New Growth Markets: Telecom Billing, Revenue Management
It's easy to wonder where growth markets are any more these days, especially as the Dow Jones looks less like a philosophy of economic progress and more like a casino. Sometimes, growth markets do show up, and a lot of these seem to be in technology. A new report from The Insight Partners notes a major new growth market afoot in telecom billing and revenue management.
The market in question is poised to reach $25.27 billion in revenue by 2025, a hefty number in isolation and even better when the growth rate is considered. The market's compound annual growth rate (CAGR) is projected to reach 10.7 percent over the course of 2016 to 2025. Several submarkets make up the larger market, separated primarily according to deployment models as well as solutions and services available.
Within these submarkets, there are further divisions; the solutions submarket, for example, contains billing and charging software along with fraud management software and others. Deployment models feature distinctions like cloud-based and on-premise deployment, as well as the hybrid approach which incorporates facets of both into a single delivery model.
Growth rates are also poised to vary according to region; the Asia-Pacific market, for example, is set to show faster growth rates than the others, turning in a CAGR of 12.1 percent by itself. This comes from an overall technological adoption rate, which has been on the rise in the Asia-Pacific region on average for several years now.
So what's pushing this kind of growth? The biggest point is the growth of mobile device use along with the general and ongoing growth of the telecom industry itself. The telecom industry is often turning to cloud-based solutions, particularly in the field of billing and revenue management, so that's prompting an interest in new solutions to help manage expenses and improve revenue growth.
It's not out of line to suggest that tools that are specifically related to receiving and managing income would be popular among businesses. Any business would want a tool that helps make sure those who should be paying for services rendered are indeed paying for said services. It's almost like having the chili dog concession at a stadium that's seeing record growth; the two concepts go hand-in-hand. It's more than just a desire to protect revenue streams, though; having a handle on revenue management helps ensure that the most revenue is coming in, and allows businesses to be better able to see where costs to the customer can be cut, providing a competitive edge in pricing.
Revenue management and telecom billing tools are poised for big gains in the market, and plenty of reasons support why this is so. So for those looking for a growth market, this may be a good place to start.
Edited by Alicia Young