The major factors driving the growth of the SMS firewall market include stringent government compliance and increased adoption of Application-to-Person (A2P) messaging traffic. The entrance of Over-the-top (OTT) players into messaging businesses are expected to pose as a restraining factor for the growth of the SMS firewall market.
Managed services segment to grow at a higher CAGR during the forecast period
SMS firewall vendors offer a diverse range of managed services to telecom operators. These services monetize based on service level agreement, which represents the successful delivery of managed services. Vendors fully operationalize the SMS firewall deployment while focusing more on network optimization and performance with 24*7*365 support. As per Mobile Network Operators (MNOs) need, managed services manage network infrastructure partially (address specific issues) and fully (end-to-end management). These services also ensure effective monetization of A2P messages with robust monitoring and control. These services help MNOs improve customer experience by safeguarding messages from malicious threats and enhance SMS security.
International SMS traffic segment to grow at a higher CAGR during the forecast period
International SMS traffic refers to the routing of SMS traffic from one country to another. Worldwide, A2P and Person-to-Application (P2A) messaging continue to grow and modernize. Enterprises are keen on reaching their customers globally through simple and ubiquitous communication channels. International SMS traffic comprises sending messages outside a country. International A2P messaging is increasing due to Two Factor Authentication (2FA), which is one of the most demanded needs all across the globe. The international SMS traffic segment has a greater application in travel, Information Technology (IT), and telecom industries for functions, such as verifying messages, providing travel updates, and authenticating social sites.
Asia Pacific (APAC) region to record the highest market share in the SMS firewall market in 2020
APAC is an emerging region for the SMS firewall market. China, Japan, and India are the major countries contributing to the growth of the SMS firewall market in APAC. Due to a massive mobile subscriber base, enterprises in this region are becoming more competitive, and are focusing on offering better security services in the text messaging segment. Thus, the untapped potential of the APAC region is attracting investments by major companies. A majority of MNOs are focusing on expanding their business operations in countries across the APAC region. This is expected to offer potential growth opportunities for A2P and P2A SMS providers to increase their brand awareness.