Enterprise Telecom Services Market Research Report - By Services Type (Managed Network Services, Cloud Services, Unified Communications (UC) & Collaboration Services, Network Security Services, Internet of Things (IoT) Services), By Organization Size (Large Enterprises, Mid-size Enterprises, Small and Medium-sized Enterprises (SMEs)), By Industry Vertical (Financial Services, Healthcare, Manufacturing, Retail, Telecommunications, Education), By Deployment Model (On-premises, Cloud-based, Hybrid), By Revenue Model and By Regional - Forecast

Enterprise Telecom Services Market Overview

As per MRFR analysis, the Enterprise Telecom Services Market Size was estimated at 658.39 (USD Billion) in 2022.

The Enterprise Telecom Services Market Industry is expected to grow from 707.17 (USD Billion) in 2023 to 1,345.0 (USD Billion) by 2032. The Enterprise Telecom Services Market CAGR (growth rate) is expected to be around 7.41% during the forecast period (2024 - 2032).

Key Enterprise Telecom Services Market Trends Highlighted

The demand for secure and trustworthy communications, proliferation of connected devices and surge in cloud adoption are amongst the factors that are boosting the growth of the enterprise telecom services market. Cloud computing, IoT, and video conferencing, among others, have necessitated enterprises to upgrade their networks to enable support of bandwidth-intensive applications on 5G and fiber technologies. The need to improve flexibility and productivity through managed services and network solutions is also increasing due to digital transformation efforts and hybrid work models.

The Enterprise Telecom Services Market offers limitless opportunities as companies seek new ways of improving their communication systems or connectivity. This has led to adapting automated networks through such tools as cloud-based services, artificial intelligence (AI) and software-defined networking (SDN). The providers should take advantage of this opportunity by providing localized edge computing solutions that enable high-speed, low-latency services for businesses with multiple offices. Another recent trend in the Enterprise Telecom Services Market is the rise of network-as-a-service (NaaS) platforms that provide firms with cost-effective, scalable connectivity options. Unified communication tools have driven a need for converged voice, data, and video over a single platform. Moreover, deployment of advanced analytics as well as machine learning allows service providers to proactively monitor networks thereby enhancing service quality while minimizing downtime for organizations via predictive maintenance.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Rising Adoption of Cloud-Based Services

The growth of the Enterprise Telecom Services Industry is driven by the increasing adoption of cloud-based services. Today, companies of all sizes are moving their data and applications to the cloud to enjoy such benefits as scalability, flexibility, and cost-effectiveness. As a result, demand for enterprise telecom services, including WANs, VPNs, and managed services, among others, is growing. The ongoing uptake of cloud-based services makes stakeholders expect the demand for such services to increase in the medium and long term.

A second main driver of growth in the Enterprise Telecom Services Market Industry is the growing demand for bandwidth. Businesses are using increasing amounts of bandwidth in order to meet their higher demand for data transfer. The two main factors driving this increasing demand for bandwidth are the increasingly prevalent use of all types of businesses of cloud-based services and new technologies, such as the Internet of Things and Artificial Intelligence, as well as the rapidly growing use of video communication on the premises of enterprises.Since businesses can be expected to keep increasing their demand for bandwidth, it follows that the demand for enterprise telecom services will keep growing as well.

Expansion of IoT and AI Technologies

Growth in the Enterprise Telecom Services Market Industry is also driven by the expansion of IoT and AI technologies. More IoT devices are available, and they continue to increase their connectivity. For example, businesses are now using IoT devices that are connected to their customers, partners, and employees in new ways. Consequently, this generated a need for new and more innovative enterprise telecom services. For example, low-power wide-area networks and network slicing.Moreover, AI is used to improve the performance and efficiency of enterprise telecom services. With the expansion of IoT and AI technologies, the demand for enterprise telecom services will continue growing.

Enterprise Telecom Services Market Segment Insights

Managed network services held the largest share of the Enterprise Telecom Services Market in 2023, accounting for over 35% of the market revenue. The growth of this segment can be attributed to the increasing adoption of cloud-based services and the need for businesses to manage their networks more efficiently. Cloud services are expected to be the fastest-growing segment of the Enterprise Telecom Services Market, with a CAGR of over 12% during the forecast period. This growth is being driven by the increasing adoption of cloud-based applications and services by businesses of all sizes.Unified communications (UC) collaboration services are also expected to experience strong growth, with a CAGR of over 10% during the forecast period. This growth is being driven by the increasing adoption of UC solutions by businesses to improve communication and collaboration among employees. Network security services are also expected to experience strong growth, with a CAGR of over 9% during the forecast period. This growth is being driven by the increasing need for businesses to protect their networks from cyber threats. Internet of Things (IoT) services are expected to experience the slowest growth of all the segments, with a CAGR of over 7% during the forecast period.This growth is being driven by the increasing adoption of IoT devices and applications by businesses of all sizes.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

The Enterprise Telecom Services Market segmentation by Organization Size comprises Large Enterprises, Mid-size Enterprises, and Small and Medium-sized Enterprises (SMEs). Among these, Large Enterprises dominated the market with a share of nearly 60% in 2023. This dominance is attributed to the high adoption of advanced telecom services, such as cloud-based solutions, managed services, and network as a service (NaaS), to enhance operational efficiency and reduce costs. Mid-size Enterprises are projected to grow at a CAGR of 7.6% during 2023-2032, owing to their increasing reliance on telecom services to support business growth and innovation.SMEs are also anticipated to witness significant growth, driven by the adoption of cloud-based services and the need for reliable connectivity to support remote work and collaboration.

The Enterprise Telecom Services Market segmentation by Industry Vertical comprises Financial Services, Healthcare, Manufacturing, Retail, Telecommunications, and Education. The Financial Services segment is expected to dominate the market with a significant share in 2023, owing to the increasing adoption of cloud-based services and digital transformation initiatives. The Healthcare segment is anticipated to witness substantial growth due to the rising demand for telemedicine and remote patient monitoring solutions. Additionally, the Manufacturing segment is expected to contribute a notable share, driven by the growing adoption of Industrial IoT (IIoT) and automation technologies.The Retail segment is poised to experience steady growth, fueled by the expansion of e-commerce and omnichannel retailing. Furthermore, the Telecommunications segment is set to contribute significantly, supported by the growing demand for high-bandwidth services and network infrastructure upgrades. Lastly, the Education segment is expected to exhibit moderate growth due to the increasing adoption of virtual learning and online education platforms.

The Enterprise Telecom Services Market segmentation by deployment model comprises On-premises, Cloud-based, and Hybrid. On-premises model was the dominant segment in 2023 and is expected to continue its dominance throughout the forecast period. However, the Cloud-based segment is projected to grow at a faster CAGR during the forecast period owing to the increasing adoption of cloud-based services by enterprises. The Hybrid segment is also expected to witness significant growth due to its flexibility and cost-effectiveness. The increasing adoption of cloud-based and hybrid deployment models is expected to drive the growth of the Enterprise Telecom Services Market during the forecast period.

The Enterprise Telecom Services Market is segmented based on revenue model into subscription-based, pay-as-you-go, and one-time payments. The subscription-based model is expected to account for the largest share of the market in 2023 and is projected to continue to grow at a significant rate over the forecast period. This growth is attributed to the increasing adoption of cloud-based services and the growing demand for managed services. The pay-as-you-go model is expected to witness the second-largest growth rate over the forecast period, owing to the increasing popularity of usage-based pricing models.The one-time payments model is expected to account for a smaller share of the market over the forecast period due to the declining demand for traditional telephony services.

The regional segmentation of the Enterprise Telecom Services Market exhibits distinct market dynamics and growth patterns. North America accounts for a significant share of the market revenue, driven by the presence of tech giants, high adoption rates of cloud and mobility services, and robust infrastructure. Europe follows closely, with a mature telecom market and a focus on digital transformation. APAC is projected to witness the highest growth rate, fueled by rapid urbanization, expanding middle class, and increasing demand for connectivity.South America and MEA are emerging markets with growing opportunities for enterprise telecom services due to government initiatives and expanding business sectors. The market growth in these regions is expected to drive the overall revenue of the Enterprise Telecom Services Market, leading to a projected valuation of USD 1345.0 billion by 2032.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

The Enterprise Telecom Services Market industry is a constantly evolving field, with major players in the industry constantly innovating and developing new technologies to meet the evolving needs of businesses. Many leading Enterprise Telecom Services Market players are investing heavily in research and development to stay ahead of the competition and provide customers with the latest and greatest solutions. The development of new technologies, such as software-defined networking and network function virtualization, is expected to drive growth in the Enterprise Telecom Services Market. The Enterprise Telecom Services Market Competitive Landscape is expected to remain competitive in the coming years, with major players in the industry continuing to invest in new technologies and services that will meet the evolving needs of businesses.ATAT is a major provider of telecommunications, media, and entertainment services. 

The company provides a wide range of Enterprise Telecom Services, including voice, data, and video services. In addition, the company provides a range of managed services, such as network management, security, and cloud services. With a strong presence in the United States and around the world, AT is a major player in the Enterprise Telecom Services Market and is well-positioned to continue to grow its market share in the coming years. The company has also invested heavily in research and development and is expected to continue to develop new technologies that will meet the needs of businesses around the world.VerizonVerizon is one of the other major players in the Enterprise Telecom Services Market. The company is a provider of telecommunications, internet, and video services. Verizon provides a wide range of Enterprise Telecom Services, including voice, data, and video services. It also provides a range of managed services, such as network management, security, and cloud services. Verizon is a major player in the Enterprise Telecom Services Market and is well-positioned to continue to grow its market share in the coming years. Like AT, Verizon has also invested heavily in research and development and is expected to continue to develop new technologies that will meet the needs of businesses around the world.

• TMobile US


• Verizon


• Vodafone


• Cisco


• Telefonica


• BT Group


• NTT


• Charter Communications


• Comcast


• IBM


• Sprint


• AT


• CenturyLink


• Deutsche Telekom


• Orange

The Enterprise Telecom Services Market is projected to reach a valuation of USD 1345.0 billion by 2032, exhibiting a CAGR of 7.41% during the forecast period of 2024-2032. The market growth is attributed to the increasing adoption of cloud-based services, the proliferation of IoT devices, and the growing demand for bandwidth-intensive applications. Key developments in the market include the launch of 5G networks, the emergence of Software-Defined Networking (SDN), and the adoption of Network Function Virtualization (NFV). Major players in the market include ATT, Verizon, NTT, and Deutsche Telekom.

Enterprise Telecom Services Market Segmentation Insights

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  Enterprise Telecom Services Market Services Type Outlook

  
  
  
  
  • Managed Network Services
  
  
  • Cloud Services
  
  
  • Unified Communications (UC) Collaboration Services
  
  
  • Network Security Services
  
  
  • Internet of Things (IoT) Services
  
  
  
  

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  Enterprise Telecom Services Market Organization Size Outlook

  
  
  
  
  • Large Enterprises
  
  
  • Mid-size Enterprises
  
  
  • Small and Medium-sized Enterprises (SMEs)
  
  
  
  

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  Enterprise Telecom Services Market Industry Vertical Outlook

  
  
  
  
  • Financial Services
  
  
  • Healthcare
  
  
  • Manufacturing
  
  
  • Retail
  
  
  • Telecommunications
  
  
  • Education
  
  
  
  

• Enterprise Telecom Services Market Deployment Model Outlook
  
  
  
  • On-premises
  
  
  • Cloud-based
  
  
  • Hybrid
  
  
  
  

• Enterprise Telecom Services Market Revenue Model Outlook
  
  
  
  • Subscription-based
  
  
  • Pay-as-you-go
  
  
  • One-time payments
  
  
  
  

• Enterprise Telecom Services Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa