Telecom Services Market: Challenges and Opportunities

The global telecom services market size was valued at USD 1.74 trillion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.0% from 2020 to 2027.

The global Telecom Services Market size is expected to reach USD 2.53 trillion by 2027, expand at a CAGR of 5.0% from 2020 to 2027, according to a new report by Grand View Research, Inc. Increased spending on wireless communication infrastructures due to the shift in customer preferences towards cellular networks and cloud-based technology is primarily driving the demand for telecom services. Furthermore, soaring demand for high-speed data connectivity, rapid spread of digitalization worldwide, and explosion of consumer-generated multimedia content via Over-The-Top (OTT) applications are some of the other key factors that are expected to contribute significantly 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 smartphone revolution is another dynamic that has majorly contributed to the growth of the global telecom industry and has manifested the businesses of telecom companies. Migration of cellular devices from feature phones to technologically advanced smartphones has allowed mobile voice, along with data streaming, thereby increasing the demand for high connectivity.

Network Functions Virtualization (NFV) and Software-Defined Networking (SDN) are the telecom network architectures that provide wider connectivity and higher data speeds. These architectures based on network abstraction process are envisioned to transform the global communication network infrastructure over the coming years. While NFV allows network slicing to offer customized solutions to varied industries, SDN allows 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. The in-home isolation of the worldwide population for an extended as well as unanticipated period has given a pathway to the digital entertainment platforms. Video streaming on applications such as Netflix, YouTube, and Amazon as well as apps used for video calling, such as WhatsApp, Skype, and Google Duo, with the help of web services methods are gaining prominence and have been a savior for people locked in their homes for a month or more. Soaring utilization of these platforms owing to intensified social isolation amidst the work-from-home and social distancing measures is anticipated to provide numerous revenue-generating opportunities for the key market participants.

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Telecom Services Market Report Highlights:

• In 2019, the value-added service type segment accounted for over 75.0% share of the total revenue
• By transmission, the wireless segment is anticipated to expand at the fastest CAGR of 7.3% from 2020 to 2027
• In 2019, Asia Pacific accounted for the largest revenue share of over 40.0% and the region is anticipated to maintain its lead over the forecast period
• By application, in commercial solutions, the unified communication and collaboration segment is anticipated to witness significant growth over the forecast period owing to its rising demand as a one platform solution provider for businesses
• Some of the key global players of this market are Verizon; AT&T, Inc.; China Mobile Limited; Nippon Telegraph and Telephone Corporation; and SoftBank Corp.