Global Telecom Services Market Grows Steadily at a CAGR of 5.5%

Telecommunications services, which have proven to be very beneficial for businesses, enable communication with customers and develop strong relationships with them effectively. The global telecom services market has constantly been changing due to the adoption and integration of cutting-edge communication technologies like 5G, IoT, NB-IoT, and many others. In addition, telecommunication makes it possible to send various types of data, such as speech, text, audio, and video, anywhere in the world at any time using a wired or wireless channel. Market Dynamics Rising Global Adoption of Digital Technology Drives the Global Market Due to the enormous amount of content, numerous viewing options, and competitive pricing that OTT content providers offer, the demand for OTT services has significantly increased globally. The frequency and consistency of content updates on OTT platforms like Netflix, Amazon Prime, Hulu, and HBO GO are becoming increasingly popular with consumers. These OTT players now have more power thanks to technical developments like smartphones, open-source platforms, blazing-fast IP networks, creative services, and consumer preferences shifting toward their "freemium-based" business models. As a result, their adoption rates are rising at an ever-increasing rate. Expansion of the Internet of Things (IoT) Creates Tremendous Opportunities The growth of the Internet of Things has been fueled by the adoption of cutting-edge computing tools, widespread internet connectivity, and sensor technology (IoT) advancements. While advances in computing power enable the creation of compact, reasonably priced devices, the development of sensor technology facilitates the integration of sensors with machines and electronic devices. The internet's accessibility allows these sensors and devices to connect, creating a technological ecosystem. Several industries, including smart cities, smart infrastructure, intelligent transportation, and industrial IoT, are expected to experience faster growth in the coming years. Regional Analysis Asia-Pacific is the most significant global telecom services market shareholder and is expected to grow at a CAGR of 6.3% during the forecast period. The platforms used by e-commerce and retailers, the widespread use of smartphones, and sizable investments in developing 5G network infrastructure primarily drive the regional market. China, Japan, and India are three significant contributors to regional market growth. According to the International Telecommunication Union statistics (ITU), China and India had more than 854 million and 560 million users, respectively, among the nations with the most internet users globally in 2020. North America is expected to grow at a CAGR of 5.6%, generating USD 1,123.96 million during the forecast period. Factors expected to contribute to the growth of the North American market include a high broadband penetration rate, significant adoption of cutting-edge technology across enterprise businesses, and significant spending on defense technologies. The 5G network infrastructure development is also receiving aggressive investment from several well-known telecom firms, including AT&T, Verizon Communications, and T-Mobile U.S. Inc. As a result, the global telecom services market is anticipated to grow significantly in the North American region during the forecast period. Key Highlights The global telecom services market was valued at USD 1,707.96 billion in 2021. It is expected to reach USD 2,765.34 billion by 2030, growing at a CAGR of 5.5% during the forecast period (2022–2030). Based on service, the global telecom services market is bifurcated into essential communication services and value-added services (VAS). The value-added services (VAS) segment is the highest contributor to the market and is expected to grow at a CAGR of 6.2% during the forecast period. Based on the offering, the global telecom services market is bifurcated into fixed voice services, fixed internet access services, mobile voice services, mobile data services, pay TV services, and machine-to-machine (mobile IoT) services. The fixed internet access services segment owns the highest market share and is expected to grow at a CAGR of 4.7% during the forecast period. Based on the transmission, the global telecom services market is bifurcated into wireline and wireless. The wireless segment is the highest contributor to the market and is expected to grow at a CAGR of 6.2% during the forecast period. Based on end-user, the global telecom services market is bifurcated into consumer/residential and business. The consumer/residential segment owns the highest market share and is expected to grow at a CAGR of 5.2% during the forecast period. Asia-Pacific is the most significant global telecom services market shareholder and is expected to grow at a CAGR of 6.3% during the forecast period. Competitive Players The global telecom services market’s major key players are AT&T Inc., China Mobile Limited, China Telecom Global Limited, Deutsche Telekom AG, KDDI Corporation, Nippon Telegraph and Telephone Corporation, Orange S.A., SoftBank Corp., Telefonica, S.A, Verizon Communications, Inc., and Vodafone Group Plc. Market News In July 2022, Deutsche Telekom, Digital Bridge, and Brookfield formed a joint venture for the management of GD Towers in Germany and Austria. In October 2022, To counter the threat of increasingly sophisticated cyber-attacks against vehicles, NTT Communications Corporation (NTT Com), the ICT solutions and international communications business within the NTT Group, and DENSO CORPORATION (DENSO), the global manufacturer of mobility components offering advanced mobility technologies, systems, and products, announced that they would jointly develop the Security Operation Center for Vehicles (VSOC1). Global Telecom Services Market: Segmentation By Service Basic Communication Services Value-Added Services (VAS) By Offering Fixed Voice Services Fixed Internet Access Services Mobile Voice Services Mobile Data Services Pay TV Services Machine-to-Machine (Mobile IoT) Services) By Transmission Wireline Wireless By End-User Consumer/Residential Business By Regions North America Europe Asia-Pacific Latin America The Middle East and Africa