Blockchain has ventured into a lot of areas, and the journey of Blockchain today we are going to talk about is Blockchain Communications. Telcom industry is now predicted to become a $1 billion industry in the next 5 years. The disruption caused by Blockchain is inevitable and the technology is also promising. Let’s take a look at how this technology is taking over the communications sector.
Reports from Research and Markets: Telcom sector will become $1 Billion Industry by 2023
According to the reports the telecom market size is expected to grow from $46.6 Million in 2018 to $993.8 Million by 2023, at a Compounded Annual Growth Rate(CAGR) of 84.4% during the forecast period.
The Blockchain Communications market is driven by a number of factors, one of the reason is the increasing support for OSS/BSS (Operation Support System and Business Support System) processes and rising security concerns among telecom enterprises. Another reason that supports Blockchain in the telecom industry is the growing concerns over the authenticity of users.
According to MarketWatch:
The application providers segment is the fastest growing segment in the blockchain in the telecom market. The blockchain in telecom market has been categorized as, application providers, middleware providers, and infrastructure providers. The application providers leverage the platforms and solutions provided by infrastructure providers and tools provided by middleware providers for the development of applications. Applications developed have various use cases and can run on endpoints, mobile devices, and other IoT devices.
Blockchain Communications and its Market Dynamics
Also, the Market Dynamics talk a lot about why Blockchain is considered as the sought out solution for the issues faced by the telecom industry, the scope, opportunity and the challenges of the Blockchain in this industry.
- Increasing Support for OSS/BSS Processes
- Rising Security Concerns Among Telcos
- Growing Concerns Related to the Authenticity of Users
- Uncertain Regulatory Status and the Lack of Common Standards
- Blockchain Technology Helps the Telecom Sector in Fraud Management
- Extensive Use of Blockchain Solutions in IoT Space
- Increasing Use of the Blockchain Technology for implementing 5G Technology
- Lack of Awareness of the Blockchain Technology
- Lack of Understanding About the Blockchain Concept, Skill Sets, and Technical Knowledge
Exclusively, the report that was published by Research and Markets throw light on some of the key points:
“Application providers segment is expected to grow at a higher CAGR during the forecast period”
The application providers segment is the fastest growing segment in the blockchain in the telecom market. The blockchain in telecom market has been categorized as, application providers, middleware providers, and infrastructure providers. The application providers leverage the platforms and solutions provided by infrastructure providers and tools provided by middleware providers for the development of applications.
“OSS/BSS processes segment is expected to hold the largest market share during the forecast period”
OSS applications are important for the telecom sector as they aid in the management and operations of telcos’ network and customer services. BSS helps the telecom sector in 4 areas: product management, order management, revenue management, and customer management. Concerns over number portability, billing and flexi eSIM provisioning, roaming, and fraud are efficiently handled by the blockchain network.
“APAC is expected to record the highest growth rate during the forecast period”
APAC is expected to have the highest growth rate during the forecast period, due to the increase in venture capital funding, increasing number of startups, governments’ increasing focus on regulating the blockchain technology in the telecom market space. The key telecom service providers, financial hubs, and government organizations in China, Australia and New Zealand, India, and Singapore provide huge opportunities for the adoption of the blockchain solutions in the telecom sector
The adoption of the Blockchain technology is rising and the potential of this industry is already being captured by the industrial giants. This was Blockchain Communications, which is the next sphere Blockchain will venture to disrupt?
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