United Kingdom Telecom Market Report and Forecast 2024-2032

United Kingdom Telecom Market Outlook

The United Kingdom telecom market size reached approximately USD 34.55 billion in 2023. The market is projected to grow at a CAGR of 3.7% between 2024 and 2032, reaching a value of around USD 47.92 billion by 2032.

Key Takeaways

• The UK invested 70 million pounds to develop futuristic telecommunication technologies in October 2023.

• In August 2023, the UK invested 160 million pounds into the Connectivity in Low Earth Orbit scheme to boost the telecom sector growth.

• BT PLC, a major British telecom company, invested 15 million pounds in May 2021 to provide faster broadband services to people.

Telecom refers to the exchange of information that occurs between a transmitter and a receiver situated a long distance apart. The medium of exchange can be either through electromagnetic fields, cables, or fibre, among others. Telecom services help businesses and individuals communicate quickly at flexible times and have transformed the notion of remote work into reality.

The United Kingdom market for telecom is being driven by rising smartphone penetration, innovations in consumer entertainment channels, and an increase in wireless communication transmission channels. Increasing investments into key sectors, including semiconductors, is also likely to have a positive influence on the United Kingdom telecom market expansion in the forecast period.

With the rise of OTT platforms and different streaming channels for entertainment, as well as the establishment of new networks with advancing technology, the market is expected to grow significantly in the coming years.

Key Trends and Developments

Phaseout of landline services; increasing investments in LEO satellites; the rising use of AI; and the launch of 5G network are the major trends impacting the United Kingdom telecom market growth.

United Kingdom Telecom Market Trends

The Global Coalition on Telecommunications is led by the UK, Australia, Japan, Canada, and the USA with the objective of strengthening coordination and ensuring the security of the telecom sector. The United Kingdom is set to make an investment of 70 million pounds into the Future Telecoms UKRI Technology Missions Fund to enable the development of advanced and futuristic telecommunications technology in the UK. This is likely to lead to the United Kingdom telecom market in the coming years.

The Public Switched Telephone Network (PSTN) or the landline system, which has existed since 1875, will be phased out by 2025 due to its age-old infrastructure and high maintenance expenditure. As per Ofcom, the UK’s regulatory body for communications, service providers are expected to ensure a smooth transition towards digital phone lines for consumers, resulting in improved calling quality and higher consumer satisfaction.

Market Segmentation

“United Kingdom Telecom Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Wireless transmission is expected to dominate the United Kingdom telecom market share over the forecast period.

Wireless networks are expected to constitute a major portion of the market share in the coming years. Rapid innovations in the domain of wireless technologies, including 6G, 5G, and Wi-Fi 7, among others, are expected to aid the segment’s growth. The strong presence of wireless networking infrastructure in the UK is propelling the United Kingdom telecom market growth, which is expected to register an upward trend over the forecast period.

On the other hand, wireline technologies, with benefits of enhanced security, reliability, and speed, are expected to witness a stable demand among businesses and consumers in the coming years. Their higher connectivity and accessibility features provided by wired connections is likely to contribute to its demand significantly in the forecast period.

Competitive Landscape

Major players in the United Kingdom telecom market are aiming to provide high quality telecom services at competitive rates to consumers.

Other key players in the United Kingdom telecom market include Vodafone Limited, TalkTalk Telecom Limited, Virgin Media O2, Giffgaff Limited, and Wavetel Business LTD., among others.

Key Highlights of the Report