DUBLIN, June 18, 2021– (COMMERCIAL THREAD)–The “Blockchain in the Telecommunications Market – Growth, Trends, COVID-19 Impact and Forecast (2021 – 2026)” the report was added to ResearchAndMarkets.com offer.
The blockchain market in the telecommunications industry was valued at USD 157.9 million in 2020 and is expected to reach USD 2,759.8 million by 2026, registering a CAGR of around 61.45% over the forecast period ( 2021 – 2026).
The onset of the pandemic highlighted the criticality of telecommunications infrastructure. The global health emergency puts new pressures on telecommunications services and suggests a key role they can play beyond just connectivity in emergency scenarios like this.
Beyond the coronavirus pandemic, the world is expected to experience substantial interest in new fintech services as the growing demand for virtual and online services continues to grow. Within the telecommunications industry, the pandemic is driving the need to expand digital infrastructure and data-driven services. Telecom companies are now focusing more and more on the resilience and reliability of networks, especially in 5G investments.
The growing adoption of 5G is a catalyst for the implementation of blockchain in telecommunications, as 5G contributes to the fast and reliable operation of the blockchain. Blockchain technology provides strong encryption to save and store data on the network in a more secure and verifiable manner. It makes information transparent and inviolable. Blockchain technology is expected to help various telecom companies to strengthen the security of their network and lower their operating costs.
Telecommunications or telecommunications fraud is a growing area of criminal activity. According to Europol’s European Cybercrime Center and Trend Micro, telecommunications fraud costs $ 32.7 billion a year worldwide. This is a new challenge for the police. Blockchain can help with fraud detection and prevention for communication service providers.
Scalability and interoperability are the necessary factors for blockchain adoption. This is only possible when industry standards are set, which is currently lagging behind. The telecommunications industry is grappling with the massive adoption of blockchain technology.
Key market trends
Smart contract to dominate the market
Smart contracts allow computer code to run on its own when specific conditions are met. In the telecom industry, it is expected to experience significant adoption as it provides opportunities for automation in its internal operations, such as billing, supply chain management and roaming.
Deploying smart contracts to handle all roaming billing can lead to significant savings as it helps prevent fraudulent traffic. Blockchain can also add value to identity management solutions, as it can eliminate middlemen through smart contracts. This helps reduce roaming fraud, cost savings and instant settlements. It helps telecommunications players quickly resolve disputes through tamper-proof verifiable transactions and real-time updates for end customers.
Currently, transactions within the registers of telecom operators go through a clearinghouse to be authenticated. However, adopting smart contracts can automate this process leading to the elimination of post-processing, saving businesses time. In addition, by doing so, telecom operators also save money by spending less on auditing and accounting, as the process is automated.
Asia-Pacific to experience strongest growth
The region has enormous potential for the market, mainly due to the growing importance of mobile payments in countries such as India and China. India, especially after the demonetization program, has seen many telecom operators turn to this model.
For example, Jio and Airtel, the country’s leading telecommunications operators, offer their digital wallets to enable customer-to-customer payments. Thus, adopting blockchain to manage the transactions of these companies could make their wallets more secure and cheaper.
China Mobile, China Telecom and China Unicom have joined CAICT’s Trusted Blockchain Initiative, which will use blockchain to strengthen operations and security in the industry. Businesses should focus on blockchain-based applications related to sharing IoT data and verifying customer identities.
Additionally, as the world is currently embroiled in a privacy debate regarding WhatsApp’s policy changes, India’s communication platform as a service (CPaaS) industry has braced for adoption. end-to-end encryption of commercial mobile SMS, email and all other types of commercial communication between businesses and service providers.
The market is concentrated, with a few major vendors offering blockchain solutions in the telecommunications industry. Suppliers also receive funds from investors, which further contributes to innovative blockchain services.
January 2021 – CPaaS provider Tanla Platforms, in partnership with Microsoft, launched its global end-to-end blockchain network called Wisely, which was designed to send encrypted SMS directly from businesses to telecom operators, which the company claims also disrupt the existing aggregator model of commercial communication.
February 2020 – Deutsche Telekom and its US-based mobile and wireless network operator T-Mobile US announced a collaboration with Spain’s Telefonica and Orange from France to pilot a blockchain-based solution for automated management roaming. It will use technology developed by the innovation arm of Deutsche Telekom, T-Labs, and Deutsche Telekom Global Carrier, its international wholesale division.
Main topics covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
7 INVESTMENT ANALYSIS
8 FUTURE OF THE MARKET
For more information on this report, visit https://www.researchandmarkets.com/r/p891ya
View the source version on businesswire.com: https://www.businesswire.com/news/home/20210618005181/en/
Laura Wood, Senior Press Director
For EST office hours, call 1-917-300-0470
For USA / CAN call toll free 1-800-526-8630
For GMT office hours, call + 353-1-416-8900