Global telecommunications market growing more slowly than expected

The global telecommunications industry grew in 2013 and is expected to continue growing in 2014, but at a slower rate than predicted a year ago, even in Asia, according to a new market report from The Insight Research Corporation. 

According to the new study, telecommunications services revenue worldwide will grow from US$2.1 trillion in 2014 to US$2.4 trillion in 2019 at a combined average growth rate of 2.1%. In Asia, slower economic growth will reduce telecommunications spending from previous forecasts.

Wireless activities will be a bright spot, however. "The 2014 Telecommunications Industry Review: An Anthology of Market Facts and Forecasts" notes that wireless subscriber growth compounded with rising smartphone and tablet traffic will raise global wireless revenues by 17% from current levels. Wireline revenues, on the other hand, will rise 4% as voice calls decline and users switch to mobile solutions. 

Other sectors to watch include Ethernet, cloud, and mobility, which will show double-digit annual revenue growth, says Insight. Data traffic in these sectors are to double every two years.

"Consumer demand for the latest wireless devices and higher bandwidth are driving telecommunications services growth, while the shift to cloud-based solutions is enriching the value of the network. A large percentage of business activity now depends on these mobile devices and network applications for everything from electronic commerce to navigation to customer service," says Fran Caulfield, Research Director for Insight. 

An excerpt, table of contents, and ordering information are available online here.