Telecom Services Market Size, Share & Trends Report

Telecom Services Market Size, Share & Trends Analysis Report By Service Type (Mobile Data Services, Machine-To-Machine Services), By Transmission (Wireline, Wireless), By End-use, By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68038-518-2
  • Number of Pages: 215
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2021
  • Industry: Technology

Research Methodology

A three-pronged approach was followed for deducing the telecom services market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for telecom services market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of telecom services market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Telecom Services Market Categorization:

The telecom services market was categorized into four segments, namely service type (Fixed Voice Services, Fixed Internet Access Services, Mobile Voice Services, Mobile Data Services, Pay-TV Services, Machine-to-Machine (Mobile IoT) Services), transmission (Wireline, Wireless), end-use (Consumer/Residential, Business), and region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).

Segment Market Methodology:

The telecom services market was segmented into service type, transmission, end-use, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The telecom services market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into twelve countries, namely, the U.S.; Canada; the UK; Germany; France; Italy; China; Japan; India; South Korea; Brazil; Mexico.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Telecom services market companies & financials:

The telecom services market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • AT&T Inc. - AT&T Inc. is a global provider of telecommunication, media, and technology services, operating in four main business segments: Communications, Latin America, Warnermedia, and Xandr. The Communications segment offers wireline and wireless telecom, video, broadband and internet services, IP-based and video streaming services using satellites, and audio programming services under various brands. It also supplies wireless-enabled computers, mobile handsets, wireless data cards, and accessories through owned stores, franchised stores, and third-party retail stores. The Warnermedia segment provides multi-platform content and services, including television programming, feature films, OTT services, and home entertainment products. The Latin America segment delivers mobile services to enterprise and residential consumers in Mexico and pay-TV services across 11 countries in the Caribbean and South America region. The Xandr segment offers advanced advertising solutions to marketers using customer insights from AT&T’s mobile, TV, and broadband services, as well as building addressable, cross-screen advertising opportunities for real-time campaign performance. Moreover, AT&T Inc. covers around 190 markets in the United States with providing 5G services to consumer and business application. The company offers 5G services more than 120 million population in the U.S. as of april 2020. The company was previously known as SBC Communications Inc. and changed into AT&T Inc. in November 2005.

  • China Mobile Limited - China Mobile Limited and its subsidiaries provide telecom services across Mainland China and other 31 provinces, including Hong Kong. The company operates in four business segments: Communications, Latin America, Warnermedia, and Xandr. The Communications segment offers wireline and wireless telecom, video, broadband and internet services, IP-based and video streaming services using satellites, and audio programming services under various brands. The Latin America segment delivers mobile services to enterprise and residential consumers in Mexico and pay-TV services across 11 countries in the Caribbean and South America region. The Warnermedia segment provides multi-platform content and services, including television programming, feature films, OTT services, and home entertainment products. The Xandr segment offers advanced advertising solutions to marketers using customer insights from AT&T’s mobile, TV, and broadband services, as well as building addressable, cross-screen advertising opportunities for real-time campaign performance. China Mobile provides mobile telecommunication services primarily through GSM, TD-SCDMA, LTE FDD, and TD-LTE networks, including voice services such as local calls, roaming services, and long-distance calls. The company also offers value-added services, digital applications, and internet-related services such as mobile payments, IoT devices, digital content, home digital services, and other applications and information services. Additionally, the company has introduced data roaming service with 397 operators in 231 countries and GSM international roaming service with 471 operators in 258 countries worldwide. The company is proactively conducting trials on 5G networks and increased development of software-defined networking (SDN) and network function virtualization (NFV) to put narrowband-internet of things (NB-IoT) core network into commercial use. Moreover, it is actively deploying 5G+ edge computing network infrastructure to cater to the need across various sectors such as healthcare, transportation, financial, retail, among others.

  • China Telecom Global Limited - China Telecom Corporation Limited, headquartered in Hong Kong, is the parent company of China Telecom Global Limited (CTG). CTG is an information services operator that provides wireline and mobile telecommunications services, information services, internet access services, and supplementary value-added telecommunications services worldwide. CTG offers integrated communication services to telecommunication service providers, multinational businesses, and overseas Chinese consumers, including networking solutions, internet products, and integrated communication technologies. The company has partnered with firms in about 42 nations to expand its geographical footprint and has 176 foreign points of presence. CTG owns 42 undersea cable resources, of which the company has been involved in building more than 10 cable lines.

  • Deutsche Telekom AG - Deutsche Telekom AG, a prominent telecommunications service provider in Germany, has a global presence in over 50 countries and serves a customer base that includes 178 million mobile users, 28 million fixed network lines, and 20 million broadband lines. The company operates in five segments: Germany, the United States, Europe, systems solutions, and group development. In Germany, it offers mobile and fixed network solutions to business customers and consumers, as well as wholesale business targeting telecom services. In the United States, the company provides mobile-based solutions with high network coverage and optimum transmission speed. The Europe segment offers mobile operations and fixed network solutions in various countries. The systems solutions segment provides integrated products and solutions for business customers, including IT infrastructure, fixed and mobile communications, digitalization, and security applications. The group development segment includes various entities such as Deutsche Funkturm (DFMG) and T-Mobile Netherlands. The company has also been actively deploying 5G network infrastructure in Europe, particularly in Germany, and has deployed approximately 500,000 kilometers of optical fiber network in Germany, with plans to build an additional 60,000 kilometers each year in the country.

  • KDDI Corporation - KDDI Corporation, a Japanese telecommunications operator, provides a wide range of services, including mobile phone, fixed-line communication, data centers, system integration, and content delivery, both in Japan and internationally. The company operates across four segments: personal services, business services, value services, and global services. The personal services segment offers mobile services, fixed-line services (including CATV and FTTH), and MVNO services. The business services segment provides mobile services, networks, cloud services, and applications to corporate clients. The global services segment offers telecommunication services, data center services, and ICT solutions worldwide. KDDI Corporation is also involved in facility maintenance and construction, research and development, and call center operations. The company is headquartered in Japan and has a global presence, with over 100 offices in 62 cities across 28 countries.

  • Nippon Telegraph and Telephone Corporation - Nippon Telegraph and Telephone Corporation, commonly known as NTT, has a rich history dating back over 150 years to the first telegraph service in Japan. Initially established as a government-owned corporation in 1952, it was privatized in 1985. Since then, the company has expanded into various telecommunication-related markets and established new subsidiaries. NTT provides a wide range of services, including mobile and fixed voice services, packet/IP communications services, system integration, and telecommunications equipment, both in Japan and globally. The company operates in five primary business segments: long distance and international communications, regional communications, data communications, mobile communications, and other business. NTT Corporation has six major sub-divisions, namely NTT Communications, NTT DOCOMO, Dimension Data, NTT Data, NTT West, and NTT East. The company is also heavily invested in research and development, having allocated significant funds to this area in recent years. NTT is a leading telecommunications company, ranked 55th in the Fortune Global 500, and is the fourth largest telecommunications company in the world in terms of revenue. It is also the third largest publicly traded company in Japan. NTT is committed to research and development, focusing on new technologies and addressing challenges related to safety, disaster prevention, and sustainable development. The company has a global presence, with over 100 offices in 62 cities across 28 countries.

  • Orange S.A. - Orange S.A., a leading telecommunications company, operates as a mobile and internet services provider in Europe and Africa, offering commercial telecommunication services globally. The group functions under the brand name Orange Business Services, providing a variety of services to local authorities, large corporates, and SMEs in France, as well as to MNCs worldwide, supporting the operation of their communication projects. The company has operations in five segments: France, Europe, Africa & Middle East regional segments, enterprise, and Others. Orange’s business model encompasses three phases: marketing fixed and mobile connectivity deals, building and operating telecommunications networks, and distributing digital services within a joint network under the Orange brand.

  • SoftBank Corp. - SoftBank Corp., a subsidiary of the SoftBank Group Corp., is a major mobile communications service provider in Japan. The company was formed through the integration of SoftBank Telecom Corp., Ymobile Corporation, and SoftBank BB Corp., and was initially known as SoftBank Mobile Corp. before changing its name to SoftBank Corp. The company offers a wide range of products and services in the information industry, operating in several segments, including the SoftBank, Sprint, Yahoo Japan, Arm, SoftBank Vision Fund, Delta Fund, and Brightstar segments. SoftBank Corp. provides mobile data communication over 3G and 4G networks, offers content for mobile internet, and sells mobile handsets. As of March 2020, the company had 24.13 million mobile communication subscribers and 7.85 million broadband service subscribers. Additionally, SoftBank Corp. has made significant investments in research and development, allocating substantial funds to this area in recent years. The company is listed on the Tokyo Stock Exchange and is a key player in the telecommunications industry in Japan.

  • Telefonica, S.A. - Telefonica S.A. is a diversified telecommunications group that offers fixed line and mobile telephony services. The company operates through six business segments: Telefonica Spain, Telefonica Germany, Telefonica Brazil, Telefonica United Kingdom, Telefonica Hispam, and Telxius Group. These segments provide products and services across wireline, wireless, data, cable, internet, television businesses, and other digital services worldwide. The company is identified by its commercial brands Movistar, O2, and Vivo, which together offer landline, mobile, internet, and television cable services to 347 million clienteles globally. Telefonica also has specialist brands such as Wayra, Media Networks, Terra, On the Spot, ElevenPaths, Fonditel, Antares, Pleyade, and Tgestiona that concentrate on specific businesses. The company invested USD 1,177.89 million, USD 969.80 million, and USD 1,083.17 million in research and development activities in the year 2020, 2019, and 2018 respectively.

  • Verizon Communications, Inc. - Verizon Communications, Inc. is an American-based mobile communication provider that offers various services like communications, information & entertainment products and services to consumers, businesses, and government agencies. The company operates in three primary business segments: wireless, wireline, and corporate & others. The wireless segment provides wireless communications products and services in the United States (U.S.), focusing on capital spending to increase density and capacity for their 4G LTE and upcoming 5G network. The wireline segment offers communications products and services, including corporate networking solutions, security & managed network services, video & data services, and domestic & long-distance voice services to business consumers, individuals, and government customers in the U.S. and across the globe. The company is replacing conventional copper cables with new optical-fiber cables to cater to the demand for high bandwidth networks. In addition, the corporate and other segment includes media businesses such as branded Verizon Connect, telematics business, and other businesses. The company has 114.1 million wireless retail connections, 92.7 million wireless retail postpaid connections, and 8.8 million broadband connections, including 6.9 million Fios Internet connections as of September 30, 2023. Verizon Communications, Inc. has 24.13 million mobile communication subscribers and 7.85 million broadband service subscribers as of March 2020. The company invested USD 1,505.74 million, USD 1,504.36 million, and USD 1,535.37 million in research and development activities in the year 2018, 2019, and 2020, respectively.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

Telecom Services Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2022, historic information from 2017 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Telecom Services Market Report Assumptions:

  • The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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