Blockchain in Telecom Market to Grow 74.8% CAGR, Reach $80 Billion by 2033
The global blockchain in the telecom market is set to converge USD 80 billion by 2033blooms at 74.8% CAGR from 2023 to 2033.
The telecommunications industry is known for reinventing itself. Landlines were the main product of telecom companies in the early periods; but with the introduction of the mobile phone this changed to mobile subscriptions and SMS (Short Message Service). In recent years, many telecom companies’ primary source of revenue has shifted from calls to data, necessitating a new shift in their business model. With every company becoming a data organization, there is great opportunity for the telecommunications industry to reinvent itself again, thanks to blockchain.
A blockchain is a public electronic ledger distributed to shareholders in a network that records all transactions between two or more parties. Telecom companies can use blockchain technology to improve data integrity, security, inspection and fraud prevention.
One of the main aspects driving the market expansion is growing security concerns among telecom companies worldwide. Blockchain in telecom provides greater security by encrypting all transactions with cryptography. Furthermore, the growing need for smart contracts is driving the market expansion. Blockchain is widely used to automate the implementation of an agreement with preset conditions.
Moreover, technological improvements such as incorporation of AI and IoT with connected devices are increasing the market expansion. These technologies allow smart devices to transfer data while creating tamper-proof records of shared transactions. Other reasons, including the incorporation of blockchain solutions for development of 5G technology and the growing adoption of blockchain-centric mobile wallet payments, is expected to drive the market forward.
Important things from market research
- The global blockchain in the telecom market is valued at USD 300 million by 2023.
- The market is predicted to rise ahead at a CAGR of 74.8% during the forecast period (2023 to 2033).
- The telecom blockchain market is predicted to reach $80 billion by 2033.
- The North American market is estimated to expand at a CAGR of 46.02% from 2023 to 2033.
- The smart contracts segment is expected to witness significant growth over the next ten years.
“Blockchain technology uses strong encryption to record and store data on networks in a more secure and verifiable manner. It makes the data transparent and tamper-proof. As a result, blockchain technology is predicted to help various telecom companies improve network security and lower operating expenses. says a Fact.MR analyst.
Challenging landscape
Blockchain in the telecom industry is highly consolidated with only a few major players offering blockchain solutions across the telecom industry. The providers also receive funding from investors, which will help in the development of innovative blockchain services.
- Tech Mahindra and telecom analytics solutions provider Subex partnered in November 2022 to roll out blockchain-centric solutions worldwide for telecom operators. By reducing overall compliance issues, these solutions will reduce fraud and increase operational efficiency for communications service providers (CSPs).
- Trai planned to introduce new blockchain technology to curb spam calls and text messages in November 2022 in collaboration with TSPs. The organization is developing several technologies, including blockchain technology, to identify spam calls and text messages. In addition, the regulator forms a joint committee of regulators (JCOR) consisting of Trai (the Telecom Regulatory Authority of India), MoCA (Ministry of Consumer Affairs), SEBI (Securities and Exchange Board of India) and RBI (Reserve Bank of India).
Regional analysis
North America leads the global blockchain within the telecom market. The United States contributes significantly to the regional market due to the presence of major blockchain technology vendors in the country. Also, Asia Pacific and Europe follow North America in terms of development.
More valuable insights an offer
Fact.MR, in its new offering, presents an objective analysis of the global blockchain in the telecom market, presenting historical demand data (2018 to 2022) and forecast statistics (2023 to 2033).
The study reveals important insights about the market on the basis of vendor (infrastructure vendors, application vendors, middleware vendors) and application (OSS/BSS processes, identity management, payments, smart contracts, connectivity provision, other applications), across five major regions of the world (North Americas, Europe, Asia-Pacific, Latin America and the Middle East and Africa).
