Blockchain Telecom Market to Cross $990 Million by 2023
According to the report Blockchain in Telecom Market by Provider, Application, Organization Size and Region – Global Forecast to 2023, published by ResearchandMarkets.com, Blockchain technology in the telecom market is forecast to grow from $46.6 million this year to more than $990 million by 2023.
Factors That Will Influence Growth
This 132-page report states that most critical factor that will influence the growth of Blockchain in this market are the rising security concerns among telecom companies. Another factor that will drive growth of this technology in the telecom sector is the increasing support for Business Support Systems (BSS) and Operations Support Systems (OSS).
Blockchain in the telecom segment has been classified into application providers, infrastructure providers and middleware providers. Application providers are the fastest growing segment in the telecom industry right now.
These application providers use the platforms as well as solutions that are offered by infrastructure providers. They also use the tools developed by the middleware providers to develop their apps.
Opportunities and Challenges
According to the report, there are several opportunities as well as challenges that Blockchain faces in the telecom sector.
Firstly, this technology can help the telecom industry fight fraud. There are also extensive Blockchain solutions for in the Internet of Things sphere. And finally, the use of Blockchain can help with the implementation of 5G technology.
The challenges that could hamper the adoption of Blockchain technology in the telecom sector are many. Currently, there is a lack of awareness about what this technology can do and how it works. Directly related to this lack of awareness is also a lack of skill sets or personnel with technical expertise to implement this technology in the industry.
Additionally, the Blockchain technology sector is still a nascent industry. There are issues with the technology’s regulatory status, which is still uncertain. And because the industry is so new, not only are regulations an issues, the fact that there are no standards is also a cause for concern.
Other sectors in the global economy have raise the same concerns with regard to regulatory uncertainty. In fact, some have described these concerns as a waning in people’s confidence in the technology’s stated benefits.
The biggest issue that could prevent this forecast growth from taking place is the serious concern about the authenticity of users. With so many scams already revealed, industries are chary about adopting Blockchain technology.
Despite all the concerns, this report forecasts a Compound Annual Growth Rate of 84.4% between 2018 and 2023.