Revenue management systems worldwide forecast, 2011-2016
The worldwide revenue management market is forecast to grow from $6.5 billion in 2011 to $7.5 billion in 2016, at a 2.8% CAGR, according to Analysys Mason.
The research firm predicts that new data services will continue to be the most significant drivers, with an increased emphasis on service plans driven by policy management and the increased use of analytics over the next five years.
CSPs are expected to increasingly use convergent billing systems to support prepaid billing requirements, which Analysys predicts will reduce spending on dedicated prepaid systems.
Analysys expects mobile services to drive spending on billing software, driven by growth in subscriber numbers in emerging markets. New smart devices are anticipated to provide additional data-only services as well as additional complexity for billing, partner and business optimisation systems.
The research firm also expects mobile services to continue to be driven by broadband data services in all markets, as CSPs roll out 3G in emerging markets and LTE in more-developed markets.
Business services are expected to show the second-highest revenue growth rate over the forecast period, at a 5.6% CAGR, driven by the emergence of new services such as M2M and cloud.
Analysys predicts that growing adoption of convergent solutions, to support prepaid and postpaid customers, will help to maintain overall growth in spending on billing systems in the mobile service sector, at a CAGR of 1.2%.
The research firm believes that convergent systems are replacing installed solutions through upgrades in developed markets and more aggressive transformation projects in emerging markets, particularly in APAC.
CSPs in developed markets are projected to adopt a lower-risk strategy, therefore favouring more-established vendors for such projects, according to Analysys.
Analysys estimates that Asia-Pacific will provide the largest increase in revenue for revenue management systems over the forecast period, at a CAGR of 4.7%, just ahead of the smaller Caribbean and Latin America region’s 4.6% CAGR. Increasing subscriber numbers and the launch of new broadband services is predicted to drive growth in both regions.
Revenue in North America (NA) is expected to grow at a higher rate than in Europe, Middle East and Africa (EMEA). NA has adopted LTE faster than other markets, and this is helping to drive revenue for new data services that require policy-based charging, according to the research firm.
Analysys predicts that EMEA will have the lowest CAGR as the region’s telecoms revenue declines. Revenue will increase in western Europe’s more developed markets towards the end of the forecast period as LTE roll-outs and new M2M requirements drive growth.