Telecom Services Market: Asia Pacific Is Expected To Witness Significant Growth From 2021 To 2028
Telecom Services Industry Overview
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 Segmentation
Grand View Research has segmented the global telecom services market on the basis of service type, transmission, end-use, and region:
Based on the Type Insights, the market is segmented 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 mobile data services segment held the largest share of nearly 33.0% and is expected to exhibit a significant CAGR from 2021 to 2028. This is attributed to the significantly growing usage of smartphones among consumers.
- The evolution of the Internet of things (IoT) devices has raised its proliferation across several industry verticals, including healthcare, manufacturing, energy and utilities, and the public sector, among others. The number of IoT-connected devices is expected to exceed 50 billion by 2028.
Based on the Transmission Insights, the market is segmented into Wireline, and Wireless.
- The wireless segment accounted for the largest share of over 75.0% and is expected to exhibit a significant CAGR from 2021 to 2028. The advent of cloud-computing technologies, artificial intelligence, and IoT is presumed to majorly contribute to the growth of wireless communication channels worldwide.
- Wireline communication involves the transfer of information via twisted pair, coaxial, and optical fiber cables. The wireless method transmits information Over-The-Air (OTA) using transmitters, receivers, and Radio Frequency (RF) waves.
Based on the End-use Insights, the market is segmented into Consumer/Residential, and Business.
- The consumer/residential segment accounted for the largest revenue share of more than 60.0% and is projected to maintain its lead over the forecast period. The significant growth is ascribed to the proliferation of smartphones worldwide. There were more than 8 billion mobile subscribers recorded globally in 2020, wherein more than 60% of the population was using smartphones.
- The demand for telecom services is increasing in business applications with the deployment of next-generation high-speed networks. Businesses are installing 5G small cell networks and private LTE and 5G networks to access faster data bandwidth in order to avoid latency in their network.
Telecom Services Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
Key market players are strategically focused on mergers and acquisitions in order to expand their geographical presence and overall product portfolios. For instance, in April 2020, T-Mobile US, Inc. acquired Sprint Corporation, a U.S.-based telecommunication company. The strategic merger was aimed to build robust 5G network infrastructure in the U.S. and capture the maximum market in rural as well urban areas. The merger will make a proposed investment of nearly USD 40 billion into its business, network, and others over the next three years.
Moreover, key market players are investing a significant amount in acquiring the necessary spectrum for offering next-generation services. Having an adequate spectrum would allow the market players to strengthen their overall portfolios and expand their subscriber base across various countries. For instance, in Feb 2021, AT&T Inc. and Verizon Communications spent around USD 70 billion combinedly on the 5G spectrum to provide improved network connectivity to their customers. Additionally, several other telecom operators such as China Mobile Ltd., KT Corporation, BT Group plc (EE), and Vodafone Group plc are significantly investing to procure millimeter wave (mmWave) spectrum for delivering enhanced bandwidth connectivity for business and consumer applications. Some prominent players in the global telecom services market include:
- AT&T Inc.
- Verizon Communications Inc.
- Nippon Telegraph and Telephone Corporation (NTT)
- China Mobile Ltd.
- Deutsche Telekom AG
- SoftBank Group Corp.
- China Telecom Corp Ltd.
- Telefonica SA
- Vodafone Group
- KT Corporation
- Bharati Airtel Limited
- Reliance Jio Infocomm Limited
- KDDI Corporation
- Orange SA
- BT Group plc
- Comcast Corporation
Order a free sample PDF of the Telecom Services Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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