Dublin, Sept. 07, 2023 (GLOBE NEWSWIRE) — The “Blockchain In Telecom Market Size & Share Analysis – Growth Trends & Forecasts (2023 – 2028)” report has been added to ResearchAndMarkets.com’s offering.
The Blockchain in Telecom Market size is estimated at USD 0.64 billion in 2023, and is expected to reach USD 5.79 billion by 2028, growing at a CAGR of 55.13% during the forecast period (2023-2028).
In the telecom industry, blockchain plays a very significant role in preventing fraud, securing user identities, and supporting next-generation network services and IoT connectivity solutions, which in turn is driving the market significantly.
Key Highlights
The increasing adoption of 5G is a catalyst for blockchain implementation in telecom, as 5G is helping in quick and reliable blockchain operations. Blockchain technology provides robust encryption to record and store the data on the network in a more secure and verifiable way. It makes the information transparent and tamper-proof. Thus, Blockchain technology is expected to help various telecom companies boost their network security and reduce operational costs, driving the market’s growth.
Moreover, telecommunications or telecom fraud is a fast-growing field of criminal activity. According to Europol’s European Cybercrime Centre and Trend Micro, telecom fraud costs around USD 32.7 billion annually. It represents a new challenge for law enforcement agencies. Blockchain can help in fraud detection and prevention for communication service providers, exponentially fueling the market’s growth.
Furthermore, in emerging countries such as India, the effectiveness of telecom regulator’s deployment of blockchain technology for curbing spam SMSs has set an example for the government to build a transparent and trustworthy framework for various critical use cases such as Aadhar authentication, property, and vehicle ownership records and direct tax collection among others. In March last year, the Ministry of Electronics and IT released a draft policy on blockchain technology to regulate its deployment in various public and private use cases. The telecom regulatory authority of India (TRAI) has also deployed distributor-ledger technology (DLT), which is currently one of the most significant use cases of blockchain technology to control spam SMS traffic.
However, on the other hand, scalability and interoperability are the several critical factors necessary for the overall adoption of blockchain technology. This is only possible when industry standards are set, which is at a lagging phase. The Telecom sector needs help with the mass adoption of blockchain technology, which can hinder the market’s growth.
Blockchain in Telecom Market Trends
Smart Contract to Dominate the Market
Smart contracts allow computer code to execute when specific conditions are met. The telecom industry is expected to witness significant adoption as it provides scope for automation in its internal operations, like billing, supply chain management, and roaming.
Deploying smart contracts to manage all the billing related to roaming can lead to significant cost savings, as it provides prevention against fraudulent traffic. Blockchain can also add value to identity management solutions by cutting out intermediaries through smart contracts. This helps reduce roaming frauds, cost savings, and instant settlements. It helps telecom players to resolve disputes quickly through tamper-proof verifiable transactions and real-time updates to end customers.
Asia Pacific to Witness the Highest Growth
The Asia-Pacific region boasts tremendous potential for the market, primarily owing to the growing prominence of mobile payments in countries such as India and China. India, specifically after the demonetization scheme, has witnessed many telecom operators shifting toward this model. For instance, Jio and Airtel, the country’s leading telcos, offer digital wallets to enable customer-to-customer payments. Thus, the adoption of blockchain to handle the transactions by these companies could make their wallets more secure and cheaper, driving the market significantly.
China Telecom, China Mobile, and China Unicom have joined the CAICT’s Trusted Blockchain Initiative, which would use blockchain technology to bolster operations and security in the telecom industry. The companies are expected to focus on blockchain-based apps that relate to IoT data sharing and customer identity verification.
Further, as the world is currently embroiled in a privacy debate over WhatsApp’s policy changes, India’s communication platform as a service (CPaaS) industry has been gearing up for the adoption of end-to-end encryption of commercial mobile SMSes, emails, and all other types of business communication between the enterprises and service providers.
For instance, next year, CPaaS provider Tanla Platforms, in partnership with Microsoft, launched its edge-to-edge global blockchain network called Wisely, which was made for sending encrypted SMSes directly from enterprises to the telecom operators, which the company also claims to disrupt the existing aggregator model of commercial communication.
Blockchain in Telecom Industry Overview
The market is concentrated, with few significant vendors offering blockchain solutions across the telecommunication industry. The vendors are also receiving investors’ funds, further helping in innovative blockchain services.
A selection of companies mentioned in this report includes
- Blockchain Foundry Inc.
- Huawei Technologies Co. Ltd.
- Microsoft Corporation
- Oracle Corporation
- SAP SE
- ShoCard Inc. (Ping Identity)
For more information about this report visit https://www.researchandmarkets.com/r/so52b
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