Digital BSS Market by Offering (Solutions & Services), Solution (Revenue & Billing Management, Customer Management, Order Management, and Product Management), Vertical (BFSI, Telecom, and Retail & eCommerce) and Region - Global Forecast to 2028
[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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Report Metrics |
Details |
Market size available for years |
2017-2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD) Billion |
Segments Covered |
Offering (Solution and Services), Solution, Vertical, and Region |
Region covered |
North America, Europe, Asia Pacific, Middle East and Africa, and Latin America |
Companies covered |
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). |
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
-
Professional 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):
What is the definition of the digital BSS market?
Digital BSS refers to the digital transformation of the traditional BSS and helps deliver Communication Service Providers (CSPs) with more cloud-based products and services, such as product management, customer management, revenue and billing management, and order management with the help of cloud-based support systems. Doing so has significantly increased the traffic scalability, setting up new lines of business with a dedicated BSS, thereby enhancing the customer experience and cutting down on Operational Expenditure (OPEX) and Capital Expenditure (CAPEX).
What is the market size of the digital BSS market?
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%.
What are the major drivers in the digital BSS market?
The major drivers in the digital BSS market are the advent of tailored BSS solutions and new commercial models, reduced operational costs, increasing online transactions, and the use of multiple mobile devices.
Who are the key players operating in the digital BSS market?
The major companies profiled 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).
Which are the key technology trends prevailing in the digital BSS market?
Cloud computing, AI, ML, IoT, and big data are the key technology trends for the digital BSS market.
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This research study used extensive secondary sources, directories, and databases, such as Factiva, D&B Hoovers, and Bloomberg, to identify and collect information useful for this comprehensive market research study on the digital BSS market. The primary sources were mainly industry experts from the core and related industries, preferred digital BSS software and service providers, third-party service providers, consulting providers, end-users, and other commercial enterprises. In-depth interviews were conducted with various primary respondents, including key industry participants and subject matter experts, to obtain and verify critical qualitative and quantitative information as well as assess the prospects.
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information for this study. The secondary sources included companies’ annual reports, press releases, investor presentations, white papers, certified publications, and articles from recognized associations and government publishing sources. Secondary research was mainly used to obtain key information about the industry’s value chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from market and technology-oriented perspectives.
Primary Research
In the primary research process, various supply and demand sources were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply-side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations providing digital BSS software and associated services. The primary sources from the demand side included the end-users, such as Chief Information Officers (CIOs), consultants, service professionals, technicians and technologists, and managers at public and investor-owned utilities.
After the complete market engineering (including calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. Primary research was also conducted to identify the segmentation types; industry trends; key players; the competitive landscape of different market players; and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list key information/insights throughout the report.
The Breakup of Primary Research:
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Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the market size of the global digital BSS market and the market size of the various dependent submarkets. The research methodology used to estimate the market size included the following details: the key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders, such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Digital BSS Market Size: Bottom-Up Approach
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Digital BSS Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size, the digital BSS market was divided into several segments and subsegments. A data triangulation procedure was used to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with data triangulation and market breakdown, the market size was validated by the top-down and bottom-up approaches.
Market Definition
Digital BSS refers to the digital transformation of the traditional BSS and helps deliver Communication Service Providers (CSPs) with more cloud-based products and services, such as product management, customer management, revenue and billing management, and order management with the help of cloud-based support systems. Doing so has significantly increased the traffic scalability, setting up new lines of business with a dedicated BSS, thereby enhancing the customer experience and cutting down on Operational Expenditure (OPEX) and Capital Expenditure (CAPEX).
Key Stakeholders
- Digital BSS solution providers
- Digital BSS service providers
- System integrators
- CSPs
- Consultancy/advisory firms
- Mobile Virtual Network Enablers (MVNEs)
- Technology providers
- Cloud service providers
Report Objectives
- To determine and forecast the global digital BSS market by offering, end-user, and region from 2017 to 2023 and analyze various macroeconomic and microeconomic factors that affect the market growth
- To forecast the size of the market segments with respect to 4 main regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa, and Latin America
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall digital BSS market
- To provide detailed information regarding the major factors influencing the growth of the digital BSS market (drivers, restraints, opportunities, and challenges)
- To profile the key market players; provide a comparative analysis based on business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the competitive landscape of the market.
- To track and analyze competitive developments, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities in the digital BSS market
- Track and analyze competitive developments in the market, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities.
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the MEA market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Digital BSS Market