Telco Transformation Market Outlook
The telco transformation market is expected to be worth USD 29.33 billion in 2023, with a CAGR of 19.9% from 2023 to 2033. The market for telco transformation is expected to be worth USD 180.08 billion by 2033.
Changes in regulations, rapidly changing consumer demand trends, newer technologies, spectrum crunch, and increased emphasis on digital content and data-oriented services are forcing companies to undertake business restructuring and adopt newer telco transformation technologies to streamline operations. Transformation requires simplification, increased consumer focus, and harmonization.
The foundation of any business transformation program is to define future investment targets today to be fully prepared to adopt and offer emerging business demands for telco transformation and the newer services of tomorrow.
The decline in voice revenues, lower subscriber loyalty and churn, regulatory pressure, and increasing spectrum issues are all key drivers for the telco transformation market. The key challenges in the telco transformation market are proper network planning for burgeoning network sizes and limited spectrum availability.
This problem is exacerbated by the emergence of new technologies such as 2G and 3G, HSPA and HSPA+, WiMAX, Wi-Fi, frequency division duplexing LTE (FDD LTE), time division duplexing LTE, LTE advanced, and wired broadband, among others. Most of these technologies must coexist, which has created new challenges in network planning and the telco transformation market.
The significant challenge of the telco transformation market is managing network products' end-of-life cycle to improve network efficiency and reliability.
Telco transformation market opportunities exist in emerging consumer segments such as banking and utilities, expanding their network infrastructure to improve productivity. Another key telco transformation market opportunity is to improve data-driven services and emphasize emerging technologies such as machine-to-machine (M2M).
North America is expected to dominate during the forecast period, gaining a sizable revenue share. In the United States and Canada, there is an increased use of hybrid telco cloud installations, which helps to embed best-in-class data analytics and artificial intelligence available in the public cloud sector to predict and fulfill consumers' needs and preferences.
The telco transformation is also used by businesses to eliminate database silos, consolidate customer data, provide an engaging Omni channel customer experience, and create a 360-degree view of the consumer.
The rapid growth of infrastructure in the Asia Pacific region, particularly in South Korea, Japan, India, and China, as well as the rapid development of the 5G network, bodes well for the implementation of the telecom cloud. Government initiatives and policies encourage companies to expand their operations in this region, thereby contributing to economic telco transformation market growth.
The reduction of administrative and operational costs, the high demand for telco transformation services, and business awareness of the telecom cloud are just a few of the factors driving regional telco transformation market growth.
Due to the presence of several players, the telco transformation market is fragmented and is expected to see increased competition. The players' increased spending on R&D activities to integrate cutting-edge technologies in telecom cloud marketing has increased competition among these players.
To gain a competitive advantage over their peers and capture a significant telco transformation market share, the players are increasing their connectivity with the help of technological advancement.
Telco Transformation Market CAGR (2023-2033)
Telco Transformation Market Size (2023)
USD 29.33 billion
Telco Transformation Market Size (2033)
USD 180.08 billion
Telco Transformation Market Overview
Globally, the challenges presented by external factors to telecom sector have been increasing and telecom companies (telcos) are undertaking a rapid transformation in order to strengthen business.
Changes in regulations, rapidly varying trends in consumer demand, newer technologies, spectrum crunch, and increasing focus digital content and data oriented services are forcing the companies to take up business restructuring and adoption of newer technologies to streamline business. Simpli?cation, increasing consumer focus and harmonization are key for transformation.
Although the path to such a transformation of telco business would need to change depending upon each network operator’s and service provider’s speci'c business needs and goals This transformation would not only need huge investments and increasing focus on next generation service deployments, but a primary shift in the telco business approach.
The basis of every business transformation program is to de?ne today the future investment targets in order to be fully ready to adopt and offer for the emerging business demands and newer services of tomorrow.
Key drivers for telco transformation include decline in voice revenues, reducing loyalty and churn rate of subscribers, regulatory pressure and increasing spectrum issues. Key challenges in this market are proper network planning for burgeoning network sizes with low availability of spectrum.
This issue is further complicated by emergence of multiple technologies including 2G and 3G (UMTS), HSPA and HSPA+, WiMAX, Wi-Fi, frequency division duplexing LTE (FDD LTE), time division duplexing LTE (TDD LTE), LTE advanced and wired broadband, among others. There is a need for co-existence of majority of these technologies together and this has created new challenges in network planning. Another key challenge is end-of-life cycle of network products and their life cycle management in order to enhance network efficiency and reliability.
Opportunities in this market exist in terms of emerging new consumer segments such as banking and utilities sector which are increasing their network infrastructure in order to enhance their productivity. Enhancing data based services and increasing focus on emerging technologies such as machine-to machine (M2M) is another key opportunity in this market.
Telco types in this market include fixed and mobile. Fixed type again includes residential and enterprise services. Mobile telco type can be segmented based on service into voice and data. Telco market can be further segmented based on consumer types into retail, wholesale and enterprise consumers.
Retail consumers again include post-paid and pre-paid consumers. Various products and services in this market include VoIP, triple play, IPTV, cloud services and managed services, among others. Different end-user verticals in this market include energy, transport, healthcare, government, entertainment industry, and residential consumers, among others.
Key players in this market include America Movil Group, AT&T Group, Bharti Airtel Group, China Mobile Communications Corp., China United Network Communications Group Co., Ltd., KPN N.V., MTN Group, Deutsche Telekom AG, NTT Docomo, Inc., SK Telecom Co., Ltd., SoftBank Mobile Corp., Sprint Corporation, Saudi Telecom Company, Telecom Italia Group, Telenor Group, Verizon Wireless, Telefonica, S.A., Vivendi SA, Vodafone Group Plc, Alcatel-Lucent, LM Ericsson, Huawei Technologies Co. Ltd., Nokia Solutions and Networks and ZTE Corp., among others.
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