A report by Technavio projects the telecom services market to grow by $625.5 billion from 2022 to 2027, progressing at a CAGR of 6.13%.
The projected growth would be driven by the growing demand for broadband internet worldwide, particularly in the consumer segment.
The broader causes of the projected growth in demand include the global shift in behavior during and following the pandemic, which created demand for fast and reliable connections to carry out work, school, and socialization. Secondly, streaming content providers such as Netflix and Hulu are driving the demand for the high speeds and reliability of broadband internet.
New technology enabling VR/AR, gaming, and artificial intelligence is also driving the projected growth.
The report identified China asrepresenting the largest market share, with a projected annual revenue of $252.57 billion in that market. Population growth and urbanization in the Asia Pacific segment accounts for the large share of growth in that region.
It also identified potential challenges to growth, including regulatory compliance relating to privacy laws and cybersecurity concerns.
The report was published in October. Learn more about it here.