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Blockchain in Telecom Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Blockchain in Telecom Market is segmented by Application (Identity Management, Payment and Billing, Smart Contract, Connectivity Provisioning), and Geography.

Market Snapshot

Blockchain in Telecom Market
Study Period: 2018- 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 61.45 %

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Market Overview

The Blockchain Market in the Telecom Industry was valued at USD 157.9 million in 2020 and is expected to reach USD 2759.8 million by 2026, registering a CAGR of approximately 61.45% over the forecast period (2021 - 2026). The onset of the pandemic has highlighted the criticality of telecom infrastructure. The global health emergency is placing new pressures on telecom services and suggesting a key role they can play beyond simple connectivity in emergency scenarios such as this.

  • Beyond the coronavirus pandemic, the world is expected to see substantial interest in new fintech services as the growing demand for virtual and online services continues to build. Within the telecommunications industry, the pandemic is driving the need for expanding digital infrastructure and data-driven services. Telecom companies are now increasingly focused on network resiliency and reliability, particularly in 5G investments.
  • Increasing adoption of 5G is a catalyst for blockchain implementation in telecom, as 5G is helping in quick and reliable blockchain operation. Blockchain technology provides strong 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. Blockchain technology is expected to help various telecom companies boost their network security and reduce their operational costs.
  • 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 USD 32.7 billion annually to the world. It represents a new challenge for law enforcement agencies. Blockchain can help in fraud detection and prevention for communication service providers.
  • Scalability and interoperability are the factors necessary for blockchain adoption. This is only possible when industry standards are set, which is at a lagging phase right now. Telecom sector is struggling with mass adoption of blockchain technology.

Scope of the Report

Communication service providers control the end-to-end value chain (data connectivity), network infrastructure, and various other consumer services, for both the users and businesses. Thus, the need to find new sources of revenues and reduce the costs is more than ever, as revenue is decreasing owing to the factors, such as high cost and high bandwidth demand. Thus, blockchain provides the capability to influence the core management system of CSPs by creating an ecosystem where cost can be reduced, and the revenue can be increased with efficiency.

Application
Identity Management
Payment and Billing
Smart Contract
Connectivity Provisioning
Geography
North America
Europe
Asia Pacific
Rest of the World

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Key Market Trends

Smart Contract to Dominate the Market

  • Smart contracts allow computer code to execute on its own when specific conditions are met. In the telecom industry, it 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 of 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, as it can cut out intermediaries through smart contracts. This helps in the reduction of 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.
  • Currently, transactions within the telcos ledgers go through a clearinghouse to be authenticated. However, the adoption of smart contracts can automate this process leading to the elimination of post-processing, which saves time for the companies. Furthermore, in doing so, telcos also save money by spending less on auditing and accounting as the process is automated.
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Asia Pacific to Witness the Highest Growth

  • The 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 been witnessing a lot of telecom operators shifting toward this model.
  • For instance, Jio and Airtel, the country's leading telcos, offer their 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.
  • China Mobile, China Telecom, and China Unicom have joined the CAICT’s Trusted Blockchain Initiative, which will use blockchain to bolster operations and security in the 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 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.
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Competitive Landscape

The market is concentrated, with few major vendors offering blockchain solutions across the telecommunication industry. The vendors are also receiving funds from investors, which is further helping in innovative blockchain services.

  • January 2021 - 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.
  • February 2020 - Deutsche Telekom and it's United States-based mobile and wireless network operator T-Mobile US have announced a collaboration with Spain’s Telefónica and Orange of France to pilot a blockchain-powered solution for automated roaming management. It will use technology developed by Deutsche Telekom’s innovation arm, T-Labs, and Deutsche Telekom Global Carrier, its international wholesale division.

Recent Developments

  • March 2021 - The Ministry of Electronics and IT released a draft policy on the blockchain technology in order to regulate its deployment in various public and private use cases. The telecom regulatory authority of India (TRAI) has already deployed the distributor-ledger technology (DLT), which is currently one the largest use-cases of blockchain technology in order to control spam SMS traffic.
  • December 2020 - UAE-based Telecom operator Etisalat launched a blockchain-based Rewards Exchange that lets users of the Smiles mobile app exchange points from one loyalty program for another. Smiles is an existing reward and deals application that provides discount offers across 3,000 outlets in the United Arab Emirates. It has 2.2 million customers and greater than a thousand participating brands. Most reward points are redeemable at several brands and outlets. Blockchain is ideal for these sorts of multi-party processes, and it can provide greater detail about how the rewards are being used in near real-time.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis​

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Market Drivers

      1. 4.3.1 Focus on Telecom Fraud Detection and Prevention

    4. 4.4 Market Restraints

      1. 4.4.1 Lack of Industry Standards

    5. 4.5 Assessment of COVID-19 impact on the industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Identity Management

      2. 5.1.2 Payment and Billing

      3. 5.1.3 Smart Contract

      4. 5.1.4 Connectivity Provisioning

    2. 5.2 Geography

      1. 5.2.1 North America

      2. 5.2.2 Europe

      3. 5.2.3 Asia Pacific

      4. 5.2.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Blockchain Foundry Inc.

      2. 6.1.2 Huawei Technologies Co. Ltd.

      3. 6.1.3 Microsoft Corporation

      4. 6.1.4 Oracle Corporation

      5. 6.1.5 SAP SE

      6. 6.1.6 ShoCard Inc. (Ping Identity)

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Blockchain in Telecom Market market is studied from 2018 - 2026.

The Blockchain in Telecom Market is growing at a CAGR of 61.45% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Blockchain Foundry Inc., Huawei Technologies Co., Ltd, Microsoft Corporation, Oracle Corporation, SAP SE are the major companies operating in Blockchain in Telecom Market.

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