Blockchain in Telecoms Will Become $1 Billion Industry by 2023: Report
Blockchain will contribute almost $1 billion to the telecoms sector alone within the next five years, MarketWatch reports Wednesday, July 11. a new research forecasts this week.
According to a global market research store Research and Markets, blockchain technology in telecoms will explode from a $46.6 million industry in 2018 to one worth $993.8 million in 2023.
The 132-page report singles out “rising security concerns” as one of the major factors driving the spread of blockchain, which operators in the arena view as a potential safeguard despite its still-fluid regulatory status.
“The blockchain in telecom market is driven by various factors, such as the increasing support for OSS/BSS [operations support systems/ business support systems] processes and rising security concerns among telcos,” an abstract of the report summarizes.
“However, growing concerns over the authenticity of users, and uncertain regulatory status and the lack of common standards can hinder the growth of the market.”
That regulatory uncertainty forms one of a series of reservations which other sectors of the global economy have raised in recent weeks as part of what some have described as waning confidence in blockchain’s benefits.
As Cointelegraph reported, the banking sector in particular has voiced doubts about how the technology can bring mass innovation, while other projects aim at addressing concerns from businesses over its adoption.
Research and Markets nevertheless appears unfazed by the broader mixed reception, foreseeing an 84 percent compound annual growth rate (CAGR) for blockchain in telecoms.