B2B telecoms market to hit $107bn in 2026
Global revenue from the business-to-business (B2B) telecommunications market surpassed nearly $30 billion in 2016. By the end of 2026, the market will be valued at $107.47 billion, registering expansion at a 13.6% CAGR.
This is according to research firm Future Market Insights, which notes businesses across several industrial verticals are actively adopting IT-as-a-service (ITaaS) models for improving their operations.
The firm says with soaring demand for ITaaS operational models, scope for incorporating B2B telecommunications is further extending substantially among varied businesses and enterprises.
The global demand for B2B telecommunication will largely emanate from the banking, financial services and insurance (BFSI) sector as well as the media and entertainment industry.
Future Market Insights notes over one-fourth of global B2B telecommunication revenue over the following decade will be accounted for by the BFSI industrial vertical, which will amount to over $27 billion by the end of 2026.
It believes government and administrative bodies, as well as healthcare organisations such as hospitals and medical research institutes, will also consider lucrative industrial verticals for B2B telecommunication, procuring a combined global market revenue share of nearly 30% over the following decade.
B2B telecommunication revenue from the media and entertainment industry will grow at a faster pace - with a CAGR of 14.7%, the firm says.
According to Future Market Insights, businesses availing B2B telecommunication services are able to select suitable types of solutions among various facilities provided.
It adds that while cloud-based B2B telecommunication services currently account for half of the global market revenue, revenue share of cloud-based B2B telecommunication services will drop over the next 10 years.
Increasing adoption of unified communication and collaboration solutions will partly lead to a dip in cloud services' global market contribution, the firm notes. It adds that by 2026, nearly $25 billion revenue will be harvested globally from sales of unified B2B telecommunication services.
Furthermore, it notes, demand for VOIP services, wide area network solutions and machine-to-machine communication solutions will also grow at a steady rate over the next decade.
The research shows North America's B2B telecommunication market was valued at nearly $8.5 billion in 2016. Surging adoption of cloud and VOIP services by US-based businesses is the key attributor for growing sales of B2B telecommunication services in North America, it explains.
Comparatively, the B2B telecommunication market in Latin America, Eastern Europe and the Middle East and Africa region will incur sluggish expansion in the next 10 years.
Japan's contribution to the global B2B telecommunication market is estimated to be over $15 billion over the following decade, which will be nearly $3 billion higher than the value of Western Europe's B2B telecommunication market.