Direct Carrier Billing Market

Market Outlook of Direct Carrier Billing

The global direct carrier billing market was valued at US$ 32.2 Billion in 2021, and is projected to register a Y-o-Y increase of 11.2% in 2022 to be valued at US$ 35.8 Billion. During the 2022-2032 period of assessment, demand is expected to rise at a 10.4% value CAGR, likely to reach US$ 96.7 Billion by the end of the said forecast period.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 32.2 Billion
Expected Market Value (2022)	US$ 35.8 Billion
Projected Forecast Value (2032)	US$ 96.7 Billion
Global Growth Rate (2022-2032)	10.4% CAGR
Growth Rate of the U.S (2022-2032)	10.2% CAGR
Expected Market Value of China (2032)	US$ 6.7 Billion
Dollar Opportunity in Japan (2022-2032)	US$ 3.1 Billion
Key Direct Carrier Billing Service Providers	Bango PLC Boku, Inc. Centili Comviva Technologies Limited DIMOCO Fortumo Infomedia Services Limited NTH Mobile, TELECOMING S.A. txtNation Limited

Overall, the Direct Carrier Billing landscape is poised to yield an absolute dollar opportunity worth US$ 60.9 Billion until 2032. Sales of Direct Carrier Billing will continue to flourish, with a documented CAGR of 11.5% from 2015-2021. Moreover, Pure DCB and Android will continue to remain the primary beneficiaries of Direct Carrier Billing services, likely to register a CAGR worth 10.1% and 9.7% respectively, from 2022 to 2032. North America to represent the highest share for the Direct Carrier Billing market.

Direct Carrier Billing Market Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

The increase in demand for games, video-on-demand, audio, voice calling, such as Skype and WeChat, eBooks, podcasts, and other content is driving the market growth. In addition, over-the-top (OTT) streaming media services provider such as Netflix, Spotify, Sony, Hulu, Amazon Prime Video, and other players are significantly adopting direct carrier billing platforms and have integrated these into their payment offerings. This attracts the customer, which in turn fuels the market growth during the forecast period.

As per market research and competitive intelligence provider Fact.MR, the market for Direct Carrier Billing witnessed a staggering 11.5% CAGR from 2015 to 2021. Consistent rise in popularity of mobile gaming and in-app game items purchases via direct carrier e-billing payment method, further boost the market growth. In addition, slow invasion rate of credit cards in developing economies coupled with rapid digitization is another factor fostering the growth of this market.

In the future, an increase in acceptance of consumers for digital goods and rising awareness regarding direct carrier billing services are expected to offer favorable growth opportunities over the forecast period. Moreover, the direct carrier billing provides the most effective buying expertise in online environments as compared to other opposite payment strategies. The availability of an extensive range of direct carrier billing platforms helps in creating new revenue generation sources for mobile operators, cost-effective and easy methods to provide updated content.

Increasing Adoption of OTT Platforms and subscription Video-on-Demand Services

The shortage of content over television (TV) and the proliferation of high-speed internet have resulted in a rise in the adoption of over the top (OTT) content in recent times. Smartphones are presently the key platforms for the adoption of OTT contents. The staggering acceptance of OTT services has persuaded many network service providers to accept direct carrier billing as a payment method.

Further, this is boosting the direct carrier billing market growth. From the customers’ perspective, the benefit of subscribing to or paying for a feature or media content while offline is generating significant demand for direct carrier billing option. This factor is also acting as a catalyzer to the direct carrier billing market.

Additionally, an increase in the adoption of subscription video-on-demand services and the rise in digital content such as e-sports and live streaming are the key drivers of the global Direct Carrier Billing Market. The demand for direct carrier billing is increasing owing to growing high-speed internet and cloud computing infrastructure, which enhances the demand for Direct Carrier Billing Market.

Easy Affordability of Smartphones and Associated Services in Developing Countries

The developing countries across the globe are experiencing a substantial rise in the number of smartphone users. This is majorly attributed to the rise in the availability of low-cost smartphones. In recent several local smartphone manufacturers have evolved in the developing countries in APAC, MEA, and South America.

Moreover, the easy affordability of smartphones in the region has led individuals to opt for the same, and consequently use features, apps, games, and OTT services. Despite the low cost of smartphones, these mobile phones are embedded with high-end technologies, which enable users to take advantage of premium smartphones. Owing to this, the adoption of mobile games, OTT services, and paid applications is surging rapidly.

Additionally, with the rise in usage of the apps, games, and OTT services among the individuals in the developing countries, the demand for paid features and subscriptions are also increasing. This is increasing the demand for direct carrier billing among users. Further, the number of smartphone users in developing countries is much higher than that of credit card users. The low usage of credit cards among a significant percentage of the population poses a substantial business opportunity for direct carrier billing solution providers to flourish, and is foreseen to throttle the direct carrier billing market in the forthcoming years.

Key Challenges Prevalent in the Global Direct Carrier Billing Market

Prevalence of Alternative Payment Gateways may impede growth prospects

Low internet penetration rate in the under developing economies is expected to pose a major challenge to the growth of direct carrier billing platform market. Prevalence of alternative payment gateways such as mobile wallet, payment systems, credit and debits cards and internet banking will also derail the market growth rate.

Although mobile gaming and in-app games have proven to yield major operational benefits, via direct carrier e-billing payment method, many enterprises are reluctant to implement it due to a variety of reasons. However, complexity issues while maintaining direct carrier billing functionality, become a major challenge due to settlement involved between the multiple parties and the frauds in the Direct Carrier Billing chain.

In addition, variable levels of commitment from carriers, multiple revenue shares in the value chain, and other regulations, are some of the factors that limit the market growth.

Comparative View of Adjacent Direct Carrier Billing Market

Direct Carrier Billing Market :

Attributes	Direct Carrier Billing Market
CAGR (2022-2032)	10.4%
Market Value (2032)	US$ 96.7 Billion
Growth Factor	One of the primary factors driving the market’s growth is the increase in demand for games, video-on-demand, audio, voice calling, such as Skype and WeChat, eBooks, podcasts, and other content.
Opportunity	An increase in acceptance of consumers for digital goods and rising awareness regarding direct carrier billing services are expected to offer favorable growth opportunities over the forecast period.
Key Trends	Slow invasion rate of credit cards in developing economies coupled with rapid digitization is another factor fostering the growth of this market.

Credit Cards Payment Market :

Attributes	Credit Cards Payment Market
CAGR (2022-2032)	8.5%
Market Value (2032)	US$ 266.5 Billion
Growth Factor	Rise in demand for cash alternatives and availability of affordable credit cards across the globe boost the growth of the global credit cards payment market size.
Opportunity	Technological advancements in product offering like using blockchain for increased security is expected to offer remunerative opportunities for the expansion of the market during the forecast period.
Key Trends	The rise in demand for credit card among the developing nations positively impacts the growth of the market.

Digital Payment Market :

Attributes	Digital Payment Market
CAGR (2022-2032)	15.4%
Market Value (2032)	US$ 185.5 Billion
Growth Factor	The digital payment market is expected to grow, owing to the worldwide initiatives for the promotion of digital payments, high proliferation of smartphones enabling m-Commerce growth.
Opportunity	Digital Payment can help boost productivity and economic growth, improve transparency, increase tax revenue, expand financial inclusion, and open new economic opportunities for end users.
Key Trends	An increase in e-commerce sales, and growth in internet penetration is expected to fuel the market growth.

Country-wise Analysis

What is the Growth Outlook for Direct Carrier Billing in the U.S?

Rising demands of digital content platforms widening Growth Opportunities

According to Fact.MR, demand for Direct Carrier Billing services in the U.S is likely to expand at a 10.2% value CAGR until 2032, forecast to yield an opportunity worth US$ 21.5 Billion. Demand is further expected to be valued at US$ 34.5 Billion by the end of the said forecast period. Growth is attributed to rise in demands for trending digital content across the country.

Rising demands towards digital content platforms have been acting as a major driver towards the significant growth of direct carrier billing market in the US. With the rising growth of digital media, platforms such as YouTube, Netflix, and many others have been highly surging across the country. Since these platforms offer features like premium options and many more, which offer extra advantages to the users, demands towards online payment modes are getting highly popular.

The high acceptance of OTT services has persuaded many network service providers to accept direct carrier billing as a payment method. This is boosting the direct carrier billing market growth in the US.

How do Growth Prospects Appear in the Chinese Market?

Focus on High investments towards research and development activities

High investments towards research and development activities along with growing Smartphone penetration has been fueling the growth for direct carrier billing market in China. Moreover, availability of affordable smartphones along with growing popularity towards digital content platforms is also causing a positive impact on the market growth of Direct Carrier Billing in the country.

Moreover, increased penetration of internet in China is expected to accelerate the Digital Carrier Billing market in the country. China, is expected to reach US$ 6.7 Billion by 2032, growing at a 9.9% CAGR.

From the perspective of the customers, the benefit of subscribing to or paying for a feature or media content while offline is generating significant demand for direct carrier billing option. This factor is also acting as a catalyzer to the direct carrier billing market.

Is Japan likely to emerge as an Opportunistic Direct Carrier Billing Industry?

Rising adoption of cloud computing technologies

Rising adoption of cloud computing technologies is expected to induce growth in the direct carrier billing platform market value in Japan in the forthcoming years. In addition, the slow invasion rate of credit cards in the country, coupled with rapid digitization is another factor that is expected to propel the growth of Direct Carrier Billing market in Japan.

Further, an increased use of the direct carrier billing platform and increased demand for trends are expected to augment the market growth in the country. Additionally, the rise in demand for digital content and increased collaboration between platform providers and various content creators and ongoing services in Japan is anticipated contribute to increasing the market share.

Increasing preferences towards digitization as well as attractive promotional activities in the country will further widen the scope of the market in Japan. The country is expected to grow at a CAGR of 8.9% and is expected to represent a market share of US$ 5.5 Billion by 2032.

Country-wise Forecast CAGRs in the Direct Carrier Billing Market

Country	CAGR
U.S	10.2%
China	9.9%
Japan	8.9%
U.K	9.4%
South Korea	7.4%

Category-wise Insights

Why is Demand for Application Integration Rising Rapidly?

Android Platform to be Top Growth Driver in the Coming Years

According to Fact.MR, android platforms are likely to remain the top category, growing at a value CAGR of 9.7% from 2022-2032. Due to the growing affordability of low-cost android phones, major market players such as Google and many others have been investing towards providing such billing options across Android platforms. Moreover, many android-based games offer access and downloading options only through purchasing of such game applications through online payments, thus creating major demands towards direct carrier billing market.

Since android devices are more popular, activities such as paying games, entertainment or making shopping purchases is more effective, thus driving the investments towards making direct carrier billing systems within android servers. Moreover, rising online media surfing and digitalization has been equally boosting the growth of direct carrier billing market.

Which Market Type will Leverage Direct Carrier Billing the Most?

Pure DCB to leverage the Market Growth

The pure DCB type of the direct carrier billing market is expected to grow at a value CAGR of 10.1% from 2022-2032, owing to allowance it provide to the users to make purchases by charging payments to their mobile phone carrier bill.

In addition, the delayed adoption of credit cards in emerging markets is projected to drive demand for pure direct carrier billing solutions. Smartphone users can purchase digital content from these service providers and pay for subscriptions through the same channels as their phone bills, which is aiding the pure direct carrier billing type of the market.

Competitive Landscape

The global market for Direct Carrier Billing is characterized by the presence of multiple vendors, aiming to offer extensive consulting and integration services to clients. Additionally, enterprises are seeking out specialized service providers, offering solutions tailor-made to suit their business objectives. In addition, the vendors are likely to leverage upgradation and product differentiation to gain an edge over other competitors in the market.

• In 2020, Bango announced the expansion of partnership with NHN Corp, and the partnership is focused on empowering customers to innovate and gain maximum value from their data.
• In 2020, iTaxi launched a new ticketing model supported by direct carrier billing, which enables its customers to charge taxi rides to their postpaid plans with Play. Centili did the technical integration work for this model. 

Key Segments Covered in the Direct Carrier Billing Industry Report

• Direct Carrier Billing by Type

  • Limited DCB
  • Pure DCB
  • MSISDN Forwarding
  • Others

• Direct Carrier Billing by Platform

  • Windows
  • Android
  • IOS

• Direct Carrier Billing by End-User

  • Application and Games
  • Online Media
  • Others

• Direct Carrier Billing by Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa