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Telecom Business Review | Monday, August 22, 2022
Globally, GIS in the telecom market generated $1,564.6 million in revenue in 2021 and will reach $4,482.8 million by 2030, growing at a CAGR of 12.4 percent.
FREMONT, CA: The global GIS in the telecom market generated $1,564.6 million in revenue in 2021 and will reach $4,482.8 million by 2030, expanding at a CAGR of 12.4 percent from 2021 to 2030. This will occur due to the rising demand for network installation and the expanding use of GIS for mobile and broadband services.
Demand for Network Installation Explodes
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The rising need for network installation is a significant driver driving the global market. After selecting the optimal site to enable its operations, a network tower is installed in a particular region. Telecom companies are also concentrating on network design and expansion due to intensifying rivalry and the rapid introduction of new wireless network technologies, such as 4G and 5G. Due to the high expenses associated with the planning, construction, and testing of a wireless network, telecom businesses are increasingly using GIS technologies for improved analyses of geographical data about tower installation.
Moreover, the pandemic is driving demand for digital technologies, as people's reliance on the internet while working from home has dramatically increased. The dramatic increase in Internet users has caused a paradigm shift in the telecommunications industry, which is currently struggling to meet the unprecedented demand for greater bandwidths. For example, 66.2 percent of the world's population will use the internet in 2022, and internet usage climbed 1,335 percent from 2000 to 2022. Increasing demand for 5G networks necessitates a larger bandwidth, which contributes to the expansion of the GIS in the telecom market.
An offering of Data Dominates Market
From 2021 to 2030, the data offering category is anticipated to dominate the market. This is due to the increasing use of geographic data for campaign management, capacity analysis, and demand forecasting by telecom providers worldwide. In addition, significant telecommunications companies use GIS data to enhance their operations and provide consumers with better services.
IT Infrastructure Security and Safety Issues Increase the use of On-Premises Solutions
In 2021, the on-premises category led the market in terms of deployment type. This is mostly because the on-premises GIS model provides greater safety and security than the cloud GIS paradigm. Since the debut of GIS in the telecom industry, most enterprises have utilized on-premises solutions.
During the forecast, the cloud category is anticipated to have the highest CAGR, at 13.0 percent. This can be attributed to the growing desire of telecom businesses for cloud-based GIS systems, as cloud-based data is easily accessible via web browsers and mobile devices. In addition, due to the expanding cloud computing market, the cloud GIS in the telecom market is anticipated to expand rapidly over the projection period.
Essentially, significant advancements in cloud computing and cloud-based apps, as well as an increase in the reliance of modern firms and businesses on them, have contributed to the market's steady expansion.
Miniaturization of system components
GIS functions are being revolutionized by technologies such as IoT and AI. As a result, vendors are increasingly emphasizing integrating their solutions into sensors and connected-technology-enabled equipment to aid telecom businesses in collecting data tailored to their specific requirements. These miniature systems are gaining popularity across the globe due to their compact size and increased geographic data collection flexibility. They provide real-time data collecting for mapping and navigation, which aids telecom corporations in formulating network planning and expansion strategies.
Combining AI and GIS can also assist enterprises in making prompt and well-informed decisions. The two technologies will increasingly integrate asset tracking, fleet localization, and location intelligence. This will eventually alter the GIS environment and increase the technology's possibilities, driving market expansion.
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