Telecom Expense Management Market Size, Share & Trends Analysis Report By Solution, By Service, By Deployment (Cloud, On-premise), By Enterprise, By Industry Vertical, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global telecom expense management market size was valued at USD 2.87 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 11.9% from 2022 to 2030. Telecom expense management solutions provide procurement, IT, and finance departments of organizations with the ability to purchase, provide, support, and control the costs of corporate telecommunications, IT services, and their inventory. The market for telecom expense management is expanding as a result of expanding enterprise usage of portable equipment and ongoing technological developments in telecom expense management systems. Additionally, increasing cloud-based solution popularity and rising mobile device penetration is contributing to the market growth. Furthermore, the market for telecom expense management benefited from the COVID-19 pandemic. As enterprises continue to rely on digital technology, the demand for telecom expense management solutions and services is anticipated to grow in the post-COVID-19 era as well. The growing implementation of IoT technology, the proliferation of smart devices, the acceptance of work-from-home culture, and the rising volumes of data are expected to drive the demand for telecom expense management solutions and services.

The demand for telecom expense management in the U.S. is being driven by the increase in cloud computing, mobile broadband, and big data analytics. Additionally, major players in North America are concentrating on strategic initiatives to provide better solutions to clients. For instance, in April 2022, brightfin announced new features in its telecom expense management solution in its version: 22.10. The new updates included payment flexibility, timely payment notification, a multi-tier payment approval process by different roles, a single view dashboard, and a variety of payment options.

Solution Insights

The invoice management segment accounted for the largest revenue share of 36.2% in 2021 and is expected to dominate the market over the forecast period. Organizations may centralize, simplify, and streamline the entire invoice processing process using invoice management. Invoice collecting with data normalization across vendors, invoice auditing against contract rates and cost centers, invoice error detection and rectification, vendor refund process, and allocation of invoice charges to the proper cost centers are some advantages offered by invoice management solutions.

Based on the solution, the market is segmented into dispute management, invoice management, ordering and provisioning management, sourcing management, usage management, and others. The usage management segment is expected to witness a significant growth rate of 11.7% during the forecast period. The amount of data plans has grown to a point where businesses are unable to effectively manage them on their own, owing to the growth of telecommunication networks and an increase in the number of employees using mobile devices.

Telecom expense management helps businesses save money by monitoring voice, SMS, and data usage and setting thresholds that either alert management of non-compliance or immediately remove user profiles when a particular threshold is met, thus driving the market demand in this segment.

Service Insights

The hosted services segment is expected to contribute significantly to the global industry, accounting for 67.5% of the total revenue share in 2021. The mobile aspect of the hosted service is one of its key benefits. Additionally, scalable IT infrastructure resources are another important benefit of hosting solutions. There is a need to scale up resources for a variety of reasons, including server performance, a change in system configuration to upgrade current software, the creation of a new system to deploy a new application, an upgrade to the most recent version of a server that is no longer receiving support, and increase in storage capacity.

The service segment is bifurcated into hosted services and managed services. The managed services segment is expected to expand at the highest CAGR of 15.3% during the assessment period. Organizations are adopting managed services as they enable them to maintain flexibility and focus their resources on operating their businesses instead of managing complex IT infrastructure. Managed services are also beneficial for small and medium-sized enterprises, owing to the significantly lower startup costs, which fuels segment growth.

Deployment Insights

The on-premise segment accounted for the largest revenue share of 60.1% in 2021. On-premise is based on the physical environment and is important for organizations with sensitive data. Data protection is arguably the biggest benefit of on-premise software, as companies have complete control over their data and its security since the data is stored locally. Additionally, organizations can control maintenance and upgrades for their software and hardware when required.

The cloud segment is projected to witness the highest growth rate of 15.7% over the forecast period, owing to the growing prominence of cloud management solutions. Organizations can manage distributed telecom infrastructures and have access to numerous features with cloud-based telecom expense management solutions. In addition, integrated with machine learning and enhanced visibility capabilities, it delivers all the features of the on-premise deployment.

Enterprise Insights

The large size enterprise segment dominated the market and accounted for 78.3% of the global revenue share in 2021. The growing integration of individual devices like laptops, smartphones, and tablets under mobility policies like choose-your-own-device (CYOD) is contributing to the market growth. Furthermore, to identify any problems before they result in a system outage, the effective management tools of telecom expense management deliver precise, real-time information on organizations’ networks usages and communication devices.

The small & medium-sized enterprise segment is likely to expand at the highest CAGR of 14.5% during the forecast period. Small and medium-sized organizations are becoming more prevalent in both established and developing countries, which has prompted organizations that are open to adopting the BYOD culture to reduce the upfront IT costs that might hinder their early expansion. Such trends are expected to create opportunities for telecom expense management in this segment.

Industry Vertical Insights

The IT & telecom segment held the largest revenue share of 36.0 % in 2021 and is expected to maintain its position over the forecast period. The telecom expense management system is widely used in the IT industry to track and manage voice, data, and various wireless services to understand organizations’ telecom expenses. Based on the industry vertical, the global telecom expense management market is segmented into BFSI, consumer goods & retail, healthcare, IT and telecom, manufacturing & automotive, and others.

The BFSI segment is expected to witness the highest growth rate of 13.9% in the coming years. The number of people using mobile and internet banking is increasing, which is driving up demand for telecom expense management in the BFSI sector. For instance, according to data from The World Bank Group, two-thirds of adults currently send or receive digital payments globally, with developing economies accounting for 57% in 2021.

Regional Insights

North America dominated the market with a share of 34.4 % in 2021 and is anticipated to retain its position over the forecast period. Early adoption of telecom expense management solutions and services in this region is the major factor for the market growth. According to the State of Mobile Internet Connectivity 2021 report, which reviews trends in mobile internet usage and coverage over the preceding six years, internet connectivity in North America increased from 61% (220 million) in 2014 to 77% (290 million) in 2020.

Asia Pacific is the fastest-growing region with a CAGR of 13.3% in the market for telecom expense management. The growing presence of platforms for e-commerce and merchant buy-in, extensive usage of smartphones, and investments in 5G networks are fueling market growth in the Asia Pacific. China, Japan, and India are three major contributors to regional market growth. The World Population Review reported that as of January 2022, India had 658 million internet users, with a penetration of 47% of the total population.

Key Companies & Market Share Insights

The market has a fragmented competitive landscape as it features various global and regional market players. Leading industry players are undertaking strategies such as partnerships, collaborations, and product launches to survive the highly competitive environment and expand their business footprint. For instance, in October 2022, Sakon announced its strategic partnership with TRG Screen, an enterprise subscription-based solution provider.

The collaboration of TRG Screen and Sakon in the development of highly optimized subscription-based solutions was spurred by the shift toward a post-pandemic economic landscape and a hybrid work model. The collaboration aimed to provide clients with a unique strategic roadmap to manage and optimize the communications and expenses related to rapid digital transformation. Some of the prominent players operating in the global telecom expense management market are:

• Accenture

• AVOTUS

• brightfin

• Calero-MDSL

• CGI Inc.

• NTT Limited

• Sakon

• Tangoe

• VALICOM

• Vodafone Group Plc

Telecom Expense Management Market Report Scope

Global Telecom Expense Management Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global telecom expense management market report based on solution, service, deployment, enterprise, industry vertical, and region:

• Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Dispute Management

  • Invoice Management

  • Ordering and Provisioning Management

  • Sourcing Management

  • Usage Management

  • Others

• Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Hosted Services

  • Managed Services

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-premise

• Enterprise Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Size Enterprises

  • Small and Medium Sized Enterprises (SMEs)

• Industry Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • Consumer Goods & Retail

  • Healthcare

  • IT and Telecom

  • Manufacturing & Automotive

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Chile

    • Argentina

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa