Market strengthening in 2024 is linked – according to IDC – mainly to inflation evolution, which has led to invoice increases
The global market for telecommunications and subscription television services has risen in 2024, with costs reaching $ 1.51 trillion, showing an increase of 2.2% annually, according to International Data Corporation (IDC). However, this optimism seems to be mitigated for 2025, as IDC provides for growth slower to 1.6%, with total costs reaching $ 1.535 trillion.
Market strengthening in 2024 is linked – according to IDC – mainly to inflation, which has led to invoice increases and forced both households and businesses to spend more on telecommunications services. This trend was particularly strong in Europe and North America, where the highest purchasing power limited consumer sensitivity to price increases.
Decreic deceleration, the role of inflation and technological developments form the future of telecommunications
On the other hand, the Asia-Pacific region exhibited slower growth rates, as it had already recovered dynamically in previous years after the pandemic.
Despite recent growth, IDC revised its predictions for 2025, providing a slowdown by 0.9 percentage points compared to November estimates. Inflation fading is expected to reduce its effect on costs.
Shift
According to the research, the telecommunications industry is in a phase of intense technological transformation: Artificial intelligence improves customer experience and efficiency of providers, investment in 5G networks and fiber optic networks intensify, while the appearance of low -track satellite services enhances competition and competition.
Under these facts, telecommunications providers are increasingly turning from traditional digital solutions, utilizing cloud, AI and Edge computing technologies to provide innovative services and differentiate the market.
Another factor that may affect the landscape is the new duties announced by the new US government. Although the direct impact on telecommunications services is expected to be limited, indirect consequences, such as increasing equipment costs and delays in 5G and AI projects, may further slow down growth.
As IDC points out, “Telecommunication equipment duties may lead to increased costs and delays, while in the long run they can cause new waves of inflation and a reduction in purchasing power.” The company notes that its main scenario does not provide for a global downturn, but takes into account increased uncertainty and lower forecast for global economic growth.
In any case, the IDC analysis shows that the telecommunications market is at a crucial crossroads, where technological innovation coexists with economic uncertainty. The success of providers will depend on their ability to adapt to the new conditions and take advantage of the opportunities offered by the digital age
Source: Skai
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