This IDC study offers an update of the worldwide telecom market for FY13 and the first half of 2014. The worldwide telecom market growth in 2013 was 3%, and IDC is forecasting 2014 growth of 3% as well from $1.58 trillion at the end of 2013 to $1.63 trillion in 2014. IDC is forecasting overall market growth of 3.4% over the 2013–2018 time frame.
General trends of the market remain the same, with continued strong growth in mobile data, fixed broadband, and IP voice. However, even high-growth segments such as mobile and data are susceptible to competitive pressures, as well as alternative services from OTT. Thus CSPs will face a challenging environment over the next few years as they seek to contain costs while carving out growth wherever possible. Legacy networking remains the weak point, and many telcos are looking to end-of-life scenarios, and transformation to IP and converged platforms, that will begin over the next few years.
"The telecommunications market will grow at a slow but steady pace over the next five years. CSPs face tremendous challenges of business model and infrastructure transformation, as well as competitive challenges from various sectors," according to Courtney Munroe, GVP, Worldwide Telecommunications Services, IDC.