The global blockchain in telecom market is set to garner $80 billion by 2033, booming at a 74.8% compound annual growth rate (CAGR) from 2023 to 2033.
The telecommunications industry is well-known for reinventing itself. Fixed landlines were the primary product of telecom companies in the initial periods; however, with the introduction of the mobile phone, this shifted to mobile subscriptions and short message service (SMS). In past years, many telecom firms' primary revenue source has shifted from calls to data, necessitating another shift in their business model. With every firm becoming a data organization, there are huge prospects for the telecommunications industry to reinvent itself once more, 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 firms can use blockchain technology to improve data integrity, security, inspection, and fraud prevention.
One of the primary aspects driving market expansion is growing security concerns among telecom enterprises around the world. Blockchain in telecom offers greater security by encrypting all transactions with cryptography. Furthermore, the growing need for smart contracts is propelling market expansion. Blockchain is extensively utilized to automate the implementation of an agreement with preset conditions.
Moreover, technological improvements, such as the incorporation of AI and the IoT, with connected devices are boosting market expansion. These technologies allow smart devices to transmit data while also creating tamperproof records of shared transactions. Other reasons, including the incorporation of blockchain solutions for the development of 5G technology and the expanding use of blockchain-centered mobile wallet payments, are expected to propel the market forward.
- The global blockchain in telecom market is valued at $300 million in 2023.
- The market is forecasted to surge ahead at a CAGR of 74.8% during the forecast period (2023 to 2033).
- The market for blockchain in telecom 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 10 years.
“Blockchain technology uses strong encryption to record and store data on networks in a more safe and verifiable manner,” said a Fact.MR analyst. “It makes the data transparent and tamperproof. As a result, blockchain technology is predicted to assist various telecom firms in improving network security and lowering operational expenses.”
The blockchain in telecom industry is highly consolidated, with only a few major players providing blockchain solutions across the telecommunications industry. The vendors are also receiving funding from investors, which will aid in the development of innovative blockchain services.
- Tech Mahindra and telecom analytics solutions supplier Subex collaborated in November 2022 to roll out blockchain-centered solutions worldwide for telecommunication operators. By reducing overall compliance difficulties, these solutions would reduce fraud and increase operational efficiencies for communication service providers (CSPs).
- The Telecom Regulatory Authority of India (TRAI) planned to introduce new blockchain technology to limit spam calls and texts in November 2022 in partnership with TSPs. The organization is developing several technologies, including blockchain technology, to identify spam calls and texts. In addition, the regulator is forming a joint committee of regulators (JCOR) comprised of TRAI, the Ministry of Consumer Affairs (MoCA), the Securities and Exchange Board of India (SEBI), and the Reserve Bank of India (RBI).
North America is leading the global blockchain in telecom market. The U.S. is contributing substantially to the regional market due to the presence of major blockchain technology providers in the country. Moreover, Asia Pacific and Europe are following North America in terms of development.
*These insights are based on a report on Blockchain in Telecom Market by Fact.MR.
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