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.
Juniper research author, Sam Barker