Global Enterprise Telecom Services Market Size, Share & Industry Trends Analysis Report By Transmission, By Vertical, By Enterprise Size (Small & Medium Enterprises and Large Enterprises), By Service, By Regional Outlook and Forecast, 2023 - 2029
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Market Report Description
The Global Enterprise Telecom Services Market size is expected to reach $1046.7 billion by 2029, rising at a market growth of 6.2% CAGR during the forecast period.
Telecommunications services, which are very beneficial for businesses, enable the ability to communicate with clients effectively and develop strong ties with them. Because they make data transmission easier, increase productivity, and provide flexibility, telecommunications services additionally help employees.
One of the key factors propelling the market's expansion is the increase in investment in the rollout of 5G infrastructure due to a constant shift in businesses' preferences for next-generation communication technologies. In addition, an increase in interest in high-speed data connectivity, a rise in mobile users, and a rise in the need for value-added managed services are the primary factors promoting the market's growth.
Many enterprise telecom service providers are putting their focus on creating technologies through forming alliances that will enable smooth business operations. Through these alliances, service providers can better utilize the skills and resources of other organizations to offer businesses a complete solution.
Globally, enterprise communication services have seen significant expansion thanks largely to digitalization. Through digitization, service providers can give their clients connectivity options that are more dependable and swifter. This includes setting up cutting-edge networks, including 5G, which offers mission-critical applications improved connectivity, higher data speeds, and lower latency. In addition, ioT and machine-to-machine (M2M) communication technologies are being adopted due to digitization. These solutions increase operational effectiveness, cut costs, and support market expansion by allowing businesses to connect remotely to and control their devices.
COVID-19 Impact Analysis
The COVID-19 pandemic's spread, which exposed the flaws and shortcomings of traditional business structures, companies have begun to invest in digital transformation projects. As a result, as businesses adopted cloud-based business strategies for operational efficiency, interest in communications services rose throughout the second and third quarters of 2020. The adoption of modern technologies like AI, IoT, and IIoT has also started to cost a lot of businesses to enable better-automated processes. This all led to the growth of the enterprise telecom services market during the pandemic period.
Market Growth Factors
Growing acceptance of digital technologies
Digitalization has a significant role in the expansion of telecom services globally. As technology advances and the telecommunications network improves, industries change significantly regarding how they operate and offer services. Due to these improvements, end users' or people's lives, in general, have considerably improved. A significant change in how money and information move throughout the global economy has also been made by telecom industry players' investments in technology and interoperability. By enabling people to access social programs, up-to-the-minute information, and markets that affect their quality of life, access to a globally connected network has also considerably increased people's sense of empowerment.
Growing acceptance of IoT
The internet's accessibility makes it possible for these sensors and devices to link to one another over it, creating an ecosystem of connected technologies. Due to the enormous number of devices, modules, and sensors utilized in IoT technology, ICT developers and stakeholders throughout the telecom sector now have new business options. It is projected that growth will pick up in several areas, including industrial IoT, intelligent transportation, smart cities, and smart infrastructure. The market for enterprise telecom services has expanded due to the increased adoption of IoT technologies across various industry verticals in recent years.
Market Restraining Factors
Security and privacy issues associated with telecom services
The security aspects of 5G services can be increased if the network architecture is robust enough to support them. Persistent threat detection, interception, and infiltration are security issues. The difficulty for telecom service providers will come in meeting the growing demand from customers for active protection along the entire internet value chain. These security concerns related to telecom services can restrict businesses from relying on services, which might impede the expansion of the enterprise telecom services market in the upcoming years.
Based on service, the enterprise telecom services market is segmented into fixed voice services, fixed internet access services, Pay TV services, machine-to-machine (Mobile IoT) services, and others. The machine-to-machine (Mobile IoT) services segment recorded a remarkable revenue share in the enterprise telecom services market in 2022. Machine-to-machine (M2M) communications will be facilitated by 5G, allowing automobiles to exchange information with other automobiles, traffic control systems, MET departments, and more. This will enable on-the-go decisions on alternative driving routes in addition to real-time suggestions for repairs or gas stations when combined with edge computing and ultra-reliable low-latency networking.
By transmission, the enterprise telecom service market is fragmented into wireline, and wireless. In 2022, the wireless segment dominated the enterprise telecom services market with the maximum revenue share. Wireless Local Area Network (WLAN) systems have gained popularity swiftly over the years, enabling cellular devices to access the internet in various settings, including offices, cafeterias at airports, and other public and private venues. The use of cloud computing, artificial intelligence, and the Internet of Things is also anticipated to significantly contribute to the global expansion of wireless communication channels.
Enterprise Size Outlook
On the basis of enterprise size, the enterprise telecom service market is categorized into small & medium enterprises and large enterprises. In 2022, the small & medium enterprises segment witnessed the largest revenue share in the enterprise telecom services market. A suitable connection is needed for a rising number of remote workers, and small businesses are searching for sufficient IT support to keep up with shifting business needs. In addition, the use of telecom services by small and medium-sized businesses helps them, among other things, to improve communication among teams, promote worker productivity, and reach more customers.
Based on Vertical, the enterprise telecom service market is bifurcated into IT & telecom, manufacturing, healthcare, retail, media & entertainment, government & defense, education, BFSI, energy & utilities, transportation & logistics, travel & hospitality, O&G and mining, and others. The BFSI segment garnered a significant revenue share in the enterprise telecom services market in 2022. The BFSI sector has recently experienced a significant shift. The BFSI industry will be shaped by the newest technology trends in the upcoming years, including online banking, chatbots, open banking, and virtual assistants powered by cutting-edge technologies like blockchain or big data. Enterprise telecom services will be a major force behind these improvements because they provide dependable telecommunications and internet access.
|Market size value in 2022||USD 693.2 Billion|
|Market size forecast in 2029||USD 1046.7 Billion|
|Historical Period||2019 to 2021|
|Forecast Period||2023 to 2029|
|Revenue Growth Rate||CAGR of 6.2% from 2023 to 2029|
|Number of Pages||330|
|Number of Table||524|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Transmission, Enterprise Size, Vertical, Service, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region wise, the enterprise telecom services market is analysed across North America, Europe, Asia Pacific and LAMEA. In 2022, the Asia Pacific region led the telecom enterprise telecom services market by generating the highest revenue share. There will be a growth in demand for enterprise telecom services due to the deployment of 5G networks throughout Asia and the Pacific. For businesses to create new applications and services, 5G networks will offer greater data rates and lower latency. In addition, with a growing number of devices connected to the web, there is an increasing demand for enterprise telecom services that can manage these devices, driving considerable growth in the IoT in the Asia Pacific region.
Free Valuable Insights: Global Enterprise Telecom Services Market size to reach USD 1046.7 Billion by 2029
KBV Cardinal Matrix - Enterprise Telecom Services Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Verizon Communications, Inc. is the major forerunner in the Enterprise Telecom Services Market. Companies such as Comcast Corporation, AT&T, Inc., Cox Communications, Inc. are some of the key innovators in Enterprise Telecom Services Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include AT&T, Inc., Verizon Communications, Inc., Comcast Corporation, Charter Communications, Inc., Lumen Technologies, Inc., Cox Communications, Inc., Altice USA, Inc., Frontier Communications Parent, Inc., Windstream Holdings, Inc., and KT Corporation.
Recent Strategies Deployed in Enterprise Telecom Services Market
- Feb-2023: Comcast collaborated with Nokia following which the former company is utilizing Nokia's 5G Software for supporting its mobile connectivity efforts. Following this collaboration, Nokia supplies its 5G standalone Core comprising Packet Core, ultra-low latency capabilities, zero-touch automation, consulting services, and operations software. Comcast provides enhanced 5G access to customers in the United States through using Citizens Broadband Radio Service (CBRS) and 600 MHz spectrum, with the help of these offerings.
- Feb-2023: AT&T came into collaboration with ServiceNow, a software company that develops a cloud computing platform, for a new telecom offering that would help the partners and providers in managing their complex worldwide fiber and 5G network footprints. Following the collaboration, the former company provides strategic design and technical guidance to the latter company for the development of the Telecom Network Inventory. Telecom Network Inventory enables partners to simplify rising complex network environments and support network automation, together with creating a new revenue stream for the channel at a time when investments are being made in new networks.
- Feb-2023: AT&T extended its collaboration with Frontier Communications following which AT&T implemented wireless infrastructure in Frontier central offices and integrated with Frontier's blazing fast fiber network. This would increase the wireless service's resilience, dependability, and speed for AT&T's customers. AT&T is the first tenant that rents space for Frontier's hyper-local offices, and it would use Frontier's fiber-optic network to link with its networked cell towers. The addition of Frontier's footprint to AT&T's current network will hasten the rollout of 5G.
- Feb-2023: Cox Communications announced its collaboration with Intel and Future Technologies for designing and implementing end-to-end managed private network solutions for private and public sector commercial customers. Cox Private Networks were introduced in 2022 and utilize both fixed wireless and LTE/5G access. Together, the companies focus on solving the operational challenges related to end-to-end network solutions, augmenting the digital transformation journey, and delivering a better experience for customers, employees, and visitors.
- Jan-2023: Cox Communications introduced Cox Mobile, a new mobile phone service nationally. This service is available to Cox Internet customers across the nation. Cox Mobile customers can access two simple data plans launched according to their needs and budgets - Gig Unlimited and Pay as You Gig.
- Oct-2022: Altice announced an agreement with Vodafone Group to establish a joint venture named FibreCo, for deploying fiber-to-home to around 7 million homes in 6 years. Together, Altice's proven Fibre-to-the-Home construction skills and Vodafone's considerable next-generation network enabled the JV company to reach even more German consumers with gigabit connectivity.
- Sep-2022: Comcast joined hands with Samsung Electronics following which the latter company would provide its 5G solutions to the former company. Following this partnership, Samsung supplies a 5G Radio Access Network (RAN) to Comcast for enhancing 5G connectivity for its customers.
- Oct-2021: Verizon formed a partnership with AWS, a subsidiary of Amazon providing on-demand cloud computing platforms and APIs. Following the partnership, Verizon introduced private mobile edge computing for enterprises with AWS Outposts. Moreover, Verizon's private mobile edge compute solution with AWS Outposts is available for enterprise customers across the U.S. Moreover, Verizon 5G Edge with AWS Outposts can be considered a cloud computing platform that brings compute and storage services to the edge of the network on the customer premises. Verizon 5G Edge with AWS Outposts is a cloud computing infrastructure that offers computing and storage capabilities to customers' premises at the network's edge.
- Oct-2021: Cox Communications completed the acquisition of the commercial services segment of Charlotte, N.C.-based Segra, one of the largest privately held fiber infrastructure providers in the U.S. Through this acquisition, the company would strengthen its focus on strategic infrastructure investments and its ongoing commitment to the business services market.
- Oct-2021: Comcast acquired Masergy, a software-defined networking services company. The acquisition aimed to boost Comcast's growth catering to large and mid-size enterprises, mainly U.S.-based organizations with multi-site global operations and strengthen its overall channel distribution strategy.
- Sep-2021: Lumen Technologies joined hands with U.S. Postal Service (USPS). The collaboration would strengthen and update its network services that support above 32,000 post offices and mail processing sites around the country. Under this collaboration, Lumen would offer the USPS safe, highly resilient broadband, wireless access, software-defined networking, and managed network services that improve how these locations connect, collaborate, and interact with around 900 crucial information technology applications.
- Aug-2021: AT&T together with Cisco, launched 5G network capabilities for enhancing performance for Internet of Things applications in the US. AT&T Control Center powered by Cisco provides near real-time visibility of all the IoT devices on their network, to businesses. Moreover, it helps businesses in mitigating security risks, identify anomalies in data usage, and optimize traffic classification reporting. The addition of 5G opened the door for immense IoT connectivity that would create opportunities for transforming retail, making smart factories and autonomous vehicles a reality, and revolutionizing healthcare.
- Jul-2021: AT&T formed a collaboration with Google, an American multinational technology company. Following the collaboration, the two companies introduced new solutions across AT&T's 5G and Google Cloud's edge computing offerings, including AT&T's on-premises Multi-access Edge Compute (MEC) solution, and AT&T Network Edge offerings through LTE, 5G, and wireline.
- Jul-2021: Verizon Communications signed a partnership with Ericsson, a telecom company for expanding its U.S. 5G network. Under this partnership, Verizon would leverage Ericsson's diversified technology solutions for expanding its ultra-wideband 5G coverage. This comprises the Ericsson Spectrum Sharing and the Ericsson Cloud Radio Access Network, and the Massive MIMO.
- Jul-2021: Verizon expanded its geographical footprint by making available its 5G Business Internet, a fixed-wireless Internet offering to parts of 42 U.S. cities. The offering is powered by 5G Ultra-Wideband and includes professional installation with no digging and a rapid timeline for deployment.
- May-2021: Verizon partnered with RingCentral, a company that offers companies different cloud-based business communications solutions. Under this partnership, the two entities would jointly develop a unique co-branded service, RingCentral with Verizon, smooth integrated unified communications as a service (UCaaS) solution for enterprise businesses.
- Apr-2021: Lumen Technologies extended its collaboration with T-Mobile for utilizing T-Mobile's 5G mobile network for accelerating Lumen's Edge Computing Platform. This would help enterprises in building, managing, and scaling applications efficiently across highly distributed environments. In addition, T-Mobile became Lumen's preferred wireless connectivity partner, providing all enterprises with a more adaptable and dependable connectivity solution.
- Feb-2021: Lumen extended its partnership with VMware, an American cloud computing and virtualization technology company. Following this partnership, the two companies would accelerate the design, development, and delivery of edge computing and safer, work-from-anywhere solutions. Moreover, the integrated capabilities of the two entities would allow customers to provide enhanced experiences for any application, to any device, from the global cloud core to the distributed network edge.
Scope of the Study
Market Segments Covered in the Report:
- IT & Telecom
- Media & Entertainment
- Oil & Gas
- Energy & Utilities
- Transportation & Logistics
By Enterprise Size
- Small & Medium Enterprises
- Large Enterprises
- Fixed Internet Access Services
- Machine-to-Machine (Mobile IoT) Services
- Fixed Voice Services
- Pay TV Services
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- AT&T, Inc.
- Verizon Communications, Inc.
- Comcast Corporation
- Charter Communications, Inc.
- Lumen Technologies, Inc.
- Cox Communications, Inc.
- Altice USA, Inc.
- Frontier Communications Parent, Inc.
- Windstream Holdings, Inc.
- KT Corporation
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North America Enterprise Telecom Services Market Report 2023-2029
Europe Enterprise Telecom Services Market Report 2023-2029
Asia Pacific Enterprise Telecom Services Market Report 2023-2029
What would be the size of this Market by 2029?
The Market size is projected to reach USD 1046.7 billion by 2029.
What are the key driving factors and challenges in this Market?
Growing acceptance of IoT are driving the Market in coming years, however, Security and privacy issues associated with telecom services restraints the growth of the Market.
What are the major top companies in the competitive landscape?
AT&T, Inc., Verizon Communications, Inc., Comcast Corporation, Charter Communications, Inc., Lumen Technologies, Inc., Cox Communications, Inc., Altice USA, Inc., Frontier Communications Parent, Inc., Windstream Holdings, Inc., and KT Corporation.
Which segment shows a high revenue share of this Market in 2022?
The IT & Telecom segment acquired maximum revenue share in the Global Enterprise Telecom Services Market by Vertical in 2022 thereby, achieving a market value of $221.2 billion by 2029.
Which segment is leading the Market in 2022?
The Fixed Internet Access Services segment is leading the Market by Service in 2022 thereby, achieving a market value of $424 billion by 2029.
Which region dominated the Market in 2022?
The Asia Pacific market dominated the Market by Region in 2022 and would continue to be a dominant market till 2029; thereby, achieving a market value of $381.3 billion by 2029.