The global telecoms market is expected to grow at a compound annual growth rate (CAGR) of 5.6% from 2023 to 2031, reaching a value of USD 2.7 trillion by the end of the forecast period, according to a new report by Benzinga. The report covers the key drivers, challenges, opportunities, and trends that are shaping the telecoms industry across various regions and segments.
Rising Demand for Connectivity and Data Services
One of the main factors driving the growth of the telecoms market is the rising demand for connectivity and data services from both consumers and enterprises. The proliferation of smart devices, such as smartphones, tablets, laptops, wearables, and IoT devices, has increased the need for high-speed, reliable, and secure network access. According to the report, the number of mobile subscriptions worldwide is expected to reach 9.8 billion by 2031, up from 8.2 billion in 2023. Similarly, the number of fixed broadband subscribers is projected to grow from 1.2 billion in 2023 to 1.6 billion in 2031.
The growing consumption of data-intensive applications, such as video streaming, online gaming, cloud computing, artificial intelligence, and virtual reality, has also boosted the demand for data services. The report estimates that the global mobile data traffic will increase from 77 exabytes per month in 2023 to 237 exabytes per month in 2031. The average monthly data usage per smartphone is expected to rise from 10.6 GB in 2023 to 35 GB in 2031.
Technological Advancements and Innovations
Another key factor driving the growth of the telecoms market is the technological advancements and innovations that are enabling new services and business models. The report highlights the following technologies that are expected to have a significant impact on the telecoms industry in the coming years:
- 5G: The fifth generation of mobile technology is expected to offer faster speeds, lower latency, higher capacity, and enhanced reliability than previous generations. The report forecasts that the global 5G subscriptions will reach 3.5 billion by 2031, accounting for 36% of the total mobile subscriptions. The report also identifies several use cases for 5G, such as enhanced mobile broadband, massive IoT, critical communications, fixed wireless access, and edge computing.
- Fiber: Fiber-optic cables are expected to play a vital role in providing high-speed and high-quality broadband access to both residential and business customers. The report projects that the global fiber-to-the-home (FTTH) penetration will increase from 14% in 2023 to 25% in 2031. The report also notes that fiber networks are essential for supporting the deployment of 5G and edge computing.
- Satellite: Satellite communications are expected to complement terrestrial networks in providing connectivity to remote and rural areas, as well as enhancing coverage and resilience in urban areas. The report estimates that the global satellite broadband market will grow from USD 4.2 billion in 2023 to USD 10.4 billion in 2031. The report also highlights the emergence of low-earth orbit (LEO) satellites, which offer lower latency and higher bandwidth than traditional geostationary orbit (GEO) satellites.
- Cloud: Cloud computing is expected to enable telecom operators to reduce their capital and operational expenditures, improve their scalability and flexibility, and offer new services and solutions to their customers. The report predicts that the global cloud telecom market will grow from USD 21.4 billion in 2023 to USD 55.6 billion in 2031. The report also discusses the benefits of cloud-native architectures, which allow telecom operators to deploy and manage applications across multiple cloud environments.
Competitive Landscape and Regional Analysis
The report also provides a detailed analysis of the competitive landscape and regional dynamics of the telecoms market. The report identifies some of the key players in the market, such as Etisalat, Omantel, DIC, TeliaSonera, Telecommunication Company of Iran, Zain Group, Ooredoo, Orascom Telecom, Vodafone, and Paltel. The report also examines their strategies, strengths, weaknesses, opportunities, and threats.
The report segments the telecoms market by region into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. The report evaluates the market size, growth rate, drivers, challenges, opportunities and trends for each region. According to the report, Asia-Pacific is expected to be the largest and the fastest-growing region in the telecoms market, accounting for 45% of the global market share by 2031. The report attributes this growth to the large and growing population, the increasing adoption of smartphones and broadband services, the rapid deployment of 5G and fiber networks, and the rising demand for data and cloud services.
The report concludes that the telecoms market is expected to witness robust growth in the 2023-2031 period, driven by the rising demand for connectivity and data services, the technological advancements and innovations, and the competitive and regional dynamics. The report also provides recommendations for telecom operators, such as investing in network infrastructure, diversifying their service portfolio, enhancing their customer experience, and collaborating with partners and stakeholders.
