SMS Firewall Market

Global SMS Firewall Market Size (2024 to 2029)

 The global SMS firewall market is predicted to reach USD 2.98 billion in 2024 and USD 4.63 billion by 2029, growing at a CAGR of 9.2% during the forecast period.

A Firewall is a computer device in the form of hardware and software. Firewalls are utilized to inspect both inbound and outbound network traffic and apply predefined security policies. The SMS firewalls can usually be managed by organizations such as mobile network operators, aggregators, or third-party security providers. Mobile network operators can implement SMS firewalls to protect their network and subscribers from unwanted or malicious SMS traffic. Similarly, SMS aggregators that provide commercial messaging services may also use SMS firewalls to protect customers from spam and other unwanted messages. In addition, third-party security providers offer SMS firewall solutions that both mobile network operators and enterprises can use to protect their SMS traffic. These providers specialize in developing and implementing advanced security technologies to detect and block spam, fraud, and other malicious SMS messages.

Global SMS Firewall Market Drivers:

With the growth in the adoption of applications-to-person messaging, many people are using SMS messages in different kinds of fields all over the world. The main factor that is increasing the SMS firewall market value is the application-to-person (A2P), which is used by businesses for different reasons, including customer engagement, marketing, and transactional messaging. Also, these SMS firewalls are used in telecom companies to maintain security and authenticity. Nowadays, mobile phones have become a necessary part of our lives. With the increasing number of mobile phone users, there has been a rise in the incidence of SMS fraud and spam, which have emerged as major concerns for telecom companies. To avoid these fraudulent activities, telecom companies have introduced SMS firewalls, which serve as an important mechanism. These firewalls are used to filter out unnecessary messages and block fraudulent activities. This helps to identify the source of spam messages and prevent them from reaching the user’s inbox. Therefore, it reduces the risks associated with SMS fraud and spam. Hence, the increasing usage of mobile phones is bolstering the growth rate of the market. The demand for cloud-based SMS firewall solutions is increasing due to the growing adoption of cloud technology, which is likely to boost the demand of the SMS firewall market. Also, many companies find cloud-based SMS firewall solutions impressive because they provide different features like scalability and flexibility than traditional hardware-based solutions.

Global SMS Firewall Market Restraints:

SMS firewalls can be limited in scalability as they require significant resources and infrastructure to handle large volumes of messages. Due to the continuous increase in the number of SMS, it can be difficult for businesses to adapt SMS filtering solutions as needed. This may hinder the growth of the SMS firewall market and limit the adoption of these solutions. Businesses need to ensure that their SMS backend solutions are scalable and can handle large volumes of messages to meet SMS service needs.

The cost of an SMS firewall can be high, which is a problem for small businesses that can’t afford it. As a result, the SMS firewall market may be limited to large organizations with sufficient resources to invest in such solutions. This may limit the availability of SMS firewalls for many users and may restrain the growth of the SMS firewall market.

SMS firewalls can cause "false detection," which occurs when legal messages are mistakenly blocked, resulting in user frustration and user experience. Such false alarms can damage the reputation of companies using SMS Firewall solutions, affecting their customer relationships and limiting adoption. The risk of basic message filtering can pose a challenge for companies, highlighting the importance of effective SMS filtering methods. This is important for SMS Firewall solutions to reduce the incidence of false positives and provide options for end users to manage such events effectively. Otherwise, customers may lose confidence in the system and look for an alternative method of delivery.

Impact of COVID-19 on the global SMS firewall market:
The COVID-19 pandemic has had a two-fold impact on the SMS firewall market. On the one hand, the demand for reliance on digital communication due to social distancing measures and remote work has increased SMS traffic. As a result, there has been an increased demand for SMS firewall solutions that protect against potential security threats and maintain the integrity of the communication network. On the other hand, the economic crisis caused by the coronavirus has led to price cuts for many companies, which could impact the growth of the SMS Firewall market. In addition, the pandemic disrupted the global supply chain, leading to delays in the delivery of hardware components and necessary software updates for SMS fire protection systems. Overall, the COVID-19 pandemic has created a difficult situation for the SMS firewall market, with both positive and negative impacts. However, the SMS firewall market is expected to witness long-term growth despite challenges due to the growing reliance on digital communication and the need for secure messaging solutions.

GLOBAL SMS FIREWALL MARKET REPORT COVERAGE:

This research report on the global SMS firewall market has been segmented and sub-segmented based on the component, SMS model, deployment mode, end-user, and region.

Global SMS Firewall Market - By Component:

• SMS firewall Platforms

• Services

The service segment is estimated to hold the largest share during the forecast period. Professionals and managed services fall within this segment. These services also contribute to cost-cutting, revenue growth, and performance enhancement. In addition, mobile network operators (MNOs) can use services to monitor, assess, and analyze the company's needs.

Global SMS Firewall Market - By SMS Model:

• A2P SMS Firewall

• P2p SMS Firewall

THE A2P SMS Firewall segment is leading with prominent shares during the forecast period. A2P SMS messages are sent from applications to users and can serve various purposes, such as delivering marketing messages, notifications, and two-factor authentication codes. This mode of SMS traffic enables businesses and organizations to send automated messages to a large number of recipients simultaneously, and it is widely used for customer engagement and communication.

Global SMS Firewall Market - By Deployment Mode:

• Cloud SMS Firewall

• On-premises SMS firewall

Based on the deployment mode, the On-premises SMS firewall Will likely hit the highest growth rate in the coming years because of the wide range of features and performance.

Global SMS Firewall Market - By End-User:

• Government

• Education

• Banking, Financial Services, Insurance

• Utilities & Logistics

• Retail & Commerce

• Media & Entertainment

• IT & Telecom

• Healthcare

The Government segment is estimated to hold the highest revenue market share during the forecast period. This is due to the increasing demand for SMS firewalls due to government regulations to protect user rights and information from cyber-attacks. The robustness and security offered by SMS firewalls, along with their ease of connectivity, are expected to further drive the growth of this segment.

The healthcare segment is next in leading the shares of the SMS firewall market. One contributing factor is the growth in the utilization of messaging systems by medical facilities, hospitals, and other healthcare establishments to connect with patients. The adoption of SMS firewalls is also increasing in the healthcare sector to protect confidential medical data, which is expected to drive revenue growth in this segment.
Global SMS Firewall Market- By Region:

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus

Asia-Pacific is expected to dominate the global market trend because SMS firewall solutions are in high demand due to the widespread use of mobile devices and government policies to protect data. North America is next in leading the shares of the SMS Firewall market because of high demand in the educational and financial sectors. Europe is estimated to have the largest growth rate during the forecast period. The demand for this region is increasing due to rapid growth in healthcare industries and e-commerce. Government initiatives and a rising economy are also boosting market demand in this region. Latin America, the Middle East & Africa are set to have growth opportunities in the coming years.

KEY MARKET PARTICIPANTS:

The major companies operating in the global SMS firewall market include Comviva, Mobileum Inc, SAP Software Company, Proofpoint, Sinch, Belgacom ICS (BICS), AMD Telecom S.A., Tango Telecom Ltd, Cellusys, Syniverse Technologies LLC, Tata Communications, Infobip Ltd, Proofpoint Inc., and others.

RECENT HAPPENINGS IN THE MARKET:

• In Feb 2023, Mobileum Inc., a top-tier telecom analytics solutions provider, recently celebrated a major victory. The company was selected as a Platinum winner for two categories in the Juniper Future Digital Awards – Best Steering of Roaming Solution and Most Innovative Anti-SMS Fraud Solution.

• In January 2022, Comviva publicized its collaboration with IBM to produce its next-generation sales and distribution one-stop solution, BlueMarble Solution, on the IBM Cloud for Telecommunications.

• In March 2020, Mobileum announced a partnership with the telecommunications company STC. STC used Mobileum's Active Intelligence platform to detect fraud and security threats in 5G networks. This platform should provide STC with protection for its subscribers and network, helping prevent malicious fraud and other security threats.

• In October 2019, BICS increased the European network connectivity market by introducing a fiber optic path between Italy and Switzerland, with the availability of five additional points. This development was aimed at facilitating low-latency voice, data, and IP services in North-Eastern Europe.