The rise in mobile data traffic, 5G network, and fiber deployment required for connectivity have boosted the growth of the global telecommunication services market. As per the report, the global telecommunication services industry accounted for $1,602.5 billion in 2021 and is expected to reach $2,556.2 billion by 2031, growing at a CAGR of 5.1% from 2022 to 2031.

However, strict government network radiation rules hinder market growth. On the contrary, the advent of IoT would open new opportunities in the future.

Increased mobile data traffic telecommunication services

Internet material is transported to different mobile consumer electronics, such as smartphones and tablets, through mobile data traffic. The industry is expanding due to the worldwide increase in mobile data traffic. By 2024, it is anticipated that global mobile traffic would have increased by a factor of 5, totaling 136EB each month. Additionally, it is anticipated that by 2024, 5G networks would handle almost one-third of all mobile data traffic worldwide. The demand for technologically advanced telecommunication networks is therefore projected to develop significantly as a result of the noticeable increase in mobile data traffic.

Covid-19 scenario:

• The Covid-19 pandemic had a low impact on the growth of the market as private and government sectors were working together to speed up the development of 5G infrastructure.
• For instance, mobile network operators in Thailand had joined forces to offer 5G networks to hospitals during the pandemic. The Easter Economic Corridor (EEC) mandated that 5G must cover around 50% of the area in 2020 and its equipment installation would commence in the same year.

The mobile data services segment dominated the market

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, due to an increase in mobile users and the number of devices they own, as well as the popularity of high-bandwidth applications such as streaming video and video conferencing, is causing the amount of mobile data consumed every year to grow.

However, the fixed internet access services segment is estimated to register the highest CAGR of 6.4% 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.

The wireless segment to portray the highest CAGR through 2031

By transmission, the wireless segment is projected to manifest the highest CAGR of 5.5% from 2022 to 2031. In addition, the segment held the largest share in 2021, contributing to more than three-fourths of the the global telecommunication services industry, due to the adoption of wireless telecommunication services, which allow customers to send and receive messages through electronic devices and a wireless medium. The report includes an analysis of the wireline segment as well.

The business segment to showcase the highest CAGR by 2031

By end user, the business segment is expected to manifest the highest CAGR of 5.9% 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).

Asia-Pacific held the lion’s share

By region, the Asia-Pacific market dominated in 2021, accounting for around one-third of the global telecommunication services market, due to the fact that many countries in the region have evolved with industrial transformation initiatives, thus increasing the focus on 5G deployments. However, the market across LAMEA is expected to register the highest CAGR of 6.4% during the forecast period, due to the rise in strategic trails to launch 5G technologies and equipment in this region is high.

Telecommunication services major market players