Revenue Assurance Market

Market Overview

The revenue assurance market is expected to grow from USD 512 million in the year 2019 to USD 930 million in the year 2027, with a CAGR of 7%.

Revenue assurance is described as the process of ensuring that all goods and services offered by the telecom service provider are billed by maintaining the consistency and accuracy of billing and configuration across the applicable processes in compliance with the contractual arrangement with customers. It aids to reduce leakages, improve profits, revenues, and cash flows without influencing demand. The process of revenue assurance involves control and regulation, correction and recovery tracking, tracking and management, monitoring, reporting, and analysis. Further, it is considered as the amalgamation of the control, audit, technology, and business Intelligence.

Market Dynamics

Rising Incidents of Revenue Leakage: A Key Market Driver

As corporations continue to shore up their possible sources of profits, tax revenue leakage is attracting attention. It is described as clients spending less money on their vendors than planned over the duration of the contract. Some of the reasons for the increase in the revenue leakages comprise of changes in internal customer priorities and stakeholder support, shifting strategic alliances, the mismatch between solution expectations and deliverables, discounts, and invoicing errors. Further, as per Straits Research and our paid databases, more than 42% of the companies face revenue leakages. The average revenue leakage has been accounted for 2% to 5%. Thus, the tremendous amount of revenue leakages can affect the revenue pf the company. 

Advent of Advanced Technology: A Key Market Driver

The surge in the adoption of advanced technologies, such as cloud, 4G/5G, IoT, and SDN/NFV, and AI, among others, has surged the adoption of revenue assurance. The deployment of advanced technologies has led to an increase in the complexities of the business modules. Further, the penetration of new technologies, such as Over the Top (OTT) platforms, has changed the dynamics of the entertainment industry. The tremendous involvement of telecommunication in these services has complicated revenue management. Thus, the adoption of the revenue assurance software and services have aided in proficiently managing the changes due to the advancement in the technologies.

Lack of Organizational Management: A Key Market Restraint

Revenue management requires effective management of the revenue earned by the company from all sources. The multiple sources of income and expenditures, multiple business segments, and the differential mergers, acquisitions, partnerships, and collaborations with other companies have led to the rise in the complexities in the income streams of the companies. As stated by the ‘World Economic Forum’, the skills gap across the industry verticals is anticipated to grow in the Fourth Industrial Revolution. Thus, as revenue assurance software enables to assists in managing the revenue and decreases the revenue leakage share, the lack of organizational management and the skilled labors for effective adoption of the software are likely to restrain the market growth.

Segmental Analysis

Advanced Features of Software to Drive Its Adoption among the End-Users

The software segment caters to the maximum share, owing to the large deployment of software solutions across the industries. Additionally, the multiple features of the software identification of revenue risks, enhancement of revenue, overall monitoring, and accurate reporting bolsters the segment growth. Further, the service segment comprises of planning and consulting, implementation and customization, support and maintenance, and managed services. The effective adoption of the services along with the software for efficient protection against revenue leakage has led to the fastest growth of the segment in the revenue assurance market.

On-Premise Segment Caters to the Highest Share in the Revenue Assurance Market

The on-premise segment caters to the highest share in the revenue assurance market, owing to the presence of greater security, full control over the hardware, and greater customization. However, the vast proliferation of technologies, such as 5G, IoT, AI, Artificial Learning, Augmented and Virtual Reality, and others that propel the revenue assurance market need a flexible deployment type. Thus, the growing digitalization has increased the demand for technologically advanced software and techniques across all industries. 

Regional Analysis

North America’s Market to Be Driven by Rapid Adoption of Latest Technology

North America dominates the revenue assurance market, owing to the presence of the key players and providers of internet service and communication service (ISP and CSP). North America is one of the leading regions in terms of noteworthy investments and the adoption of the latest technology. As stated in the Mobile Economy 2020 published by the GSM Association, by the end of 2025, 5G technology is anticipated to be used by approximately 48% of the subscribers. The report also states that in 2019, the number of IoT connections was accounted for 2.9 billion and are expected to rise to 5.4 billion by 2025 in the region. Further, the financial stability of the countries in the region opens up many doors for new investments and increased adoption of the latest IoT devices.  

Asia-Pacific’s Market to Be Driven by the Booming Telecom Sector and Swift Cloud Adoption

Asia Pacific is anticipated to showcase colossal growth in the revenue assurance market, owing to the high adoption of the technology, digitalization, favorable government initiatives, and increasing investments in the ICT segment. The presence of advanced technological countries, such as Japan, Singapore, China, and South Korea, bolsters the market growth. Additionally, in the IMD World Digital Competitiveness Ranking, Singapore ranks second, followed by Hong Kong SAR and Korean Republic ranking 8th and 10^th, respectively. Additionally, the booming telecom sector and cloud adoption in this region have also played a role in the proliferation of the market.

Recent Developments

• In January 2020, Subex expanded its partnership agreement with Jawwal, Palestine's foremost provider of mobile networks. The goal of the collaboration was to provide the current iterations of ROC Revenue Assurance and ROC Fraud Prevention with an update.
• In October 2019, Amdocs launched RevenueONE to encourage communications service providers (CSPs) to capture all the new economy's revenue opportunities. The product aimed at shortening the CSPs' time to cash along with converting the operations of batch billing into real-time tasks.

Revenue Assurance Market Segmentation

By Component

• Software
• Services

By Deployment Mode

• Cloud
• On-premises

By End-User

• TSPs
• Enterprises

By Verticals

• Telecom
• Utilities
• BFSI
• Hospitality

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• The U.K.
• Italy
• France
• Spain
• Germany
• The Rest of Europe

The Middle East and Africa (MEA)

• Saudi Arabia
• Egypt
• South Africa
• The Rest of MEA

Asia-Pacific

• India
• China
• Japan
• Australia
• South Korea
• The Rest of Asia-Pacific

South America

• Columbia
• Brazil
• Chile
• Peru
• Argentina
• The Rest of South America