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UK Web3 In Telecommunications Market

ID: MRFR/ICT/61219-HCR
200 Pages
Aarti Dhapte
February 2026

UK Web3 in Telecommunications Market Research Report By Type (Public, Private, Consortium, Hybrid) and By Application (Cryptocurrency, Conversational AI, Data & Transaction Storage, Payments, Smart Contracts, Others)- Forecast to 2035

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UK Web3 In Telecommunications Market Summary

As per Market Research Future analysis, the UK web3 in-telecommunications market size was estimated at 670.06 USD Million in 2024. The UK web3 in-telecommunications market is projected to grow from 997.66 USD Million in 2025 to 53408.44 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 48.8% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The UK web3 in-telecommunications market is experiencing a transformative shift towards decentralized solutions and enhanced security.

  • Decentralized identity solutions are gaining traction as businesses seek to enhance user privacy and control.
  • Smart contracts are increasingly utilized for service agreements, streamlining operations and reducing costs.
  • Enhanced data privacy regulations are shaping the landscape, compelling companies to adopt compliant technologies.
  • The market is driven by increased demand for decentralized services and advancements in network infrastructure.

Market Size & Forecast

2024 Market Size 670.06 (USD Million)
2035 Market Size 53408.44 (USD Million)
CAGR (2025 - 2035) 48.89%

Major Players

Helium (US), Filecoin (US), Akash Network (US), Althea (US), Holo (US), Substratum (US), Oraculos (US), Mysterium (US)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
Partnering with 2000+ Global Organizations Each Year
30K+ Citations by Top-Tier Firms in the Industry

UK Web3 In Telecommunications Market Trends

The web3 in-telecommunications market is currently experiencing a transformative phase. This shift is driven by advancements in decentralized technologies and the increasing demand for enhanced data privacy. As organizations and consumers alike seek more secure and efficient communication methods, the integration of blockchain technology into telecommunications infrastructure appears to be gaining traction. This shift not only facilitates improved security but also fosters greater transparency in transactions and data exchanges. Furthermore, the rise of decentralized applications (dApps) is likely to reshape how services are delivered, potentially leading to more user-centric models that prioritize individual control over personal data. In addition, regulatory frameworks are evolving to accommodate the unique challenges posed by web3 technologies. Authorities are beginning to recognize the need for guidelines that ensure consumer protection while promoting innovation. This regulatory landscape may influence the pace of adoption and the types of services that emerge within the web3 in-telecommunications market. As stakeholders navigate these changes, collaboration between traditional telecom providers and emerging web3 entities could pave the way for innovative solutions that address current limitations in the sector. Overall, the future of this market appears promising, with potential for significant growth and development in the coming years.

Decentralized Identity Solutions

The emergence of decentralized identity solutions is reshaping user authentication processes. By leveraging blockchain technology, these solutions offer enhanced security and privacy, allowing users to control their personal information. This trend is particularly relevant in the telecommunications sector, where data breaches have raised concerns about user privacy.

Smart Contracts for Service Agreements

Smart contracts are increasingly being utilized to automate service agreements within the telecommunications industry. These self-executing contracts facilitate trustless transactions, reducing the need for intermediaries. This trend may streamline operations and enhance efficiency, potentially lowering costs for both providers and consumers.

Enhanced Data Privacy Regulations

As the web3 in-telecommunications market evolves, there is a growing emphasis on data privacy regulations. Authorities are likely to implement stricter guidelines to protect consumer information. This trend may drive innovation in privacy-preserving technologies, ensuring that user data remains secure while fostering trust in telecommunications services.

UK Web3 In Telecommunications Market Drivers

Emergence of New Business Models

The web3 in-telecommunications market is witnessing the emergence of innovative business models that leverage blockchain technology. These models often focus on peer-to-peer interactions, reducing reliance on traditional intermediaries. For instance, decentralized communication platforms are gaining traction, allowing users to connect directly without centralized control. This shift could lead to cost reductions of up to 30% for consumers, as traditional service fees are minimized. Furthermore, the potential for token-based economies within these platforms may incentivize user engagement and loyalty. As these new models proliferate, they are likely to disrupt existing telecommunications paradigms, prompting established players to rethink their strategies.

Advancements in Network Infrastructure

The web3 in-telecommunications market is poised for growth due to advancements in network infrastructure. The rollout of 5G technology across the UK is expected to facilitate the integration of web3 solutions, enabling faster and more reliable connectivity. This infrastructure upgrade may support the deployment of decentralized applications that require high bandwidth and low latency. Analysts predict that the adoption of 5G could lead to a 50% increase in the efficiency of telecommunications services by 2028. As network capabilities expand, telecommunications providers may find new opportunities to innovate and offer enhanced services, further driving the growth of the web3 in-telecommunications market.

Increased Demand for Decentralized Services

The web3 in-telecommunications market is experiencing a notable surge in demand for decentralized solutions. This shift is largely driven by consumers seeking greater control over their data and privacy. As individuals become more aware of data ownership issues, the market is projected to grow at a CAGR of 25% over the next five years. This trend indicates a significant transformation in how telecommunications services are delivered, with a focus on decentralization. Companies that adapt to this demand by integrating blockchain technology into their offerings may find themselves at a competitive advantage. The emphasis on user-centric models is likely to reshape the landscape of telecommunications, fostering innovation and new business models.

Regulatory Support for Blockchain Integration

The web3 in-telecommunications market is likely to benefit from increasing regulatory support for blockchain technologies. The UK government has shown interest in fostering innovation within the telecommunications sector, particularly through the adoption of blockchain. This regulatory environment may encourage investments in decentralized applications and services. As a result, telecommunications companies could see a rise in funding opportunities, potentially exceeding £500 million by 2026. This supportive framework may facilitate the development of new solutions that enhance security and efficiency in telecommunications, thereby driving market growth. The alignment of regulatory policies with technological advancements could create a conducive atmosphere for the expansion of web3 services.

Growing Interest in Enhanced Security Solutions

The web3 in-telecommunications market is increasingly prioritizing enhanced security solutions, driven by rising concerns over data breaches and cyber threats. As telecommunications services become more integrated with digital platforms, the need for robust security measures is paramount. Blockchain technology offers unique advantages, such as immutable records and decentralized verification, which could significantly reduce vulnerabilities. The market for security solutions in telecommunications is expected to grow by 40% by 2027, reflecting the urgent need to address these challenges. Companies that invest in blockchain-based security frameworks may not only protect their infrastructure but also build trust with consumers, thereby enhancing their market position.

Market Segment Insights

By Type: Public (Largest) vs. Private (Fastest-Growing)

The UK web3 in-telecommunications market shows a diverse segmentation among public, private, consortium, and hybrid types. The public segment holds the largest share, benefiting from widespread adoption and integration across various industries. Private networks, on the other hand, are rapidly gaining traction, driven by organizations seeking enhanced security and control over their telecommunications infrastructure. As enterprises increasingly prioritize data sovereignty and tailored services, private networks are expected to experience accelerated growth. Consortium types are also emerging, allowing collaborative efforts among organizations, while hybrid solutions are attracting attention for their flexibility. The combined influence of technological innovation and growing demand for secure communications will continue to fuel the evolution of these segments in the market.

Public (Dominant) vs. Private (Emerging)

The public segment is characterized by its broad accessibility and integration into existing telecom infrastructures, making it the dominant player in the market. It provides essential services to a diverse range of users including businesses and consumers, focusing on ease of access and affordability. In contrast, the private segment, although emerging, is gaining momentum due to the increasing need for secure and customizable telecommunications solutions. Private networks are tailored specifically for organizations, offering enhanced data protection and efficiency. This segment appeals primarily to enterprises looking for exclusive control over their network environments, positioning them as a compelling choice for future investment and growth in the UK web3 in-telecommunications landscape.

By Application: Cryptocurrency (Largest) vs. Payments (Fastest-Growing)

The application segment within the UK web3 in-telecommunications market is prominently led by Cryptocurrency, commanding a significant share due to its established use and widespread acceptance among users. Other segments such as Payments and Conversational AI are emerging but remain smaller in market share, illustrating a diversifying ecosystem where various applications coexist and compete for user engagement and investment. Growth trends indicate a rapid expansion for Payments as more users and businesses seek blockchain solutions for transaction efficiency and security. Additionally, the rise of Conversational AI is propelling new use cases in customer engagement and support, driven by advances in machine learning and natural language processing. These dynamics suggest a competitive landscape where established and emerging applications are both essential for future development.

Cryptocurrency (Dominant) vs. Payments (Emerging)

Cryptocurrency stands out as the dominant force in the UK web3 in-telecommunications market, characterized by its extensive infrastructure and user adoption, enabling seamless transactions and innovative financial services. This segment is robust and continues to evolve with regulations and market demands. Conversely, Payments is recognized as an emerging segment that is gaining traction rapidly, offering unique solutions that enhance transaction security and reduce processing times. The adoption of smart contracts within this realm further fuels growth, paving the way for more efficient financial operations. Both segments highlight the importance of technological advancements and user preferences in shaping the market landscape.

Get more detailed insights about UK Web3 In Telecommunications Market

Key Players and Competitive Insights

The web3 in-telecommunications market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and an increasing demand for decentralized communication solutions. Key players such as Helium (US), Filecoin (US), and Akash Network (US) are strategically positioning themselves through innovative service offerings and partnerships. Helium (US), for instance, focuses on expanding its decentralized wireless network, which allows users to earn tokens by providing coverage. This strategy not only enhances its operational footprint but also fosters community engagement, thereby shaping a competitive environment that emphasizes user participation and network growth.In terms of business tactics, companies are increasingly localizing their operations to better serve regional markets, optimizing supply chains to enhance efficiency. The market structure appears moderately fragmented, with several players vying for market share. However, the collective influence of major companies like Filecoin (US) and Akash Network (US) is notable, as they leverage their technological capabilities to create robust ecosystems that challenge traditional telecommunications models.

In October Filecoin (US) announced a partnership with a leading cloud service provider to enhance its data storage capabilities. This strategic move is significant as it not only broadens Filecoin's service offerings but also positions it as a formidable competitor in the decentralized storage space, potentially attracting enterprise clients seeking secure and scalable solutions. The collaboration underscores the importance of strategic alliances in enhancing service delivery and market reach.Similarly, in September 2025, Akash Network (US) launched a new initiative aimed at integrating AI-driven analytics into its platform. This development is crucial as it enables users to optimize their resource allocation and improve operational efficiency. By harnessing AI, Akash Network (US) is likely to differentiate itself in a crowded market, appealing to tech-savvy customers who prioritize innovation and performance.

In November Helium (US) unveiled a new incentive program designed to reward users for expanding their network coverage. This initiative is indicative of a broader trend towards community-driven growth strategies, which not only enhance network reliability but also foster user loyalty. By incentivizing participation, Helium (US) is likely to strengthen its market position and encourage further adoption of decentralized telecommunications solutions.

As of November the competitive trends in the web3 in-telecommunications market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are playing a pivotal role in shaping the landscape, enabling companies to pool resources and expertise. Looking ahead, it appears that competitive differentiation will evolve from traditional price-based strategies to a focus on innovation, technological advancements, and supply chain reliability, as companies seek to establish themselves as leaders in a rapidly changing environment.

Key Companies in the UK Web3 In Telecommunications Market include

Industry Developments

The UK Web3 in Telecommunications Market is currently witnessing significant activity, especially among major companies such as BT Group, Vodafone Group, and Virgin Media. In August 2023, BT Group announced its collaboration with Digital Catapult aimed at accelerating the adoption of Web3 technologies to enhance telecommunications infrastructure. Additionally, in September 2023, Vodafone Group is investing in blockchain technology to improve supply chain operations and secure transactions.Notably, Three UK is also exploring partnerships within the Web3 space to enhance user engagement through decentralized applications. 

The market has seen a continuous rise in valuations, attributed to increased investments in blockchain and 5G technology, influencing companies such as EE and O2 to explore innovative solutions in their service offerings.Over the last couple of years, notable developments included the 2022 launch of various pilot projects by Sky Group related to Web3 applications, fostering significant advancements in user experiences. Acquisitions and mergers have remained limited but vigilant, with the focus on collaborations aimed at driving technology adoption and enhancing service delivery. The ongoing evolution continues to shape the operational landscape of the UK telecommunications sector within the Web3 framework.

Future Outlook

UK Web3 In Telecommunications Market Future Outlook

The Web3 in Telecommunications Market is projected to grow at a 48.89% CAGR from 2025 to 2035, driven by advancements in decentralized networks, enhanced security protocols, and increased demand for data privacy.

New opportunities lie in:

  • Decentralized identity verification solutions for telecom providers.
  • Blockchain-based billing systems to enhance transparency and reduce fraud.
  • Smart contract applications for automated service agreements and compliance.

By 2035, the market is expected to achieve substantial growth, positioning itself as a leader in telecommunications innovation.

Market Segmentation

UK Web3 In Telecommunications Market Type Outlook

  • Public
  • Private
  • Consortium
  • Hybrid

UK Web3 In Telecommunications Market Application Outlook

  • Cryptocurrency
  • Conversational AI
  • Data & Transaction Storage
  • Payments
  • Smart Contracts
  • Others

Report Scope

MARKET SIZE 2024 670.06(USD Million)
MARKET SIZE 2025 997.66(USD Million)
MARKET SIZE 2035 53408.44(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 48.89% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Helium (US), Filecoin (US), Akash Network (US), Althea (US), Holo (US), Substratum (US), Oraculos (US), Mysterium (US)
Segments Covered Type, Application
Key Market Opportunities Integration of decentralized identity solutions enhances security and user control in telecommunications.
Key Market Dynamics Emerging decentralized applications reshape telecommunications, driving innovation and competition in the UK market.
Countries Covered UK
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FAQs

What is the expected market size of the UK Web3 in Telecommunications Market in 2024?

The market is anticipated to be valued at 534.0 million USD in 2024.

What is the projected market size for the UK Web3 in Telecommunications Market by 2035?

By 2035, the market is expected to reach a valuation of 3,059.0 million USD.

What is the expected compound annual growth rate (CAGR) for the UK Web3 in Telecommunications Market from 2025 to 2035?

The anticipated CAGR for the market during this period is 17.196%.

Which type of Web3 segment in Telecommunications is expected to have the largest market share in 2024?

The Public segment is projected to hold a significant share, valued at 150.0 million USD in 2024.

How much is the Private segment of the UK Web3 in Telecommunications Market valued at in 2024?

The Private segment is expected to be valued at 200.0 million USD in 2024.

What is the forecasted market value of the Hybrid segment by 2035?

The Hybrid segment is projected to be valued at 590.424 million USD by 2035.

Who are the major players in the UK Web3 in Telecommunications Market?

Key players include BT Group, Vodafone Group, Virgin Media, and several others.

What challenges are expected in the UK Web3 in Telecommunications Market over the next decade?

Challenges may include regulatory hurdles and technological integration issues.

What opportunities exist in the UK Web3 in Telecommunications Market for emerging technologies?

The market presents opportunities for innovative applications of blockchain and decentralized networks.

What impact might the current global economic landscape have on the UK Web3 in Telecommunications Market?

The global economic scenario may influence investment rates and consumer adoption in the market.

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