third of the A2P SMS revenue.
Cloud-Based Solutions and Emerging Technologies to Drive SMS Firewall Market Expansion
Markets demonstrating substantial growth will result from more organizations selecting cloud-based SMS firewall solutions that finance flexible inexpensive deployment methods. New potential opportunities in the SMS firewall market have been introduced through emerging technologies that encompass 5G together with blockchain and Internet of Things (IoT).
The report covers the following key insights:
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By Deployment |
By SMS Type |
By SMS Traffic |
By Industry |
By Geography |
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By deployment, the SMS firewall market is divided into cloud and on-premise.
Cloud-based deployment leads the market due to its scalable features alongside affordable costs and smooth integration benefits. Cloud-based SMS firewall services that SMEs adopt are fueling rapid market expansion. The implementation of systems within the same facility remains important for organizations that want to secure their data and fulfill regulatory mandates primarily in the financial and government sectors.
By SMS type, the SMS firewall market is divided into Application-to-Person (A2P) Messages and Person-to-Application (P2A) Messages.
The A2P segment will continue its leadership as business messages and 2-step authentication and transactional messages are enrolled by various applications across BFSI, healthcare, and retail platforms. The market projection for P2A messaging shows steady growth due to increasing adoption of customer engagement applications such as automated service requests and chatbots.
By SMS traffic, the SMS firewall market is divided into international traffic and national traffic.
The international traffic segment is projected to increase dramatically from cross-border business communications, especially for the BFSI and e-commerce sectors. There is a growing need for secure A2P messaging across borders, and this is driving the use of SMS firewalls. National traffic is still the largest segment and SMS is heavily used for domestic banking updates, marketing, and government services.
By Industry, the SMS firewall market is divided into IT & telecom, government, education, BFSI, e-commerce, healthcare & others (media & entertainment).
The BFSI industry is anticipated to be moving the market, owing to high adoption of SMS-based authentication, and fraud prevention. The growth of messaging market for e-commerce industry is accelerating as of the large number of transactional messages and marketing campaigns, resulting from the increasing adoption of SMS firewall. SMS firewalls are being used by healthcare institutions to safeguard patient interactions and meet regulatory requirements.
Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
North America has some high rate of SMS-borne cyberattacks hence requires advanced level of security solutions. Strict regulatory frameworks enforcing data protection and security compliance and advanced telecommunications infrastructure are supporting the adoption of SMS firewall solutions. The region may dominate the market in the future.
Strictness of data privacy regulations such as GDPR in Europe is creating the demand for SMS firewalls, propelling the significant expansion of the regional market. Increased volume of A2P messaging traffic across different applications and sectors needing secure communication means. Rising awareness and anticipatory actions regarding SMS phishing and spamming further drive industry growth.
Exponential increase in mobile subscribers in Asia Pacific and the consequent large volume of SMS traffic and associated security issues. Growth of digital services and mobile banking is leading to increased demand for secure messaging methods. Government initiatives promoting digital communication and cybersecurity measures propel industry progress.
The report includes the profiles of the following key players:
In February 2023, Mobileum purchased Developing Solutions in order to enhance its network security portfolio, including SMS firewall functionality.
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