The global blockchain within the telecom industry is all set to garner US$80 billion in the next 10 years, thereby thriving at a whopping CAGR of 74.8%, as per a new forecast coming from Fact.MR, a market research and competitive intelligence provider.
It is well to be noted that the telecom industry is known to revive itself. Apparently, fixed landlines used to be the primary product of the telecom companies during their heydays. That said, with the advent of the mobile phone, the focus has shifted to its subscriptions and SMSs.
In the years that have gone by, numerous telecom firms’ major source of revenue has transitioned from calls to data, requiring a major overhaul of the business model. With every company becoming a data organisation, there happen to be immense prospects for the telecom sector so as to refurbish itself once again, all thanks to blockchain.
Blockchain is a public electronic ledger that’s distributed to shareholders across the network and goes on to record all kinds of transactions that take place between two or more parties. Telecom companies can make use of blockchain tech in order to enhance the security, integrity, inspection and fraud prevention of their data.
One of the main aspects that drives market expansion is the consistent growth in security concerns across the telecom companies in the world. The fact is that blockchain within telecom gives out greater levels of security by making sure to encrypt all the transactions by way of cryptography. Moreover, the growing market requirement for smart contracts is indeed pushing market expansion. Blockchain is extensively used to automate the execution of an agreement with the conditions that are pre-set.
Furthermore, technological upgrades like AI incorporation and IoT with connected devices are pushing the expansion of the market.
These technologies enable smart devices for data transmission and, at the same time, create records that are tamper-proof of transactions that are to be shared. Other varied reasons, such as blockchain solutions’ incorporation for 5G tech development as well as the growing usage of blockchain-centred mobile wallet payments, are anticipated to give a thrust to the market.
Major Takeaways from the Study
- The global blockchain across the telecom sector is currently valued at US$300 mn.
- The market is anticipated to go ahead at a CAGR of 74.8% across the forecast period from 2023 to 2033.
- The telecom blockchain market is all set to reach US$80 billion in the next 10 years.
- From 2023 to 2033, the North American market is headed to expand at a CAGR of 46.02% until 2033.
- The smart contract vertical is all set to witness prominent growth across the next 10 years.
As per Fact.MR, blockchain tech makes use of strong encryption so as to record and store data across the networks in a safer and more verifiable way. It does make the data tamper-proof as well as transparent. Because of this, the blockchain is predicted to provide assistance to numerous telecom companies so as to enhance network security and thereby lower operational expenditures.
North America is indeed leading the worldwide blockchain in the telecom industry. The US happens to be contributing almost enough to the regional market because of the presence of major blockchain tech producers within the country. Besides, Asia Pacific as well as Europe happen to be following North America when it comes to development.