The telecom analytics market analysis report by Future Market Insights shows that the global telecom analytics market is estimated to reach USD 6.21 billion in 2023. The projected market growth from 2023 to 2033 is expected to be 13.9%.
Telecom analytics software is expected to be the highest revenue-generating segment, projected to record a CAGR of over 13.5% from 2023 to 2033.
| Attributes | Details |
|---|---|
| Global Telecom Analytics Market Size (2023) | USD 6.21 billion |
| Global Telecom Analytics Market Size (2033) | USD 22.91 billion |
| Global Telecom Analytics Market CAGR (2023 to 2033) | 13.9% |
| United States Telecom Analytics Market Size (2033) | USD 7.1 billion |
| United States Telecom Analytics Market CAGR (2023 to 2033) | 13.4% |
| Key Companies Covered | SAP; Oracle; IBM; SAS Institute; Adobe; Cisco; Teradata; Micro Focus; TIBCO; MicroStrategy; Tableau; Panorama Software; Qlik; OpenText; Alteryx; Sisense |
As per the telecom analytics market research by Future Market Insights - a market research and competitive intelligence provider, historically, from 2018 to 2022, the value of the telecom analytics market increased at around 11.8% CAGR.
The rising need for customer churn prevention, demand for better revenue control, increased cyber threats, and unusual activities are projected to drive market expansion. However, telecom operators' lack of understanding of telecom analytics is projected to limit market growth.
Furthermore, the importance of Private Branch Exchange (PBX) in internal systems, mobile device vulnerabilities, and customer and network data analytics to develop a focused upselling plan for successful subscriber engagement is projected to offer growth to the market.
The adoption of analytics products and services by telecom providers has been enormously successful. One of the primary reasons predicted to fuel the market's development prospects during the projected period is the increased implementation of telecom analytics for lowering churn and enhancing customer loyalty.
As per Quantzig, telecom businesses may cut customer turnover by 50% while increasing recurring customers by 15%. Therefore, telecom service providers employ analytics tools to improve customer service, minimize revenue losses, and cut sales and marketing expenses.
The demand to optimize corporate activities that influence revenue is also driving the expansion of the telecom analytics industry. Telecom firms' revenue is primarily determined by customers, the sale of value-added solutions, billing rates, and other factors.
Telecom analytics systems may offer qualitative and quantitative metrics and subjective Key Performance Indicators (KPIs) measures to various applications for business, network, or consumer use cases.
This may assist in monitoring crucial subscriber decisions, which affect revenues, by calculating propensity scores from pertinent information such as subscriber experiences (xDRs), region, associates (TAP), network (probes), and activities (logs). Owing to these features, the market is likely to develop throughout the forecast period.
Furthermore, IoT, Data Science, and Big Data technologies provide significant prospects for data-driven company optimization in terms of revenue maximization, customer comprehension, and cost efficiency. In today's data-heavy environment, communication, social media platforms, phone data records, consumer habits, payment details, and government websites generate massive amounts of data.
Telecom providers need help managing this increase in data volume. When data is acquired properly and correctly evaluated, it can provide important insights. Consequently, the increasing adoption of new technologies in the telecom industry is projected to boost market development possibilities in the near future.
Telecommunications firms are focusing on enhancing network resilience and determining how COVID-19 may affect their planned investments, notably in 5G. These companies are also constantly improving to help customers needing internet connectivity more than ever. Data is being used as a tool in certain nations to track and restrict the transmission of the virus.
Some potential impact includes increased network usage, with several telecom companies reporting significant surges. The frequency of voice calls is also expanding significantly in some nations. Network reliability has also become a constant concern. Europe's network infrastructure is seeing spikes in connection loss rates, decreased audio quality, and connection rate decreases.
The European Union has attempted to prevent potential disruptions by requesting that streaming services limit image quality. In the United States, operators are growing capacities by leasing spectrum from competitors.
Due to the wide environment and huge mobile population in China, good connectivity and data sharing have been critical in checking for infected persons and managing the outbreak.
During the projected period, North America held the largest share in the global telecom analytics market, with a market size of USD 7.1 billion by 2033. The telecom industry in North America is primarily growing owing to significant expenditure on analytics solutions.
The existence of some industry's most notable firms, such as IBM Corporation and Oracle Corporation, is another factor affecting regional growth. Furthermore, the telecom business in North America is widespread, with the growing use of communication products.
This widespread distribution of the telecom business creates massive amounts of data, which aids market expansion in the region.
The United States is expected to account for the leading market share of USD 7.1 billion by the end of 2033 with an expected CAGR of 13.4% by the end of 2033.
Constant progressions in IT technology and infrastructures used for customer support, the presence of a large variety of market vendors, and the availability of skilled technical knowledge related to managing modern consumer needs and helpdesk software are the key factors fuelling the telecom analytics market in the country.
The United States is home to some world's key cellular service providers, which rely heavily on client feedback. Thus, by utilizing telecom analytics, communications service providers (CSPs) in the region may deliver higher-quality service while reducing costs. Verizon, a large telecommunications firm in the United States has established several AI and analytics units.
The Data Science and Artificial Intelligence department, for example, is concerned with bringing analytics and cognitive technologies to Verizon's interactions with consumers. The need for consumer analytics solutions is projected to rise as more organizations follow suit.
Customer Management segment is forecasted to record a CAGR of over 13.4% from 2023 to 2033. Telecom companies are spending more on client maintenance and retention.
However, the price opinion of offering solutions and services to clients has remained the same, resulting in flat revenues. Despite the industry's effective customer-first management model, consumer requirements have rapidly evolved.
The demand for telecom analytics software is forecasted to register a CAGR of around 13.5% from 2023 to 2033.
Telecom Analytics Software is being deployed in the telecom sector to meet their complex business intelligence needs, including risk management, churn reduction, fraud identification, up-sell, and cross-sell product and service plans.
Telecom analytics software assists in reducing risk and making sound business decisions. Furthermore, it helps businesses differentiate themselves through a competitive strategy and brings forth subscriber-focused scores to aid in revenue growth. As a result of the advantages of telecom analytics, the industry is expected to grow significantly during the projected period.
The industry is segmented and characterized by intense rivalry among key operational firms. The leading companies are concentrating on increasing their market presence through various tactics such as acquisitions, mergers, and joint ventures or partnerships.
These techniques also assist firms in regionally expanding their business operations and improving their regional offers.
The industry rivalry is expected to heat up even further as more businesses focus on developing innovative, cost-effective telecom analytics products and services. As a result, the market's leading players are looking forward to developing solutions that best fulfill the needs of telecom operators.
Recent Developments
The market is valued at USD 6.21 billion in 2023.
The market is expected to expand at a CAGR of 13.9% from 2023 to 2033.
The telecom analytics software segment is projected to record a CAGR of 13.5% through 2033.
North America, specifically the United States, holds a leading market share.
Increased adoption for customer churn prevention and enhanced customer service.
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Telecom Analytics Market
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