Telecom IT Services Market Size, Share, Growth Report 2032

Telecom IT Services Market Insights

According to Zion Market Research, the global Telecom IT Services Market was worth USD 4.74 Billion in 2023. The market is forecast to reach USD 7.23 Billion by 2032, growing at a compound annual growth rate (CAGR) of 4.8% during the forecast period 2024-2032. The report offers a comprehensive analysis of the market, highlighting the factors that will determine growth, potential challenges, and opportunities that could emerge in the Telecom IT Services Market industry over the next decade.

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Telecommunications service providers offer telecom IT services in order to handle large amounts of communication data. Communication systems are critical for companies in order to effectively interact with customers and establish healthy customer relationships. Telecom IT services mainly include fax, phone, email, internet and radio among others. Rapidly expanding base of internet subscribers and a strong demand for high-speed, uninterrupted network are one of the primary factors driving the growth of this market. The advent and adoption of 5G technology is one of the top trends in this market currently. Fifth generation (5G) technology rollout is vital in today’s environment of remote working and constant digital developments. Artificial Intelligence (AI) is also expected to create a stronger foothold in the telecom IT services market through virtual assistants, chatbots and other mediums.

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Growth Factors

The increasing popularity, along with companies and individuals actively opting for cloud based technology and solutions are anticipated to augment the market in the coming future. Further, powered by the current switch to remote offices and increased digital activity, cloud based telecom service providers especially can drive their business by providing enhanced communication solutions. Remote learning is expected to become the standard in the future, which can enable telecom service providers come up with unique solutions to assist educators in reaching students especially those who have limited access to Wi-Fi.

Other potential factors driving the growth of the telecom IT services market include constantly rising number of mobile subscribers and growing dependency on smartphones and wireless technology.

Telecom IT Services Market: Report Scope

Deployment Type Segment Analysis Preview

Cloud based segment held a share of over 55% in 2023. This is primarily attributable to the cost flexibility, ease of business scalability and collaborative ecosystems that telecom cloud solutions have to offer. It has eliminated the need for businesses to purchase expensive hardware in order to remain globally connected. Advances in cloud based technologies can enable companies compete in a challenging and dynamic market more effectively.

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End User Segment Analysis Preview

SMBs segment will grow at a CAGR of around 23% from 2024 to 2032. This is attributable to the growing focus on reliable and quality voice calls for customer interaction and data delivery by businesses. An increase in deployment of 5G networks in business applications to improve connectivity and customer experience and adoption of cloud based technology may also contribute to the growth of this segment.  

Regional Analysis Preview

The North American region held a share of over 30% in 2020. This is attributable to the presence of top companies such as IBM Corporation, Cognizant, AT&T, and Verizon Communications among others in the industry, whose rapid growth is expected to drive the growth of the telecom IT services market.

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The Asia Pacific region is projected to grow at a CAGR of over 20% over the forecast period. This region is expected to be the fastest growing market, owing to a surge in e-commerce and investments in 5G networks as well as rising adoption of cloud based solutions to implement top class technology. China, India, and Japan are considered to be the most significant contributors to the growth of this market.   

Additionally, adoption of Internet of Things (IoT) in various industrial and business operations is also expected to open new avenues for this market in the coming years.

Key Market Players & Competitive Landscape

Some of key players in the global telecom IT services market are :

• Ericsson
• IBM Corporation
• Cognizant
• AT&T
• Capgemini
• Verizon Comunications
• Huawei, among others. 

Key market players in this market are resorting to and making investments in new age technology such as 5G networks and cloud based solutions to strengthen their foothold and broaden their consumer base. For example, in February 2021, AT&T Inc. and Verizon Communications spent a total of about USD 70 Billion on 5G spectrum technology to offer better network coverage to their customers. Other telecom service companies, such as China Mobile Ltd., KT Corporation, and Vodafone Group, are also investing heavily in acquiring millimetre wave (mmWave) spectrum for delivering high speed connectivity.

The global Telecom IT services market is segmented as follows:

By Deployment Type

• Cloud Based
• On Premise

By Solution Type

• CRM
• OSS BSS Solutions
• Mobile Commerce
• Supply Chain Planning
• Others

By End User

• Large Enterprises
• SMBs

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa