Telecom Services Market Growth & Trends
The global telecom services market size is expected to reach USD 2.47 trillion by 2028, according to a new study by Grand View Research, Inc. It is expected to expand at a CAGR of 5.4% from 2021 to 2028. Increased spending on next-generation wireless communication infrastructures due to the shift in customer preferences toward the 5G network and cloud-based technology is primarily driving the demand for telecom services. Furthermore, soaring demand for high-speed data connectivity, the rapid spread of digitalization worldwide, and the explosion of consumer-generated multimedia content via Over-The-Top (OTT) applications are some of the other key factors that are expected to significantly contribute to the industry growth.
With the plurality of telecom services, networks, and providers, the sector has emerged as one of the acute components essential for global socio-economic development. The rapid adoption of smartphone devices is another dynamic that has majorly contributed to the growth of the global telecom industry and has manifested in the businesses of telecom companies. The migration of cellular devices from feature phones to 5G-enabled smartphones has generated a massive demand for high bandwidth connectivity, improved voice services, and other value-added services, thereby fueling the market growth over the forecast period.
Network Functions Virtualization (NFV) and Software-Defined Networking (SDN) are the telecom network architectures that provide wider and improved connectivity at reduced infrastructure costs. These architectures based on network abstraction processes are envisioned to transform the global communication industry over the coming years. While NFV allows network slicing to offer customized solutions to varied industries, SDN enables the communication service providers to work in partnership with a broader ecosystem. These services are anticipated to offer efficient network connectivity and support the new era of 5G networks.
The outbreak of COVID-19 has compelled governments worldwide to announce national lockdowns in the initial days. The in-home isolation of the worldwide population has given a pathway to digital entertainment platforms. The growing demand for video streaming services on applications, such as Netflix, YouTube, and Amazon, has raised the usage of data services. Additionally, the shutdown of several businesses across the globe, coupled with a significant impact on the global economy, has hampered the overall market growth in 2020. However, with the significant investments made by federal governments across key countries, such as the U.S., China, India, the U.K., and Germany, to bring their economies’ growth on track, the market is expected to witness considerable growth from 2021 to 2028.
Telecom Services Market Report Highlights
- By service type, in 2020, the mobile data services segment accounted for the largest share of nearly 33.0% owing to the rapidly growing usage of data services for multiple applications, such as smartphones, OTT, cloud augmented reality (AR) & virtual reality (VR) gaming, smart cities, and UHD video access
- Based on transmission, the wireless segment is anticipated to expand at the fastest CAGR from 2021 to 2028. The significant growth is attributed to the augmenting demand for mobile services among consumers and businesses
- In 2020, Asia Pacific accounted for the largest revenue share of over 32.0% and is anticipated to maintain its lead over the forecast period. This is mainly on the account of the rapidly growing population, rising internet penetration rate, and significant adoption of smartphones
- Several prominent players across the globe are aggressively investing in deploying next-generation 5G network infrastructure in order to capture a significant customer base and increase their overall sales and profitability