Convergent Billing Market

Convergent Billing Market Sizes by Solution (Customer Relationship Management, Mediation, Settlement & Payment Management, and Voucher Management), By Deployment Mode (On-Premise and Cloud), By Service (Customization Services, Consulting Services, and Managed Services), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14582
  • Published Date: Nov, 2024
  • Pages: 239
  • Category: Consumer Goods
  • Format: PDF
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The global convergent billing market was valued at USD 13.25 Billion in 2023 and is anticipated to grow at a CAGR of 9.2% from 2024 to 2033. The demand for convergent billing has risen as companies across various sectors increasingly integrate their services. The telecommunications industry pioneered this approach because it often bundles multiple offerings like landlines, mobile phones, broadband, and television under one roof. Traditionally, these services required separate billing systems, resulting in inefficiencies, higher operational costs, and customer dissatisfaction. Convergent billing addressed these issues by allowing businesses to consolidate all services into a single invoice. This strategy has now spread to other industries, such as utilities and media entertainment, where bundling is common.

Market Introduction:

Convergent billing is a unified system for billing multiple services, products, and customer accounts within one platform. This approach is commonly used in industries where companies provide diverse services or products previously billed separately but combined into a single streamlined solution. Convergent billing enables the integration of charges from various service lines—such as telecommunications, utilities, or media—into one detailed invoice for the customer. This methodology ensures that numerous company offerings like voice, data, video, internet access, and other utilities can be collectively billed with comprehensive itemization regardless of their distinct usage patterns or pricing models.

The main goal of convergent billing is to streamline the billing process for companies and customers. For customers, this means receiving a single bill that covers all services, thereby eliminating the hassle of managing multiple bills and reducing confusion. From a business standpoint, it involves integrating various service billing systems into one cohesive framework, which decreases operational complexity and cuts costs related to handling separate systems. This approach not only enhances efficiency for both providers and users but also makes companies feel financially prudent and efficient by reducing their operational costs—ultimately boosting customer satisfaction while minimizing churn rates.

Convergent Billing Market Size

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Recent Development
  • In December 2020: CSG International expanded its billing agreement with Airtel Africa to offer managed services, encompassing convergent pricing, billing solutions, and customer relationship management. This enhancement aims to strengthen their position across 14 countries in Africa.        

Market Dynamics:

Drivers

Expansion of the Telecom Industry - A key factor driving the global convergent billing market is the continuous growth of the telecommunications and media sectors. Telecommunications, in particular, has played a pivotal role in elevating the demand for convergent billing solutions. Over recent decades, this industry has rapidly advanced from offering traditional fixed-line services to providing a wide range of options such as mobile, broadband, television, data, and voice services. As these offerings converge into an integrated service delivery model with single invoicing capabilities becoming paramount for telecom operators, modernizing their systems using sophisticated platforms capable of seamlessly managing intertwined networks became crucially essential. With an increasing number of mobile users worldwide and the widespread availability of internet and broadband connections, there is a rising need for advanced billing frameworks that seamlessly integrate voice and data content on one platform.

Additionally, the telecom & media industry has seen an increased demand for convergent billing due to the growth of over-the-top (OTT) content providers like Netflix, Amazon Prime, and Hulu. These companies frequently offer multiple subscription-based services, making it essential to unify these offerings on a single platform. Convergent billing simplifies this process by reducing customer confusion and significantly enhancing the overall user experience, making it more enjoyable and convenient for the end users. This factor is stimulating the market growth and development.

Restraints:

High Costs of Implementation and Maintenance – A major challenge in the global convergent billing market is the high cost of implementing and maintaining these complex systems. Deploying convergent billing solutions demands significant software, hardware, and infrastructure investments. Moreover, companies frequently undergo extensive consultation and planning to tailor the system to their unique needs. This poses a particular difficulty for smaller enterprises or businesses operating in highly competitive markets with thin profit margins.

The initial expenses of setting up a convergent billing system encompass licensing fees, software customization, integration with existing business systems, and the necessary hardware infrastructure to support it. For many companies, these costs extend beyond implementation. Ongoing maintenance and support expenses—including regular software updates, bug fixes, and system optimization—impose an ongoing financial strain. Additionally, the requirement for dedicated IT teams to manage and troubleshoot these systems increases labor costs. Companies with limited resources may find these financial demands prohibitive enough to deter them from adopting convergent billing solutions despite recognizing their potential benefits. This factor is limiting the market growth.

Opportunities:

Ongoing Digital Transformation followed by Technological Advancements - Digital transformation is a key force fueling the rising demand for convergent billing solutions. Organizations across various sectors are adopting digital technologies to enhance operations, lower expenses, and boost customer engagement. The integration of digital platforms and technologies like artificial intelligence (AI), machine learning (ML), big data, and the Internet of Things (IoT) has notably complicated billing processes. As business enterprises shift towards providing more digital and cloud-based services, they need strong yet adaptable billing solutions capable of efficiently integrating diverse data streams in real time.

For instance, the growth of IoT has led to a surge in connected devices that constantly communicate and exchange data, necessitating billing systems capable of supporting usage-based pricing models. These IoT devices produce vast amounts of data, requiring companies to implement convergent billing solutions that can effectively manage and bill customers based on real-time data consumption. AI and ML technologies have empowered business enterprises to develop more personalized and dynamic pricing models. This highlights the need for adaptable billing systems capable of handling these complex billing rules. This factor is anticipated to provide lucrative growth opportunities in the upcoming years.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America region emerged as the most prominent Convergent billing market, with a 38.0% market revenue share in 2023. North America has been the leading region in implementing cloud-based convergent billing solutions, which benefit flexibility, scalability, and cost-efficiency. They also work as applications or service subscriptions. Many enterprises in this part have moved from the old way of doing things on on-premise billing systems to cloud-based portals that, apart from keeping costs lower, also allow better integration into other corporate processes. The region's dedicated perspective on digital transformation and ERP has driven the growth of software-as-a-service (SaaS) billing models, thus enabling businesses to carry out their tasks and gain better client reviews legitimately.

Convergent billing systems that are cloud-based also have the advantage of providing security, compliance, and data management, which are all crucial for companies operating in regulated industries such as telecommunications and financial services. North America's robust regulatory scheme, including cyber data security, has significantly increased the demand for convergent billing platforms. These platforms are essential for meeting operational and legal requirements and ensuring the company's efficient running. The regional market players also engage in various market strategies such as product innovation, product differentiation, mergers, acquisitions, partnerships, and strategic alliances to maintain their competitive edge.

North America Region Convergent Billing Market Share in 2023 - 38.0%

 

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  • In September 2022: Nexign, a leading Business Support System (BSS) and digitalization solutions provider has introduced a new revenue management solution. This platform offers a unified cloud-based approach to overseeing revenue generation. It enhances operational flexibility and supports the monetization of 5G services.
Deployment Mode Segment Analysis

The deployment mode segment includes cloud and on-premises. The on-premises segment dominated, with a market share of around 55% in 2023. On-premise deployment allows the installation of all necessary hardware and software for running and maintaining convergent billing software directly on the customer’s system. This approach offers enhanced security, as everything is hosted within the customer's infrastructure, eliminating third-party involvement. However, increased investment in professional services may be required to fully capitalize on these advantages due to potential high costs associated with on-premise deployment.

Service Segment Analysis

The service segment includes customization services, consulting services, and managed services. The managed services segment dominated, with a market share of around 52% in 2023. Managed services guarantee the smooth operation of software and applications on a customer's system. By handling IT-related tasks, managed systems enable businesses to concentrate on their core operations and services. Additionally, these services offer various value-added features that help companies maximize the use of convergent billing software. The enhanced performance and reliability of the managed services are anticipated to drive growth in this segment.

Solution Segment Analysis

The solution segment includes customer relationship management, mediation, settlement & payment management, and voucher management. The customer relationship management segment dominated, with a market share of around 37% in 2023. CRM encompasses the foundational principles an organization uses when engaging with its customers. It includes direct interactions such as sales and service processes, forecasting, and analyzing consumer behavior. CRM solutions provide customer support, tailored product offerings based on segmentation, and sophisticated discount strategies. The flexibility to define numerous services makes CRM a crucial tool in the convergent billing market, significantly contributing to segment growth.

Some of the Key Market Players:
  • EI Technologies Co., Ltd.
  • IBM Corporation
  • SAP S.E.
  • CSG International
  • Elitecore Technologies Pvt. Ltd.
  • Orga Systems, GmbH
  • Redknee, Inc.
  • Alcatel-Lucent S.A.
  • Comverse Inc.
  • Amdocs, Inc.

Report Description: 

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2023 USD 13.25 Billion
Market size value in 2033 USD 31.95 Billion
CAGR (2024 to 2033) 9.2%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Segments Solution, Deployment Mode and Service  

Frequesntly Asked Questions

As per The Brainy Insights, the size of the global convergent billing market was valued at USD 13.25 billion in 2023 to USD 31.95 billion by 2033.

The global convergent billing market is growing at a CAGR of 9.2% during the forecast period 2024-2033.

North America region became the largest market for convergent billing.

The expanding telecom and media industry sector is driving the market's growth.

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This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global Convergent Billing market based on below-mentioned segments:

Global Convergent Billing Market by Deployment Mode:

  • Cloud
  • On-premises

Global Convergent Billing Market by Service:

  • Consulting Services
  • Managed Services
  • Customization Services

Global Convergent Billing Market by Solution:

  • Customer Relationship Management
  • Settlement and Payment Management
  • Mediation
  • Voucher Management

Global Convergent Billing Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa

Methodology

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Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

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Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:

MARKET RESEARCH PROCESS

Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

  • The organizational databases such as D&B Hoovers, and Bloomberg that helps us to identify the competitive scenario of the key market players/organizations along with the financial information.
  • Industry/Market databases such as Statista, and Factiva provides market/industry insights and deduce certain formulations. 
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Primary Research: The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. Primary research mainly involves in telephonic interviews, E-mail interactions and face-to-face interviews with the raw material providers, manufacturers/producers, distributors, & independent consultants. The interviews that we conduct provides valuable data on market size and industry growth trends prevailing in the market. Our organization also conducts surveys with the various industry experts in order to gain overall insights of the industry/market. For instance, in healthcare industry we conduct surveys with the pharmacists, doctors, surgeons and nurses in order to gain insights and key information of a medical product/device/equipment which the customers are going to usage. Surveys are conducted in the form of questionnaire designed by our own analyst team. Surveys plays an important role in primary research because surveys helps us to identify the key target audiences of the market. Additionally, surveys helps to identify the key target audience engaged with the market. Our survey team conducts the survey by targeting the key audience, thus gaining insights from them. Based on the perspectives of the customers, this information is utilized to formulate market strategies. Moreover, market surveys helps us to understand the current competitive situation of the industry. To be precise, our survey process typically involve with the 360 analysis of the market. This analytical process begins by identifying the prospective customers for a product or service related to the market/industry to obtain data on how a product/service could fit into customers’ lives.

Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.

The supply side for a domain specific market is analysed by:

  • Estimating and projecting penetration rates through analysing product attributes, availability of internal and external substitutes, followed by pricing analysis of the product.
  • Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

  • Evaluating the penetration level and usage rates of the product.
  • Referring to the historical data to determine the growth rate and evaluate the industry trends

In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.

Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:

  • Applying demographic along with psychographic segmentation for market evaluation
  • Determining the Micro and Macro-economic indicators for each region 
  • Examining the industry indicators prevailing in the market. 

Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:

  • Data Screening: Data screening is the process of scrutinising data/information collected from primary research for errors and amending those collected data before data integration method. The screening involves in examining raw data, identifying errors and dealing with missing data. The purpose of the data screening is to ensure data is correctly entered or not. The Brainy Insights employs objective and systematic data screening grades involving repeated cycles of quality checks, screening and suspect analysis.
  • Data Integration: Integrating multiple data streams is necessary to produce research studies that provide in-depth picture to the clients. These data streams come from multiple research studies and our in house database. After screening of the data, our analysts conduct creative integration of data sets, optimizing connections between integrated surveys and syndicated data sources. There are mainly 2 research approaches that we follow in order to integrate our data; top down approach and bottom up approach.

Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.

This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.

Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.

The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. The data validation interview and discussion panels are typically composed of the most experienced industry members. The participants include, however, are not limited to:

  • CXOs and VPs of leading companies’ specific to sector
  • Purchasing managers, technical personnel, end-users
  • Key opinion leaders such as investment bankers, and industry consultants

Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.

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