The global telecom services market was valued at USD 1,650 Million in 2020 and is predicted to expand at a CAGR of 5.5% during the forecast period, 2021 – 2028. The growth of the market is attributed to the increasing expenditure on the 5G infrastructure owing to the rising inclination toward next-generation technologies and smartphone devices.
The telecom services market has experienced numerous developments in form of data speeds, which include the inception of global system for mobile communications (GSM) and code division multiple access (CDMA) to the establishment of 3G, 4G, and now the emergence of 5G networks. The duration of transferring large amount of data reduced from days to hours and hours to few seconds, which has been made possible due to the arrival of data connectivity.
The global telecom service providers and digital entertainment platforms/Over-the-top (OTT) platforms have gained enormous profit from the situation of COVID-19 pandemic. Since the year 2020, the usage of several digital platforms such as gaming, OTT channels, and social media applications have been significantly increased owing to the temporary shutdown of entertainment places as well as multiplexes, due to the COVID-19 pandemic.
During this pandemic, the mobile voice traffic has witnessed a robust increase across the globe. The demand for high bandwidth along with high-speed connectivity has been enlarged due to the rising consumption of digital media platforms by the users around the globe.
Recently, various telecom service companies has forced OTT suppliers to decrease the streaming resolution of their media content due to the increasing consumption of digital media platforms. The Cellular Operators Association of India (COAI) has requested video streaming suppliers to reduce their high definition (HD) content quality to a standard definition (SD).
Market Trends, Drivers, Restraints, and Opportunities
- Rising demand for high-speed data connectivity owing to growing number of mobile users is expected to fuel the market growth.
- Several marketers and customers are increasing their inclination toward OTT applications and its content, which in turn, can foster the growth of market during the forecast period.
- Growing number of super-fast Internet Protocol (IP) networks and open-source platforms is projected to support the expansion of market.
- The congestion in Internet traffic may hinder the market growth during the analysis period.
- Rising R&D activities by some market players and growing support of some government state bodies to the telecom services to ensure smooth functioning of their data and voice carriers are presenting numerous opportunities for the expansion of market.
Scope of Telecom Services Market Report
The report on the global telecom services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been involved in this report.
Telecom Services Market - Global Industry Analysis, Growth, Share, Trends, Size, and Forecast
Services (Fixed Internet Access Services, Fixed Voice Services, Machine-to-Machine (Mobile IoT) Services, Mobile Data Services, Mobile Voice Services, and Pay-Tv Services), Transmissions (Wireless and Wireline), and End-users (Consumer/Residential and Business [Travel & Hospitality, Transportation & Logistics, Retail, Energy and Utilities, Government & Defense, Healthcare, IT & Telecom, Manufacturing, BFSI, Education, Media & Entertainment, and O&G and Mining])
Asia Pacific, Europe, North America, Latin America, and Middle East & Africa
Company Share, Growth Factors, Market Analysis and Size, Competitive Landscape, and Trends, and Revenue Forecast
Key Players Covered in the Report
AT&T Inc., Bharati Airtel Limited, BT Group plc, China Mobile Ltd., China Telecom Corp Ltd., Comcast Corporation, Deutsche Telekom AG, KDDI Corporation, KT Corporation, Nippon Telegraph and Telephone Corporation (NTT), Orange SA, Reliance Jio Infocomm Limited, SoftBank Group Corp., Telefonica SA, Verizon Communications Inc., and Vodafone Group
Global Telecom Services Market Segment Insights
Mobile data segment anticipated to hold a large market share
Based on services the market is divided into fixed internet access services, fixed voice services, machine-to-machine (mobile IoT) services, mobile data services, mobile voice services, and pay-tv services. The mobile data segment is anticipated to hold a large market share during the forecast period and is expected to expand at a substantial CAGR during the forecast period, 2021 to 2028. This is attributed to the rising penetration of smartphones across the globe.
Increasing demand for high-speed broadband services in the commercial and household sectors is fueling the growth of the mobile IoT services segment. Moreover, the growing demand for broadband services for online gaming and streaming 4K UHD videos is fostering the segment growth.
Several industry verticals such as manufacturing, energy and utilities, public sector, healthcare, and others are adopting the internet of things (IoT) connected devices, which is increasing the customer base for the market. As per the statistics, the number of IoT connected devices is anticipated to reach surpass 50 Billion by 2028.
Wireless segment to account a significant market share
On the basis of transmissions, the market is bifurcated into wireless and wireline. The wireless segment is anticipated to account a significant share of the market and is predicted to expand at a robust CAGR during the forecast period.
The major factors contributing to the growth of wireless segment includes artificial intelligence (AI), IoT, and cloud computing technologies. Rising application of wireless local area networks (WLANs) has facilitated the Internet access to cellular devices in offices, cafes, airports, private homes, and public spaces, among others.
Moreover, the emerging 5G wave is anticipated to bridge the gap between the remote and wireline networks, and is projected to penetrate in residential, public end business places. The wireline channel of 5Gl plays an important role in the market. As it provides a better mobile user quality and optimizing network performance than wireless channel.
The wireline communication includes transmission of data through twisted pair, coaxial, and optical fiber cables. It helps to transfer data over-the-air (OTA) using transmitters, receivers, and radio frequency waves. The growth of wireline segment is attributed to the increasing number of SMEs and MNCs in countries such as China, the US, and the UK, which operates over a broad network of integrated services, including digital network (ISDN) and public switched telephone networks (PSTN).
Consumer/residential segment to account a large revenue share
By end-users, the market is bifurcated into consumer/residential and business. The business segment is further divided into travel & hospitality, transportation & logistics, retail, energy and utilities, government & defense, healthcare, it & telecom, manufacturing, BFSI, education, media & entertainment, and O&G and mining. The consumer/residential segment is expected to account a large revenue share during the forecast period owing to the increasing smartphone users around the globe.
The private telecom operators currently owns a larger customer base as compared to government owned telecom companies. Additionally, the increasing demand for OTT applications is urging the customers to subscribe wireless Internet offerings which is contributing to the implementation of communication networks for the consumer/residential segment. Rising use of online gaming and watching ultra-high-definition videos is projected to fuel the segment growth during the forecast period.
Growing implementation of next-generation high speed network has increased the demand for Internet offerings in business applications. Several businesses are installing 5G and private LTE networks to ensure smooth routine. Furthermore, the advanced bandwidth connectivity is supporting the businesses to improve the overall customer experience, which is proliferating the growth of the business segment.
Asia Pacific to account a large market share
In terms of regions, the global telecom services market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to account for a large market share and is projected to expand at a high CAGR owing to the increasing smartphone devices. The major factors driving the regional market growth includes investments in 5G networks and increasing e-commerce and retailer buy-in platforms.
Emerging countries such as China, India, and Japan are significantly contributing to the regional market growth. According to the report published by international telecommunication union (ITU), China and India were ranked top amongst the global internet users with more than 854.1 million and 560.1 million users respectively in the year 2020.
Increasing initiatives by government state bodies on digital integration through information communication technologies (ICT) is expected to propel the market growth in the region. For instance, the Indian government has spent over USD 600 million on the advancement of 100 smart city projects, where IoT plays an important role in the modification of those cities to transform them into ‘smart-cities’.
The market in North America is expected to account a considerable revenue share owing to the increasing user expenditure on smartphone devices along with the acceptance of digitalized technologies. Moreover, the deployment of 5G services in the countries such as the US and Canada is propelling the regional market growth.
The global telecom services market has been segmented based on
- Fixed Internet Access Services
- Fixed Voice Services
- Machine-to-Machine (Mobile IoT) Services
- Mobile Data Services
- Mobile Voice Services
- Pay-Tv Services
- Travel & Hospitality
- Transportation & Logistics
- Energy and utilities
- Government & Defense
- IT & Telecom
- Media & Entertainment
- O&G and Mining
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- AT&T Inc.
- Bharati Airtel Limited
- BT Group plc
- China Mobile Ltd.
- China Telecom Corp Ltd.
- Comcast Corporation
- Deutsche Telekom AG
- KDDI Corporation
- KT Corporation
- Nippon Telegraph and Telephone Corporation (NTT)
- Orange SA
- Reliance Jio Infocomm Limited
- SoftBank Group Corp.
- Telefonica SA
- Verizon Communications Inc.
- Vodafone Group
Some major players of the global telecom services market include AT&T Inc., Bharati Airtel Limited, BT Group plc, China Mobile Ltd., China Telecom Corp Ltd., Comcast Corporation, Deutsche Telekom AG, KDDI Corporation, KT Corporation, Nippon Telegraph and Telephone Corporation (NTT), Orange SA, Reliance Jio Infocomm Limited, SoftBank Group Corp., Telefonica SA, Verizon Communications Inc., and Vodafone Group.
These market players are concentrating on the strategies such as mergers and acquisitions in order to enhance their product portfolio and market share. Moreover, government are undertaking initiatives to build 5G infrastructure. For instance, in December 2020, the Ireland Commission for Communications Regulation (ComReg) has announced an additional radio spectrum in the range of 700 megahertz to 2.6 gigahertz bands to allow the mobile network operators to offer their customers access to the 3G and 4G technologies.
Additionally, the Federal Communications Commission (FCC) has assigned an extra spectrum to the communication network service suppliers guaranteeing continuity of broadband in the US.
In April 2020, T-Mobile US purchased Sprint Corporation, a US.-based telecommunication company. This strategy was implied in the account to develop 5G network infrastructure in the US and acquire maximum market share in rural as well as in the urban areas.
In February 2021, AT&T Incorporation and Verizon Communications together spent approximately USD 70.1 billion on the 5G spectrum to offer an enhanced network connectivity to their clients.