The RegTech is here to provide you with the latest telecom service assurance market trends. A recent study of the world telecom service assurance market has found that this market was growing and developing surprisingly significantly and reached a sum of USD 9.67 billion in 2023. The calculations of market size are growing at a rate of 9.5% from 2024 to 2030. A few boosting factors include growing mobile phone users call for an improvement in network performance and higher service quality.
Another important driver of 5G technology is the deployment. Compared to previous ones, these networks are complex in nature and require advanced solutions for service assurance to deliver enhanced mobile broadband, ultra-reliable low-latency communication, and massive machine-type communication.
5 Key Takeaways
- Market Growth: The global telecom service assurance market reached USD 9.67 billion in 2023 and is expected to grow at a CAGR of 9.5% from 2024 to 2030, driven by the increasing number of mobile phone users and the deployment of 5G technology.
- Automation and Data Analytics: The complexity of telecom networks is driving the adoption of automation and data analytics in service assurance, helping operators improve efficiency, reduce costs, and enhance service quality.
- Customer-Centric Approach: Telecom operators are focusing on a customer-centric approach, using service assurance solutions to monitor, manage, and improve service quality, providing real-time insights and end-to-end visibility across the network.
- AI and ML Integration: The integration of artificial intelligence (AI) and machine learning (ML) in service assurance is enabling predictive analytics and proactive issue resolution, optimizing network performance and enhancing customer satisfaction.
- Regional Insights: The Asia Pacific region dominated the market in 2023, driven by rapid urbanization and technological advancements. North America and Europe are also expected to see significant growth due to the adoption of 5G networks and the need for advanced service assurance solutions.
Automation and Data Analytics
The increasing complexity of the telecom networks drives automation in service assurance. This will indeed help operators to conserve resources, achieve service quality, and reduce costs simultaneously.
The automation capabilities now available in service assurance solutions allow the system to automatically detect and troubleshoot issues without manual intervention. Data analytics is another growing market. Service assurance solutions already collect more data on aspects of network performance and user experience, which can help in discovering trends and predicting problems well ahead of time for improved service quality.
Customer-centric Approach
Telco service providers are increasingly becoming customer-centric to woo customers in a cutthroat market. Such service assurance solutions would be the crux of this endeavor in allowing operators to monitor, control, and improve service.
These solutions provide real-time monitoring of network performance, service quality, insights into the health of the network, and the ability to rapidly find and resolve service issues. Operators can see how different parts of the network are influencing overall customer experience and can more particularly identify issues that are affecting service quality because this provides end-to-end visibility across the total network infrastructure.
Open Architecture—A Key Necessity
Open architecture is increasingly on the fast track of being the next critical feature in service assurance because of its easy integration with other available tools and platforms. This paves the way for the open system approach, whereby various systems can interact and work with each other in perfect unison.
Open architectures help operators adapt to dynamic change in industry standards and easily incorporate new technologies into existing infrastructure. This flexibility is key to protecting investments in a rapidly changing technological landscape. Ultimately, agility and responsiveness to market demands will keep operators competitive.
Telecom Service Assurance Market Trends: AI and ML
The use of artificial intelligence and machine learning technologies in analytics and proactive issue resolution by service assurance is making these conventional procedures perform at a whole different level. They enable operators to forewarn and forestall any network anomaly before it impacts the user, ensuring service delivery in a seamless and reliable manner.
AI and ML find appropriateness in fine-tuning the performance of a network through large volumes of data analysis, seeking out trends and patterns not easily discerned by human operators. This results in effective resource utilization and better quality of services. With AI and ML implementation, operators can easily attend to any new challenge, hence leading to high customer satisfaction and network reliability.
Segmentation by Component
The telecom service assurance market has two components: solutions and services. The biggest market of 66.2% regarding global revenue was for the solution segment in 2023. This encompasses probe systems, network management, workforce management, fault management, quality monitoring, among others. The solutions offer from visibility to networks, through advanced analytics and automation capabilities, to allow operators to manage and optimize their networks to the desired service experience. Increasing complexity in telecommunication networks, fostered by the rapid adoption of new technologies with the roll-out of 5G, demands very robust solutions, which can seamlessly integrate with existing systems. In addition, the increasing need to remain competitive and further customer experience, by providing advanced services, is driving the adoption of advanced service assurance solutions.
Service is expected to be the fastest-growing segment from 2024 to 2030, with professional and managed services being increasingly looked upon to ensure optimal performance in complex network environments. One of the major trends is a growing reliance on specialized expertise. It provides the impetus for managed services given the imperatives for cost efficiency and ‘focus on core business’ to outsource network management. There will also be an increase in professional and managed service demand supporting the quick deployment of both 5G and IoT technologies to retain, as well as, enhance network reliability and customer satisfaction.
Telecom Service Assurance Market Trends: Operator Market Segmentation
The telecom service assurance market is classified by operator type into fixed and mobile operators in this research. In 2023, the fixed operator segment held the largest market revenue share. The increasing demand for high-speed broadband services and the ongoing transition to fiber-optic networks drove this segment. Customers used an ever-more-agile and fast internet for working, being entertained, and interacting with smart homes. The application of such sophisticated analytics and monitoring tools should enable fixed operators to have better control over network performance and hence act fast to address looming problems. Moreover, the pressure to offer better customer experience will force fixed operators to expand and upgrade their service assurance modules.
Correspondingly, the mobile operator segment will gain substantially from 2024 to 2030 as 5G networks rapidly proliferate, urgently needing sophisticated assurance solutions to control growing data loads and reduce latencies. Both the increasing demand placed upon mobile data services and the growing number of deployed IoT devices drive the requirement for more advanced, agile service assurance solutions to ensure quality services. Telecom operators are using AI and ML technologies to predict the problems in the network and provide remedies. With the persistent and very high expectation of customers for an uninterrupted and flawless mobile service, the telecom operators are also under a high compulsion to look for strong and capable service assurance solutions.
Market Segmentation by Deployment
When we talk about telecom service assurance trends, we need to examine market segmentation by deployment as well. This market is based on its deployment type as on-premise and cloud. The on-premise segment in 2023 was holding the highest revenue share of the market. This segment remains crucial in the light of the increasing pressure for rigorous protection and control over the most sensitive network data. Many tendencies exist for telecom operators to procure on-premises solutions in order to meet a series of very strict regulatory requirements and also ensure data sovereignty. In addition to these demanding textures, another trend in the industry favoring on-premises deployment segments is the trend toward the customization and high specialization of service assurance systems. The operators with large investments realize on-premise solutions to suitably integrate and manage network performance.
Cloud segment is expected to grow significantly between 2024 and 2030. Cloud-based assurance solutions are increasingly being opted for and adopted by telecom operators in order to be able to quickly adapt to the changing network scenario and integrate new technologies like 5G and IoT. The offer of advanced analytics and AI possibilities through the cloud makes proactive monitoring and optimization of network performance more effective. A shift to cloud deployments further ensues from this model’s cost efficiency and results in drastically reduced needs for extensive on-site infrastructure.
Telecom Service Assurance Market Trends: Market Segmentation by Enterprise Size
On the basis of enterprise size, the telecom service assurance market is further divided into large enterprises and small and medium enterprises (SMEs). Large enterprises accounted for the largest share of overall market revenue for the year 2023. This increasing market size is a result of adopting large-scale infrastructure for managing huge and extensive infrastructural operations or network operations. In addition, large enterprises are aggressively adopting advanced AI, advanced analytics, and machine learning technologies to deliver high performance and reliability across networks, driven by increasing awareness. The requirement for better customer experience and stringent compliance requires a larger investment and calls for advanced and sophisticated service assurance solutions. Large enterprises typically demand greater security and customization which are two factors where vendors in this category are better able to deliver.
The segment of SMEs is projected to grow at a significant CAGR between the year 2024 and 2030. It majorly results from easy access to cost-effective and scalable service assurance solutions. SMEs are more and more taking up cloud-based service assurance to gain from reduced upfront costs and the flexibility to scale as their business grows. The digital transformation trend and the need to ensure reliable connectivity and the quality of services for the customers spur investments in the area of service assurance in SMEs. The push toward providing excellent customer services among other strategic decisions makes these enterprises invest in appropriate management of network performance in the face of cut-throat competition in the SME market.
Regional Insights
The Asia Pacific region dominated the global telecom service assurance market in 2023, accounting for 33.30% of the market. Fastest-growing demographically, the region has witnessed rapid urbanization and technology innovations along massive adoption of 5G and IoT technologies. Its telecom infrastructure is highly diverse and has the capability to grow quickly; therefore, assurance solutions need to be flexible and scalable to manage the growing network complexities. Asia Pacific operators are highly cost-conscious, therefore requiring analytics solutions to be cloud-deployed to handle their massive and varied customer bases. Advanced service assurance technologies are gaining interest with the goal of bettering customer experience and competitiveness differentiation.
The North American telecom service assurance market is set to witness high growth between 2024 and 2030. This growth in the market is due to the rapid adoption of 5G networks in the region and increased demand for advanced mobile services. The emphasis that this region places on high technology and innovation compels the telecommunication operators to deploy advanced service assurance solutions to maintain the integrity and performance of their networks. In parallel, higher numbers of IoT devices and smart city initiatives increase the requirement for advanced network management. The two main drivers for investment in service assurance are regulatory compliance and the need for advanced cybersecurity measures.
The European telecom service assurance market will register a growth rate of over 20% between 2024-2030. European telecom operators aim to expand the customer experience and optimize the operational efficiency, boosting the potential of telecom service assurance. Diversified and competitive, the telecom landscape of the region motivates the needs of network optimization and performance management on a continuous basis.
Telecom Service Assurance Market Trends: Key Players and Strategic Actions
Prominent vendors operating in the telecom service assurance market include NEC Corporation, Telefonaktiebolaget LM Ericsson, Nokia, Amdocs, NETSCOUT, Broadcom, Huawei Technologies Co., Ltd., Comarch SA, Spirent Communications, and TEOCO. These market leaders offer comprehensive service assurance portfolios that meet the always changing and growing requirements of telecom operators. Leveraging state-of-the-art technologies, including AI and machine learning, they proactively monitor and analyze in real-time, resolving issues to ensure optimal network performance and an elevated customer experience.
Players at the helm are strategically shaping the dynamics of CX enrichment. For example, ServiceNow and NVIDIA extended their collaboration in February 2024 by launching telco-specific generative AI solutions that enhance service experiences in telecommunications. First of its kind, the introduction of Now Assist for Telecommunications Service Management (TSM) on the Now Platform, using NVIDIA AI, will empower agents by helping them go through calls faster and thus resolve more of them quickly. This collaboration will address the aspirations of telcos for cost reduction and discovering new business models.
