New York, United States, Feb. 28, 2024 (GLOBE NEWSWIRE) -- A decentralized technological solution known as the blockchain can track, compile, and maintain a digital asset's history of transactions between two or more parties. It is linked using cryptography to provide the timestamp of the transaction. Blockchain is frequently used for smart contracts, connectivity provisioning, identity management, payment, and billing in the telecom sector. Process automation, immediate traceability, and increased operational effectiveness are other benefits of blockchain.
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Growing Focus on Detecting and Preventing Telecom Fraud Drives the Global Market
According to Straits Research, “The global blockchain in telecom market revenue was valued at USD 537.18 million in 2021. It is expected to reach USD 113.12 billion by 2030, growing at a CAGR of 81.20% during the forecast period (2022–2030).” Since the telecom sector has not found a sustainable and effective way to prevent fraud, blockchain is a strong candidate for reducing fraud costs, which will drive its adoption. Annually, telecom fraud causes significant losses. According to a Communications Fraud Control Association (CFCA) survey, fraud costs the telecom industry USD 38.1 billion annually. Subscription identity fraud and roaming fraud are common in telecom. Account creation and service assignment require subscriber identity information. A subscriber steals the ID of another subscriber (the victim) to obtain services. When a subscriber uses fraudulent identification or the ID of another subscriber (the victim) to obtain benefits, this is known as subscription ID theft. These factors are anticipated to drive market growth over the forecast period.
Growing Adoption by Significant Market Players Creates Tremendous Opportunities
Increased use of blockchain in telecom and postal services to create crypto-currencies and secure platforms for financial transactions is driving this technology. 5G and blockchain could revolutionize telecommunications, too. Blockchain, like 5G, ensures peer trust and security. 5G applications require speed, bandwidth, and latency. Telecommunications vendors have raised concerns about its deployment, citing the need to connect trillions of nodes and exchange services. These issues raise new questions about data value, security, and exchange. Significant telecom players' investments are expected to boost adoption and demand over the forecast period.
Regional Analysis
North America's blockchain in the telecom market share is expected to grow at a CAGR of 56.02% during the forecast period. A number of problems North American telecom operators face are resolved by blockchain technology, which allows for quicker transaction processing and decentralized operations. The widespread presence of significant blockchain technology vendors in this industry is the primary driver of market expansion in this area. Several regional telcos are implementing blockchain technology to reduce identity and roaming fraud and enhance customer experience. In the local telecom market, AT&T and T-Mobile employ the technology differently. Internally, AT&T has incorporated blockchain technology into its mobile device supply chain. This includes mobile device upgrades, returns, and other supply chain-related activities.
Europe is expected to grow at a CAGR of 64.51%, during the forecast period. Blockchain is no longer viewed as a cryptocurrency tool and financial technology in the European market. Its ability to cut out the middleman, save money, and reduce the likelihood of fraud and human error is being embraced by many telecoms. The EU General Data Protection Regulation has significantly increased the penalties for breaking data protection laws. Therefore, for the region's telcos, the security of data stored on a blockchain platform is essential. The technology enables simultaneous record-keeping, quicker transaction times, automation, digitization of business processes, supply chain management, and mobile payment features.
The market in the Asia-Pacific region has a ton of potential, especially given how prevalent mobile payments are becoming in countries like China and India. Since the demonetization plan, numerous telecom operators have been transitioning to this model, especially in India. For instance, the two leading telecommunications providers in the country, Airtel and Jio, offer their respective digital wallets to support customer-to-customer transactions. As a result, implementing blockchain technology to handle their online transactions could significantly enhance the cost and security of their wallets. Additionally, it is anticipated that companies will focus on blockchain-based applications for customer identity verification and sharing IoT data.
Key Highlights
- Based on application, the global blockchain in the telecom market is bifurcated into identity management, payment and billing, smart contract, and connectivity provisioning. The smart contract segment is the highest contributor to the market and is expected to grow at a CAGR of 57.36% during the forecast period.
- North America is the most significant shareholder in the global blockchain in the telecom market and is expected to grow at a CAGR of 56.02% during the forecast period.
Competitive Players
The global blockchain in the telecom market’s major key players are Blockchain Foundry Inc., Huawei Technologies Co. Ltd, Microsoft Corporation, Oracle Corporation, SAP SE, and ShoCard Inc. (Ping Identity).
Market News
- In September 2022, Leading North American blockchain development company Blockchain Foundry Inc. ("BCF" or the "Company") announced that it and WonderFi Technologies Inc. had signed a binding agreement under which WonderFi would buy all BCF's issued and outstanding shares.
Global Blockchain in Telecom Market: Segmentation
By Applications
- Identity Management
- Payment and Billing
- Smart Contract
- Connectivity Provisioning
By Regions
- North America
- Europe
- Asia-Pacific
- Rest of the World
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