Mobile Operators globally will in 2022 generate $27 Billion, representing a 5percent growth from the termination of SMS messages related to multi-factor authentication, Juniper Research Study has revealed.
This growth is an increase from $25 billion in 2021 and will be driven by increased pressure on digital service providers to offer secure authentication that reduces the risk of data breaches and protects user identity. Multi-factor authentication combines multiple credentials to verify a user or transaction. This includes sending an SMS that contains a one-time password or code to a user’s unique phone number.
The new research, Mobile Authentication: Future Strategies & Market Forecasts 2022-2027, urges operators to capitalise on the growth in demand for multi-factor authentication SMS traffic, by leveraging firewalls to monitor and identify SMS traffic specifically used for multi-factor authentication. In turn, operators will then be able to charge a premium on this traffic and further increase business messaging revenue.
The research predicts there will be over 1.7 trillion multi-factor authentication messages delivered globally in 2022; representing 60% of total SMS business messaging traffic. Operators must develop machine learning algorithms that automate the monitoring of this vast amount of traffic to efficiently identify messages that can be charged at a premium.
Research co-author Keith Breed remarked: “Automating traffic detection is crucial for operators as we expect multi-factor authentication traffic to grow to 2.1 billion messages by 2027. SMEs have typically not invested in messaging for security in the past. However, rising pressure to implement greater security for users will drive adoption amongst SMEs over the next 5 years, and increase global traffic.”
To manage this increase in demand for multi-factor authentication SMS messages, the report urges operators to partner with CPaaS (Communications Platform-as-a-Service) platforms. These platforms offer the necessary user interface to SMEs to manage authentication processes and subsequent traffic from which operators will attain additional SMS business messaging revenue.