Global telecoms services market may reach $1.3tn in 2021
A new report says that the international telecoms market declined in Europe and contracted in Asia-Pacific, resulting in a global decline
A new report says that the international telecoms market declined significantly in Europe and contracted in Asia-Pacific (APAC). Low growth in the US was not sufficient to offset these reductions, causing an overall global decline.
MarketLine’s new report on says that the global telecoms services market has experienced a decline in recent years, registering a negative compound annual growth rate (CAGR) of 3.4% between 2012 and 2016 to reach a value of $1.2 trillion.
Nicholas Wyatt, Analyst, MarketLine said: "The global telecommunications market has declined in value in recent years as downward price pressure has become an increasing factor. 4G mobile internet is now standard in many markets, particularly developed ones, so the only way lots of mobile operators can differentiate themselves from the competition is on price. This has forced prices down and negatively impacted a market that has reached saturation point in many countries."
The wireless segment was the market's most lucrative in 2016, with total revenues of around $775 billion, equivalent to 64.9% of the market's overall value, meaning the performance of that segment was key to the market's overall fortunes.
MarketLine forecasts an improvement and projects that a CAGR of 2.2% between 2016 and 2021 will drive the market to a value of $1.3 trillion by 2021. Growth will be seen in all regions, with the Asia Pacific region’s lower saturation level contributing to slightly higher rates than those forecast for the US and Europe.