Blockchain in Telecom Market Size (2024 - 2029)

The blockchain in telecom market is experiencing significant growth, driven by its role in enhancing network security, preventing fraud, and supporting advanced network services and IoT connectivity. The adoption of 5G technology is further propelling this market expansion by facilitating efficient blockchain operations. Blockchain's ability to provide secure and transparent data management is crucial for telecom companies aiming to reduce operational costs and improve security. Additionally, the technology's application in combating telecom fraud presents a substantial opportunity for market growth. Emerging markets are also leveraging blockchain for regulatory and transparency purposes, although challenges related to scalability and interoperability remain. The pandemic has underscored the importance of telecom infrastructure, increasing the demand for robust digital services and infrastructure, which is expected to sustain the market's upward trajectory.

Market Size of Blockchain in Telecom Industry

Blockchain in Telecom Market Summary
Study Period 2021 - 2029
Market Size (2024) USD 0.99 Billion
Market Size (2029) USD 8.98 Billion
CAGR (2024 - 2029) 55.13 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Blockchain Market Major Players

*Disclaimer: Major Players sorted in no particular order

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.

Blockchain in Telecom Industry Segmentation

Communication service providers control the end-to-end value chain (data connectivity), network infrastructure, and other consumer services for users and businesses. Thus, the need to find new sources of revenue and reduce costs is more than ever, as income is decreasing due to 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 revenue can be increased with efficiency.

The Blockchain in Telecom Market is segmented by Application (Identity Management, Payment and Billing, Smart Contract, Connectivity Provisioning) and Geography (North America, Europe, Asia-Pacific, Rest of the World). The market sizes and forecasts regarding value (USD million) for all the above segments are provided.

Application
Identity Management
Payment and Billing
Smart Contract
Connectivity Provisioning
Geography
North America
Europe
Asia Pacific
Rest of the World
Need A Different Region Or Segment?
Customize Now

Blockchain in Telecom Market Size Summary

The blockchain in telecom market is poised for substantial growth, driven by its critical role in enhancing security, preventing fraud, and supporting advanced network services and IoT connectivity. The adoption of 5G technology is a significant catalyst, as it facilitates quick and reliable blockchain operations, offering robust encryption for secure data storage and transmission. This technology ensures transparency and tamper-proof records, which are essential for boosting network security and reducing operational costs. The telecom industry faces challenges from fraud, with significant financial losses reported annually, making blockchain a vital tool for fraud detection and prevention. Emerging markets, particularly in Asia-Pacific, are witnessing increased blockchain adoption to enhance mobile payment security and streamline regulatory processes, further propelling market growth.

The market landscape is characterized by a concentration of key vendors offering innovative blockchain solutions, supported by significant investments. Collaborations and strategic acquisitions, such as those by Tech Mahindra, Subex, and Bharti Airtel, are driving the development and deployment of blockchain technologies across various telecom applications. The pandemic has underscored the importance of robust telecom infrastructure, accelerating the demand for digital and data-driven services. Smart contracts are expected to see significant adoption, automating internal operations and reducing costs through efficient billing and identity management. The Asia-Pacific region, with its burgeoning mobile payment sector, is a focal point for blockchain expansion, as companies like China Telecom and Telcoin explore blockchain-based applications to enhance security and operational efficiency.

Explore More

Blockchain in Telecom Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Threat of New Entrants

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Bargaining Power of Suppliers

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Assessment of COVID-19 impact on the industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Application

      1. 2.1.1 Identity Management

      2. 2.1.2 Payment and Billing

      3. 2.1.3 Smart Contract

      4. 2.1.4 Connectivity Provisioning

    2. 2.2 Geography

      1. 2.2.1 North America

      2. 2.2.2 Europe

      3. 2.2.3 Asia Pacific

      4. 2.2.4 Rest of the World

Blockchain in Telecom Market Size FAQs

The Blockchain in Telecom Market size is expected to reach USD 0.99 billion in 2024 and grow at a CAGR of 55.13% to reach USD 8.98 billion by 2029.

In 2024, the Blockchain in Telecom Market size is expected to reach USD 0.99 billion.

Blockchain in Telecom Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)