Digital BSS Market

[216 Pages Report] The digital BSS market is estimated at USD 5.8 billion in 2023 to USD 12.5 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 16.6%. The increasing demand for enhanced customer experience, including personalized and seamless interactions, real-time service fulfillment, and proactive issue resolution with digital BSS, is boosting the market. The technologies, including cloud computing, AI, ML, IoT, and big data, are being used in digital BSS. These technologies are benefiting organizations in various ways, including improved customer experience, reduced operational costs, and increased revenue. As these technologies continue to develop, there will be an increase in demand for digital BSS solutions.

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Digital BSS Market Dynamics

Driver: Increasing online transactions and use of multiple mobile devices

An increasing amount of data is generated continuously due to huge investments in next-generation cloud technologies and new product launches. The increasing use of mobile internet has led to increased online transactions. Due to the huge volumes of transactions, the need to address payment authenticity and analyze security breaches in payment processes is becoming complex. These factors affect collecting, processing, analyzing, and maintaining complex databases of subscribers and severely affect the billing mechanism. Examples of the affected scenarios include complications in charging and billing for voice and data, generating invoices for customers, processing payments, and managing debt collection. As a result, the demand for BSS solutions and services to perform effective and secure transactions is becoming very important to CSPs.

Restraint: Time and cost constraints

There needs to be more motivation to adopt standardized systems. However, implementing BSS solutions, in the long run, enhances business profitability, as they are expensive and time-consuming to implement. There is a burden on smaller organizations to pay huge charges for implementing and maintaining BSS solutions and services. Telecom companies tend to shy away from BSS transformations because overhauling their existing systems can take 2–3 years. Therefore, high installation costs and excessive time consumption act as restraints for the growth of the digital BSS market.

Opportunity: Outcome and pull economies

The outcome economy focuses on pay-per-outcome, wherein customers are proposed to pay the product’s value depending on its quality, service, and delivery time. Telecom companies need to shift to more value-driven digital ecosystems to ensure competitiveness. Digital BSS solutions can enable data aggregation and facilitate collaboration across the telecom ecosystem, creating better business relationships and expertise. On the other hand, the pull economy focuses on three important aspects: continuous demand sensing, a process of leveraging new analytical techniques to create an accurate forecast of the market demand, and current certainties of the telecom ecosystem. Secondly, end-to-end automation, which focuses on connecting business processes for better business outcomes. The third aspect is resource optimization, one of the most important aspects of the telecom vertical.

Challenge: Lack of expertise in telecom companies to implement digital BSS solutions

There is an increasing demand to cater to the growing expectations of users as the pace of technological innovation is increasing. Telecom service providers need to adapt to new technology infrastructures and improve their operations and business processes due to the rapid pace of innovation. However, telecom companies need help planning, building, and deploying new infrastructures and simultaneously focusing on their core competencies in this highly competitive market. Furthermore, integrating BSS solutions needs a highly focused approach for a smooth transition while also ensuring that it does not disrupt the end-users. It is possible for the telecom service providers to focus on their core competencies and facilitate effective services to their end-users with the support of digital BSS service providers.  They enable telecom companies by integrating solutions, such as revenue management, order management, product management, and the related subcomponents.

Digital BSS market Ecosystem

Prominent companies in this market include well-established, financially stable digital BSS solutions, services providers, and regulatory bodies. These companies have been operating in the market for several years and possess a diversified product portfolio and state-of-the-art technologies. Prominent companies in this market include Ericsson (Sweden), IBM (US), Huawei (China), and Accenture (Ireland).

By offering, the services segment is expected to register the highest growth rate during the forecast period.

With the increasing adoption of cloud-based BSS solutions, organizations' demand for the associated services is also increasing. The digital BSS market by service has been segmented into license and support, consulting, implementation, training and education, and managed services. Most CSPs need more technical expertise in storing and managing the data in the telecom vertical, for which they avail digital BSS services from the service providers. Managed services are offered by third-party providers and help manage organizations' operational challenges. The overall services segment significantly influences the digital BSS market size. Furthermore, these services help reduce costs, increase overall revenue, and enhance business performance.

By vertical, BFSI is expected to hold the largest market size during the forecast period.

Digital BSS solutions provide robust CRM functionalities, allowing BFSI organizations to manage and analyze customer interactions, profiles, preferences, and behavior. This facilitates BFSI organizations in creating personalized customer experiences, targeted marketing campaigns, and efficient customer service. Also, digital BSS solutions streamline the billing and revenue management processes for BFSI companies. The solution enables accurate billing, invoicing, and payment collection while supporting various pricing models, fee structures, and revenue recognition methods.

North America is expected to hold the largest market size during the forecast period.

The startup culture in North America is growing at a faster pace as compared to other regions. The advent of SMEs and the increasing digitization trend in the telecom industry have aided in the growth of the North American digital BSS market. The adoption of digital BSS solutions is also being driven in the region by the increasing availability of cloud-based solutions. Cloud-based BSS solutions offer a number of advantages over traditional on-premises solutions, including reduced upfront costs, scalability, flexibility, and improved security. As a result of these factors, the adoption of digital BSS solutions in North America is expected to continue to grow in the coming years.

Market Players:

The major players in the digital BSS market are Amdocs Limited (US), Huawei Technologies Co. Ltd (China), LM Ericsson Telephone Company (Sweden), CSG Systems International, Inc. (US), Nokia Corporation (Finland), International Business Machines Corporation (US), ZTE Corporation (China), Optiva Inc. (Canada), Sigma Systems Canada LP. (US), Cerillion Technologies Limited (UK), Sterlite Technologies Limited (India), Accenture plc (Ireland), Capgemini SE (France), Infosys Limited (India), Oracle Corporation (US), Mahindra Comviva (India), Qvantel (Finland), BearingPoint (Netherlands), Formula Telecom Solutions Ltd. (US), MATRIXX Software, Inc. (US), MIND C.T.I. Ltd. (UK), and Tata Consultancy Services Limited (India). Hansen Technologies (Australia), Comarch SA (Poland), Avema Corporation (Ontario), and Suntech S.A. (Poland). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their footprint in the digital BSS market.

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Scope of the Report

This research report categorizes the digital BSS market to forecast revenues and analyze trends in each of the following submarkets:

Based on Offering:

• Solution
• Services
  • Professional Services
    • Consulting
    • Implementation
    • License and Maintenance
    • Training and Education
  • Managed Services

Based on the Solution:

• Revenue and Billing Management
• Customer Management
• Order Management
• Product Management
• Other Solutions

Based on Vertical:

• BFSI
• IT and ITES
• Telecom
• Retail and E-commerce
• Media and Entertainment
• Manufacturing
• Energy and Utilities
• Other Verticals (Healthcare, Transportation and Logistics, and Government)

By Region:

• North America
  • United States (US)
  • Canada
• Europe
  • United Kingdom (UK)
  • Germany
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia and New Zealand
  • South Korea
  • Rest of Asia Pacific
• Middle East and Africa
  • Middle East
  • Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments

• In June 2023, IBM entered into a definitive agreement with Vista Equity Partners to purchase Apptio Inc. The acquisition of Apptio will accelerate the advancement of IBM's IT automation capabilities and enable enterprise leaders to deliver enhanced business value across technology investments.
• In July 2022, Ericsson acquired Vonage, which supports Ericsson’s strategy to leverage technology leadership to grow its mobile network business and expand into the enterprise.
• In April 2022, Infosys acquired oddity. The acquisition strengthens Infosys’ creative, branding, and experience design capabilities and co-creating with clients and helping them navigate their digital transformation journey.
• In October 2021, CSG International acquired the digit system. The merger combines cutting-edge solutions created to simplify the intricacies of commercializing the upcoming wave of multi-party digital offerings, fueling business expansion for communications service providers (CSPs).

Frequently Asked Questions (FAQ):

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