Updated · May 31, 2023
Updated · May 09, 2023
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The Covid-19 pandemic highlighted the importance of telecommunication services. From 4.39 billion internet users in 2019, it has increased to 5.16 billion users, with a 1.9% year-on-year change in the total number of users.
These statistics show that 64.4% of the global population uses telecommunication services. If you’re interested in knowing how vast the growth of the telecom industry is, then this article is for you.
Here you’ll understand how the telecom industry has grown, what changes have happened during the COVID-19 pandemic, and its market industry to global penetration rates with these informative telecom statistics.
The global telecom industry increased from $2,868.37 billion in 2022 to $3,041.8 billion in 2023, at a CAGR of 6.0%. Specifically, the mobile data services segment grew from $796.04 billion in 2022 to $894.84 billion in 2023 at a CAGR of 12.4%.
As global telecommunications services enter a new era, new expectations must be met. Here are statistics that will provide insights into how the telecom industry is growing.
With the massive growth of the telecom industry from 2022 to 2023, it’s time to learn how it happened. The $2,868.37 billion was contributed by the different markets in the telecom industry.
Let’s take a closer look at these market size statistics.
(The Business Research Company)
The 2023 market value of the global telecom industry has an annual growth rate of 6.0%. This increase is attributed to the changes in consumer behavior steered by the COVID-19 pandemic and the increased data consumption for mobile device users.
(Grand View Research)
This sector accounted for the largest revenue share compared to other end-user-type segments. More than 59% of the end-user segment's $1.8 trillion market size is attributed to the residential segment. However, the business segment also sees an increasing demand for telecommunication services.
In 2021, Global Micro Mobile Data Center had a $4.18 billion value. This value is predicted to grow steadily at 19.3% for 2022-2029. Global Micro Mobile Data Center became more relevant when demand for more data centers was heightened during the COVID-19 pandemic.
More data from multiple sources like social media, purchase transactions, and mobile GPS are being generated today. It just takes two years to have a 90% total capacity for data storage.
(Grand View Research)
This significant increase in market share is attributed to the expanding utilization of smartphones among consumers. Furthermore, the prompt demand for high-speed telecommunication services for corporate and even residential segments is forecasted to reinforce the growth of the mobile data services segment.
With the sharp increase in cloud adoption, infrastructure, and development, the industry has computed in the year 2020 a total value of 371.4 billion U.S. dollars. It is anticipated to reach 832.1 billion U.S. dollars by the year 2025. The market also has a compound annual growth rate of 17.5%.
Aside from the different segments’ market size in the telecom industry, the usage of consumers also plays a vital role in understanding its development. With the rising number of mobile phones, it is reported that 92.3% of internet users access the internet using their mobile devices.
The following statistics will illustrate how consumers worldwide accept the innovations made by the telecom industry.
Communication and creation can now be done with a single swipe or scroll from mobile devices. With this, the U.S. has 274 million smartphone users, making it third in rank next to China and India. This increase in smartphone users also caused a rise in mobile cellular subscriptions, which fueled the industry's growth.
More than half of U.S. customers have already used the 5G network— a massive increase from its previous rate of 43% last 2021. Research also shows that each age group is now acquiring 5G networks, which indicates the penetration of this new generation of mobile networks.
Mobile vs. desktop internet utilization in the United States has been going on for years, and a percentage of mobile web traffic has soared. As of February 2023, 52.08% of the total web visits are from mobile devices, and 47.92% are from desktops. These two have not established their place as the most favored web browsing device.
9. Google Drive is one of the most used cloud storage devices at 94.44%.
There are a lot of available cloud storage services in the market, but Google Drive is the most used cloud with 94.44%. Other cloud storage devices, such as Dropbox, tagged as best for collaboration, have a 66.2% usage, and OnerDrive at 39.35%. Apple’s iCloud is only at 38.89% in terms of cloud storage.
Fifth-generation (5G) wireless is considered the current most developed versatile broadband innovation being carried out because of the expanding requests for quicker and more extensive data transfer capacity, for example, from the Internet of Things (IoT) and the metaverse. This newest generation of mobile broadband technology will overpower 4G in the coming years.
The 5.44 billion people using mobile phones is equivalent to 68% of the global population. This data illustrates how smartphone penetration has increased as the years go by. Over half of the global population are users of mobile phones. During the past 12 months, 168 million new users were added.
In 2022, global telecom services value was at $1,805.61 billion with a CAGR of 6.2%. The telecom services sector is the second largest next to telecom equipment from the three sub-sectors of the telecom industry. After learning about consumers' usage, let's dive into the different services that the industry provides.
Keep reading to learn how these services contributed to the industry's massive growth.
AT&T Inc has generated a revenue of over 168 billion dollars. The company also leads the wireless segment with its high ranking in ARPU. With the increased demand for fast data connectivity, the company also provides one of the largest 5G networks regarding physical coverage.
Over half of the U.S. mobile users use Apple’s Safari as their internet browser. This quantitatively proved iPhones' popularity in the United States, as Safari is its built-in web browser. As it is, the iPhone has roughly 124.7 million users making Google second on the list with 41.67%.
Amazon Web Services (AWS) serves as the largest cloud computing company on a global scale. It has a share of 31% of the global market, followed by Microsoft Azure at 20% and Google Cloud at 7%.
The founder of AWS, Jeff Bezos, claims its success to be rooted in its seven-year head start before it had competitors. This head start allowed the company to advance and develop better.
(Business Research Company)
From its 2,868.37 billion U.S. dollars market share in 2022, the global telecom market increased to 3,041.8 billion U.S. dollars in 2023 at a (CAGR) of 6.0%.
Although the Russian-Ukraine war posed a threat on the road to global economic recovery from the COVID-19 pandemic, the telecom market is steady in its forecast of growing into 3,818.42 billion U.S dollars in 2027 with a 5.8% CAGR.
Previously, it was already established how vast and significant the advancement of the telecom industry is. A sharp rise in global telecommunication is forecasted in 2023. It is expected to have a market spend of $1.5 trillion.
The following statistics will exhibit the contributions of the different regions worldwide.
(Grand View Search)
The Asia-Pacific region generated more than 33% of the total telecom market share and is forecasted to increase at a CAGR of 7.0% from 2023-2030.
It is said that the region will have more than half the traction of new mobile subscribers by 2030. Asia-Pacific is predominantly fueled by e-commerce, smartphone trends, and development in 5G network infrastructures.
China has more than 950 million smartphone users, making it the country with the most smartphone users compared to any other country. Next in rank is India, with 492.78 million users.
These two countries are projected to lead smartphone user ranking, as both countries also rank one and two in terms of the largest population count worldwide.
The Japanese telecommunications market ranked the third-largest globally, with 138 billion U.S. dollars in revenue. Despite the low population growth, it has three large fixed and mobile network operators that spend so much on towers and fiber infrastructure.
The three-player telecommunications service in the Japanese market was stable until a fourth player named Rakuten entered the market. It has an ambitious goal of becoming the first-ever cloud-native mobile network.
China Mobile is a Chinese telecommunications services operator. It became the leading telecom operator in the Asia Pacific region in 2020. It has a brand value of over 49 billion U.S. dollars.
Globally, it ranked as the third highest revenue, following the U.S-based giants AT&T and Verizon. The telecom operator also has the notable credential as the largest mobile service provider worldwide with its number of subscriptions.
This amount was an increase of 5% compared to its previous performance and an increase of 58% from its 2020 performance.
The company was also reported as one of the leading German companies, along with Mercedes-Benz and the Allianz Group. Its ranking with "Brand Finance Global 500" validates Telekom's second-place ranking among other global telecommunication services providers. The company is also behind Verizon, AT&T, and Orange.
Norway, along with the United Arab Emirates (UAE) and Qatar, have some of the fastest average mobile internet connections worldwide. As of September 2022, each country has an average median speed above 120 Mbps.
Norway, as the fastest, has an average connection speed of 126.94 Mbps, and UAE is a close runner-up with an average mobile connection speed of 126.85 Mbps.
These statistics illustrate how vast and varied the telecommunication industry is. There are a lot of segments and services to consider when conversing about it, not to mention the industry's diversity in its growth.
The future of telecommunication services lies in the different markets spanned worldwide; more importantly, the users decide what the future will be. Suppose users change their behavior in terms of their consumption of data or voice services. In that case, the whole industry will bend and follow that course.
So, it is vital that users also educate themselves about their impact as the industry is continuously transforming and innovating. These statistics serve as a good take-off point for users to know where they stand in the vastness of the telecom industry.
Telecom, short for telecommunications, is the trade-off of information using different devices over significant distances. It's a broad term that includes other sectors, but all have transmitters and receivers.
The Telecom industry is responsible for 3% to 4% of all global emissions. If left unregulated, the sector may be accountable for up to 14% of global carbon dioxide emissions by 2040.
Rural telecommunication systems are means of communication and sharing of knowledge. With this, people can bring new and updated information sources, leading to conversations between rural people and their respective institutions.
The industry gives businesses the space to use advanced communication processes for everyone involved in the company. Using telecommunication services, businesses have the essential infrastructure and mediums to use for digitally transmitting data.
Telcos will platform to the cloud in 2023 to reap the cost benefits of the cloud, such as speed, improved resilience, scalability, and innovation.
Telegraph, telephone, radio, television, videotelephony, satellites, closed computer networks, and the public Internet are all critical telecommunications technologies.
Some industry segments are wireless communications, communications equipment, processing systems, products, long-distance carriers, and domestic, foreign, and diversified communication services.
An average company uses around 1400 cloud-based apps for storing data. Employees use an average of 36 cloud-based services in their daily tasks. In the “collaboration” category, around 210 services are available.
As a cloud architect at McKinsey with experience handling Fortune 500 clients, this individual has comprehensive expertise in cutting-edge technologies and tools such as cloud computing, virtualization, network security, data storage, and disaster recovery. They have a wealth of experience in creating and executing virtualization solutions for both on-premise and cloud-based systems, with a primary focus on enhancing efficiency, dependability, and security.
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