SMS Firewall Revenue To Reach $4.1 Billion Globally By 2026, As Messaging Fraud Evolves

A new Juniper Research study has found that total SMS firewall revenue will increase from $911 million in 2021 to $4.1 billion in 2026, representing an absolute growth of 346%.

According to the research, messaging is becoming a very big issues as volumes of business messaging to be monitored by SMS firewalls is expected to grow by 45%, from 3.1 trillion in 2021 to 4.4 trillion in 2026. Meanwhile, fraudsters are also get more sophisticated by the day.

SMS firewalls are third-party solutions that sit within operator networks, allowing the real-time monitoring of network traffic, enhancing operator capabilities to block fraudulent traffic and minimize revenue loss.

The new research, SMS Firewalls; Key Opportunities Competitor Leaderboard and Market Forecast 2021-2026, urges operators to implement advanced SMS filtering solutions, with artificial intelligence and machine learning capabilities to mitigate the constantly evolving tactics of fraudulent players.

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“A failure to adopt firewalls with these capabilities will leave operators open to diminished revenue from business messaging, as fraudsters mask business messaging traffic to avoid termination fees,” it warned.


The report stated that operators are expected to increase their investment in advanced analytics, such as natural language processing abilities, that enable the efficient identification of business use cases in the content messages. 

SMS Firewalls to Reduce Grey Route Traffic

The research also predicts that SMS firewalls will reduce operator losses to grey route traffic [the concealment of lucrative business messaging traffic within the less profitable channel of P2P messages].

It added that. by minimizing the profit to be made from the successful transmission of grey route traffic, SMS firewall implementation will reduce operator losses to fraud from $5.6 billion in 2021 to $922 million by 2026.

Research author Scarlett Woodford remarked: “SMS firewall solutions will limit the possibilities of grey routes by elevating the prices associated with concealing fraudulent traffic, in order to avoid network detection. This will make paying for traffic termination via legitimate routes a more cost-effective option, as fraudulent players will struggle to justify the increased costs associated with grey route transmission.”

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