The telecom sector across the globe is witnessing huge growth, with the subscriber base increasing and a large number of players offering services. While customers often choose to purchase multiple services from the same service provider and to be charged on a single bill, converged billing provides customers with an organised view of all paid services. Operations support systems (OSS) and business support systems (BSS) play an important role in the development of a converged payment system, and the growing demand for converged payments is driving the global market for OSS/BSS.
According to a report by Allied Market Research, the global OSS and BSS market was estimated at $36.85 billion in 2019, and is expected to hit $102.14 billion by 2027, registering a compound annual growth rate (CAGR) of 13.7 per cent from 2020 to 2027. Across the globe, the OSS and BSS market is dominated by North America, owing to the proliferation of mobile network operators and telecom providers in the region. The report added that the Asia-Pacific region is expected to witness the highest growth rate during the forecast period. This is due to factors such as increasing mobile data traffic, declining ARPU and intense competition among telecom operators.
Market trends and growth drivers
The growing focus of key players on introducing innovative products is a key emerging trend in the OSS/BSS market, and is expected to foster its growth globally. The increasing adoption of business strategies such as mergers and acquisitions for improving telecom networks is another key trend.
- Focus on convergent billing: The increasing adoption of convergent billing systems is primarily fuelling the growth of the global OSS/BSS market, as the latter offers various benefits such as ease of implementation, centralised customer support and improved customer service.
- Rising investments in the sector: Rising investment in the telecom sector in order to improve facilities is nurturing the growth of the OSS/BSS market across the globe.
- Regional growth: Rapid growth in the telecommunications sector across the Asia-Pacific region is expected to drive the growth of the Asia-Pacific and global OSS/BSS markets.
At present, North America has been identified as the leading OSS/BSS system and platform market. The growing number of telecom and mobile operators in North America is seen as a key demand driver, and the demand is in line with the expected overall growth in telecommunications and IT. Moreover, the rise in the adoption of emerging technology solutions such as internet of things, increasing investments in smart city initiatives, implementation of automation across end-user industries, and increasing use of social networking platforms are driving the growth of the OSS/BSS software market in the region. This has been supported by favourable regulations by the government. In addition, the adoption of various strategies by service providers in this region to upgrade their existing OSS and BSS is driving the growth of the market. The key markets in the region include the US and Canada.
The OSS/BSS market in Asia Pacific is expected to witness high growth in terms of revenue. This will be primarily driven by factors such as the falling ARPUs for voice, rising demand for mobile internet, intense competition among service providers, and an increased degree of convergence. All of these require operational efficiency and innovation. Meanwhile, the growing number of subscribers and rising demand for augmented services such as revenue and billing management have improved the prospects of OSS/BSS systems and platforms across Europe.
Service assurance will dominate in developed countries
As per industry reports, the global OSS and BSS market is expected to be dominated by service assurance tools by 2024. This will be followed by service fulfilment solutions, due to the surging demand for consistent high speed connectivity in Europe and North America. Besides, several telecom regulators across the globe have formulated certain standards to ensure the quality of service levels.
In contrast, network monitoring and network design are more in demand in Asia Pacific, the Middle East, Africa and South America due to the deployment of a larger communications infrastructure. The roll-out of expanded networks in the Asia-Pacific region is expected to help the OSS market grow at a stable 10.7 per cent CAGR from 2016 to 2024. So far, the BSS market has mainly been led by customer management solutions, but revenue management is expected to overtake this segment by 2024. This is mainly due to declining ARPUs and rising revenues from investment in communications infrastructure in emerging markets.
Market opportunities in Asia Pacific
Rapid urbanisation in the Asia-Pacific region is projected to provide favourable growth opportunities in the region and worldwide. As per industry reports, the Asia-Pacific OSS/BSS market is estimated to attain a CAGR of around 15 per cent through 2027, led by the rising penetration of long term evolution services and extensive investments in 5G commercialisation initiatives among economies such as China and India. The uptake of devices such as smartphones, computers and tablets is expected to drive market growth in the region. The NextGen OSS (NGOSS) network is expected to bring big opportunities for the Asia-Pacific and global OSS/BSS markets. This system helps address security issues and also improves data accuracy. In addition, the adoption of cloud technologies is expected to open up potential business opportunities in the near future. Cloud solutions offer a range of benefits such as data security, scalability, efficiency, better manageability and better disaster response.
Impact of Covid-19 on the OSS and BSS market
The outbreak of Covid-19 has led to an uptick in the trends of working from home, distance learning and videoconferencing around the world. As a result, consumer demand for reliable broadband has increased, which, in turn, has had a positive impact on the global OSS and BSS market. At the same time, telecom operators have updated their OSS/BSS solutions to meet the growing demand from individuals.
The adoption of multiple cloud technologies is transforming the telecommunications industry, and the strong growth of the industry through the NGOSS structure will open up new opportunities, leading to the growth of the OSS and BSS market across the globe. However, challenges in cloud adoption, growing fears related to cloud security, the increasing complexity of network integration and the high volume of client transactions are the main barriers to the growth of cloud OSS/BSS.
By Shikha Swaroop