Home > Technology > Blockchain In Telecom Outlook, Growth, Report to 2030
Straits Research

Blockchain in Telecom Market

Blockchain in Telecom Market: Information by Application (Identity Management, Payment and Billing, Smart Contract, and Connectivity Provisioning) and Regions—Forecast till 2030

Table of Content Download Sample

Market Snapshot

market snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
81.20 %
Fastest Growing Market:
Asia-Pacific
Largest Market:
North America

The global blockchain in telecom market size was valued at USD 537.18 million in 2021. It is expected to reach USD 113.12 billion by 2030, growing at a CAGR of 81.20% during the forecast period (2022–2030). A digital asset's transaction history between two or more parties can be recorded, gathered, and maintained using a decentralized technological solution known as the blockchain. It is connected using cryptography to give the transaction's timestamp. Organizations frequently use it to stop fraud, create transparent networks, store data specific to each device, prevent thefts, and streamline administrative processes. Smart contracts, connectivity provisioning, identity management, payment, and billing are all common uses of blockchain in the telecom industry. Additionally, it helps to automate processes, provide immediate traceability, and boost operational effectiveness. It also keeps track of users' historical data, which can be checked by other parties and is unchangeable.

Get more information on this report Download Sample Report

Market Dynamics

Global Blockchain in Telecom Market Drivers

Growing Focus on Detecting and Preventing Telecom Fraud

Blockchain is a strong contender for significantly lowering the cost of fraud, which will drive its adoption in the telecom sector, given that the industry has not yet discovered a way to prevent fraud effectively and sustainably. Each year, scams against the telecom industry cause great harm. The Communications Fraud Control Association (CFCA) survey estimated that USD 38.1 billion is lost each year due to fraudulent schemes, which is one of the leading causes of revenue losses in the telecom industry. Subscription identity fraud and roaming fraud are the two most common types of fraud in the telecommunications industry.

In order to open an account and assign services to the subscriber, subscriber identity data is necessary. When a subscriber uses fraudulent identification or the ID of another subscriber (the victim) to obtain benefits, this is known as subscription ID theft. For instance, using stolen identification information, fraudsters may get a SIM card in the victim's name. The International Mobile Subscriber Identity (IMSI), which is stored on the physical SIM, is used to identify and authenticate subscribers on mobile devices, along with the associated key.

Global Blockchain in Telecom Market Restraints

Insufficient Industry Standards

While blockchain-based telecom products and services are being developed, there are no rules or guidelines for transaction format. The technology promises high audibility and transparency, but telecom is slow to adopt it without standards. Since there are no significant technology associations, the technology is still new. The market's core capabilities lack technological uniformity and have a wide range of iterations. Despite regulatory efforts to bring CSPs (communication service providers) together, telecom companies lack a secure platform or channel for collaboration.

The sector can envision a wide range of applications by enabling collaboration with blockchain, as partnerships and the sharing economy create new business models. Blockchain technology can improve efficiency and transparency while upending business models in sectors like telecom. Blockchain applications are still developing, so industry-wide standards are likely a few years away. A lack of industry standards may hinder market growth.

Global Blockchain in Telecom Market Opportunities

Growing Adoption by Significant Market Players

Enterprise computing is fundamentally altered by artificial intelligence (AI) because it affects how businesses acquire, handle, and secure business data. According to Oracle, 90% of all applications and services will include AI by 2022, and more than half of all enterprise data will be managed automatically. For applications in telecommunications like billing, smart contracts, roaming services, and identity as a service, blockchain is used. The increased use of blockchain in telecommunication and post services for creating crypto-currencies and secure platforms for financial transactions is one of the main factors driving this technology.

Additionally, it is anticipated that blockchain and 5G will potentially revolutionize upcoming technologies in the telecommunications sector. Blockchain ensures a high degree of trust and security among peers, much like 5G promises users high rates and QoS. Applications utilizing 5G have a range of requirements for speed, bandwidth, latency, and other elements. However, telecommunications vendors have raised issues with its deployment, including the need to deploy trillions of nodes, connect everything, and provide services to one another—these present fresh difficulties for data value, data security, and exchange transaction models. Growing adoption by significant telecom players is anticipated to boost demand and raise the adoption rate in the telecommunications sector over the forecast period.

Segmental Analysis

The global blockchain in telecom market is segmented by application.

Based on Application, the global blockchain in telecom market is bifurcated into identity management, payment and billing, smart contract, and connectivity provisioning.

The smart contract segment is the highest contributor to the market and is expected to grow at a CAGR of 57.36% during the forecast period. Smart contracts are computer protocols designed to digitally simplify, confirm, or enforce a contract's performance. Without the involvement of third parties, trusted transactions can be carried out using smart contracts. Smart contracts are designed to reduce other transaction costs associated with contracting and offer security superior to traditional contract law. Smart contracts can eliminate or significantly reduce the role of various intermediaries by automating SLA agreements. This will give all stakeholders real-time visibility and instantly make any threshold breaches visible to all parties affected.

Identity management solutions can also benefit from blockchain, as they can eliminate intermediaries through smart contracts. This contributes to cost savings, decreased roaming fraud, and quick settlements. Through tamper-proof verifiable transactions and real-time updates to end customers, it aids telecom players in quickly resolving disputes. Blockchain technology and smart contracts can also significantly automate internal processes like billing, roaming, and supply chain management. Currently, a clearinghouse is required for the transactions in telecom ledgers to receive approval. By transferring data from one operator's blockchain to another and increasing transparency to the end user, smart contracts can automate this process and guarantee the settlement between the participants.

Blockchain's decentralized nature helps identity management applications avoid intermediaries. In this scenario, customers may only need a virtual ID, resulting in fewer steps and higher satisfaction. Industry leaders are investigating this use case. For instance, SK Telecom and Deutsche Telekom use blockchain technology for real-name authentication, subscriptions, and verification. SoftBank is also developing international ID. In addition, blockchain can eliminate identity theft by giving CSPs a smart contract ID number. Early telecom adopters are interested in a borderless, secure identification system that can cross borders. Blockchain can also offer quick, secure user authentication and help carriers replace outdated systems.

Regional Analysis

By Region, the global blockchain in telecom market is segmented into North America, Europe, Asia-Pacific, and the Rest of the world.

Blockchain In Telecom Market Regional Analysis

Regional Growth Insights Request Sample Pages

North America is the most significant shareholder in the global blockchain in telecom market and is expected to grow at a CAGR of 56.02% during the forecast period. Blockchain technology enables quicker transaction processing and decentralized operations, resolving several issues faced by North American telecom operators. The main engine for market expansion in this region is the widespread presence of major blockchain technology vendors in this sector. The adoption of blockchain technology by several regional telcos is intended to decrease identity and roaming fraud and improve customer experience. However, the pace of adoption in the telecom sector is currently slow but steadily accelerating. For instance, AT&T and T-Mobile utilize the technology differently in the regional telecom sector. Internally, AT&T has adopted blockchain technology for its supply chain for mobile devices. This covers mobile device upgrades, returns, and other supply chain-related activities. The development of a proof of concept for a blockchain application in the area of software tampering evidence was announced by AT&T and Microsoft. They also collaborated to develop enterprise solutions for networking, the Internet of Things, and blockchain.

Europe is expected to grow at a CAGR of 64.51% during the forecast period. Blockchain is no longer viewed solely as a cryptocurrency tool and a financial technology in the European market. Many telecoms are taking advantage of its ability to eliminate the middleman, saving money and lowering the likelihood of fraud and human error. The EU General Data Protection Regulation has significantly increased the penalties for violating data protection laws. As a result, the security of data stored on a blockchain platform is crucial for the region's telcos. Additionally, the technology allows for simultaneous record-keeping, shorter transaction times, automation, digitization of business processes, supply chain management, and mobile money features. For the benefits of blockchain technology, many telecommunications companies have partnered with suppliers of those solutions.

Asia-Pacific is anticipated to grow significantly over the forecast period. The market in this region has enormous potential, mainly because mobile payments are becoming more and more common in nations like China and India. Following the demonetization scheme, numerous telecom operators have been moving toward this model, particularly in India. For instance, the two top telecommunications companies in the nation, Airtel and Jio, provide their digital wallets to support customer-to-customer transactions. Therefore, adopting blockchain technology to manage their digital transactions could significantly improve the security and cost of their wallets. China Telecom, China Mobile, and China Unicom have all joined the CAICT's Trusted Blockchain Initiative in the past. This initiative will use blockchain technology to improve operations and security in the telecom sector. Additionally, it is anticipated that businesses will concentrate on blockchain-based applications related to IoT data sharing and customer identity verification.

The LACChain Global Alliance collaborated with Block One, an enterprise blockchain consortium constructing a public network in Latin America and the Caribbean. There were 40 partners in the alliance as of February 2021, and significant corporations like Grupo Sabra, IDB, and NTT Data's Everis ran the network's nodes. In addition, the Argentinean government declared in March 2019 that it would fund up to 40 blockchain projects over the following few years.

Recently, 5G network services have also been introduced in the area. In August 2020, Swedish telecom equipment manufacturer Ericsson and Brazilian telecom operator Claro Brazil announced their partnership to launch the first 5G network in Latin America using Ericsson's Spectrum Sharing technology. To establish blockchain services in a region where cryptocurrencies are becoming increasingly popular, the Chinese telecom giant Huawei Technologies is reportedly researching the Latin American market. Latin America now has a wealth of opportunities to implement blockchain solutions in the telecom industry thanks to the development of 5G technology and the rising popularity of the technology in the region.

Competitive Landscape

The global blockchain in telecom market’s major key players are

  • Blockchain Foundry Inc.
  • Huawei Technologies Co. Ltd
  • Microsoft Corporation
  • Oracle Corporation
  • SAP SE
  • ShoCard Inc. (Ping Identity)

Recent Developments

  • September 2022- Leading North American blockchain development company Blockchain Foundry Inc. ("BCF" or the "Company") announced that it and WonderFi Technologies Inc. had signed a binding agreement under which WonderFi would buy all BCF's issued and outstanding shares.

Global Blockchain in Telecom Market: Segmentation

By Applications

  • Identity Management
  • Payment and Billing
  • Smart Contract
  • Connectivity Provisioning

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • Rest of the World
Price Starts From
USD4250

Purchase Benefits

  • Eligible for a free updated report next year
  • Completely customizable scope
  • 30% discount on your next purchase
  • Dedicated account manager
  • Query resolution within 24 hours
  • Permission to print the report
Want to learn more about recent trends and data ?
They Already Trust Us :
Sony
Samsung Electronics
Qualcomm
Google
Fiserv
LGE
Panasonic
Amazon
Need Assistance?
+1 646 480 7505 (U.S.)
+44 208 068 9665 (U.K.)
Looking For Custom Report ?

Report Benefits

  • Develop business strategies by understanding the trends shaping and driving the Market.
  • Drive revenues by understanding the key trends, innovative products and technologies, market segments, and companies likely to impact the Market in the future.
  • Formulate effective sales and marketing strategies by understanding the competitive landscape and by analysing the company share of market leaders.
  • Identify emerging players with potentially strong product portfolios and create effective counter-strategies to gain a competitive advantage.
  • Track sales in the global and country-specific Market.
  • Organize your sales and marketing efforts by identifying the market categories and segments that present maximum opportunities for consolidations, investments and strategic partnerships.
Check Our License Options :
Report Snapshot

As featured on :

clients
Trusted by Fortune 500
Over 30000+ subscribers