WORLDWIDE SPENDING ON TELECOMMUNICATIONS SERVICES AND PAY TV SERVICES SET TO GROW BY 2% IN 2018, ACCORDING TO IDC


FRAMINGHAM, Mass. December 4, 2017 – Worldwide spending on Telecom Services and Pay TV Services is forecast to reach nearly $1.7 billion in 2017, an increase of 1.7% over 2016, according to the International Data Corporation (IDCWorldwide Telecom Services Database. IDC expects worldwide spending on Telecom and Pay TV services to grow 2% year over year and surpass $1.7 billion in 2018.

The largest segment of the market is Mobile which represents 52% of the total market in 2017. The Mobile market is expected to have a compound annual growth rate (CAGR) of 2% over the 2017-2021 forecast 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% of the total market in 2017 and that is set to grow by a CAGR of 4% driven by the need for higher bandwidth services.

The Pay TV services market, which consists of Cable, Satellite, Internet protocol (IP), and Digital Terrestrial TV services, will remain flat over the five-year forecast period. However, these services are an increasingly important part of the multi-play offerings of telecom providers across the world. Spending on multi-play services is forecast to increase by 9% in 2017 and by 7% in 2018. Spending on Fixed Voice services will experience a CAGR of -6% over the forecast period and will represent less than 10% of the total market by 2021. Rapidly declining TDM Voice revenues are not being offset by the increase in IP Voice.

On a geographic basis, the Americas will be the largest services market with revenues of $635 billion in 2017, driven by the large North American sector. Asia/Pacific will be the second largest region, followed by EMEA. The markets with the fastest year-over-year growth in 2017 will mainly be the emerging markets of Asia/Pacific, followed by EMEA.

Global Regional Services 2017 Revenue and Year-Over-Year Growth (revenues in $US billions)
Global Region 2017 Revenue 17/18

Growth

Americas $635 0.6%
Asia/Pacific $545 3.5%
EMEA $492 1.1%
Grand Total $1,672 1.7%
Source: IDC Worldwide Semiannual Services Tracker 1H 2017

“The steady growth in the worldwide telecom market is driven by the need for IP services and higher bandwidth services, which are more than offsetting declining legacy telecom services,” said Courtney Munroe, group vice president, Worldwide TelecommunicationsResearch at IDC.

“Mobility is and will dominate the overall telecom market as users in both developing and developed markets increasingly see mobile services based on 3G, 4G and, in the near future, 5G, as a key component of both personal and business communications,” said Kresimir Alic, senior program manager, CEMA Telecoms & Networking, and Worldwide Telecom Services Database.


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 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.

Source: IDC

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