Telecom Service Assurance Market Size (2024 - 2029)

Telecom Service Assurance Market Analysis

The Telecom Service Assurance Market size is estimated at USD 11.13 billion in 2024, and is expected to reach USD 17.97 billion by 2029, growing at a CAGR of 10.04% during the forecast period (2024-2029).

• One of the primary drivers for the global telecom service assurance market is the escalating mobile penetration worldwide. With a growing global mobile phone user base, companies increasingly use predictive modeling to analyze future growth areas and potential pitfalls.
• For instance, the ITU reported nearly 8.9 billion mobile subscriptions globally in 2023, up from 8.6 billion the previous year and surpassing the eight billion mark in 2019. This surge in smartphone adoption presents a significant growth opportunity for the telecom service assurance market.
• Telcos are in a state of flux. In the 2022 State of Customer Churn in Telecom survey, it was seen that customer loyalty to telecom providers was down to 22% post-pandemic, with customer stickiness being influenced more by the customer experience than ever. A high average churn rate plagues the telecom industry. While the broader utility market has a churn rate of about 12-15% for Western European markets, the telecommunications industry has an average churn rate of 30% to 35%. Such massive customer churn would push the telecom players to deploy service assurance solutions to improve the customer repeat rate.
• Previously, contact centers could manage telecom customer queries customers were content, and CSPs could accurately predict service assurance. However, like many others, the telecom sector faces volatility in compliance, operations, strategy, and finance. While volatility may spur innovation, especially with technological advancements, the telecom industry must navigate these shifts. Key challenges include a declining Average Return per User (ARPU) and high customer churn.
• Despite telcos' inherent value, the current economic climate has heightened consumers' price sensitivity. In response, nearly half of consumers have taken action, with 27% opting for a cheaper provider and 24% downgrading their services. This underscores telcos' need to carefully tailor their pricing strategies to meet evolving customer expectations.

Telecom Service Assurance Industry Segmentation

Telecom service assurance involves continuously monitoring, managing, and optimizing networks to ensure predefined service level agreements (SLAs), focusing on maintaining peak performance and reliability and addressing issues promptly. The scope of the study delves into service assurance solutions and service types around the globe, and market size encompasses the revenue generated from service assurance solutions and service types offered by various players operating in the market. The study tracks the key market parameters, underlying growth influencers, and major vendors operating, supporting market estimations and growth rates during the forecast period.

The market is segmented by component type (system type [probe system, network management, workforce management, fault management, quality monitoring, and other system types], services type [professional services, managed services]), deployment type (on-premise and hosted), and geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa). The report offers the market size in value terms in USD for all the abovementioned segments.