SS7 Market Trends

Introduction

The SS7 market in 2023 is influenced by several macro-factors that influence the direction of the SS7 market. Technological changes, such as the rise of cloud solutions and the increasing integration of artificial intelligence, are changing the SS7 market. Regulations are becoming stricter and more demanding. They require operators to increase security and meet new standards. In addition, changes in consumer behavior, such as the demand for seamless connections and better experiences, are forcing operators to constantly change and develop their services. These macro-factors are essential for operators to understand, as they influence their competitive positioning and strategic investments and operational changes in an increasingly complex market.

Top Trends

1. Increased Focus on Security
   With the increasing vulnerability of SS7, governments and telecommunications operators are now prioritizing security measures. The European Union, for example, has imposed stricter security regulations for telephone companies, resulting in a 30% increase in spending on security solutions. This trend is driving companies to invest in new encryption and monitoring systems, which have a significant effect on their operating costs. The trend is also likely to include the integration of artificial intelligence to detect threats in real time.
2. Adoption of Cloud-Based Solutions
   The trend of telecommunications operators is to migrate from SS7 based on-premises to SS7 based in the cloud, in order to enhance scalability and reduce costs. Oracle has reported a growth of 25% in cloud service consumption by operators. This migration will allow a more flexible provision of services and better disaster recovery. It may also lead to hybrid models that combine on-premises and cloud solutions.
3. Regulatory Compliance and Standardization
   In the development of SS7, the regulatory authorities are promoting the establishment of standards to ensure interoperability and security. The International Telecommunication Union has established new standards, which are being implemented by forty per cent of the operators. These standards must be met by the operators to avoid fines and ensure the quality of service. However, the regulatory authorities may impose even more stringent requirements on the deployment of SS7 in the future.
4. Integration with IoT Technologies
   The integration of SS7 with the Internet of Things is a major trend, and the integration of SS7 with IoT is a key trend for operators who want to support the growing number of connected devices. The number of IoT connections is expected to reach 30 billion by 2025, and the SS7 network must be able to support it. The integration of SS7 and IoT will increase service quality and efficiency. It will also lead to the development of SS7-based IoT applications.
5. Emergence of 5G and Its Impact
   The arrival of 5G is reshaping the SS7 landscape, with operators adapting their networks to handle higher data rates and lower latencies. According to industry leaders, 5G is expected to generate a 50 per cent increase in SS7 traffic. This change will require changes to signalling systems and to operating strategies. There will also be a need for the development of new signalling protocols to support 5G.
6. Enhanced Analytics and Data Utilization
   The advanced data analytics of the telecommunications industry has enabled it to optimize the SS7 performance and the customer experience. The companies that have embraced data analytics have seen an improvement in the quality of their service of about 20 percent. The trend is driving investment in big data and machine learning. In the future, we may see the use of predictive data analytics to optimize network performance and customer engagement.
7. Collaboration and Partnerships
   Strategic alliances between operators and technology suppliers are on the rise, with the aim of enhancing SS7’s capabilities. The result is joint ventures that have improved service offerings.3 Almost a third of companies have reported increased innovation as a result of these collaborations. The trend is helping operators to compete more effectively. And it is likely that in the future there will be further strategic alliances, especially with regard to developing next-generation SS7 solutions.
8. Focus on Customer Experience
   The desire to improve the customer experience is driving the evolution of SS7 services. The companies that have invested in the customer experience have increased their retention rate by an average of 15 per cent. This trend is driving operators to invest in a simple user interface and the responsiveness of the services they provide. In the future, it could also lead to the development of ad hoc services based on customer data.
9. Shift Towards Virtualized Networks
   SS7 is undergoing a change, as a result of the virtualization of the network. According to some sources, sixty percent of operators are looking into virtualized SS7 solutions. This trend reduces hardware dependence and increases scalability. SDN in SS7 may become the norm in the future.
10. Growing Demand for Interoperability
    The complexity of telecommunications networks increases the need for interoperability between SS7 systems. Surveys show that over seventy per cent of operators place interoperability at the top of their SS7 strategies. This is essential for ensuring seamless communications between networks. This could lead to the development of a single set of standards to facilitate interoperability.

Conclusion: Navigating the Competitive SS7 Landscape

The SS7 market in 2023 will be characterized by intense competition and considerable fragmentation. Regional trends point to an increasing focus on advanced capabilities, such as AI, automation, and green solutions, which are becoming the key differentiators for vendors. The leading players are relying on their established platforms to integrate new technologies, while the new entrants are concentrating on speed and flexibility to capture market niches. The vendor community must therefore invest in these advanced capabilities to maintain leadership and respond to the evolving demands of the market and its regulatory environment.