The IP multimedia subsystem (IMS) services market is expected to register a CAGR of 16.5%, over the forecast period (2021-2026). With the Internet of Things (IoT) and cloud computing being the future of the internet, the IP multimedia subsystem communication platform is most suitable for integrating IoT and cloud.
- Moreover, the increasing demand for VoLTE and LTE services, along with the demand for the global standard for network infrastructure and services, is the driver for this market.
- The demand for music and video-on-demand services has also increased, owing to the changes in customer preferences, improved internet speed, and the proliferation of smartphones.
- For instance, in March 2019, Mobily Saudi Arabia deployed Ericsson's full stack telecom cloud solution, focusing on transforming its wireless network and providing a 5G Cloud Core.
- However, security concerns in virtualization and lack of availability of a skilled workforce may hamper the growth of the market, but for a specific period.
Key Market Trends
Emergence of 5G Offers Potential Opportunities
- 5G technology is expected to fundamentally transform the role that telecommunications technology is playing in society. Moreover, it is also expected to enable pervasive digitalization of a hyper-connected society, where all people are not only connected to the network whenever needed, but also many other devices/things virtually creating the society with everything connected.
- 5G development requires more spectrum resources, especially low-frequency resources with good penetrating capabilities. IMS deployment has entered the fast lane. According to the statistics of GSMA, 138 carriers around the world had launched IMS-based VoLTE networks by May 2018.
- For the operators to retain the voice and messaging business and stay relevant to their customers, it is necessary to provide innovative, cost-efficient, and interoperable communication services. And thus, IMS provides one common system for all IP-based communication services, for both consumers and business users.
- Moreover, 5G is expected to enable new use cases, such as smart cities, smart agriculture, logistics, and public safety agencies. Thus, the growth of 5G is expected to offer a huge opportunity for the IP multimedia subsystem (IMS) services market to flourish.
Asia-Pacific to Register Highest Growth Rate
- The Asia-Pacific region is the fastest-growing economic region in the world. The region is witnessing the rapid proliferation of smart technologies, such as smart cities, autonomous vehicles, IoT applications, home automation, industrial automation, intelligent processing technologies, and others. These factors are expected to drive market growth.
- Moreover, India is the world's second-largest telecommunications market, with 1,206.22 million subscribers as of March 2018. Moreover, IBEF forecast that the number of internet subscribers in the country is expected to double by 2021 to 829 million, and overall IP traffic is expected to witness a CAGR of 30% by 2021.
- In addition, the Government of India is proactive in providing room for growth for telecom companies. For instance, the Government of India has introduced the 'Digital India' program, under which all the sectors such as healthcare, retail, etc., are expected to be connected through the internet. As a result of such an initiative, the IP multimedia subsystem (IMS) services market is expected to grow at the highest rate in the Asia-Pacific region.
The IP multimedia subsystem (IMS) services market is highly competitive because of the presence of many major players. The competition in the market studied has reached interesting levels, with the involvement of the technology giants, such as Huawei, Ericsson, and Alcatel-Lucent, leading the race to dominate the market space. The key players in this market are catering to the demand by acquiring the small players and collaborating with them for product innovations. The key players are also investing for technologically advanced product portfolio across the world.
- March 2019 - Ericsson, Volvo Construction Equipment (CE), and Telia teamed up to operate Sweden's first 5G network for industrial use, placing Volvo CE among the early global pioneers, in order to test remote-controlled machines and autonomous solutions with the technology.
- February 2019 - Ericsson and Telefonica penned a new four-to-six-year managed services deal for AI-powered network operations in the United Kingdom, Colombia, Peru, Ecuador, and Uruguay. Ericsson is expected to provide services spanning day-to-day monitoring and service desk, change management, and problem and incident management - all powered by its leading AI and automation solutions.
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