Report ID: PMRREP34508
Report Type: Ongoing
Format: PPT*, PDF, EXCEL
Industry: IT and Telecommunication
The market for US telecom services is estimated to value at US$848.8 Bn by the end of 2031 from US$534.9 Bn recorded in 2024. The market is expected to secure a CAGR of 6.8% in the forthcoming years from 2024 to 2031.
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Market Attributes |
Key Insights |
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Market Size (2024E) |
US$534.9 Bn |
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Projected Market Value (2031F) |
US$848.8 Bn |
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US Market Growth Rate (CAGR 2024 to 2031) |
6.8% |
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Historical Market Growth Rate (CAGR 2019 to 2024) |
5.1% |
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Telecommunication services are the core of the digital economy, enabling e-commerce in goods and services. Telecommunication services encompass a wide range of services, including messaging, online information retrieval, data processing, leasing of circuit capacity, and voice and data transmission services.
Telcos offer their customers a cost-effective and convenient bundle that includes multiple services like internet, TV, landline, and mobile. Customers are often attracted to bundling because it makes billing and service management easier, as well as the perceived enhancement of value for their investment.
Historical Growth and Course Ahead
Numerous factors are causing notable changes in the telecommunications services market. The way people communicate has changed as mobile data services have become more accessible and affordable. Instant messaging apps such as Facebook Messenger, WhatsApp, and others offered more flexible and affordable options than traditional SMS and phone calls.
With the advent of 5G internet networks, there's been a paradigm shift in internet connectivity, enabling faster data transfer, seamless video streaming, and enhanced voice transmission. This evolution has far-reaching implications for industries ranging from call centers and retail to e-commerce and healthcare, where stakeholders are leveraging new technologies to improve online communication and service delivery.
Additionally, the market is witnessing increased adoption of cloud computing in the education and healthcare sectors, facilitating efficient data exchange and collaboration among stakeholders. These trends underscore the market's pivotal role in shaping the digital landscape and driving innovation across diverse sectors globally.
Key Trends and Innovations in the Market
The rapid advancement of technology is propelling the world towards an AI-powered connected future marked by ubiquitous internet access, self-learning robots, and intuitive human-machine interaction. This advancement is reshaping consumer devices, networks, and applications as 5G networks spread across the US.
Major telecom providers such as Verizon, AT&T, and T-Mobile are accelerating their deployment, providing faster speeds, lower latency, and more capacity. The adoption of 5G enables new applications such as AR, VR, IoT devices, autonomous vehicles, and smart cities, shaping the telecom service market through rapid advancements, increased demand for broadband, a focus on cybersecurity, and the integration of emerging technologies such as IoT and edge computing.
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Currently, all devices and digital machines can be interconnected, assigned unique identifiers, and data transferred over a network with minimal interaction. This is essentially the foundation for the Internet of Things (IoT). And as more devices become connected, the telecom industry will have a significant growth opportunity.
The widespread adoption of smartphones fuels demand for mobile telecom services. High smartphone penetration rates result in increased data consumption as users engage in activities like streaming, social media, gaming, and online shopping. The popularity of video streaming services such as Netflix, Hulu, and Disney+ on mobile devices results in significant data consumption.
Many users are turning to mobile streaming as their primary mode of content consumption. The shift to mobile-first strategies in e-commerce and mobile commerce (m-commerce) necessitates robust mobile networks to support transactions, customer engagement, and marketing.
The growing mobile ecosystem significantly boosts demand for telecom services in the US. The proliferation of mobile devices, advances in 5G technology, the expansion of mobile applications and services, and the growing integration of IoT and enterprise mobility solutions are all contributing to this trend.
Rising Levels of Data Consumption and Generation
One aspect of telecommunications growth is the massive increase in data consumption and creation. In the early days of the internet, information was limited. Over time, people began to add to what was available, resulting in a virtual library of data. The proliferation of internet-connected devices, such as smartphones, IoT gadgets, and smart appliances, is fueling exponential growth in data consumption.
The popularity of video streaming platforms, online gaming, and social media has contributed significantly to the rise in data usage. The expansion of the Internet of Things (IoT) ecosystem includes a wide range of devices, from smart home devices to industrial sensors, which all contribute to increased data creation and consumption.
IoT-enabled devices generate massive amounts of data in industries like manufacturing, healthcare, and transportation, which is then used for process optimization, predictive maintenance, and real-time monitoring. The rising demand for data consumption and creation is thus a major driver of growth in the US telecom services market.
The Absence of Spectrum Allocation Regulations
The lack of regulation regarding spectrum allocation is a significant impediment to market growth. The IoT telecom services market is highly fragmented, with relationships with telecom service providers and IoT platform vendors shifting regionally, having a significant impact on relationships between IoT platform providers, and network-as-a-service providers.
Furthermore, customer demand for bandwidth-intensive applications and high-quality network experiences is also causing telecom service providers to struggle to keep up. IoT platform vendors are changing regionally, and the inability to form a good relationship between IoT platform providers, and network-as-a-service providers is expected to hamper IoT telecom service market growth.
Future Opportunities for US Telecom Service Providers
AI Revolutionizing Telco Service Operations
The telecommunications industry is undergoing profound transformation rather than simply digital transformation. These transformations are primarily driven by the introduction and integration of artificial intelligence (AI) and machine learning (ML). AI in telco solutions improves operations, allowing telcos and CSPs to keep up with technological advancements.
Telecommunications companies and communication service providers (CSPs) are increasingly turning to AI for digital transformation to address a wide range of challenges, including improving service quality and personalizing customer interactions.
AI in telecom enables CSPs and telecom companies to analyze large amounts of data quickly and accurately. As a result, they can make real-time decisions to improve customer interactions and operational efficiency.
AI technologies are transforming the customer service sector in the telecommunications industry. By leveraging AI for telcos, telecom companies and CSPs can provide round-the-clock customer support via intelligent virtual assistants and chatbots that can handle a wide range of inquiries, from billing to technical support.
AI is significantly transforming telco service operations by improving network performance, customer experience, security, process automation, data-driven decision-making, and fostering innovation.
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Category |
Projected CAGR through 2031 |
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Service Type – Mobile Data Services |
7.6% |
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Transmission – Wireless |
8.4% |
Mobile Data Services Lead the Charge in the US Telecom Service Market
Total global mobile data traffic, excluding fixed wireless access (FWA), is expected to reach 130 EB per month by the end of 2023. This is expected to grow by about a factor of three, reaching 403 EB per month in 2029. When FWA is considered, total mobile network traffic is expected to reach approximately 160 EB per month by the end of 2023, rising to 563 EB per month by the end of 2029.
The average monthly mobile data usage per smartphone in North America is expected to reach 66 GB by 2029, as unlimited data plans and improved 5G network coverage and capacity attract more 5G subscribers.
Data traffic will skyrocket in line with the expected uptake of gaming, XR, and video-based apps. These experiences necessitate higher video resolutions, increased uplink traffic, and more data from devices offloaded to cloud computing resources to satisfy users.
Wireless Transmission Poised to Exhibit Substantial Growth
The wireless telecommunications industry provides the facilities and services that enable wireless, direct communication over the airwaves. This includes cellular phones, paging, wireless internet, and wireless video services. Most of revenue for the major telecommunications providers in the US comes from wireless services. This is due in part to the growing number of cellular phone users, particularly smartphone users.
Wireless communication is one of the fastest growing and most vibrant technological areas in the communication industry. Wireless communication is a method of transmitting information from one location to another without the use of any connection, such as wires, cables, or physical mediums.
The wireless transmission segment is expected to grow the fastest in the US telecom service market due to advancements in wireless technology, increased demand for mobile data, the shift toward remote work and mobility, expanded coverage and accessibility, the growth of streaming services and content consumption, enhanced network capabilities, and the proliferation of consumer and enterprise applications.
US Telecom Services Lead the Global Market
In 2023, the United States accounted for 24.6% of global telecom services revenue. Service providers are increasing their spending on 5G infrastructure in the country, aided by the rapid growth of the smartphone ecosystem and demand for faster network speeds.
Major players such as AT&T, Verizon, and Comcast are investing heavily in R&D, with a focus on advancing 5G technology. As a digital hub, the US fuels the demand for OTT media, messaging, and e-commerce services. Telecom giants are promoting environmental and digital transformations, phasing out 2G and 3G networks to pave the way for 4G and 5G advancements.
Many market players are investing heavily in 5G infrastructure to improve network coverage and capabilities. This includes installing more cell towers, small cells, and upgrading existing network equipment.
Service providers are investing in AI-powered customer support, chatbots, and virtual assistants to provide quick and efficient service. The players are working together with technology companies, startups, and academics to drive innovation and bring cutting-edge technologies to market.
Top Industry Players Profiled
Recent Developments in the US Telecom Services Market
February 2024
AT&T announced plans to provide fiber-enabled broadband to over 2,000 business and residential locations in Sevastopol, Wisconsin. Project planning and engineering will begin in Q1 2024, with completion expected in two years. This initiative follows similar projects in Boonville, Indiana, and Egg Harbor, Wisconsin.
January 2024
T-Mobile completed extensive network enhancements, providing 5G coverage across 48,000 square miles of Upstate New York, including Fort Drum, Albany Airport, Lake Placid, and Clarkson University. This multi-year project added around 400 new cell sites and upgraded over 800 existing towers.
September 2023
Cox Private Networks, in partnership with InifiniG, expanded its solutions portfolio by launching Neutral Host as a Service (NHaaS), enhancing reliable cellular coverage from multiple MNOs in areas with weak indoor signals.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Bn for Value |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization & Pricing |
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As of 2024, the US telecom services market size is around US$534.9 billion.
The surging demand for telecom services in the US is driven by the expansion of 5G networks, increasing data consumption, proliferation of smart devices, growth of e-commerce, enhanced mobile services, increasing digital content consumption, and supportive regulatory policies.
Some of the key players operating in the market are AT&T, Verizon, Comcast, and T-Mobile.
Mobile data services segment accounts for a significant share in the US telecom services Market.
The rollout of 5G networks presents a compelling opportunity in the US telecom services market, offering numerous benefits and driving significant growth potential.
