Increased Adoption of Blockchain
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.
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.
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Technical and Regulatory Challenges on Adoption Of Blockchain Solution
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:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh