According to the latest projections, global spending on telecommunications and PAY-TV services will reach $1,633 billion in 2019, up 0.8% from last year. The figure is forecast to reach $1,647 billion in 2020, an annual increase of 0.9%. Mobile remains the largest segment, accounting for 52.8% of the total market in 2019.
Between 2019 and 2023, the mobile market will grow at a compound annual rate of 1.3%, as growth in mobile data usage and M2M applications offset declines in mobile voice and SMS spending. Fixed data services accounted for 21.7% of the total market in 2019, with compound annual growth of 3.3% over the forecast period due to demand for higher bandwidth services. Fixed-voice spending grew at a compound annual rate of -4.8% over the forecast period and will account for just 8.5% of the market by 2023. The rapid decline in TDM voice revenue has not been offset by the growth in voice over IP.
Geographically, the America is the largest service market, with revenues of $630 billion in 2019, driven by the North American region. The Asia-pacific region is the second largest, followed by the EMEA region. The EMEA region, driven by emerging markets, will be the fastest-growing regional market in 2019.
The rollout of 5G is the latest major event affecting the global telecommunications market. The technology promises to improve architecture, speed and service, and reshape the mobile landscape. 5G services have already been launched in advanced markets such as South Korea, the US, the UK, Germany and China. It is predicted that the number of mobile 5G users worldwide will exceed 1 billion by 2023.
"By introducing extremely high speeds and ultra-reliable low latency, 5G will lay the foundation for a smarter, more connected world," said the director of global telecommunications services research. 5G will also bring new opportunities for telecom service providers. These companies will be more creative, innovative and educational than ever before and have the potential to become true leaders of the global digital revolution.
