Revenue Assurance Market Size, Share & Trends Report

Revenue Assurance Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment Model (On-premise, Cloud), By End-use Vertical, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Jun, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-690-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 214

Report Overview

The global revenue assurance market size was valued at USD 3.75 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.1% from 2020 to 2027. Revenue assurance is the process that is used by an operator to ensure that revenues for the services provided to customers and third parties are precisely billed, accounted, and completely collected. It is an umbrella term that describes the activities that a company conducts to ensure that its procedures and processes reduce revenue leakage. Leakages occur when revenue that has been earned by the company and when services are rendered to the customer are lost on its way to the billing systems and the customer never gets debited. Therefore, increasing incidence of revenue leakages is one of the prominent factors expected to drive the market over the forecast period.

Asia Pacific revenue assurance market size

Changes occurred in the internal customer priorities, a mismatch between solution expectations and deliverables due to implementation issues or poor communication, and unknown or unforeseen invoicing and billing errors are some of the reasons that lead to revenue leakage. Revenue assurance promises to help telecom providers obtain revenue for services they are offering but are unable to charge due to ineffective back-office practices, such as record maintenance, regulatory compliance, and accounting. Relatively modest costs and quick payback makes revenue assurance a more compelling option for carriers to improve profits compared with acquiring new customers or expanding into new markets. With cost and revenue leakages arising across the operator’s business, it is essential to focus on recognizing the cause of revenue leakages, measuring their enormity, and holistically addressing them.

With the adaptation of new access and service delivery technologies and incessantly changing offerings, service providers are continually confronted with revenue leakage difficulties irrespective of the increased awareness of the necessity of revenue assurance. Lack of transparency is one of the potential causes of revenue loss that impedes an organization’s ability to deploy effective strategies in order to reduce risks. Through the identification and prioritization of risk factors using revenue assurance solutions, organizations can develop and implement effective policies, processes, and controls that help in mitigating revenue loss and significantly improve financial performance. As a result, awareness about the severe impacts of revenue leakages is likely to elevate the demand for revenue assurance solutions and services over the forecast period.

Rising introduction of advanced technologies and products lag in reconciliations, and poor co-ordination between teams are leading to a rise in network elements at a massive rate. The introduction of new technologies and the arrival of over-the-top (OTT’s) services intensifies competition, even in national markets, from players with extremely disruptive business models. The market is highly competitive, resulting in presence of multiple options for customers to choose from. This has encouraged operators to capitalize on state-of-the-art products and technologies. These new services, together with tiered and bundled product plans and flat rates, have fueled the demand for billing and OSS and BSS systems. Billing and collection, which were relatively straightforward exercises prior, have now turn out to be complicated. This has further resulted in demand for revenue assurance for ensuring that everything that should be paid and billed for is done at the right time, for all services across all cost and revenue streams in a simplified manner. This, in turn, is expected to boost the growth of the overall market in the foreseeable future.

Technological advancements in revenue assurance are likely to provide opportunities for the market over the forecast period. New technologies including cloud, 4G/5G, IoT, and SDN/NFV are creating opportunities for operators to launch new business models and services but are also allowing for new instances of fraud to arise. The conventional systems are not keeping up with the complexities of a modern mobile environment, which has paved way for revenue leakage and erosion of potential profits. The introduction of advanced technologies and mechanisms, such as real-time revenue assurance, is anticipated to boost the market growth in the years to come.

Component Insights

In terms of revenue, the software segment dominated the market with a share of 58.06% in 2019 and is expected to maintain its lead over the forecast period. This is attributed to the availability of highly flexible and innovative revenue assurance software. Revenue assurance software, whose distinctive process-driven methodology aids service providers and enhance their business and financial performance significantly by efficiently identifying revenue leakages within the desired network. It allows traffic to be monitored, highlighting all irregularities, which could direct an inappropriate use of services, delivering a flexible, easy-to-use environment for the control of apprehensive events, and allowing an automatic pause of specific services to be instigated if specific conditions arise.

The service segment is expected to exhibit the highest CAGR over the forecast period. This segment is further segregated into planning and consulting, operations and maintenance, system integration, and managed services. Several end-use verticals across the globe are progressively adopting revenue assurance software as well as services to reduce the effects of revenue leakages. The growing need for an organization to understand the potential impact of revenue leakage in business is driving the segment. The planning and consulting services in revenue assurance help the service providers identify the affected areas more accurately, thereby helping them streamline the process to avoid further losses.

Deployment Model Insights

In terms of revenue, on-premise dominated the market with a share of 51.09% in 2019. The growth of this segment is mainly attributed to the exceptional security it provides. In an on-premise deployment, critical data can be stored with no third-party access. Although the cloud model has grown in popularity, on-premise solutions may continue to serve the business needs of several organizations effectively. On-premise or cloud deployment both demands data security. Therefore, security is the primary concern for many organizations. As a result, an on-premise environment is preferred over cloud regardless of some of its drawbacks and high costs.

The cloud segment is expected to expand at the highest CAGR over the forecast period. A paradigm shift from on-premise to cloud is set to create varied opportunities in the market in the years to come. Cloud enables operators to have high speed, agility, and effective management of revenue and fraud. For instance, WeDo Technologies is engaged in providing solutions for revenue assurance and fraud management, continues to invest in its cloud-based solutions, reinforcing its commitment to enable telecom operators to protect their revenues and minimize frauds.

End-use Vertical Insights

In terms of revenue, the telecom sector dominated the market with a share of 35.04% in 2019 and is expected to witness the fastest growth over the forecast period. This is attributed to the increasing incidences of telecom fraud, which is one of the key reasons for revenue leakages in the telecom industry. For instance, according to the Fraud Loss Survey conducted by the Communications Fraud Control Association (CFCA), telecom operators lose USD 29.2 billion annually, which is equal to 1.27% of the worldwide telecom revenues, to numerous revenue frauds. Apart from fraud, which is a huge cause, revenue leakage also takes place from communication gaps in planning, inferior systems coordination, poor processes, new products, and incorrect call detail records and tariffs, which are not properly endorsed.

Global revenue assurance market share

Telecom giants have long been hassled with revenue leakages. With the growing competition from merging media like the internet, telecom products must incorporate faster as well as better technology to match the necessary standards set by the regulatory bodies. Globally, nowadays, telecom service providers are dealing with problems of revenue leakage, compliance complexities, customer dissatisfaction, and billing errors. As a result, there has been a massive demand for revenue assurance in the telecom industry.

The BFSI sector is anticipated to witness healthy growth over the forecast period. Revenue leakage occurs in almost all areas of a bank. Both commercial and retail customers could be contributing to the loss of income. The implementation of revenue assurance projects is achieving great results in the banking industry, thereby providing several market growth opportunities.

Regional Insights

In terms of revenue, North America dominated the market with a share of 32.41% in 2019. This is attributable to the U.S., owing to its favorable business environment, and strong consumer support continues to buoy up innovative projects and technology spending. Revenue assurance has been witnessing growing empowerment and visibility in the region owing to the strong telecom sector and rising awareness regarding the influences of revenue leakages on an organization’s overall profitability. Additionally, the BFSI sector represented the second largest revenue assurance market in 2019. Loss of banking income or fees from inconsistent practices, poor pricing controls, and lack of attention to detail often lead to revenue leakages in the banking industry. When banks and financial establishments lack consistent observance of a pricing structure with clear pricing communication, revenue leakage occurs, and price confusion reigns.

Asia Pacific is expected to exhibit the fastest CAGR of 15.1% over the forecast period. The market in the region is mainly driven by increased demand for cloud-based services from small and mid-sized companies. Digital transformation is catching up in the region at an accelerated pace and this will continue to drive significant investments in new and advanced technologies. In addition, the booming telecom sector in the region is supporting the market growth.

Key Companies & Market Share Insights

The market has been characterized by the presence of both large-scale and medium-scale revenue assurance providers. These companies are aggressively investing in R&D activities to develop innovative solutions in order to sustain their presence in an extremely competitive market environment. Furthermore, the market demonstrates an intense competition amongst the key players and calls for constant innovations and development of technologically advanced revenue assurance solutions. For instance, in June 2019, WeDo Technologies, one of the specialists in fraud management and revenue assurance, arranged more than 200 telecom specialists at its WeMeet Europe. The WeMeet Europe offered communications service providers (CSPs) understandings into how 5G will disrupt the existing telecom business models and key areas where the company is investing in its product range for supporting CSP’s risk mitigation and revenue assurance strategies. Some of the prominent players in the revenue assurance market include:

  • Accenture plc

  • Amdocs

  • Araxxe

  • Hewlett Packard Enterprise Development LP

  • International Business Machines Corporation

  • Subex Limited

  • Tata Consultancy Services Limited

  • Tech Mahindra Limited

  • Telefonaktiebolaget LM Ericsson

  • TEOCO

  • WeDo Technologies

Revenue Assurance Market Report Scope 

Report Attribute

Details

Market size value in 2020

USD 4.16 billion

Revenue forecast in 2027

USD 8.71 billion

Growth Rate

CAGR of 11.1% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, deployment model, end-use vertical, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; China; India; Japan; Brazil; Mexico

Key companies profiled

Accenture plc; Amdocs; Araxxe; Hewlett Packard Enterprise Development LP; International Business Machines Corporation; Subex Limited; Tata Consultancy Services Limited; Tech Mahindra Limited; Telefonaktiebolaget LM Ericsson; TEOCO; WeDo Technologies

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global revenue assurance market report based on component, deployment model, end-use vertical, and region:

  • Component Outlook (Revenue, USD Million, 2016 - 2027)

    • Software

    • Services

  • Deployment Model Outlook (Revenue, USD Million, 2016 - 2027)

    • On-premise

    • Cloud

  • End-use Vertical Outlook (Revenue, USD Million, 2016 - 2027)

    • Banking, Financial Services and Insurance (BFSI)

    • Telecom

    • Healthcare

    • Retail

    • Energy & Utilities

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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