Forecast paints sluggish years for telecom industry
The telecoms industry faces a sluggish outlook amid rising costs and competition, muted subscriber growth, and lingering macroeconomic and geopolitical pressures. Despite their being volume growth in the sector, average revenue per unit (ARPU) is expected to decline on average 2% annually until 2028, across mobile, fixed broadband, and voice services, consultancy PwC says in a forecast.
The forecast says that driven in large part by increased adoption of smart automobiles and the mobility sector, cellular internet-of-things (IoT) services has emerged as an industry bright spot across all regions.
“Overall, IoT revenue in the automotive sector is projected to more than double between 2023 and 2028 to reach US$34.1 billion, rising at a CAGR (compound annual growth rate) of 15.8%.”
“AI presents a significant opportunity for the telecoms industry, but one that still remains under-utilised. At the consumer level, AI tools and capabilities can also help telcos deliver personalised customer experiences, boosted workforce productivity and deployment, and AI-powered cognitive network operations centres (NOCs) that provide actionable insights and efficiencies in real time.”
From the forecast:
- Global telecoms revenues projected to rise at a CAGR of 2.9% through 2028, below inflation, with $200 billion in incremental revenue growth up for grabs by 2028.
- Sectors total revenue across fixed and mobile rose 4.3% in 2023 to US$1.1 trillion.
- 5G revenue remains muted, but subscriptions projected to more than quadruple, from 1.79 billion in 2023 to 7.51 billion in 2028.
- Cellular internet-of-things (IoT) services to be buoyed by automotive sector, with sector IoT revenue projected to more than double and hit $34.1 billion in 2028, at a CAGR of 15.8%.
- Industry must reinvent how it creates, delivers and captures value – including strategic investments in AI, fixed connectivity, digital infrastructure and working with investors and regulators to unlock growth.
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