Telecom Services Market Size, Share & Trends Analysis Report By Service (Mobile Data Services, Fixed Internet Access Services, Mobile Voice Services, Fixed Voice Services, Pay-TV Services, Mobile Messaging), 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 Enterprise Size (Small & Medium Enterprises, Large Enterprises), By End-User (Consumer/Residential, Business) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global telecom services market size was valued at USD 1927.07 billion in 2023. It is expected to reach USD 2890.84 billion by 2032, growing at a CAGR of 5.2% during the forecast period (2024–2032).

The ability to communicate effectively with customers and build strong relationships with them is made possible by telecommunications services, which have proven to be very advantageous for businesses. Telecommunications services also benefit employees because they simplify data transmission, boost productivity, and offer flexibility. 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. Telecommunication is an infrastructure that enables the transfer of different types of data, including speech, text, audio, and video, anytime and anywhere in the world via a wired or wireless channel.

Market Dynamics

Market Drivers

Rising Global Adoption of Digital Technology

Globally, digitalization is a major factor in expanding telecom services. Industries are undergoing a significant change in how they operate and provide services due to the expanding technological developments and improvements in the telecommunications network. The lives of end-users or people, in general, have significantly improved due to these developments. Additionally, telecom industry participants' investments in technology and interoperability have considerably changed how money and information move throughout the global economy. Further, access to a globally connected network has significantly boosted people's sense of empowerment by giving them access to social programs, real-time information, and markets that impact their quality of life.

The telecommunications sector serves as the center of digital transformation, supported by three technologies: Artificial Intelligence (AI), robotics, and virtual and augmented reality (AR/VR). Telecom service providers must deliver sufficient bandwidth, speed, and coverage infrastructure to facilitate cutting-edge real-time applications and complete digitalization. The augmented digital revolution of consumers' lives and businesses presents the telecom services industry with significant opportunities to outspread revenue streams outside connectivity through enterprise and digital consumer services, integrated IoT solutions, and digital communication representations that influence augmented reality developments.

Increasing Demand for OTT Content

The demand for OTT services has significantly increased worldwide due to the availability of a vast amount of content, a variety of viewing options, and affordable pricing provided by OTT content providers. Consumers are increasingly adopting frequent and ongoing additions to the content available on OTT platforms like Netflix, Amazon Prime, Hulu, and HBO GO. Since the OTT players do not have any business or technological ties to network operators to deliver these services, they are frequently referred to as "Over-the-Top" applications. Technology advancements like smartphones, open-source platforms, high-speed IP networks, innovative services, and a change in consumer preferences toward their "freemium-based" business models have given these OTT players more power, and their adoption rates are increasing at an ever-increasing rate.

Market Restraints

Rising Security Issues

Large IoT applications like traffic sensors, vehicle-to-vehicle (V2V), and vehicle-to-everything (V2X) communication services will benefit from telecom operators' investments in deploying 5G networks. Additionally, 5G networks would encourage the use of an enormous number of connected devices and lead to an exponential rise in bandwidth. Since Wi-Fi, 4G, 3G, and 2G are just a few of the access networks that the 5G network supports, it may inherit all those access networks' security issues. If the network infrastructure is strong enough to support the security features, 5G services can be strengthened with security measures. The security problem is persistent threats' detection, interception, and intrusion. The challenge for telecom service providers will be to meet rising customer demand for active protection throughout the entire internet value chain.

Market Opportunities

Transforming the Network Infrastructure for 5G

Beyond LTE networks, 5G has become a significant source of business opportunities. The fifth-generation mobile wireless standard, 5G, is based on the IEEE 802.11ac standard for broadband technology. It has multiple Massive Multiple Input Multiple Output (MIMO) antennas, ranging from 64 to 256, and performance expectations that are ten times better than those of LTE networks. Compared to current mobile systems, 5G networks operate at much higher radio frequency ranges and transmit data in larger chunks over shorter distances. Small cells are combined to form 5G networks, then transmitted via fiber optic cables, microwaves, and satellite-based technologies. These networks are capable of transferring data over wired and wireless communication channels.

Expansion of the Internet of Things (IoT)

IoT has the potential to transform current business requirements and increase efficiency across industries. The adoption of cutting-edge computing tools, widespread internet connectivity, and sensor technology improvements have fueled the Internet of Things (IoT) expansion. The development of sensor technology enables the integration of sensors with machines and electronic devices, while improvements in computing power allow the creation of small, affordable devices. The accessibility of the internet enables the connection of these sensors and devices via the internet, resulting in an ecosystem of related technology. ICT developers and stakeholders across the telecom industry are given new business opportunities due to the sheer volume of devices, modules, and sensors used in IoT technology. It is anticipated that growth will accelerate in several areas, including smart cities, smart infrastructure, intelligent transportation, and industrial IoT.

Regional Analysis

By region, the global telecom services market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

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. By 2028, the region will probably attract more than half of all new mobile subscribers. The regional market is primarily driven by the platforms used by e-commerce and retailers, the widespread use of smartphones, and significant investments in the construction of 5G network infrastructure. Significant regional market growth contributors include China, Japan, and India. China and India were among the countries with the most internet users worldwide in 2020, with more than 854 million and 560 million users, respectively, according to the International Telecommunication Union (ITU) statistics.

North America is expected to grow at a CAGR of 5.6% during the forecast period. Additionally, North America will account for a sizeable portion of global revenue in 2021 due to high consumer spending on mobile devices and early uptake of digital technologies. The growth of the North American market is anticipated to be fueled by additional factors, including a high broadband penetration rate, significant adoption of cutting-edge technologies across enterprise businesses, and considerable spending on defense technologies, among others. Several well-known telecom companies, including AT&T, Verizon Communications, and T-Mobile U.S. Inc., are investing aggressively in deploying 5G network infrastructure for commercial and consumer use cases. As a result, the global telecom services market is anticipated to grow significantly in the North American region during the forecast period.

Segmental Analysis

The global telecom services market is segmented by service, offering, transmission, and end-user.

Based on service, the global 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. The high growth is attributed to the soaring demand for online gaming and Over the Top (OTT) content, the rising demand for high-speed data services among smartphone users, and the quickly increasing broadband penetration rate. Due to the changing Industrial IoT (IIoT) device trends and rapidly expanding global smart cities, a more robust network connection is required. It is therefore expected to support segment growth overall over the forecast period.

Based on the offering, the global 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. The term "fixed wireless networking" describes using wireless devices in stationary environments, such as private residences or commercial establishments. Unlike mobile wireless devices, which typically rely on battery power, fixed wireless devices get their juice straight from the wall socket. A fixed wireless internet connection range is typically around 10 miles, with the receiver needing to be within that range to function.

Based on the transmission, the global 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. The emergence of cloud computing, AI, and IoT is expected to significantly contribute to expanding wireless communication channels globally. Systems for Wireless Local Area Networks (WLANs) have been rapidly deployed over the years, enabling cellular devices in private homes, public areas, airports, office buildings, cafeterias, malls, and other places to access the internet. Such wireless densification is anticipated to prove beneficial, registering robust growth over the years as work processes are streamlined, and routine test actions are automated.

Twisted pair, coaxial, and optical fiber cables are the primary means of information transfer in wireline communication. The increase in SMEs and MNCs in nations like the United Kingdom, the United States, and China—which extensively use the Public Switched Telephone Networks (PSTN) and Integrated Services Digital Networks—is responsible for the moderate growth of the wireline segment (ISDN). Additionally, the demand for the Fiber to the Home (FTTH) network is skyrocketing for residential applications due to the quick adoption of fiber networks worldwide. This is anticipated to boost the growth of the wireline segment over the forecast period.

Based on end-user, the global 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. The widespread use of smartphones is responsible for the sizeable growth. A significant contribution to the consumer/residential segment growth is anticipated over the next seven years due to the growing demand for users to subscribe to wireless internet offerings to access OTT content from various applications like Netflix, Amazon Prime, HBO, Hulu, YouTube, and others. Additionally, the consumer/residential segment is anticipated to grow due to the rising trends for accessing ultra-high-definition (UHD) videos and online gaming.

The deployment of next-generation high-speed networks is increasing the demand for telecom services in business applications. Businesses are setting up private LTE and 5G networks and 5G small cells to access faster data bandwidth and reduce network latency. Businesses could quickly meet client demands thanks to the improved bandwidth connectivity, which would also enhance the client experience. Some key business application areas include VoIP services, fixed and mobile data connectivity, unified communication, and other services. In order to handle a sizable portion of customers' datasets, it would be necessary for businesses all over the world to have unified and quick network connectivity.

Impact of covid-19

Recent Developments

• July 2022- Deutsche Telekom, Digital Bridge, and Brookfield formed a joint venture for the management of GD Towers in Germany and Austria.
• 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).