Juniper: SMS firewalls will help operator A2P messaging revenues hit $62 bn by 2023

A new study from Juniper Research forecasts that total operator revenues from A2P (Application-to-Person) messaging services will reach $62 billion by 2023, up from $43 billion in 2019 – a growth of 42% over the next 4 years. Revenue growth will be driven by operator efforts in mitigating messaging fraud over grey routes, alongside the emergence of rich-media messaging technologies including RCS (Rich Communications Suite).

  • 24% of A2P SMS messages will be delivered via grey routes in 2019, however efforts in improving SMS firewall capabilities will drive this down to below 10% by 2023.
  • Increased investment in SMS firewalls and AI (Artificial Intelligence) will drive down operator loss due to grey route SMS messages to $4 billion by 2023. This represents a fall from $10 billion in 2019.
  • RCS business messaging will account for under 10% of operators’ A2P messaging revenue by 2023.

RCS will provide operators with additional revenue opportunities beyond simple message termination. Operators must explore the advertising ecosystem and mobile payments over RCS to exploit their substantial subscriber bases to generate fresh revenue streams.

Juniper research author, Sam Barker