As the name suggests, telecom expense management (TEM) helps the enterprises to manage their telecommunication networks. These networks hold a major area of expenditure, planning, management and research for the organizations. Growing need for communication amongst global employees and technological advancements are creating the need for a strong management tool for these networks. As per the experts, the rising rate of adoption amongst the enterprises from around the world is the major driving factor for the telecom expense management market. The industry is witnessing healthy growth and is expected to continue the momentum with technological advancements and demands from the emerging parts of the world.
Scope of Research – Segmentation
Researchers segment the global telecom expense management market on the basis of the types of solutions, service delivery modes, end users and demand from different geographic regions and business verticals. Following are the details of the industry sub-segmentation:
- Solutions: Inventory, dispute, ordering and provisioning, invoice and contract, sourcing, reporting, and usage management
- Service delivery modes: Managed, hosted and licensed software and complete outsourcing
- End-Users: Small and medium businesses and large enterprises
- Industry verticals: Automotive, BFSI, transportation, logistics, healthcare, manufacturing, consumer goods, retail, media, etc.
- Geography: Asia Pacific including Japan, North America, Middle East and Africa, Europe, and Latin America
Drivers, Restraints & Forecasts
As per the latest reports, the telecom expense management market is expected to be driven by the rising demand from different industrial verticals on global scale. This demand is also expected to be driven by increasing use of mobile devices, smartphones and other portable communication devices. Strong expense visibility and cost reduction are also considered to be the crucial factor influencing the growth of this market. Low cost of deployment and strong rise in demand by the end-user industries are expected to create strong business opportunities for the global market. However, lack of interoperability and complexity from growing demand remain the major challenges for the market.
The latest reports suggest that the global telecom expense management market is set to witness a healthy growth rate from 2014 to 2019. During the aforementioned period, the market is expected to grow at a healthy CAGR of 16% and reach past $3.43 billion in 2019. As of 2014, the industry is projected to be worth $1.14 billion. Emerging markets are expected to witness strongest growth rate during the next few years. This growth is driven by rising demand for smart devices and rising globalization.