Telecommunication Market Size, Share, and Trends 2024 to 2034

Telecommunication Market Size and Growth 2024 to 2034

The global telecommunication market size accounted for USD 2.32 trillion in 2024 and is predicted to reach around USD 4.21 trillion by 2034, growing at a CAGR of 6.15% from 2024 to 2034. The rising demand for smartphones globally is driving the growth of the telecommunication market.

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Telecommunication Market Key Takeaways

• Asia Pacific led the market with the largest share in 2023.
• By region, North America is observed to experience a notable rate of growth during the forecast period.
• By component, the hardware segment held a significant share of the market.
• By component, the services segment is expected to grow at a notable rate during the forecast period.
• By enterprise size, the large enterprise segment dominated the largest share of the market in 2023.
• By industry, the IT and ITES segment held the largest share of the market in 2023.

Market Overview

Telecommunication refers to the process of transmitting voice, images, data, and other information. It works on the principle of electrical or light-emitting medium. This is an extensive term that includes a wide range of information-transmission technologies such as cell phones, VoIP networks, landlines, and other broadcast networks. The telecommunication industry is growing continuously due to the advancement in emerging technologies such as IoT, NB-IoT, 5G, and others.

This sector plays an important role in socio-economic development as it allows people from different areas to connect with one another. The subscription models for availing telecommunication services are also monitored carefully to gain maximum customer satisfaction. The telecommunication market is also expected to develop to a great extent due to the integration of generative AI. Generative AI will offer proactive issue detection, improved customer experience, personalized recommendations, and cost cuttings through predictive maintenance, along with enhanced operational efficiency.

• For instance, in April 2024, AT&T launched Samsung Galaxy A35 5G in USA. This launch was aimed at providing several benefits such as high speed 5G data along with unlimited calls and text messages.
• Also, in March 2024, Vodafone launched a new data pack in India. This new data pack had several benefits, such as enjoying an uninterrupted cricket experience during the Indian Premier League (IPL).
• In May 2024, Amdocs, a leading software and service provider, collaborated with Nvidia. This collaboration was done for advancements in generative AI that would enhance efficiency in the telecommunication industry.

Telecommunication Market Growth Factors

• The rising rollout of 5G networks across the globe is driving the telecommunication market.
• The increasing number of mobile phone users around the world has also boosted the market growth.
• The booming advancements in IoT have impacted the market positively.
• A rise in government investments in the development of internet services will foster the growth of the market during the forecast period.
• Rising demand for internet services by the BFSI sector is likely to positively impact the market.
• The research and development activities related to delivering high-speed data drive the growth of the industry.
• The ongoing trend of social media platforms such as Facebook, Instagram, WhatsApp, and others that require good network connectivity is also expected to drive the market.

Telecommunication Market Scope

Market Dynamics

Drivers

Rising trend of online shopping

The changes in consumer preferences to buy goods from e-commerce brands such as Amazon, eBay, Alibaba, and others have grown rapidly in the present time. These companies provide products ranging from households to electronics according to the budget of the consumer. The rapid advancement in globalization has allowed people to buy and sell products to different areas of the world. Thus, the trend of online shopping has grown rapidly, which, in turn, drives the growth of the telecommunication market during the forecast period.

Growing adoption of IoT

The Internet of Things refers to the network of connected devices and the technology that facilitates communication among the cloud and smart devices as well as among the smart devices themselves. Various industries are implementing intelligent solutions to improve their traditional systems, which is made possible due to the adoption of IoT.

• For instance, in November 2023, IDEMIA, a global leader in identity technologies, joined hands with TEAL. This joint venture was done to deliver an operating system designed for IoT connectivity and GSMA-certified eSIM hardware.

Restraint

High investment and licensing issues

The telecom industry has developed rapidly in present times. However, this industry requires huge investment to develop its infrastructure and train the workers associated with it. Also, the price of raw materials required in the telecom industry has increased over time, which adds up to the overall investment. This, in turn, restrains the growth of the market. In addition, the government does not provide licenses for several technologies that come with adverse effects on the environment. Thus, non-licensing issues also restrain the market growth to a certain extent.

Opportunity

Advancements in 6G infrastructure

The development of new applications such as distributed sensing, extended reality and others has increased the demand for 6G networks. Also, the rising developments in smart city projects and increasing demand for autonomous vehicles require reliable network connectivity that can be made possible by the deployment of 6G. Thus, the rapid developments in 6G technology are expected to create ample growth opportunities for the market players in the future.

Component Insights

The hardware segment held a significant share the telecommunication market in. 2023. The hardware components include Modems, switches, network interface cards, coaxial Cable hubs, antennae, communication satellites, firewalls, and radios. Hardware components such as network switches, routers, base stations, antennas, and cables are essential for building and expanding telecommunications infrastructure. Telecom operators invest heavily in hardware to deploy and maintain communication networks, including wired, wireless, and fiber-optic systems. Telecom operators regularly invest in expanding and upgrading their network infrastructure to meet growing demand for voice, data, and video services. This includes deploying new hardware equipment, replacing outdated technologies, and increasing network capacity to support higher data speeds and traffic volumes.

The services segment is observed to grow at a notable rate during the forecast period. Telecom service providers offer a wide range of value-added services beyond basic connectivity. These include services such as cloud computing, managed services, unified communications, IoT connectivity, cybersecurity solutions, and digital entertainment services (like streaming video and music). These value-added services enhance the overall customer experience and contribute to revenue generation for telecom operators.

Enterprise size insights

The large enterprise segment led the telecommunication market in 2023. Large enterprises typically have complex communication needs due to their size, geographic spread, and diverse operations. They require robust and scalable telecommunications solutions to support internal communication, collaboration, and data exchange across multiple locations and business units. Large enterprises generate a high volume of communication traffic, including voice calls, data transmission, video conferencing, and messaging. They require telecommunications infrastructure capable of handling large volumes of traffic efficiently and reliably to ensure seamless communication and productivity.

Industry Vertical Insights

The IT and ITEs segment led the telecommunication market in 2023. Telecom operators are investing in network modernization initiatives to upgrade their infrastructure, expand coverage, and enhance connectivity. IT and ITES providers play a crucial role in supporting these initiatives by offering solutions for network planning, optimization, deployment, and management. Telecom operators often outsource non-core functions, such as IT infrastructure management, software development, customer support, and back-office operations, to specialized IT and ITES providers. Outsourcing allows telecom companies to focus on their core business activities while leveraging the expertise and resources of external partners.

The retail and e-commerce segment is observed to be the fastest-growing segment during the forecast period. This segment is generally driven by the growth of e-commerce sectors along with rising customer expectations for the purchase of goods online. Also, due to the advancements in the telecom sector, real-time inventory updates, customer support, and secure payment processing can be done to ensure a superior shopping experience for customers.

Regional Insights

The Asia-Pacific region dominated the market in 2023. The market growth is generally driven by the rising number of internet users and the trend of e-commerce platforms in this region. Also, technological advancements in countries such as India, China, and Japan are boosting the market growth. Additionally, the population growth in China and India has grown rapidly, increasing the number of mobile phone users and, in turn, fostering the growth of the telecommunication market. Moreover, the governments of China, India, and others are launching several initiatives to strengthen internet facilities to drive market growth further.

• For instance, in May 2024, the Government of China launched medium Earth orbit broadband satellites. This satellite was developed by CASC’s Shanghai Academy of Spaceflight Technology (SAST) for Shanghai Tsingshen Technology Development Co. Ltd. Tsingshen Tech for enhanced communications, navigation, and remote sensing. Furthermore, the presence of several telecommunication companies such as China Mobile Ltd., Reliance Jio Infocomm Ltd., China Unicom (Hong Kong) Ltd., China Telecom Corp Ltd., Bharti Airtel Ltd., Vodafone Idea Ltd, PT Telekomunikasi Selular and others also propels the market growth in this region.

North America is the fastest growing region during the forecast period. The growth of the market is generally driven by an increase in people's purchasing power along with the rollout of 5G technologies in this region. Also, the rise in cloud computing technologies and scientific advancements in the telecom sector drive market growth. Moreover, the presence of several companies, such as AT&T, Verizon, T-Mobile, US Cellular, and Comcas, which are engaged in developing and launching services, has also boosted the growth of the telecommunication market.

• For instance, in February 2024, Verizon collaborated with Vonage. This collaboration was aimed to provide 5G network access to API developers.

Europe held a significant share of the telecommunication market in 2023. The telecommunication market is generally driven by the rising demand for pay-TV services along with the rising trend of Industry 4.0 in this region. Also, the surge in the number of available service providers, along with rapid expansion in access to telecommunications networks, has also boosted the market growth in Europe. For instance, in October 2023, the government of the U.K. joined hands with countries such as Australia, Canada, Japan, and the United States of America for telecom innovation. Through this collaboration, the U.K. government invested 70 million Euros for research and development in the telecom sector.

Telecommunication Market Companies

• AT&T Inc.
• SoftBank Group Corp.
• Nippon Telegraph and Telephone Corporation (NTT)
• Verizon Communications Inc.
• Orange SA
• Deutsche Telekom AG
• China Mobile Ltd.
• Vodafone Group
• China Telecom Corp Ltd.
• Telefonica SA
• Reliance Jio Infocomm Limited
• KT Corporation
• KDDI Corporation
• Bharati Airtel Limited
• Comcast Corporation
• BT Group plc

Recent Developments

• In January 2024, AT&T launched a new service to filter out spam calls. Through this launch, the company announced that the customer would get direct all the details regarding any brand that would make it easier to figure out whether the call is genuine or spam.
• In February 2024, Verizon launched a new service to control multiple cloud environments. This new service is named Network as a Service (NaaS) Cloud Management. This service will provide better visibility into process management performance and network conditions across multi-cloud environments.
• In April 2024, Airtel launched international roaming plans. This plan comes with in-flight data benefits and will work across 184 countries to enjoy seamless connectivity and high-speed data.
• In April 2024, Nippon Telegraph and Telephone Corp.(NTT) launched a new generative artificial intelligence platform. Through this platform, documents containing diagrams and chart can be analysed accurately.
• In March 2024, SoftBank Corp. announced the launch of the “Private 5G (Dedicated Type)” Service. This service allows local governments, companies, and others to develop customized 5G networks on their premises with dedicated base stations.
• In December 2023, Deutsche Telekom AG joined hands with Nokia and Fujitsu. This joint venture was done to deploy a multi-supplier Open RAN network in Germany.

Segments Covered in the Report

By Component

• Hardware
  • Broadcast Communication Equipment
  • Telecoms Infrastructure Equipment
  • Consumer Premise Equipment 
• Software Platform
  • On-premise
  • Cloud
• Services 
  • Telecommunication Services
  • Installation and Integration Services
  • Repair and Maintenance Services
  • Managed Services

By Enterprise Size

• Small and Medium Enterprises
• Large Enterprise

By Industry

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

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa