Short Message Service (SMS) Firewall Market Expected to Reach $5.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Short Message Service (SMS) Firewall Market By Component (Platform, Services), By SMS Type (Application-To-Person (A2P) Messages, Person-To-Application (P2A) Messages), By Deployment Mode (On-Premise, Cloud), By SMS Traffic (National SMS Traffic, International SMS Traffic), By End User (BFSI, IT And Telecom, Retail And E-Commerce, Healthcare, Media And Entertainment, Government And Public Sector, Others): Global Opportunity Analysis And Industry Forecast, 2022-2031". The short message service firewall market size was valued at $2.5 billion in 2021, and is estimated to reach $5.7 billion by 2031, growing at a CAGR of 9.2% from 2022 to 2031.

SMS firewall assist in protecting the network from SMS fraud and scam along with preventing any unwanted access to the network. The services enable operator to allow what traffic can be transported through network. It offers signaling and content filtering capabilities. Furthermore, the technology is extensively utilized across various industry verticals such as government, healthcare, banking, financial services and insurance and media and entertainment. It is being adopted by large as well as small and medium enterprises.

Growing adoption of app-to-person messaging and growing concerns about privacy and security are factors driving the growth of the SMS firewall market. Additionally, combating illegal SMS activities such as SMS spoofing, SMS phishing, and SMS spamming has increased the market size of Short Message Service (SMS) firewalls. However, the lack of technical know-how among users and the rise of cyber-attacks have hindered the growth of the short message service firewall Industry. In contrast, the trend of mobile marketing through SMS and the demand for next-generation SMS firewalls is a hugely profitable opportunity for the growth of the SMS firewall industry.

Furthermore, major market players are undertaking various strategies to increase the competition and offer enhanced services to their customers. For instance, in December 2021, HORISEN, an award-winning product house for retail and wholesale messaging technology, and Cellusys, a leading global provider of signalling-based firewall technology teamed up to offer the highest level of security and improve the process of active controlling. Cellusys integrates its signalling control technology with HORISEN’s testing environment to enrich existing message tracing with more active, detailed monitoring to prevent fraudulent traffic. This additional control, provided by the HORISEN testing platform reinforces Cellusys firewall development and management services by providing a more complete and accurate service.

In addition, market players are adopting strategies for enhancing their services in the market and improving customer satisfaction. For instance, in May 2021, Infobip Group, a global cloud communications platform company for businesses, and a leader in telecom solutions has acquired the number one SMS firewall service provider Anam which offers solutions to more than 80 MNOS with more than 606 million customers across the world. This strategic acquisition strengthens Infobip’s position as the first choice for mobile network operators through enhanced product and service offerings. Their combined product portfolio for MNOs represents an exceptional proposition to mobile operators that also vastly benefit subscribers, and includes best-in-class SMS Firewall, SMS Hubs, SMSC, CPaaS, RCS, and Authentication & Verification.

On the basis of component, the platform segment is the highest growing segment. This is attributed to the rise in adoption of SMS firewall platform for strengthening security of the platform and rise in adoption by end users such as BFSI and IT & telecom sector. However, the services segment is expected to grow at the highest rate during the forecast period, due to its rise in adoption of professional and managed services for SMS firewall.

Region wise, the SMS firewall market was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to its highly digitized technological sector, which requires a higher degree of network monitoring, fueling the demand for SMS firewall in the region. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to its growing internet penetration and the growing number of cyber threats in the region.

With the COVID cases on rise across the globe, the world relied on online retailers and e-commerce websites for their shopping needs, as local malls and shops remained closed amid the pandemic. This created heavy responsibilities for the banking and financial sectors to invest heavily in security of payment gateways and SMS to help protect these increased numbers of online transactions. This, in turn, augmented the demand for short message services (SMS) firewall solutions across the globe for the sake of safety of these personal patient data and data analysis tools from cyber criminals. Furthermore, during the COVID-19 pandemic, several companies instituted remote working for their workers to help reduce the spread of coronavirus. These remote working conditions necessitated increased data protection for corporate data. However, with convenience and ease of use, workers can sustain high productivity.

Key Findings of the Study

• By component, the platform segment accounted for the largest Short Message Service Firewall Market Share in 2021.

• By SMS type, the P2A messages segment accounted for the highest growth rate in Short Message Service Firewall Market Forecast.

• By region, North America generated the highest revenue in Short Message Service (SMS) Firewall Market in 2021.

• By industry vertical, IT & Telecom segment accounted for the largest SMS Firewall market share in 2021.

The report analyzes the profiles of key players operating in the short message service (SMS) firewall market such as AdaptiveMobile Security, BICS, Cellusys, Comviva, Infobip Ltd., Mobileum, Monty Mobile, Proofpoint, Sinch, and TATA Communications. These players have adopted various strategies to increase their market penetration and strengthen their position in the short message service firewall market analysis.