Telecom Analytics Market

Global Telecom Analytics Market Size (2024 to 2032)

The global telecom analytics market is predicted to reach USD 12.10 billion in 2024 and USD 114.95 billion by 2032, growing at a CAGR of 32.50% during the forecast period.

Telecom analytics is a type of business intelligence that is specially applied and packaged to satisfy the complex needs of telecommunication organizations. Telecom analytics helps decrease operational costs and maximize profits by increasing sales and reducing fraud, thus improving risk management. The analytical solutions usually extend beyond the capabilities of regular Business Intelligence for reporting and dashboarding to include capabilities ranging from ad hoc querying and multinational analyses for predictive and descriptive modeling, data mining, text analytics, forecasting, and optimization. Telecommunication is intended to improve visibility into core operations, internal processes, and market conditions, discern trends, and establish forecasts by adopting analytics into telecommunications. The growing adoption of smartphone users and the large data traffic prone to attack is expected to boost the data analytics market from 2024 to 2032.

Current Scenario of the Market

The incorporation of predictive analytics and AI is transforming network planning. With these modern technologies, telecommunication organizations precisely forecast future network traffic patterns, study past data, determine complicated trends, and estimate upcoming demand.

• As per McKinsey & Company, big data analytics can help the telecom industry anticipate and reduce user attrition by 15 per cent.

Presently, advanced analytics is reforming this industry by facilitating customized customer experience, optimized network operations, and improved decision-making. For a long time, the market continued to grow steadily because of software that became a quite forerunner of transformation, allowing telecom companies to provide quicker, more dependable, and varied services. In the past few years, the rapid adoption of smart devices and the rising reliance on virtual or online platforms or applications for business and personal communication has significantly increased the demand for secure, scalable, and powerful telecom software.

Today, the effect of these advancements is profound, impacting both this industry and society at large. Fast mobile and internet connectivity has emerged as an essential pillar of modern civilization, fueling progress in smart city developments, digital healthcare, remote work, and e-commerce. Hence, the telecom analytics market is currently growing quickly.

MARKET DRIVERS

The driving force of the Telecom Analytics Market is the increasing need for churn prevention, increasing demand for effective revenue management, and the rising attacks and suspicious activities.

The Telecom industry faces many difficulties concerning revenue generation, social generation analytics, and customer engagement. The telecom analytics solution includes Business Intelligence for the companies to satisfy complex requirements, thus fueling future demand for telecom analytics.

• According to a study by Wiisdom, the current adoption rate of business intelligence is about 26 per cent. Organizations with an employee strength of 5000 or over are more inclined to have an acceptance rate of 80 per cent or higher.

The rising attacks and suspicious activities fuel the telecom analytics market as telecom analytics provide a vital infrastructure and solutions to maintain security. With the authority of several nations, India has initiated imposing regulations for telecom sector safety. For example, the Indian Telecom Regulatory Authority of India has supplied stringent rules and penalties for failing to meet the voice quality benchmark. Owing to this region, the demand for telecom analytics will increase.

Moreover, due to the rapid acceptance of smart devices and the increasing use of IP addresses, the telecom industry faces several frauds. As attacks come from any source at any moment, the increasing fraud creates troublesome problems for the telecom market. This drives the mandate for telecom analytics in the market to reduce these attacks.

Advanced technologies such as Artificial intelligence and machine learning enable real-time data analytics. AI-based Telecom Analytics helps predict the outcomes by delivering valuable data insights. AI-driven Telecom Analytics will contribute to the market growth in the forecast period.

MARKET RESTRAINTS

The absence of alertness of telecom analytics among telecom operators is the primary factor restricting market growth. Additionally, the high maintenance cost and technology penetration in emerging countries hinder the growth of the telecom analytics market. Despite big and complicated data providing huge opportunities to boost the telecom sector, handling its advantages needs considerable financial means. Organizations should deliberately prepare their budgets and productively distribute resources to engage with large data. The absence of required skills and training also increases the costs for the companies. Unfortunately, sourcing, retaining, and enhancing the skills of employees with the necessary expertise can be tough for several companies, which affects the market growth. Investing in certification courses, employee training initiatives, and talent development efforts is important to fill the skill deficiency and satisfy training demands. Thus, these factors are restricting the growth of this market.

• According to the 2023-24 Telecom Sector Skill Council report, the telecom demand-supply gap in India presently is 2.41 million, which is anticipated to rise to 3.8 fold by 2030. Just 40 per cent of graduates in maths, IT, and computer science in India are employable in the technological spear because of the disconnect between industry needs and educational standards.

MARKET OPPORTUNITIES 

Utilizing network programmability to fulfill the demand for service differentiation is expected to thrive in the telecom analytics market in the coming years. Network programmability primarily circles around two main aspects. This includes network infrastructure’s programmability and on-demand service programmability. The programmability of network infrastructure is handled by the communication service provider (CSP) to use and run the system resources productively. The on-demand service programmability provides platforms to dynamically request communication infrastructure utilizing network APIs for different service levels.

Another trend that benefits the market is telecom AI, which accelerates the programmability of high-efficiency networks. This will allow its development into a purpose-motivated and self-governing system, able to assist varied service demands with maximum cost-effectiveness and environmental sustainability. The shift will be AI-powered, accelerating performance optimizations throughout resource network operations, services, and business. Moreover, the solution involves a hierarchy of implanted AI in radio access networks (RANs) and core networks (CNs). This clears the path for self-managing network functions and enhancing abilities like coverage, capacity, energy performance, resilience, and throughput.

MARKET CHALLENGES

Diverse data sources prevent companies from efficiently integrating and analyzing the information collected. This turns into a complicated job needing particular processing methods and tools. Telecom organizations gather data from several sources, including customer history, network logs, call detail records, etc. Every source generates data in various formats, structures, and protocols. Since market players generally work with older systems, they can be inconsistent with few advanced data integration techniques or formats. It, therefore, causes problems with maintaining data management, consistency, and quality. Accordingly, companies must invest in strong and scalable data incorporation solutions. It facilitates systematizing information and enhances its accessibility and suitability for analysis.

• According to a study published, Only 32 per cent of corporate executives stated that they possess the ability to make measurable outcomes from business data.

Scalability issues in business intelligence deployment are a major challenge impeding market expansion as telecom companies handle massive quantities of data collected from network functions, market activity, and customer contacts. The volume, diversity, and velocity of information may be excessive for conventional BI systems to manage, which leads to greater infrastructure costs, performance bottlenecks, and latency problems.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Telecom Analytics Market Analysis By Components

Based on components, the global telecom analytics market is segmented into Software and Services. The software segment will dominate the telecom analytics market due to its higher software adoption. Currently, Telecom Analytics Software is being deployed to cater to complex business intelligence requirements of the telecom industry vertical, including churn reduction, fraud detection, risk management, cross-sell and up-sell product and services plan, customer segmentation and analysis, revenue management, security, and compliance.

• In January 2024, Databricks introduced the Data Intelligence Platform for Communications. This sixth version of Databrick’s application is an industry-specific tool aimed at telecommunications companies.

Global Telecom Analytics Market Analysis By Deployment Model

Based on the deployment model, the global telecom analytics market is segmented into On-premises and cloud. The cloud-based deployment model is expected to boost the telecom analytics market due to its various benefits, such as cost control, resource pooling, and less implementation time. Additionally, the increasing adoption of CSPs by many mobile users drives the growth of telecom analytics based on cloud hosting.

• As per a study by Appinventiv, between 30 per cent and 50 per cent of telecom companies utilize the cloud for deeper partnerships throughout the virtual ecosystems.

Global Telecom Analytics Market Analysis By Organization Size

Based on organizational size, the global telecom analytics market is segmented into large enterprises, Small & Medium sized enterprises. Large enterprises are expected to dominate the market due to the massive deployment of telecommunication networks.

Global Telecom Analytics Market Analysis By Application

Based on application, the global telecom analytics market is segmented into Customer Management, Sales and Marketing Management, Risk and Compliance Management, Network Management, Workforce Management, and Others (Quality management and BI and reporting). Network Management or Network Analytics features bring visibility to the concert and behavior of the data center infrastructures. The increasing growth in IP traffic and adoption of 5G networks is expected to boost the growth of the Network Analytics or Network Management segment.

REGIONAL ANALYSIS

North America is the largest market for Telecom Analytics due to companies' increasing investment in advanced analytical solutions. The growth of telecom analytics is increasing due to increasing data analytics in the telecom sector. The United States is one of this region's largest telecom analytics markets, home to the major players in telecom analytics. Also, North America has some significant cellular service providers who are excessively dependent on customer feedback. Therefore, by opting for telecom analytics, CSPs in this region can provide better quality service with high efficiency. The significant adoption of smartphones and growing internet penetration will escalate the demand for telecom analytics in the forecast period.

In Europe, significant cloud and data analytics adoption is expected to boost the market growth of telecom analytics in this forecast period. Also, European telecommunication companies' growing adoption of analytical techniques to manage procurement activities in massive purchasing processes is expected to drive the growth of the telecom analytics market.

Asia-Pacific is estimated to emerge as an opportunistic region for the telecom analytics market due to the increasing focus of developing countries toward digitalization, which encourages communication service providers to advance their service models. Also, the key players have shown their interest in business expansion across Asian countries, driving the growth of this market. Furthermore, the increasing investments in advancing technologies like artificial intelligence, IoT, machine learning, and big data analytics will propel the growth of the telecom analytics market soon.

KEY MARKET PARTICIPANTS IN THE GLOBAL TELECOM ANALYTICS MARKET

The major companies operating in the global telecom analytics market include SAP (Germany), Oracle (US), IBM (US), SAS Institute (US), Adobe (US), Cisco (US), Teradata (US), Micro Focus (UK), TIBCO (US), and MicroStrategy (US).

RECENT HAPPENINGS IN THE GLOBAL TELECOM ANALYTICS MARKET

• In February 2024, Deutsche Telekom, SK Telecom, Singtel, e& and SoftBank Corp press released the formation of a new joint venture to create large language models (LLMs) particularly customized to the demands of telecommunications companies. This JV is also known as Global AI Telco Alliance Partners.

DETAILED SEGMENTATION OF THE GLOBAL TELECOM ANALYTICS MARKET INCLUDED IN THIS REPORT

This research report on the global telecom analytics market has been segmented and sub-segmented based on the components, deployment model, organization size, application, and region.

By Components

• Software
• Services
  • Managed Services
  • Professional Services
    • Consulting
    • Support and Maintenance
    • Deployment and Integration

By Deployment Model

• On-premises
• Cloud

By Organization Size

• Large enterprises
• Small & Medium sized enterprises

By Application

• Customer Management
• Sales and Marketing Management
• Risk and Compliance Management
• Network Management
• Workforce Management
• Others

By Region

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • The United Kingdom
  • Spain
  • Germany
  • Italy
  • France
  • Rest of Europe
• The Asia Pacific
  • India
  • Japan
  • China
  • Australia
  • Singapore
  • Malaysia
  • South Korea
  • New Zealand
  • Southeast Asia
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • UAE
  • Lebanon
  • Jordan
  • Cyprus