Telecoms Market to reach $2.7tn, say Insight

News Article - Monday, 25 February 2013 10:38

By: Kerry Butters Category: Connectivity

A new report from The Insight Research Corporation notes that whilst the telecoms industry was "not immune” to economic forces last year, the market will continue to show growth at a rate of 3.8%, on average, until 2018.

New market analysis report The 2013 Telecommunications Industry Review: An Anthology of Market Facts and Forecasts found that, unsurprisingly, wireless technology showed the strongest growth. However, spending on wireless services only showed modest growth in 2012, whilst wired services contracted.

Whist the mobile communications market is expected to rise to a healthy 31% "compounded by rising usage”, it’s thought that wired services will remain "flat until substantial economic recovery kicks in”.

Despite this, certain sectors such as Ethernet, cloud and mobile solutions are expected to show double figure growth each year.

"Telecommunications revenues are driven by several factors—economic conditions, household expansion, population, and disposable income—to name a few. Until these indicators strengthen we will continue to see modest improvements in growth areas, such as wireless data and IPTV, along with declines in mature services, such as voice and wireline data,” says Fran Caulfield, Research Director for Insight Research.

"Global telecommunications spending will hover around 3 percent of GDP; slightly lower in the US. Despite the weakness in these indicators, the fact remains that telecommunications is a key enabler of economic growth and service providers with the right strategy will prosper.”

The 303-page report also investigates the key drivers to growth, including existing and future services within the enterprise market. An overview of this can be found on the Insight website.

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