The global telecommunications services market is on track to rebound after a long period in decline, reaching $1.3 trillion by 2021, MarketLine has projected.
The market has declined at a negative CAGR of 3.4% between 2012 and 2016 due to downward price pressure motivated by intensifying competition, MarketLine analyst Nicholas Wyatt said.
“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,” he said.
“This has forced prices down and negatively impacted a market that has reached saturation point in many countries."
MarketLine estimates that the wireless segment contributed around $775 billion in sector revenues during 2016, or 64.9% of the $1.2 trillion total market value.
Growing demand for mobile data is expected to help stimulate a 2.2% CAGR in the market between 2016 and 2021, driving the total market to a value of $1.3 trillion.
Growth is expected across all regions, with APAC growing slightly higher than the US and Europe due to the region's relatively lower saturation level.
"Subscription volumes have plateaued in recent years, but a slight uptick is expected as populations expand and businesses require increasingly mobile staff,” Wyatt said.