06 Nov 2019

Worldwide Spending on Telecommunications Services and Pay TV Set to Reach $1,647 Billion in 2020, According to IDC

FRAMINGHAM, Mass., FOR IMMEDIATE RELEASE — Worldwide spending on telecom services and pay TV services will reach $1,633 billion in 2019, an increase of 0.8% year on year, according to the International Data Corporation (IDC) Worldwide Telecom Services Database. IDC expects this figure to reach $1,647 billion in 2020, representing an increase of 0.9%.

Mobile remains the largest segment of the market, accounting for 52.8% of the total in 2019. The mobile market is set to post a compound annual growth rate (CAGR) of 1.3% over the 2019-2023 period, driven by the growth in mobile data usage and M2M applications, which is offsetting declines in spending on mobile voice and messaging services. Fixed data service spending represents 21.7% of the total market in 2019, with an expected CAGR of 3.3%, driven by the need for higher bandwidth services. Spending on fixed voice services will post a CAGR of negative 4.8% over the forecast period and will represent only 8.5% of the total market by 2023. Rapidly declining TDM voice revenues are not being offset by the increase in IP voice.

On a geographical basis, the Americas was the largest services market, with revenues of $630 billion in 2019, driven by the large North American sector. Asia Pacific was the second largest region, followed by Europe, the Middle East, and Africa (EMEA). The markets with the fastest year-on-year growth in 2019 were EMEA, driven mainly by emerging markets, followed by the Americas.

Global Regional Services 2019 Revenue and Year-on-Year Growth (revenues in $B)

Global Region

2019 Revenue

19/20

Growth

Americas

$630

0.7%

Asia/Pacific

$513

0.6%

EMEA

$490

1.3%

Grand Total

$1,633

0.9%

Source: IDC Worldwide Semiannual Services Tracker 1H 2019

The introduction of 5G, the latest big thing to hit the global telecommunications market, has recently begun to make an impact. Promising improved architectures, speeds, and services that will remake the mobile landscape, this technology has already been launched in more advanced markets such as Korea, the U.S., U.K., Germany, and China. IDC forecasts that the number of mobile 5G subscriptions will surpass one billion by 2023.

“By introducing extremely high speeds and ultra-reliable low latency, 5G will create the infrastructural foundation for a smarter and even more connected world," says Kresimir Alic, research director with IDC's Worldwide Telecom Services. "It will also generate new opportunities for telecom services operators. More than ever before, these companies will be expected to create, innovate, and educate — becoming true leaders of the global digital revolution."

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

For more information about IDC's Worldwide Semiannual Telecom Services Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.

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