Investments in 6G and AI are poised to drive significant growth in global connectivity, with revenue from Global Communications Providers expected to reach $5.6 trillion by 2030.
- Investments in 6G and AI are poised to drive significant growth in global connectivity, with revenue from Global Communications Providers expected to reach .6 trillion by 2030.
- Capital intensity in telecom is anticipated to decline until 2027, after which it is expected to rise due to the necessary upgrades in mobile networks to accommodate new technologies.
According to a report by market intelligence firm Omdia, this growth will occur at a compound annual growth rate of 6.2 per cent from 2025. The report highlights that technology innovation, infrastructure expansion, and strategic investments are key factors behind this steady progression.
g and: Shifting Landscape of Telecom Revenue
While traditional telecom revenue is predicted to grow modestly at a CAGR of 2.7 per cent, the technology segment, which includes major players like Amazon, Alphabet, Apple, Meta, and Microsoft, is expected to soar with a robust CAGR of 9.4 per cent. By 2030, these technology platforms are projected to account for 55.9 per cent of total communications provider revenue.
New Investment Strategies Emerging
Dario Talmesio, Research Director at Omdia, remarked, “Telecom operators are entering a new phase of strategic investment.” He noted that with 6G on the horizon and increasing demands for AI infrastructure, the connectivity business is transitioning from volume-based pricing to a focus on value-driven connectivity.
Capital Expenditure Trends
Omdia forecasts that telecom capital expenditure will reach $395 billion by 2030, reflecting a growth rate of 3.6 per cent CAGR. In contrast, capital expenditure for technology is expected to surge to $545 billion, aligning with a 9.3 per cent CAGR. This reflects a clear shift in priorities as telecom operators increasingly invest in mobile networks, particularly as Tier 1 markets prepare for 6G deployments starting in 2028.
Declining Fixed Telecom Expenditure
The report suggests that fixed telecom capital expenditure is likely to decline gradually, primarily due to market saturation. This trend indicates a pivotal shift in how telecom operators are allocating their resources.
Expanding AI Infrastructure and Cloud Services
As demand for AI infrastructure and cloud services rises, telecom operators are expanding their data centres and investing in specialised hardware. The forecast predicts that capital expenditure per person in this sector will increase from $74 in 2024 to $116 by 2030, equating to 2.5 per cent of global GDP investment.
Future Capital Intensity Dynamics
Capital intensity in telecom is anticipated to decline until 2027, after which it is expected to rise due to the necessary upgrades in mobile networks to accommodate new technologies.
Regional Insights into Growth Potential
Regional trends indicate that North America, Oceania, Eastern Asia, and Western Europe currently lead in revenue and capital expenditure. Meanwhile, Central and Southern Asia are identified as areas with the highest growth potential.
Omdia’s forecast is founded on an extensive model that incorporates historical data from 67 countries, local market dynamics, regulatory trends, and technology migration patterns, offering a comprehensive view of the evolving global connectivity landscape.
