Telecommunication Market Size & Share, by Component (Hardware, Software Platform, Services); Service Type; Transmission; Enterprise Size; Industry - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 6258
  • Published Date: Jun 27, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Telecommunication Market size was over USD 1805.6 Billion in 2023 and is set to cross USD 3995.3 Billion by the end of 2036, growing at more than 6.3% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of telecommunication is assessed at USD 1919.3 Billion.

The telecommunication market is driven by rising spending on the development of 5G-based technologies by communication service providers (CSPs). Customers' shifting preferences for smartphone devices have triggered a new phase of growth in end-to-end 5G, edge cloud infrastructure, and private networks. As per the Cellular Telephone Industries Association (CITA), wireless providers in the U.S. invested USD 39.0 billion in 2022, which is a record high spending on 5G since 2018.


Telecommunication Market Overview
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Telecommunication Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing popularity of internet buying - The e-commerce platforms such as Alibaba, Amazon, and eBay, have been the direct beneficiaries of internet-induced demand shifts among consumers. Furthermore, the establishment of fulfillment centers has adversely affected the local retailers.

    For instance, as per a 2022 National Bureau of Economic Research study, the sales in a traditional brick-and-mortar retail store fall by 4.0% every year after a local fulfillment center opens up. The growing penetration of e-commerce platforms is aiding to the growth of Internet Telephony Systems (ITSs).
  • Development in 6G infrastructure - The need for 6G networks has grown as a result of the development of new applications such as extended reality and distributed sensing, among others. Furthermore, the growing number of smart city initiatives and the need for driverless cars necessitate dependable network access, which the 6G rollout can enable.

    By 2026, smart cities are predicted to produce a significant economic boost of about USD 20 trillion. Therefore, it is anticipated that the market players in the telecommunication market will have plenty of growth prospects in the future due to the quick advancements in 6G technology.
  • The COVID-19 pandemic's ongoing contactless diagnosis is driving more demand for telemedicine services - The COVID-19 pandemic's effects have accelerated the global market's expansion. The affected patients were needed to exercise social distancing which eventually mandated remote diagnostics. Telemedicine technology has emerged as a result of these considerations, lowering the risk of acquired infections through physical contact.

    The use of voice and video conferencing has revolutionized healthcare services and made them more readily available in an emergency. According to the 2024 National Electronic Health Records Survey, the telemedicine adoption rate increased from 5.4% in 2019 to 86.5% in 2021. The onset of the pandemic provided an impetus to telemedicine in remote healthcare, thereby driving market growth.

Challenges

  • High cost - The telecommunication market growth is hindered by the high installation and resource training costs. Significant investment is required in order to train people and build infrastructure. Additionally, the cost of the raw materials used by the telecom sector has grown significantly over time, increasing the need for high capital. This in turn limits the market's ability to grow.
  • Licensing concerns - There are a number of technologies for which the government does not provide licenses due to their negative environmental effects.  For example; authorities of several nations have strict regulations for licensing high-power radio frequency transmitters because they can interfere with wildlife navigation and also have other environmental impacts.

    Further, there is significant amount charged as license fee. For instance; in India, telecom operators are required to pay the Department of Telecom (DoT) license fees and spectrum usage costs, which amount to roughly 3-5% and 8% of the Adjusted Gross Revenue (AGR), respectively.  Under the new policy, telecom operators are required to pay a one-time entry fee as well as a variable license cost that is based on a percentage of their annual gross revenue (or "AGR"). Overall, non-licensing difficulties also partially impede market expansion.

Telecommunication Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

6.3%

Base Year Market Size (2023)

USD 1805.6 billion

Forecast Year Market Size (2036)

USD 3995.3 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Brazil, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, South Korea, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Telecommunication Segmentation

Service Type (Fixed Voice Services, Fixed Internet Access Services, Mobile Voice Services, Mobile Data Services, Pay-TV Services, Machine-to-Machine Services)

Mobile data services segment is expected to capture around 35% telecommunication market share by the end of 2036. This is explained by the fact that customers' use of cellphones is increasing dramatically. Over the course of the projection period, the segment growth is anticipated to be further supported by the rapidly increasing demand for high-speed broadband services for both business and household applications. Furthermore, it is predicted that a huge demand for online 4K UHD video access and cloud gaming will propel the expansion of the data services industry.

The proliferation of Internet of Things (IoT) devices has increased due to their expansion in several industrial verticals, such as manufacturing, healthcare, energy and utilities, and the public sector. The growing number of IoT devices require high-speed data connectivity to operate and exchange messages within networks. In 2011, there were more Internet-connected devices (12.5 billion) than there were people on the planet (7 billion). By 2020, there were likely between 26 and 50 billion Internet-connected gadgets worldwide.

Transmission (Wireline, Wireless)

By 2036, wireless segment is projected to dominate over 70% telecommunication market share. The development of artificial intelligence, the IoT, and cloud computing is expected to have a significant impact on the expansion of wireless communication networks globally. Wireless Local Area Networks (WLANs) installations have facilitated cellular internet connection for users in offices, public buildings, private homes, airports, cafeterias, and other locations. Furthermore, a developing 5G wave is expected to separate wireless and wireline networks and combine all communication modalities into a single end-to-end system in public, residential, and commercial areas. In addition to the 5G wireless infrastructure, the wireline infrastructure is essential for improving network performance and providing higher-quality mobile user experiences. A third of the world's population is expected to use  5G networks by 2025.

Our in-depth analysis of the global market includes the following segments:

            Component

  • Hardware
  • Software Platform
  • Services

            Service Type

  • Fixed Voice Services
  • Fixed Internet Access Services
  • Mobile Voice Services
  • Mobile Data Services
  • Pay-TV Services
  • Machine-to-Machine Services

            Transmission

  • Wireline
  • Wireless

            Enterprise Size

  •  Small & Medium Enterprises
  • Large Enterprise

              Industry

  • Retail & E-commerce
  • IT & ITES
  • Aerospace
  • Healthcare & Pharmaceutical
  • Media & Entertainment
  • Hospitality
  • Automotive & Manufacturing
  • Transportation & Logistics

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Telecommunication Industry - Regional Synopsis

APAC Market Statistics

Asia Pacific in telecommunication market is likely to dominate over 33% revenue share by 2036. The widespread use of smartphones, investments in 5G technology, and e-commerce and merchant buy-in platforms are the main factors driving the regional market. Indian e-commerce was valued at USD 46.2 billion in 2020 and is projected to increase to USD 136.47 billion by 2026 at an 18.29% annual growth rate.

China's internet penetration rate is rising, which is thought to be fueling market expansion. in China would have 1.02 billion internet users, more than three times as many as the United States, which came in third place with slightly over 307 million users.

As evidence of the expanding trend of smartphone use, Japan has a high internet penetration rate and a sizable community of mobile internet users. In Japan, there were 102.5 million internet users as of the start of 2023, or 82.9 percent of the total population. Japan has 92.00 million social media users as of January 2023, which represents 74.4 percent of the nation's total population.

Growing government initiatives on information and communication technology (ICT)-enabled digital integration are expected to drive the expansion of the South Korean telecom services market. The ICT industry produced KRW 560 trillion in total in 2022, an increase of 5.1% over the previous year.

North America Market Analysis

The North America region will also encounter huge growth for the telecommunication market during the forecast period. The market is expected to witness expansion due to the growth in the early adoption of digital technology and increasing consumer expenditure on mobile phones. The number of mobile cellular subscriptions per 100 people in the United States increased from 107.3 in 2021 to 110.2 in 2022.

In the United States, the telecom industry is driven by scientific inventions and the emergence of cloud computing technology. 96% of businesses use one or more public clouds. Half of the workloads of businesses are hosted on public clouds. Also, US continues to invest significantly in the telecommunication industry. For instance; in line with President Biden's Investing in America initiative, the National Telecommunications and Information Administration (NTIA) of the Department of Commerce has announced plans to invest USD 930,021,354.34 to build middle mile high-speed Internet infrastructure throughout 35 states and Puerto Rico.

Research Nester
Telecommunication Market Share
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Companies Dominating the Telecommunication Landscape

top-features-companies

    Prominent industry participants are deliberately concentrating on mergers and acquisitions as a means of broadening their geographic reach and assortment of products. Important market participants are also spending a lot of money to buy the spectrum required to provide next-generation services. The market participants would be able to bolster their entire portfolios and increase the number of subscribers they had across national borders if they had access to sufficient spectrum.

    • Comcast
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • AT&T Intellectual Property
    • China Telecom Corporation Limited
    • Telefonica S.A.
    • Vodafone Group Plc.
    • KT Corp.
    • Airtel India
    • Reliance Jio Infocomm Ltd.
    • Deutsche Telekom AG
    • Verizon

In the News

  • AT&T introduced a new service to weed out spam calls. In conjunction with this introduction, the firm declared that customers would receive direct access to all brand details, facilitating the process of determining whether a call is spam or legitimate.
  • Verizon introduced a new solution that allows it to manage several cloud environments. Network as a Service (NaaS) Cloud Management is the name of this new service. Better visibility into network conditions and process management performance across multi-cloud settings will be made possible by this solution.

Author Credits:  Abhishek Verma


  • Report ID: 6258
  • Published Date: Jun 27, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2023, the industry size of telecommunication was over USD 1805.6 billion.

The market size for telecommunication is projected to cross USD 3995.3 billion by the end of 2036 expanding at a CAGR of 6.3% during the forecast period i.e., between 2024-2036.

The major players in the market are AT&T Intellectual Property, China Telecom Corporation Limited, Telefonica S.A., Vodafone Group Plc., KT Corp., Airtel India, Reliance Jio Infocomm Ltd., Deutsche Telekom AG, Verizon, and others.

The mobile data services segment is anticipated to garner a share of 35% during 2024-2036.

The Asia Pacific telecommunication sector is poised to hold 33% share by the end of 2036.
Telecommunication Market Report Scope
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