OSS And BSS Market Expected to Reach $66.2 Billion by 2033

According to a new report published by Allied Market Research, titled, “OSS And BSS Market," The OSS and BSS market size was valued at $19.2 billion in 2023, and is estimated to reach $66.2 billion by 2033, growing at a CAGR of 13.5% from 2024 to 2033. OSS & BSS solutions and services support back-office activities of a telecom network and maintain customer services. These components are commonly used to describe the information processing systems that are used by operators to manage their communications networks. These solutions and services help organizations to coordinate customers, resources, services, processes, and activities. It helps operators to design, operate, build, and maintain communications networks. The modern OSS & BSS can benefit organizations by gaining operational & market insights from big data, improving customer experience, improving operation efficiency, and predicting market trends. 

The rise in demand for reducing operational expenses (OPEX), along with the growing adoption of convergent billing systems boosts the growth of the global OSS & BSS market. In addition, the surging trend of outsourcing the OSS & BSS services, along with the growing complexity of telecommunication networks presents a significant growth prospect for the OSS & BSS market. However, the interoperability issues between legacy and new systems and the increase in data security & privacy concerns among businesses hamper the OSS & BSS market growth. On the contrary, the growing adoption of cloud technology transforming the telecom industry and the increasing adoption of next-generation operating systems are expected to offer remunerative opportunities for the expansion of the OSS and BSS industry during the forecast period. 

On the basis of industry vertical, the retail segment dominated the OSS and BSS industry in 2023 and is expected to maintain its dominance in the upcoming years, owing to the growing need for telecom operators to monetize their networks with next-generation OSS & BSS, along with the need to improve customer experience, reduce time to market, and increase the operational efficiency. However, the retail & e-commerce segment is expected to witness the highest growth, owing to the rising need among retail operators to efficiently address business activities such as inventory management, sales & channel management, and commissions drive the adoption of OSS & BSS tools across the retail & e-commerce sector. 

By region, the OSS & BSS market was dominated by North America in 2023 and is expected to retain its position during the forecast period, owing to increasing technological advancements such as using artificial intelligence and machine learning have made OSS & BSS systems to predict and prevent network failures before they occur, ensuring higher reliability and uptime. Also, the presence of numerous payment solution providers and the high acceptance of BSS solutions in effective organizational management boosted the growth of the market in this region. However, Asia-Pacific is expected to witness significant growth during the OSS and BSS market forecast period, owing to the rapid expansion of telecommunication networks, the growing threat of cyberattacks demands robust security measures, and the shift towards cloud-based OSS and BSS solutions are acting as growth catalysts for the overall market which drives the growth of the OSS and BSS market size.

The global OSS & BSS market has been profoundly affected by a combination of geopolitical, health, and economic crises, specifically the Russia-Ukraine conflict, the COVID-19 pandemic, and high inflation rates. The geographical tension between Russia and Ukraine has introduced significant geopolitical, economic, and operational disruptions that are reshaping the landscape of the telecommunications industry and its associated support systems. The conflict has also escalated cybersecurity threats, with increased instances of cyberattacks originating from the conflict zones targeting critical infrastructure globally. Telecom operators are required to bolster their OSS and BSS systems to enhance cybersecurity measures, protecting against potential breaches that could compromise network operations and customer data. This heightened focus on security necessitates additional investments in advanced security solutions and compliance with evolving international cybersecurity regulations. 

In response to the disruptions, there is a growing focus on developing more decentralized and resilient OSS and BSS solutions. Market vendors are substantially investing in cloud-based and edge computing technologies to lower dependency on any single geographic location. These technologies provide improved flexibility, scalability, and disaster recovery capabilities, allowing telecom operators to maintain operations despite geopolitical uncertainties. Moreover, there is a push towards open-source OSS and BSS platforms to foster innovation and collaboration, reducing reliance on proprietary systems that may be vulnerable to geopolitical risks. 

Moreover, the conflict has led to heightened geopolitical tensions and economic sanctions, particularly against Russia. These sanctions have resulted in supply chain disruptions for telecommunications equipment and technology components that are essential for OSS and BSS systems. Many countries and companies have halted business dealings with Russia, affecting the availability of hardware and software components manufactured or assembled in the region. In addition, the long-term effects of the conflict are likely to shape the strategies and operations of telecom operators and their support systems, stressing the requirement for flexibility and innovation in a rapidly changing geopolitical landscape. 

Key findings of the study  

• By component, the solution segment led the OSS & BSS market in terms of revenue in 2023. 

• By solution type, network planning & design recognition led the OSS & BSS market in terms of revenue in 2023.  

• By deployment mode, the on-premise segment led the OSS and BSS market share in terms of revenue in 2023. 

• By organization size, large enterprises led the OSS & BSS market in terms of revenue in 2023. 

• By industry vertical, the retail & e-commerce segment is anticipated to have the fastest growth for the OSS & BSS market during the forecast period. 

• By type, OSS led the market in terms of revenue in 2023. 

• By region, North America generated the highest revenue in 2023.  

The key players profiled in the OSS and BSS market analysis are Accenture Inc., Amdocs Group, Capgemini SA, Cisco Systems, Inc., Comarch SA, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., Infovista SAS, Nokia Corporation, and Telefonaktiebolaget LM Ericsson. These players have adopted various strategies to increase their market penetration and strengthen their position in the OSS and BSS iIndustry.