Global Telecom Analytics Market Size, Share & Trends Analysis Report By Deployment Model, By Organization Size (Large Enterprises and Small & Mid-Sized Enterprises), By Component, By Application, By Regional Outlook and Forecast, 2024 - 2031

Global Telecom Analytics Market Size, Share & Trends Analysis Report By Deployment Model, By Organization Size (Large Enterprises and Small & Mid-Sized Enterprises), By Component, By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Telecom Analytics Market size is expected to reach $17.06 billion by 2031, rising at a market growth of 13.7% CAGR during the forecast period.

Telecom companies use customer management analytics to analyze customer behavior, preferences, and interactions, enabling them to offer tailored solutions and improve customer support services. Therefore, in 2023, the customer management segment registered 28% revenue share in the market. This segment uses analytics to enhance customer satisfaction, retention, and service personalization. By leveraging these insights, telecom operators can reduce churn, increase customer loyalty, and enhance overall customer experience.

The major strategies followed by the market participants are partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In August, 2024, Oracle Corporation collaborated with AT&T, a global telecommunications company, to integrate AT&T's IoT connectivity and network APIs into Oracle's Enterprise Communications Platform (ECP). This solution simplifies IoT device management by enabling seamless connectivity and real-time data intelligence, benefiting businesses and organizations in industries like telecom, emergency services, and beyond. Additionally, In August, 2024, Huawei collaborated with Indosat Ooredoo Hutchison, an Indonesian digital telecom provider, to launch Southeast Asia's largest Digital Intelligence Operations Center (DIOC). This AI-powered center enables real-time network insights, end-to-end service management, and data-driven innovation, enhancing Indosat's network performance and customer satisfaction for 100 million users.

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation is the forerunner in the Telecom Analytics Market. Companies such as Huawei Technologies Co., Ltd., Cisco Systems, Inc. and Oracle Corporation are some of the key innovators in Telecom Analytics Market. In September, 2024, Oracle Corporation came into partnership with Amazon Web Services, Inc. (AWS) to introduce Oracle Database@AWS, offering access to Oracle Autonomous Database and Oracle Exadata Database Service within AWS. This integration simplifies enterprise workloads' migration to the cloud, enhancing agility, security, and performance.

Market Growth Factors

As telecom companies prepare for 5G's widespread adoption, they need to invest heavily in advanced analytics solutions to make the most of the new opportunities. Telecom providers can better manage new use cases enabled by 5G, such as smart cities, autonomous vehicles, and industrial IoT, using data analytics. Analytics helps optimize the current network and lays the groundwork for future innovations. This creates a strong push for telecom analytics as a critical tool for operators navigating the 5G landscape. Hence, the rising adoption of 5G technology and its impact on data traffic drive the market's growth.

Customer-centric analytics is also crucial in the context of competition. Telecom providers compete fiercely to attract and retain customers; personalized experiences are a key differentiator. By utilizing advanced analytics, telecom companies can stay ahead of the competition by offering unique, customer-tailored experiences. As this demand for personalization continues to grow, telecom analytics solutions that can harness vast customer data and translate it into actionable insights will be in high demand. Therefore, the growing demand for enhanced customer experience and personalization propels the market's growth.

Market Restraining Factors

The cost of maintaining and upgrading analytics solutions can be an ongoing burden. As technology evolves and data volumes increase, telecom companies must continually invest in upgrading their systems to keep pace with new demands. This can create a cycle of continuous financial outlay, deterring some companies from fully embracing the potential of telecom analytics, especially in developing markets with limited resources. In conclusion, the high costs of implementing advanced analytics solutions impede the market's growth.

Deployment Model Outlook

Based on deployment model, the market is divided into cloud and on-premise. The on-premise segment held 37% revenue share in the market in 2023. Telecom companies with stringent data security requirements often prefer on-premise solutions. These solutions provide greater control over data management, storage, and security protocols, which is crucial for sensitive or proprietary information. On-premise deployments also allow for a higher degree of customization to meet specific business needs and integrate seamlessly with existing systems and processes within the organization.

Organization Size Outlook

On the basis of organization size, the market is segmented into large enterprises and small & mid-sized enterprises. The large enterprises segment recorded 66% revenue share in the market in 2023. Several factors drive this dominance. Large enterprises typically have extensive customer bases and generate massive volumes of data, necessitating robust analytics solutions to effectively manage, interpret, and leverage this information. These enterprises also possess the financial resources to invest in comprehensive analytics platforms, integrating advanced technologies such as AI and machine learning to enhance operational efficiency and customer experience.

Component Outlook

Based on component, the market is categorized into solutions and services. In 2023, the services segment witnessed 33% revenue share in the market. This segment plays a pivotal role in successfully deploying, integrating, and maintaining telecom analytics solutions. Services include consulting, system integration, support, training, and managed services, all essential for optimizing telecom analytics platforms' implementation and ongoing operation. Telecom companies often rely on these services to ensure that analytics solutions are customized to their specific needs, integrated with existing infrastructure, and continuously supported for optimal performance.

Solution Outlook

The solutions segment is further subdivided into network analytics, customer analytics, service analytics, subscriber analytics, location analytics, price analytics, and others. In 2023, the network analytics segment attained 25% revenue share. Network analytics plays a crucial role in optimizing the performance and efficiency of telecom networks. By monitoring network traffic and identifying potential issues in real-time, telecom operators can prevent downtime, improve network reliability, and enhance user experience. Network analytics also helps telecom companies in capacity planning, fault detection, and predictive maintenance, ensuring the smooth functioning of their infrastructure.

Application Outlook

By application, the market is divided into customer management, sales & marketing management, network management, risk & compliance management, workforce management, and others. In 2023, the network management segment held 15% revenue share in the market. Network management analytics helps telecom companies monitor and optimize network performance, ensuring efficient service delivery. By analyzing network data, operators can identify bottlenecks, predict potential failures, and optimize traffic management. This application is crucial for maintaining network uptime, improving bandwidth utilization, and enhancing telecom networks' overall reliability and performance.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 38% revenue share in the market in 2023. The dominance of North America in this market is largely driven by the presence of major telecom operators and technology providers actively investing in advanced analytics solutions. The region is characterized by a highly competitive telecom industry, where companies increasingly leverage telecom analytics to enhance network efficiency, improve customer experience, and optimize business operations. The rapid adoption of new technologies such as 5G and the Internet of Things (IoT) further fuels the demand for telecom analytics in North America.

Recent Strategies Deployed in the Market

• May-2024: Nokia took over Fenix Group, a privately held company specializing in tactical communications solutions, to enhance its defense sector offerings. This acquisition strengthens Nokia's broadband tactical communications portfolio, including Banshee family and Talon MANET radios, enabling Nokia to deliver secure, 3GPP-based solutions for military communications.
• Apr-2024: Oracle Corporation partnered with Palantir Technologies, a public American software company specializing in big data analytics, to enhance secure cloud and AI solutions for businesses and governments globally. This collaboration will combine Oracle's distributed cloud and AI infrastructure with Palantir's platforms to enable efficient data integration and decision-making, ensuring security, scalability, and regulatory compliance across various environments. The alliance aims to drive faster, data-driven decisions, particularly in defense and intelligence sectors.
• Oct-2023: Cisco unveiled its new AI strategy for Webex at WebexOne, introducing AI features designed to enhance hybrid work communication. The Webex AI Codec improves audio and video quality despite low bandwidth, while the Webex AI Assistant offers capabilities like meeting summaries, suggested responses, and tone adjustments for messages. These features aim to boost productivity and collaboration across Webex's suite, including collaboration devices and contact centers, empowering workers to stay efficient and connected.
• Aug-2023: Microsoft Corporation launched the Azure Operator Nexus 5G cloud platform, aimed at empowering telecom operators to optimize and manage their 5G and 4G LTE networks. By integrating with Microsoft Azure's public cloud and on-premises hardware, the platform provides pre-validated, flexible solutions for network function deployment, with new features to enhance management efficiency. AT&T, a key customer, is expected to adopt the updated platform.
• May-2023: Oracle Corporation joined hands with Opkey, a leader in test automation for packaged applications, to enhance automation capabilities for Oracle Cloud customers. This collaboration focuses on test discovery, automation, and impact analysis for Oracle applications, including ERP, HCM, and EBS, streamlining modernization and migration processes while improving ROI and operational efficiency.

List of Key Companies Profiled

• Cisco Systems, Inc.
• IBM Corporation
• Oracle Corporation
• SAP SE
• Microsoft Corporation
• SAS Institute Inc.
• Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.)
• Nokia Corporation
• Teradata Corporation
• TIBCO Software, Inc. (Vista Equity Partners Management, LLC)

Global Telecom Analytics Market Report Segmentation

By Deployment Model

• Cloud
• On-Premise

By Organization Size

• Large Enterprises
• Small & Mid-Sized Enterprises

By Component

• Solutions
• Network Analytics
• Customer Analytics
• Service Analytics
• Subscriber Analytics
• Location Analytics
• Price Analytics
• Other Solutions Type
• Services

By Application

• Customer Management
• Sales & Marketing Management
• Network Management
• Risk & Compliance Management
• Workforce Management
• Other Application

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA