Multi-factor authentication to generate $27bn globally for mobile operators in 2022 – research

A new study by Juniper Research has found operators will generate $27bn from the termination of SMS messages related to multi-factor authentication in 2022; an increase from $25bn in 2021.

According to the study, rising demand on digital service providers to offer secure authentication that decreases the risk of data breaches and protects user identity will fuel this 5 per cent growth. Multiple credentials are combined in multi-factor authentication to validate a person or transaction. This involves sending an SMS to a user’s unique phone number with a one-time password or code.

#Operators will generate $27bn from the termination of #SMS messages related to #multifactorauthentication in 2022.

This growth will be driven by pressure on digital service providers to reduce risk of #data breaches and protect users' identities.https://t.co/782L77LepT pic.twitter.com/C5C984PMUl

— Juniper Research (@juniperresearch) May 10, 2022

The latest study, Mobile Authentication: Future Strategies & Market Forecasts 2022-2027, recommends operators to use firewalls to monitor and identify SMS traffic needed for multi-factor authentication. Operators will be able to charge a premium for this traffic, resulting in increased income from corporate messages.

Machine learning needed for identification of traffic
According to the study, approximately 1.7 trillion multi-factor authentication messages would be transmitted globally in 2022, accounting for 60 per cent of all SMS commercial messaging traffic. To efficiently identify communications that may be paid at a premium, operators must create machine learning algorithms that automate the monitoring of this large quantity of data.

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.”

CPaaS platforms enable SMS growth
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.

Read: 5G voice users to reach 2.5 billion globally by 2026 – research