The global telecom operations management market size was valued at USD 52.36 billion in 2021. It is projected to reach USD 95.94 billion by 2030, growing at a CAGR of 6.96% during the forecast period (2022-2030). The process of managing telecom services to maintain optimum availability and minimal service interruptions is known as telecom operations. The telecom operations process includes network inventory management, provisioning issues, network availability, and fault management. The market for telecom operations management has expanded during the past ten years due to various technological advancements. New technologies are also being developed, including Over-the-Top (OTT), Business Support Systems (BSS), and Service Delivery Platforms (SDP), all of which are expected to increase this industry's revenue significantly.
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Increasing Operational Costs and Complexity
Telecom operations ensure services are managed to cause as little downtime and availability as possible. Managing tasks, including provisioning difficulties, network inventory management, fault management, and network availability, is part of the telecom operations process. These activities are pretty complex and have high operational costs. The constantly evolving and erratic nature of the telecom industry has led to an increase in operational complexity. As a result, these operations now have higher operational costs, which reduces their profitability. The telecom companies pay a variety of operational costs, such as rent and electricity costs for office space as well as space for Base Transceiver Station (BTS) installation, marketing, and advertising expenses, support contracts for all purchased hardware, expenses for dealing with foreign ISPs, infra rental from other operators/service providers, etc. The expense associated with such operations has steadily increased over the last few years.
Shortage of Efficient System Integrators
While rising operating expenses and complexity are anticipated to fuel market expansion, a lack of experienced system integrators can stifle market expansion throughout the projected period. Due to the rapid rate of growth and introduction of new technologies in the ICT sector, the telecom market is highly competitive. Telecom service providers are gradually implementing new technology to compete in today's dynamic economic environment. Telecom system integrators are essential for blending new technologies with the legacy infrastructure already in place. As the system integration procedure is costly and time-consuming, system integrators are required to ensure smooth network migration for telecom firms.
Significant Growth in Cloud Platforms
Telecom companies worldwide are embarking on transformational journeys focused on the cloud to promote new services, revenue opportunities, and experiences. Telecom operators can shorten the road by combining their cloud-native, open, and modular solutions with the fully managed, high-performing Cloud platform. To help telecom companies, cloud providers are focusing on a few essential areas. These include supporting telecommunications companies in monetizing 5G as a business services platform, enabling them to better operate efficiencies across core telecom systems and engage their consumers through data-driven experiences.
For Instance, Google and Amdocs announced their partnership to allow communications service providers access to Amdocs' market-leading portfolio on Google Cloud and offer cutting-edge data analytics, site reliability engineering, and 5G edge solutions to enterprise customers. Amdocs stated that Altice USA had gone live with Amdocs data and intelligence systems on Google Cloud as part of the collaborative go-to-market strategy between Amdocs and Google Cloud.
The global telecom operations management market is segmented by deployment and type.
Based on deployment, the global telecom operations management market is bifurcated into on-premise and cloud.
The cloud segment is the highest contributor to the market and is expected to grow at a CAGR of 9.01% during the forecast period. To promote new services, income prospects, and experiences, telecom firms worldwide are starting transformation journeys that center on the cloud. The telecom operators may hasten the process by fusing their cloud-native, open, and modular solutions with the fully managed, high-performing Cloud platform. Cloud service providers are concentrating on a few key geographic areas to help telecom firms. These include enabling telecommunications firms to better-operating efficiencies across core telecom systems, assisting them in monetizing 5G as a business services platform, and allowing them to engage their customers through data-driven experiences. Numerous previously available applications in telecom systems, such as Operations Support Systems (OSS), Business Support Systems (BSS), and network operations, will move to Google Cloud as part of the transformation.
On-premise solutions are deployed within a company's network and have fewer applications. Organizations with on-site, in-network, or typically favored by small and medium company activities prefer on-premise telecom operations management deployment. Many telecom carriers favor on-premises solutions since the infrastructure is already in place and can be utilized, saving money on infrastructure changes. The most common, conventional, and in-demand deployment option among operators is on-premises telecom revenue management solutions, also referred to as customer premises solutions. Additionally, businesses continue to innovate to improve the efficiency of their on-premise systems. It is projected that on-premise implementation will continue to be a popular option, particularly for small businesses. Compared to cloud-based solutions, on-premise systems are more flexible, configurable, and full of functionality. However, the user interface and experience can be antiquated.
Based on type, the global telecom operations management market is bifurcated into software and services.
The software segment owns the highest market share and is expected to grow at a CAGR of 7.63% during the forecast period. Network management software is a device used in telecommunications systems that makes it easier for users to monitor and maintain their networks. The achievement of an error-free network is the aim of network management. Currently, numerous network management or network monitoring technologies are used, which makes the entire procedure complex. Additionally, operators must optimize their operations to view the broader picture to stay current with trends. In the end, the operator must assess how preemptive steps will stop clients from leaving and looking for alternatives by implementing various simulation approaches that will help them get a glimpse into the future, which is now commonly employed in decision-making. The software manages the intricate configuration of product specifications and offers, which may be freely combined, packaged, or reused in various variants. This behavior definition is what directs the behavior of various other modules regarding where and how to sell, bill, and manage these products. For the telecom sector, a business like Cerillion offers customer management software called CRM plus. The complete omnichannel CRM solution Cerillion CRM Plus connects every phase of the customer relationship lifecycle for telecom services.
The managed services, operations and maintenance, planning and consulting, and system integration categories are included in the services category. The growth of the telecommunications sector is likely to be the primary driver of the solution and services throughout the projected period. It is anticipated that more advanced services will be implemented due to the expanding telecom industry. In addition to their solution offerings, several suppliers in the market also offer services. For instance, Comarch SA offers a wide range of professional services to complement its solution offerings. Business consultancy, end-to-end project delivery, business BSS/OSS transition management, and managed services are all available to telecom customers. The end-to-end BSS/OSS solutions offered by Net Cracker, a subsidiary of NEC, along with managed services, professional services, and implementation know-how, enable service providers to operationalize next-generation connectivity, maximize network and IT convergence, monetize content, and deliver an engaging customer experience. The company's objective is to be a leading supplier of comprehensive, end-to-end BSS/OSS solutions to satisfy the urgent requirements of service providers worldwide.
The global telecom operations management market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America Dominates the Global Market
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North America is the most significant shareholder in the global telecom operations management market and is expected to grow at a CAGR of 6.67% during the forecast period. The North American region dominates the global telecom operations management market, with the United States holding the most significant market share due to the region's dominance in internet penetration and technology adoption, which is projected to be a significant motivator for the adoption of network automation solutions. By 2023, 92% of the local population will be online, according to Cisco's Annual Internet Report (2018-2023). The demand for improved network services is rising due to the significant development in connected and mobile devices. As a result of North America's continued leadership in adopting new technologies, linked devices were most widely used in this region.
Additionally, as more people, devices, and applications depend on the network for crucial connectivity, the number of connected mobile devices is creating a broad spectrum of endpoints, raising the demand for dependable network architecture. The cloud-native Amdocs Service & Network Automation solution was unveiled by Amdocs, a provider of software and services to media and communications enterprises. For all lines of business (LOBs), including enterprise/B2B, mobile, consumer broadband, NFV, and 5G-based services, the solution seeks to enable all aspects of service design, inventory, and orchestration across physical, logical, and virtual elements.
Europe is expected to grow at a CAGR of 7.68%, generating USD 23.20 billion during the forecast period. Since many European nations are making considerable investments in their digital infrastructures, the region is acting as a significant driver and adopter of innovative and improved telecom services, which increases demand for the region's researched market. Additionally, the region's market is growing due to the migration to the cloud and workforce mobility that many firms have undertaken in response to cost and regulatory issues. The United Kingdom has one of the biggest telecom marketplaces in Europe. The market in the United Kingdom boasts some of the most cutting-edge infrastructure and equipment because there are many international brands there. Due to some of the largest telecom equipment firms, mobile and broadband penetration in the United Kingdom is far above the average in Europe. German telecom companies are also deploying 5G campus networks across various business sectors. Vodafone is creating 5G private networks for car manufacturing in the Mercedes-Benz "Factory 56" in Germany along with Mercedes-Benz and Ericsson.
Asia-Pacific is one of the key regions for the telecom operation management market because of its fast-expanding telecom sector and sizable customer base. The region is also significantly investing in 5G services. More capital is being invested in the telecom operations market due to the Chinese government's rising efforts, telecom operators and those vendors to install 5G as rapidly as possible. Some of the most significant 5G communication infrastructure manufacturers, like Huawei, are based in the nation. However, the US-China trade war has damaged exports in some electrical segments.
The region is also anticipated to increase due to investments made by small and medium-sized businesses. SMEs are investing to boost the telecom industry's adoption of cloud-based and cutting-edge technology solutions. Nations like China and India provide significant growth potential in the region. India is one of the countries digitizing the fastest in the world thanks to the rapid growth of mobile connectivity, the widespread deployment of internet infrastructure nationwide through the venerable BharatNet program, and the emergence of digital transformation start-ups that are giving millions of Indians new opportunities for employment, services, and wealth. Therefore, the primary factor influencing the telecom sector market in India is the adoption of digitization.
The development of 4G into 5G has been a significant driver of economic growth in Latin America, mainly as this cutting-edge technology is used to boost productivity in vital vertical industries. The GSMA predicted that by 2020 there would be 15 million 5G connections in Latin America, and that number would increase to 62 million by 2025. Additionally, within the next four years, 5G will make up less than 10% of all regional connections, with 4G accounting for 67% of all connections. Also, as per the GSMA survey, Latin American operators are boosting their investments in 5G networks. One of the critical resources for organizations in Latin America has been cloud services. Additionally, the cloud is becoming increasingly important in developing countries since it gives regional enterprises a distinct advantage. Cloud services help businesses save money while simultaneously advancing their technological capabilities.