Market Dynamics
Global OSS BSS Market Drivers
Rise in Interest in Cloud OSS/BSS
The main reason for boosting the growth of the OSS and BSS market is the rise in demand for cloud OSS/BSS due to the benefits such as flexibility, cost-effectiveness, and technology to help business efficiency. Due to the high entry/exit barriers introduced by the on-premise OSS and BSS solutions and other factors, modern communication service providers are shifting their preference toward the cloud due to several advantages like a quick time to market and flexibility in network delivery and management. Adopting cloud-based operations support system solutions is also becoming considerably simpler for new and mobile virtual network operators (MVNO).
Global OSS BSS Market Restraint
OSS/BSS System Integration Challenges with Existing Systems
Several apps cannot be supported by legacy OSS and BSS platforms. These platforms were created to operate either point-to-point or, at the very least, point-to-multipoint. Therefore, ensuring consistent service delivery across a range of mobility devices via OSS and BSS platforms is challenging. OSS and BSS suppliers may also need help deploying services to clients across various interfaces and networks due to the consumers' use of several mobility devices. Additionally, future OSS and BSS systems must enable voice-over I.P. (VoIP), unified communications (U.C.), video, high-speed data, and a fast-expanding range of digital media applications. As well as needing help to keep up with the times, legacy systems are complex for service providers to replace with more modern ones.
Global OSS BSS Market Opportunities
Complexity by the Implementation of 5G and IoT in the Ecosystem of Communication Networks
Massive transformations are being made to OSS/BSS systems to use the promise and advantages of 5G technology. New OSS/BSS systems that are more intelligent, versatile, accurate, and sensitive to rapidly changing client requirements have quickly been in demand. To improve OSS/BSS and use emerging technologies to serve a variety of value-added use cases, several OSS and BSS solution providers are collaborating with communication service providers (CSPs). For instance, OSS can use A.I./ML-based data to determine upsell offers for end-users and propose them. According to the Mobile World Live (MWL) poll, significant modifications to backend systems will be required, given the industries' rapid development toward 5G deployments.
Regional Analysis
The global OSS BSS market is bifurcated into four regions: Asia-Pacific, North America, Europe, and LAMEA.
North America Dominates the Global Market
North America is the major revenue contributor and is expected to exhibit a CAGR of 9.80% during the forecast period. Canada and the United States make up North America. This is because the region has strong, stable economies that allow it to invest in R&D activities, which spurs the creation and advancement of new technologies. The market's highest market share belongs to North America since it promotes the adoption of operations support systems by its numerous organizations. The abundance of mobile network operators and telecom providers in North America mainly drives the need for OSS/BSS and platforms in this region. This demand is also consistent with the overall expansion of the North American telecom and IT markets.
Europe is expected to exhibit a CAGR of 12.90% during the forecast period. The markets in the U.K., Germany, France, and the rest of Europe are examined. Many European firms have been forced to implement operations support system solutions due to the spike in demand among telecom service providers to outsource their operation support services. The government and various private companies' efforts in the growth of the telecom industry are responsible for the OSS and BSS market growth in this region. Countries like Russia, Italy, Spain, the Netherlands, Finland, and Sweden are included in the rest of Europe. The OSS and BSS market is expanding in Europe due to the sharp increase in demand for service fulfillment and service assurance solution types.
Asia-Pacific is predicted to experience the most significant revenue increase during the projected period due to increasing mobile data traffic, fierce competition among telecom carriers, and dropping average revenue per user (ARPU), which all require innovations and operational efficiency. In such a situation, service integration by market players and the development of end-to-end solutions are now essential. For instance, China Unicom and Huawei teamed up in April 2020 to support the digital transformation of their network's design, construction, and operation. Based on Huawei's Collaboration Workspace Realization (CWR) technology, they jointly created the TianShu solution.
Latin America and the Middle East and Africa are all included in the analysis of the worldwide OSS and BSS market in LAMEA. Latin American telcos are implementing new procedures and management tools to supply cutting-edge network services successfully and efficiently. In addition to automating and streamlining network configuration management, OSS technologies assist Telcos in standardizing and improving network planning procedures. The Middle East has a substantial impact on the market's expansion. For instance, as part of developing its national 5G network, the international telco in the UAE, Etisalat, chose Ericsson's Charging System and 5G Business Support Systems (BSS) in September 2020.
Segmental Analysis
The global OSS BSS market is segmented by component, component, OSS solution types, enterprise size, and industry vertical.
Based on components, the global OSS BSS market is bifurcated into solutions and services.
The solution segment is the major contributor to the market and is estimated to exhibit a CAGR of 12.50% during the forecast period. The solution category comprises various platforms and software for business and operations support systems that provide network and customer data for back-office operations. With features including service provisioning, network setup, inventory management, order management, and fault management, these systems assist telecom service providers in managing networks and the service order experience for customers. These systems also allow users to interact with clients, facilitating actions like processing invoices, taking orders, and collecting payments.
The installation of services guarantees that the OSS/BSS platforms operate efficiently, transparently, and under control at all times. Professional and managed services are among these services. Implementation, training and support, and consulting services are professional services. The software's installation, configuration, and comprehensive scheduling are covered by implementation services, including a program created to address the client's unique requirements. Support and maintenance services involve efficiently tracking and managing issues with individualized support and improved performance growth. As a result, these elements work together to boost the market.
Based on the deployment model, the global OSS BSS market is bifurcated into on-premise and cloud.
The on-premise segment owns the highest market and is estimated to exhibit a CAGR of 12.20% during the forecast period. The on-premise deployment option for OSS and BSS systems enables the installation of the software or platform. It allows applications to function on systems in an organization's premises rather than at a remote facility like server space or the cloud. These solutions provide improved security characteristics, encouraging their use in numerous institutions and businesses focusing on security. On-premises solutions come with a service contract and a one-time licensing charge. It is anticipated that the availability of a ready infrastructure for on-premise solutions for telecom firms will accelerate the widespread adoption of on-premise OSS solutions in telecom organizations.
A service provider hosts the software, and access to the program and functionality is provided as a service remotely, according to the cloud-based deployment of OSS and BSS systems. With a reduced anticipated cost and a better ability to concentrate on innovation and differentiation, this deployment approach gives the IT staff a more significant opportunity to facilitate actual business value to the organization. These deployment models free businesses from requiring expensive IT staff, waiting months for implementation, or making sizeable upfront hardware purchases. For instance, the NEC-owned firm Netcracker Technology stated in April 2020 that T-Mobile Netherlands is employing the Netcracker BSS tools housed on the public cloud platform and that the company's suite of digital BSS/OSS apps is now available on AWS (Amazon Web Services).
Based on OSS solution types, the global OSS BSS market is bifurcated into service delivery, service fulfillment, network planning and design, service assurance, customer and product management, billing and revenue management, network performance management, and others.
The network planning and design segment is the major contributor to the market and is estimated to exhibit a CAGR of 8.35% during the forecast period. Network topology, mapping, and architecture are part of the iterative network planning and design process. The process of planning and developing data transmission networks is incredibly complicated. Network planning and design solutions ensure that a communications service or network satisfies the needs of the subscriber and operator. These technologies allow CSPs to effectively and thoroughly manage telecom network design, planning, and optimization processes. The automation of service planning, the creation of computationally independent workflows, and their transformation into realization models are made possible by network planning and design tools.
Telecom service providers (TSPs) employ a service delivery solution to manage and offer telecommunication services through standard interfaces. It aids in creating, administering, and delivering services made available over a communications network. Service delivery platforms provide a single view of service configuration, subscriber data, and device-level information, which combine several OSS/BSS disciplines and enhance each link in the service fulfillment chain. However, it can be used with any system that offers voice-over-internet protocol (VOIP), telephone, internet services, internet protocol T.V., or software-as-a-service (SaaS). This solution type is typically employed in telecommunications.
Based on enterprise size, the global OSS BSS market is bifurcated into small and medium-sized enterprises and large enterprises.
The large enterprise segment owns the highest market and is estimated to exhibit a CAGR of 12.10% during the forecast period. The widespread use of OSS/BSS products and services by major corporations like financial institutions and communication service providers (CSPs) significantly aids in expanding the world market. Systems that assist operations are essential for CSPs to increase customer satisfaction and increase subscriber engagement. Therefore, telecom businesses aim for a comprehensive OSS transition. Large companies across a range of industries are also utilizing the capabilities of OSS/BSS systems to manage business performance, deliver services end-to-end, and improve customer experiences. The growing need among major businesses to manage their extensive network components fuels industry expansion.
Small- and medium-sized businesses (SMEs) are companies with less than 1,000 employees and annual revenues of less than USD 1 billion. SMEs typically have constrained cash resources, internal IT skills, and resources. Every SME has as its primary goal making money and remaining in business. SMEs prioritize retaining and gaining new clients by providing high-quality services or products. Converting mountains of data into usable information is a huge barrier for these business owners. SMEs accept OSS and BSS solutions because they enable them to become smarter, more efficient, and more competitive than other firms. This boosts their revenue and encourages more businesses to use these solutions.
Based on industry verticals, the global OSS BSS market is bifurcated into IT and Telecom Enterprises, BFSI, media and entertainment, retail and e-commerce, and others.
The IT and telecom enterprises segment is the major contributor to the market and is estimated to exhibit a CAGR of 8.40% during the forecast period. Operations support systems use specialized hardware and software to monitor, configure, examine, and control operational activities across the network in the IT and telecom sectors. Business support systems handle customer-facing business components. Due to its crucial role in the network architecture of different mobile or computer networks, OSS and BSS solutions and services are frequently used by IT and telecom players. Additionally, they make it possible for telecom operators to control network maintenance tasks and ongoing business operations. It is believed that HPE's next-generation OSS solution will assist VI in resolving its business issues.
As more financial institutions and banks are implementing cloud and mobile services, the use of OSS and BSS is rising in the BFSI sector. A growing external digital environment brought on by customer relationship management (CRM), electronic payments, sales channel assistance, and client reporting is accelerating organizational workflow thanks to the BFSI sector's rapid digitization. Automation and digitalization have increased the demand for more sophisticated solutions to evaluate data from many sources and boost competitiveness. The OSS and BSS system aids banks in streamlining the lead collection, easing conversion, and enhancing customer acquisition.
The media and entertainment (M&E) industry's OSS and BSS solutions are created to assist M&E firms in leveraging the potential of the subscription revolution by helping them in monetizing content offerings in a scalable and successful manner. OSS and BSS solutions support the development of a customer-centric strategy and digital transformation and automate monetization activities across the M&E industry by leveraging the central billing and charging engines. The media and entertainment industry is experiencing rapid digitalization and technical improvements, fueling market expansion. M&E businesses may now concentrate more on providing their clients with high-quality services thanks to increased competition.
Industries like government, manufacturing, healthcare, and utilities are included in the others sector. By giving customers more information and control over their usage and consumption, OSS and BSS solutions in the utility industry assist companies in monetizing their investments in smart infrastructure and improving customer experiences. On the other hand, OSS and BSS solutions for the healthcare sector provide improved patient experiences, simple and secure access to patient information, alternative insurance mechanisms, and superior patient care.
