[105 Pages Report] MarketsandMarkets forecasts the global telecom system integration market to grow from USD 16.6 billion in 2016 to 25.2 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 8.7% during the forecast period. The forecast period has been considered from 2017 to 2022, while 2016 is considered as the base year for estimating the market size. Telecom system integration market is majorly driven by an increasing need to cope with the cloud and migration activities undertaken by telecom vendors. The rapid advancements in the cloud have encouraged telecom vendors to embrace cloud-based solutions and migrate their workload to the cloud. This has created a need for telecom system integration expertise to seamlessly integrate their network and IT infrastructure with advanced cloud solutions.



The objective of the report is to define, describe, and forecast the telecom system integration market size based on application area, organization size and region.



Attractive Opportunities in the Telecom System Integration Market

Source: Investor Presentation, Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis



By application area, the network management segment to hold the largest market size during the forecast period



The network management application is estimated to dominate the telecom system integration market in 2017. Continuous development in network technologies has encouraged telecom vendors and communication service providers to integrate advanced network solutions with their legacy system. Integrating network solutions efficiently with infrastructure is vital to extract maximum returns on investment from their network solutions. The on-going advancements in the network infrastructure are expected to aid the growth of network management application area in coming years.



By Operation Support System (OSS), service assurance segment is expected to hold the largest market size during the forecast period



Service assurance solutions facilitate telecom companies and communication service providers to pro-actively detect network-related issues thus reducing the time required to resolve the issues. This solution has been largely adopted by telecom companies and communication service providers to reduce the impact of network issues on customer service. The high adoption of this solution has subsequently led to the high market size of service assurance segment in the OSS application. Service assurance enables telecom companies and communication service providers to deliver high quality service to their customers by detecting and resolving service issues.



By deployment type, the on-premises deployment segment to hold the largest market size during the forecast period



The on-premises deployment model is expected to account for a major share of the telecom system integration market by deployment type. On-premises solutions are delivered with a one-time licensing fee, along with a service agreement. On-premises solutions have been deployed on a large scale in telecom companies over the years, as telecom companies have a ready infrastructure to support on-premise solutions. This is a fundamental factor that contributes to the dominance of telecom system integration market for on-premises solutions.



Source: Investor Presentation, Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis

North America to account for the largest market size during the forecast period.



North America is expected to hold the largest market share and dominate the telecom system integration market during 2017�2022. The region has a high concentration of major telecom companies, such as AT&T, Verizon Communications, T-Mobile, Sprint Corporation, and Comcast Corporation. This is one of the main factors that contribute to the dominance of North America in the telecom system integration market. APAC is expected to provide high growth prospects for telecom system integrators in the coming years. This can be majorly attributed to the growing investment from telecom companies and communication service providers in developing countries in APAC.

Market Dynamics

Driver: Government�s supportive policies and legislative mandates Cloud and network integration

Technological evolutions in the area of Information and Communications Technology (ICT) have led to the increased awareness about cloud migration among organizations. Enhancements in the cloud infrastructure have further increased the migration of organizations� data, applications, and processes to the cloud, for the smoother functioning of business activities and higher bandwidth. With a significant rise in data volumes, it has become difficult for telecom service providers to store, manage, and process the data volumes on-premises, due to the lack of the required bandwidth. Migrating the data to the cloud empowers telecom service providers with higher bandwidth for storing, managing, and processing the data and reduces the cost incurred for the on-premises infrastructure. Cisco forecasts the annual global cloud IP traffic to reach 14.1 ZB by 2020 from 3.9 ZB in 2015. Cloud system integrators enable the migration of data to the cloud smoothly and effectively, thereby empowering telecom service providers with smooth data transition.



Network migration is one of the most complex tasks/financial challenges that organizations face while adopting new network infrastructure. The migration needs to be carried out for the client with minimum disruption and must ensure the end-customer�s operations are not hindered. However, with the fast pace of technology revolutions, telecom service providers need to adopt new, advanced network infrastructure to cope with the increasing customer expectations and improve their operational efficiency. This increased need for adopting and integrating the new network infrastructure with the existing legacy network has paved the way for system integrators to ensure smooth network migration for telcos. Network migration is a challenging task, as it includes network transition while ensuring the current operations are not hampered, and the end-users are not affected, directly or indirectly. Therefore, network migration needs to be carried out with well-defined processes, thorough planning, and in-depth expertise to ensure the smooth and efficient transition of the network infrastructure.

Restraint: High implementation costs and more time consumption

Although the implementation of telecom system integration solutions enhances the business profitability in the long run, they are costlier and time-consuming to implement, which results in low motivation to adopt standardized systems. Smaller organizations have to pay huge charges for the implementation and maintenance of system-integrated solutions and services, which becomes a burden for them. Therefore, high installation costs and excess time consumption may act as the major restraints for the growth of the global telecom system integration market

Opportunity: Faster pace of technological advancements

The rapid pace of technological advancements in the area of ICT has led to the faster adoption of innovative technologies in the telecom industry. Dynamic customer expectations and the highly competitive telecom market have led to the rapid adoption of new technologies among telcos. However, the integration of new, innovative network infrastructure with the current legacy infrastructure requires high technical expertise, and telcos find it difficult to undertake system integration while focusing on their business operations. Telcos prefer telecom system integrators to perform the system integration on their behalf, with the help of the telecom system integrators� high technical expertise while the telcos focus on their core competencies. Therefore, the rapid pace of technological advancements in the telecom market is expected to emerge as a significant opportunity for the growth of the global telecom system integration market.

Challenge: Integration affecting data timeliness

The telecom market is currently witnessing stiff competition, and this can be attributed to the faster pace of development and the introduction of new technologies in the ICT area. Telecom service providers are increasingly adopting these new technologies to maintain a competitive edge in today�s highly dynamic business environment. Telecom system integrators play a vital role in the integration of new technologies with the existing legacy infrastructure. Telecom system integration is, however, a high-cost and time-consuming task. Moreover, large data volumes are generated and processed in the back-end by the telecom service providers. These data volumes are extremely important, in terms of managing all the back-end and front-end customer-centric processes and applications. Telecom system integrators face the challenge of ensuring the data gathering and processing activities are not affected during the system integration process, as they could hamper the back-end telecom business processes, and the end-users would be affected.

Scope of the report

Report Metrics Details Market size available for years 2015�2022 Base year considered 2016 Forecast period 2017�2022 Forecast units Value (USD) Segments covered Type, Application Area, Deployment Type, Organization Size, and Region Geographies covered North America, Europe, APAC, MEA, and Latin America Companies covered It includes 15 major vendors, namely, Ericsson (Sweden), Wipro (India), Nokia Networks (Finland), Huawei (China), IBM (US), Tech Mahindra (India), Infosys (India), DXC Technology (US), Cognizant (US), Syntel (US), ZTE (China), TCS (India), Amdocs (US), Samsung (South Korea), HCL (India),and Stixis Technologies (US).

This research report categorizes the telecom system integration market to forecast revenues and analyze trends in each of the following submarkets:



By Type

Hardware Controllers Modems and Routers Switches

Device Integration

Application Integration

Data Integration

Infrastructure



By Application

OSS Service Assurance Resource Inventory Management Others (Fault Management, Order Fulfilment, and Service Delivery)

BSS Billing and Revenue Management Subscriber Data Management Service Fulfilment Others (Order Management, Product Management, and Fraud Detection)

Network Management Network Security Network Monitoring and Optimization Network Integration Others

Digital Services

By Deployment Type

Cloud

On-premises

By Region

North America US Canada

Europe UK Canada Germany France Italy Belgium Denmark The Netherlands Russia

Asia Pacific (APAC) Japan China India Australia South Korea Malaysia Rest of APAC

Middle East and Africa (MEA) Israel Saudi Arabia Rest of MEA



Latin America Brazil Mexico Argentina Rest of Latin America



Key Market Players



Ericsson (Sweden), Wipro (India), Nokia Networks (Finland), Huawei (China), IBM (US).

Ericsson, with a significant presence in the global telecom system integration market, is aspiring to become the top player in the telecom system integration market. The company has adopted a mix of organic and inorganic strategies to capitalize on the market opportunities. For instance, in July 2017, Ericsson introduced a set of network services to address the efficient deployment and operation of IoT devices that are introduced to the LTE networks. In August 2015, Ericsson acquired Icon Americas, a Guatemala-based consulting and system integration company. The acquisition boosted Ericsson�s system integration portfolio in Latin America



Critical questions the report answers:

What are the upcoming trends for the telecom system integration market?

Which segment provides the most opportunity for growth?

Who are the leading vendors operating in this market?

What are the opportunities for new market entrants?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst