With slow ARPU growth in the mobile and fixed connectivity business, revenue diversification remains an imperative for operators. They have pursued various strategies, including offering digital services in the B2C segment and technology services in the B2B segment.
Riding the digital transformation wave, operators have seen faster growth on average in the B2B segment than in B2C. With demand expanding for solutions across a range of technology areas (cloud, edge, IoT, security), B2B still offers significant growth opportunities. Enterprises are increasingly looking for service providers to integrate a blend of technologies for their specific environment and needs.
GSMA Intelligence estimates that $400 billion is currently addressable for operators, incremental to what they currently make from core telecoms. To put that in perspective, $400 billion is around 35% of the global mobile operator revenue base, underlining the potential magnitude. The projections represent the total addressable opportunity rather than a forecast of what will happen. Competition is fierce, with hyperscalers, platform players, IT service companies, equipment manufacturers and software startups all jostling for market share.
In 2023, automotive and aviation offered addressable opportunities of $22 billion and $16 billion, respectively, and are expected to grow at CAGRs of 12.0% and 8.4% between 2023 and 2030. Together they account for a significant addressable market for B2B technology services beyond core telecoms.
Connected vehicles drive development in technology services beyond the core due to massive data consumption in cloud and edge computing, as well as digitalisation acceleration. While in aviation, the demand for rapid innovation and cost savings will drive cloud adoption. Airlines and airports are leveraging real-time big data, artificial intelligence, and analytics to improve safety, operational efficiency, sustainability, and provide a seamless travel experience.
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