Blockchain is a shared ledger, which maintains history of all the transactions within the network. The information on blockchain network is replicated across the stakeholders and cannot be tampered with at any point, by any of the concerned parties. Businesses are exploring blockchain and its benefits across the telecom industries. The growth of the digitization and virtualization in telecom market, along with adoption of blockchain technology; the telecom market is anticipated to significantly benefit in coming years.
The applications of blockchain technology are increasing in telecom market on the back of its ability to provide a secure and transparent platform, while eliminating the need for third party intermediaries. Block chain technology in telecom market is gaining popularity on account of the numerous benefits offered to communication service providers (CSPs), for instance, establishing subscriber identity, data identity & fraud management, roaming, smart contracts etc. Moreover, it also helps in number portability, billing and activation of mobile services, onto a network. Further, various telecommunication key players are adopting the blockchain technology owing to its ability to provide enhanced customer experience on account of simplified process and efficiency, leading to improved revenue growth and fraud reduction.
The block chain in telecom market is anticipated to witness significant opportunities and is estimated to grow at a CAGR of around 70% over the forecast period i.e. 2019-2027. According to our research, the global blockchain in telecom market was valued at around USD 45 Million in 2018. The market is segmented by applications into connectivity provisioning, identity management, OSS/BSS processes, smart contracts, payments, and others, out of which, connectivity provisioning segment is anticipated to project highest growth rate over the forecast period on the back of the adoption of blockchain solutions in various applications. On the basis of provider, the market is segmented into application, middleware, and infrastructure provider, out of which, the application provider segment is anticipated to grow at the fastest rate on the account of its ability to leverage on the platforms, solutions and tools provided by infrastructure provider and middleware provider. Based on organization size, the market is segmented to large enterprises and SMEs (small and medium enterprises). The blockchain in telecom market is estimated to cross the market value of USD 1 billion by 2027. DOWNLOAD SAMPLE REPORT HERE
With the ability of blockchain technology to support the business processes of telecom companies by increasing their operational and business efficiencies as well as revenue growth on the back of standardization and simplification of the processes with real time views, the adoption of blockchain technology in telecom market is anticipated to grow significantly over the forecast period.
The collaborations between the telecom companies and blockchain solution providers are increasing on the back of the plenty of opportunities to explore from potential businesses and revenue models. These factors are anticipated to drive the growth of the market over the forecast period. For instance, AT&T, as a telecom player is working with blockchain technology partners, IBM & Microsoft for various applications. Additionally, new product launches and further penetration into untapped regions are expected to act as a growth driver for the market.
Limitations pertaining to implementation of blockchain solutions on the account of network architecture, security and technical challenges, along with regulatory issues are anticipated to hinder the growth of the market over the forecast period.
Our-in depth analysis of the blockchain in telecom market includes the following segments:
On the basis of regional analysis, the blockchain in telecom market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region, out of which, the market in North America is anticipated to hold the largest market share over the forecast period owing to presence of major key players, and increasing partnership between the telecom companies and blockchain technology platforms in the region. Moreover, the market in Europe is expected to grow at an incremental rate on account of increase in venture capital funding on blockchain technology in the telecom market. Furthermore, the market in Asia Pacific is anticipated to witness highest growth rate on account of increasing government regulations and investments, pertaining to use of blockchain technology in the telecom market. These factors, along with, increase in adoption of the blockchain technology on the back of its ability to provide huge opportunities to the businesses is attributed to fuel the growth rate of Asia Pacific market.
The blockchain in telecom market is further classified on the basis of region as follows:
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