B2B Telecommunication Market

B2B Telecommunication Market Statistics: 2030

The global B2B telecommunication market size was valued at $ 46.36 billion in 2020, and is projected to reach $181.35 billion by 2030, growing at a CAGR of 14.8 % from 2021 to 2030. B2B telecommunication is described as any kind of communication between businesses as opposed to communication between businesses and clients or clients and clients. These communications can take place in various forms, which include e-mail, fax, instant messaging, radio, satellite and others. B2B telecommunication providers maintain systems that transmit data, text, sound, voice, and video, which allows direct communication between businesses. Furthermore, telecommunication platforms can also be utilized by marketers to boost a company's visibility within the industry and identify networking opportunities. This feature propels demand for B2B telecommunications in the market.

With an unprecedented COVID-19 pandemic, demand for B2B telecommunication has witnessed a rise, owing to implementation of lockdown by governments in majority of the countries and growing adoption of work from home culture across various industries. In addition, most of the companies started adopting B2B communications to transmit information in various forms like text, sound, voice, and video which is providing lucrative opportunity for the market.

Growing adoption of IoT and rise in demand for B2B telecommunication among corporate and government organizations are boosting the growth of the global B2B telecommunication market. In addition, increasing industrialization and urbanization in several countries is having positively impacts growth of the market. However, high implementation cost of B2B telecommunication and privacy & security concern is hampering the B2B telecommunication market growth. On the contrary, integration of advanced technology such as artificial intelligence and cloud-based technology are expected to offer remunerative opportunities for expansion of the market during the forecast period.

By solution, the cloud services segment garnered largest market share in 2020, and is expected to maintain its dominance in the upcoming years, owing to growing adoption of cloud-based telecommunication services across various industries in developing nations of Asia-Pacific and LAMEA countries. However, M2M communication segment is expected to witness significant growth during the forecast period, owing to rise in adoption of M2M communication solutions among various SMEs for improving the speed of communication across the enterprise. In addition, growing adoption of new connectivity technologies such as 5G & IoT is expected to boost growth of market in the coming years.

Region wise, the B2B telecommunication market was dominated by North America in 2020, and is expected to retain its position during the forecast period, owing to increase in adoption of IoT and cloud-based products. In addition, with presence of huge competition among market players, which results in better product offering and attaining more customer satisfaction with services is the reason for the maximum market in the region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to presence of several large-scale manufacturers and availability of high-speed communication networks across the region. In addition, increase in conducting business meeting over telecommunication networks and higher bandwidth calls enable higher quality audio and video, which propels the market growth.

The report focuses on growth prospects, restraints, and trends of the global B2B telecommunication market analysis. The study provides Porter’s five forces analysis to understand impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the global B2B telecommunication market share.

Segment review

The global B2B telecommunication market is segmented on the basis of enterprise size, solution, industry vertical, and region. On the basis of enterprise size, it is classified into large enterprises and small & medium enterprises (SMEs). On the basis of solution, it is divided into cloud services, unified communication & collaboration, VoIP, WAN and M2M communication. On the basis of industry vertical, the global market is classified into BFSI, IT & telecom, media & entertainment, healthcare, government, retail & ecommerce and others. Region wise, the global B2B telecommunication market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the B2B telecommunication industry are Amdocs, AT& T, Inc., Cisco Systems, Inc., Comarch S.A., Deutsche Telekom AG, NTT Communication, Orange S.A., Telefonica, S.A., Vodafone Group PLC, and Verizon. These players have adopted various strategies to increase their market penetration and strengthen their position in the B2B telecommunication industry.

COVID-19 impact analysis

The B2B telecommunication market has witnessed significant growth in past few years; however, due to the outbreak of the COVID-19 pandemic, the market is projected to witness a sudden increase in demand. This is attributed to implementation of lockdown by governments in majority of the countries and shut down the real business across the globe. Moreover, most of the companies started adopting B2B communications to transmit information in various forms like text, sound, voice, and video. In addition, most companies already have business continuity plans, but those may not fully address the fast-moving and unknown variables of an outbreak like COVID-19. Typical contingency plans ensure operational effectiveness following events like natural disasters, cyber incidents and power outages, among others. They don’t generally take into account the widespread quarantines, extended school closures and added travel restrictions that may occur in the case of a health emergency. Thus, driving the growth of the market.

Top impacting factors

Increase in adoption of IoT

Rise in adoption of internet of things (IoT) across various industrial sectors propels growth of the B2B telecommunication market. This is attributed to factories digitizing their workflows and demand for speed, quality, and security of the networks connecting them. B2B telecommunication is expected to turn the tide for smart factories, allowing owners to depart from fixed-line networks, gather operational intelligence in real time, and ensure shell-proof IIoT security. For instance, in 2020, KT Corporation, SK Telecom, and LG Uplus Corporation collaborated to launch 5G-enabled IIoT projects. Each of these initiatives aim to help the country’s (India) small- and mid-sized factories overcome pandemic-induced setbacks, extend equipment lifespan, and further diminish dependency of factories on the on-site workforce. Moreover, it also helped the healthcare sector during the pandemic with emerging patient and hospital IoT applications involving real-time data transmission within and outside hospital grounds. Role of telecom operators in healthcare use cases is one of a service enabler responsible for installing small cells and distributed antenna systems around the perimeter, setting up and configuring new 5G-enabled medical equipment, and supplying dedicated asset and data management software. Thus, driving the demand for the market.

Rise in demand for B2B telecommunication among corporate and government organizations

Increase in focus of organizations in expanding their businesses and managing workforces globally boosts the need for B2B telecommunication. In addition, various organizations in sectors such as corporate, BFSI, education, government, and healthcare are adopting this software to provide high-quality services to their clients in the global pandemic to reduce overhead cost as well as to increase productivity of employees. Furthermore, various leading players of the B2B telecommunication market are introducing new software for different industries to increase security features and reduce communication gap between employees and companies.

For instance, in April 2020, RegTech start-up, Signzy launched its video conferencing (VC) tool for secure, private one-to-one communication between banks, other financial institutions, and their customers. Thus, number of such developments across the globe drive growth of the market. In addition, various IT & telecom companies are adopting virtual meeting software to increase business continuity among enterprises to increase their market value, which propels growth of the B2B telecommunication industry.

Moreover, federal agencies and government organizations are using B2B telecommunication, owing to reduction in need to travel to unsafe or unreachable areas and to increase operational efficiency of employees as well as organizations. Many government organizations considerably rely on B2B telecommunication for their day-to-day operations, which is further expected to create remunerative opportunities for the expansion of the B2B telecommunication market. 

Key Benefits For Stakeholders     

• The study provides an in-depth analysis of the B2B telecommunication market forecast along with the current trends and future estimations to explain the imminent investment pockets.
• Information about key drivers, restraints, & opportunities and their impact analysis on the global market is provided in the report.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
• The quantitative analysis of the B2B telecommunication market trends from 2021 to 2030 is provided to determine the market potential.

 B2B Telecommunication Market Report Highlights