The Future of Telecommunication: What's the Biggest Opportunity for Innovation?
Telecommunication is one of the most important industries in the world. It touches almost every part of our lives and continues to grow. The telecommunication market is worth more than $ 1,707.96 billion annually and is expected to exceed $ 2,467.01 billion by 2028. This growth has been fueled by the increased adoption of smartphones, Internet-connected homes, and increased data usage on mobile devices.
What is driving this growth?
International Telecommunication Union estimate 4.9 People connect to the internet in 2021. That's 63 per cent of the world's population.
A decade or so ago, the term “telecommunications” referred heavily to the “telephone” industry. Today, as “telecommunication” grows, it’s bringing with it many other industries. The biggest drivers of continued growth in the telecommunication industry are an innovation in the mobile and Internet of Things (IoT) sectors. Mobile is a huge part of the telecommunications industry, but it doesn’t tell the whole story. The business of mobile is growing rapidly, but it’s also becoming more commoditized. To maintain growth brands are looking towards new products and services, something beyond just communications. The Internet of Things is the telecommunication industry’s other big growth driver. It’s not just about connected devices, but also the ability to collect data and make it useful. The internet has become an essential part of the way we live, work, and play.
Figure 1 Number of Internet of Things (IoT) connected devices worldwide from 2019 to 2030
Which industries will benefit the most?
Telecommunication is a fast-growing industry, but it’s made up of many different parts. Each segment has its drivers, challenges, and opportunities. Depending on which segment of the market you’re focusing on, the biggest growth opportunities vary. - The Internet of Things (IoT) - The IoT is expanding from a focus on smart homes and connected devices. Now the IoT is about collecting data from connected devices and sensors, and then analyzing and making use of it. Global data from sensors, devices, and machines are expected to reach 32 zettabytes (ZB) by 2025. This data will primarily be used for telecommunications, including 5G and Internet of Things (IoT) data and voice services. - Cloud Communications - Cloud communications bring together two different trends, the move toward the cloud and the growth of the Internet of Things (IoT). With the shift to cloud communications, voice and data are hosted by a third-party provider, and users access the service through their virtual network. - Wireless Telecom - The wireless telecom industry brings together the need for better network coverage, ever-growing data usage, and the need to control costs. As consumers become more dependent on mobile devices, the need for better connectivity and faster data speeds also increases. - Satellite Communications - One area of the telecommunications industry that is growing is satellite communications. The demand for satellite-based communications is driven by remote areas, such as those in developing countries, where the infrastructure for fibre-based communications is not feasible or cost-effective.
The Future of Telecommunication: Corresponding Consumer Behaviors
Telecommunication is a growing industry, but it’s important to focus on what types of telecommunications consumers demand. Many people want to go “off the grid” and take control of their communication needs. - Internet Freedom - Freedom of speech and access to information are core human rights, but in many places around the world, these rights are under threat. In response to this, people are taking back control of their data and communication. - Self-Sufficient Communities - There’s a growing number of people who don’t want to rely on outside resources to remain connected. Whether they are off-the-grid in terms of living arrangements or working in disaster areas, they want to be able to communicate on their own.
How will the Internet of Things change the telecommunication industry?
The Internet of Things is an industry on the rise. With each connected device, there is the opportunity to collect data and make it useful. The Internet of Things is growing at an exponential rate. We are expected to have more than 50 billion IoT devices by 2020. With this growth, there are significant opportunities for the telecommunications industry. IoT devices place enormous demands on networks, but those demands are expected to increase as the industry grows. With this, there are significant opportunities for telecommunications providers to boost their services with data-driven insights and other products. The rise of the IoT will lead to an increase in data usage, which means that telecom providers will need to make more investments in infrastructure to keep up with demand. The good news is that as more devices become connected to the internet, there are also more opportunities to sell additional services. Telecom providers will be able to sell more devices, subscriptions, and services such as smart home automation, digital assistance, and health monitoring devices.
Which industries provide the biggest opportunity for innovation in telecommunication?
Telecommunication is a big industry, and the opportunities for innovation are endless. That being said, the following industries represent the biggest telecommunication innovation opportunities. - Cloud Communications - Cloud communications are growing, and it’s becoming a major part of the telecommunications industry. As more industries move to the cloud, they will rely on telecom providers to provide the network infrastructure and services they need. - Wireless Telecom - The wireless telecom industry has been growing for some time, but it’s expected to continue to grow as the world becomes more interconnected and data-driven. - Satellite Communications - Satellite communications are projected to grow as the world’s population continues to expand and more areas become less developed. - Advanced Telecommunications - The advanced telecommunications industry is expected to grow as consumers demand higher speeds and better connectivity.
Conclusion
Telecommunication is a big industry with many parts. Overall, the industry is expected to see significant growth over the next few years as consumers continue to adopt smartphones and internet-connected devices. The biggest opportunities for innovation in telecommunications will come from cloud communications, wireless telecom, satellite communications, and advanced telecommunications.