Telecom Analytics Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Application, By Deployment Model (On-premise, Cloud), By Organization Size, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global telecom analytics market size was valued at USD 3.6 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.5% from 2020 to 2027. Telecom analytics is a category of Business Intelligence (BI) which involves urbane BI technology solutions and services that are explicitly designed to serve the complex requirements of telecom organizations. It assists in increasing sales, decreasing operational costs, reducing fraud and customer churn, and improving risk and revenue management. Data analytics in the telecommunication industry provides more precise and actionable insights and offers value in decision making, while giving a competitive edge to the telecom operators.

Telecom vendors are having massive success with the adoption of analytics solutions and services. Increasing deployment of telecom analytics for reducing churn and improving customer loyalty is one of the major factors expected to drive the growth prospects of the market during the forecast period. A churn in the context of the telecom industry is the proportion of subscribers moving from a specific service provider to other in a certain time period. According to Quantzig, telecom companies can reduce customer churn rate by 50%, while at the same time can improve repeat customers by 15%. As a result, telecom service providers use the analytics tool that help them improve the quality of customer service, prevent the revenue losses, and reduce the sales & marketing costs.

Telecom analytics comprises of business intelligence solution technologies that are meant to satisfy the complex requirements of the telecom companies. It provides telcos with the requisite techniques and tools to integrate and harness new sources and types of data in real-time and in greater volumes. Telecom analytics help operators improve the overall value of their business regarding service optimization, customer satisfaction, and revenues. The acceptance of analytics in telecom is envisioned to expand visibility into internal processes, core operations, market conditions, differentiate trends, and create forecasts.

Technologies including IoT, Big Data, and Data Science offers exceptional opportunities for data-driven business optimization in extents of revenue maximization, customer understanding, and cost-efficiency. With the advancements in technology, big data is expected to become crucial across several industries, including the telecom. Thus, data analytics is becoming an integral part of every business. In today’s data-intensive world of connected devices, communications, social media networks, call data records, customer behaviors, billing information, government portals, create a huge amount of data. It is challenging for telecom operators to deal with this surge in data volumes. The massive amount of data when captured wisely and analyzed professionally can reveal powerful insights. As a result, growing adoption of the technologies in the telecom sector is expected to enhance the growth prospects of the market during the foreseeable future.

Additionally, the necessity for streamlining business operations that impact the revenue is mainly supplementing market growth. Revenue of telecom operators is primarily reliant on the sale of value-added services, subscribers, and billing charges. Telecom analytics helps in identifying the limitations that needs to be progressed to upsurge the revenue of the operators. Telecom analytics software solutions aids to reduce the risk and make suitable business decisions. In addition to that, it also supports companies to distinguish their business with a competitive plan and bring out subscriber focused scores to help in revenue growth. Thus, owing to the benefits of telecom analytics, the market is anticipated to witness significant demand over the forecast period. 

Component Insights

The solutions segment dominated the market with a share of 69.1% in 2019. This high share is attributable to the growing adoption of telecom analytics solutions and multiple benefits offered by them. The solution segment is further sub-segmented into network analytics, customer analytics, subscriber analytics, location analytics, price analytics, and service analytics. Adoption of telecom analytics solution allows the telecom operators to obtain insights from subscriber usage statistics to know their performance pattern and enhance customer experiences. It also enables the opportunity for up-selling and cross-selling for the telecom companies. Additionally, market players are providing telecom analytics solutions that comprise machine learning, due to which carriers can recognize at-risk subscribers or identify the roots of churn that will occur in the future and at present.

Furthermore, the services segment is expected to grow at a substantial rate of over 10.0% in the telecom analytics market over the forecast period. The telecom analytics services mainly direct the critical issues and opportunities that are related to marketing, finance, technologies, operations, technologies, and mergers and acquisitions. This further leads to boosted performance, improved effectiveness, enhanced resilience, and reduced costs. The consulting services has helped the telecom industry to realize the implication of analytics in their value chain and select appropriate on their requirements and budgets. These services also help operators optimize their networks and offer their customers better targeted services based on their need.                                                          

Application Insights

The customer management segment dominated the market with a share of 29.1% in 2019. This high share is mainly attributable to the unabated increase in customer churn. Telecom operators are investing more in maintaining and retaining a customer. The price opinion of delivering solutions and service to the customers, yet, has remained the same, which has led to stagnant revenues. While the industry had a successful customer-first management approach, customer needs are changing quickly. To keep pace, operators are taking large technological leaps to reduce customer churn.

Furthermore, the risk and compliance application segment is expected to witness the highest growth rate of over 15.0% over the forecast period. This growth is mainly attributed to the increase in number of cyberattacks and data breaches in networks, which is driving the demand for several analytics solutions in the telecom sector. Telecom analytics solutions and services are increasingly being adopted for fraud detection within telecom networks and amongst Communication Service Providers (CSPs).

Telecom service providers use regulatory compliance applications to drive business benefits such as improved loyalty while heightening the effectiveness of marketing campaigns. For instance, in February 2018, Subex Limited and Pod Solutions entered into a partnership to provide advanced security for connectivity services and IoT billing. The collaboration with Subex has helped Pod Solutions to develop advanced security services, which will allow customers to bill, deploy, create mission-critical IoT solutions with resilience and maximum security.

Deployment Model Insights

On-premise dominated the market with a share of 54.7% in 2019. This high share is mainly attributable to the investments by large businesses for in-house software deployment. Although the cloud model has grown in popularity, on-premise solutions may continue to serve the business needs of several organizations effectively. Rising need to secure the critical data is driving the growth of this segment.

Nevertheless, the cloud segment is expected to witness the highest CAGR of over 15.0% during the forecast period. The low investment cost, scalability, and agility offered by cloud deployment model is driving the growth of this segment. The deployment of telecom cloud solutions helps telecom operators lessen the administration costs, as well as the operational costs and deliver easy solutions. Furthermore, the rise in need for mobility, and an upsurge in adoption of cloud technology by small scale businesses is expected to provide lucrative growth opportunities in the foreseeable future.

Organization Size Insights

Large enterprises dominated the market with a share of 77.9% in 2019. This high share is mainly attributable to the advances in digital technology that is driving the business environment. Telecom analytics provides organizations the necessary tools to track, manage, and optimize their network. With the analytical solutions and services, large enterprises have greater insight into customer preferences, and build lasting relationships with them.

Furthermore, the small and mid-sized enterprises segment is likely to witness a CAGR of 10.3% during the forecast period. Small and mid-sized enterprises with less than 250 employee strength can access new markets and target new customers at a relatively affordable cost using telecom analytics solutions and services. However, despite these potential gains, small and mid-sized businesses are not taking full advantage of analytical tools. With so many small and mid-sized enterprises not fully embracing the digital age, organizational profits such as enhanced communications, flexibility, and minimal business costs are less likely to be acknowledged by small businesses as drivers of the technology adoption.

Regional Insights

North America dominated the market with a share of 38.2% in 2019. ​​​This high share is mainly attributable to high demand from the telecommunication sector and the adoption of new technologies in the market. Technological advancements and digitization are also some of the reasons behind the regional growth and market uplifting. Moreover, the market here in this region is mainly ruled by the high spending over the analytics solutions. Also, the presence of some of the prominent players of industry players including IBM Corporation, and Oracle Corporation is an added aspect influencing regional growth. Additionally, the telecom industry in North America is highly developed with strong penetration of telecom solutions among population. This high dissemination of telecom industry generates huge data which in turn is helping the market growth in North America.

In Asia Pacific, the market is expected to exhibit a CAGR of more than 15.0% over the forecast period. The growth of this region is mainly accredited to increasing investments in advanced technologies such as IoT and Big Data. Moreover, the booming telecom industry and the rising digital transformation has accelerated the regional growth. This is expected to drive significant investments in new and advanced analytical technologies. This, in turn is expected to support market growth in the years to come.  

Key Companies & Market Share Insights

The market is fragmented in nature and characterized by a high degree of competition among key operating players. The key players are focusing on enhancing their market presence by adopting various strategies such as mergers, acquisitions, and joint ventures or collaborations. These strategies further help organizations to expand their business geographically and enhance their offerings in the regions. The industry competition is anticipated to intensify further as several companies are focus on the development of advanced, cost-effective telecom analytics solutions and services. Therefore, the key players in the market are looking forward on providing solutions that best meet the requirements of the telecom operators. Moreover, some of the players are investing in research & development, entering collaborations, and are expanding their footprints in the untapped markets to consolidate their position the competitive market environment. For instance, in January 2020, Sisense Inc. merged with Periscope Data Inc. to bring together an independent, end-to-end, independent data analytics and BI platform. Some of the prominent players in the telecom analytics market include:

• Adobe Systems Incorporated

• Alteryx, Inc.

• Cisco Systems, Inc.

• Dell EMC

• Hewlett Packard Enterprise Development LP

• Huawei Technologies Co., Ltd.

• International Business Machines Corporation

• Microsoft Corporation

• MicroStrategy Incorporated

• OpenText Corporation

• Oracle Corporation

• Panorama

• SAP SE

• SAS Institute Inc.

• Sisense Inc.

• Subex Limited

• Tableau Software

• Teradata Corporation

• TIBCO Software Inc.

• Wipro Limited

Telecom Analytics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global telecom analytics market report based on component, application, deployment model, organization size, and region:

• Component Outlook (Revenue, USD Million, 2016 - 2027)

  • Solutions

    • Network Analytics

    • Customer Analytics

    • Subscriber Analytics

    • Location Analytics

    • Price Analytics

    • Service Analytics

    • Others

  • Services

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Customer Management

  • Sales and Marketing Management

  • Network Management

  • Risk and Compliance Management

  • Workforce Management

  • Others

• Deployment Model Outlook (Revenue, USD Million, 2016 - 2027)

  • On-premise

  • Cloud

• Organization Size Outlook (Revenue, USD Million, 2016 - 2027)

  • Small and Mid-sized Enterprises

  • Large Enterprises

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa