According to a report by Allied Market Research titled “Telecommunication Services Market”, the global telecommunication services industry was accounted for $1,602.5 billion in 2021, and is expected to reach $2,556.2 billion by 2031, growing at a compound annual growth rate of (CAGR) of 5.1 per cent from 2022 to 2031.
As per the report, the rise in mobile data traffic, 5G network, and fibre deployment required for connectivity have boosted the growth of the global telecommunication services market. However, strict government network radiation rules hinder the market growth. On the contrary, advent of internet of things (IoT) would open new opportunities in the future.
The report further mentions that by service type, the mobile data services segment held the largest share in 2021, accounting for more than one-fourth of the global telecommunication services market. The growth was witnessed mainly on the account increasing mobile users and number of devices they own, as well as popularity of high-bandwidth applications such as streaming video and video conferencing. However, the fixed internet access services segment is estimated to register the highest CAGR of 6.4 per cent during the forecast period. This is because fixed internet access services are a good internet option for streaming videos, listening to music, sending large emails, running credit card machines, and other web-based tools.
Meanwhile, by transmission, the wireless segment is projected to manifest the highest CAGR of 5.5 per cent from 2022 to 2031. In addition, the segment held the largest share in 2021, contributing to more than three-fourths of global telecommunication services industry, due to adoption of wireless telecommunication services allow customers to send and receive messages through electronic devices and a wireless medium.
Besides, on the end-users front, the business segment is expected to manifest the highest CAGR of 5.9 per cent during the forecast period, owing to rapid business digitization and Industry 4.0 evolution. However, the consumer segment dominated the market in 2021, accounting for more than three-fifths of the global telecommunication services market, due to ongoing trends such as remote working and bring your own device (BYOD), the report noted.