Blockchain in Telecom Market Size

Blockchain in Telecom Market Analysis

The Blockchain in Telecom Market size is estimated at USD 0.99 billion in 2024, and is expected to reach USD 8.98 billion by 2029, growing at a CAGR of 55.13% during the forecast period (2024-2029).

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.

• 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.
• 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 pivotal role they can play beyond simple connectivity in emergency scenarios. 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 increasingly focus on network resiliency and reliability, particularly in 5G investments.