Telecom Expense Management Market Size - By Solution (Dispute Management, Invoice Management, Ordering & Provisioning Management, Sourcing Management, Usage Management, Others), Service, Deployment, Enterprise Size, Industry Vertical & Forecast, 2023 - 2032

Telecom Expense Management Market Size

Telecom Expense Management Market size was valued at USD 2.81 billion in 2022 and is anticipated to register a CAGR of over 9% between 2023 and 2032, driven by stringent regulatory compliance and governance across the telecom sector. Strict regulatory requirements in the telecom industry have prompted organizations to implement TEM solutions to ensure compliance and adherence to rules and policies.
 

For instance, the Sarbanes-Oxley (SOX) set of regulations in the United States require public companies to maintain accurate financial and internal records. Telecom companies subject to SOX must be able to track and report their telecom expenses in a compliant manner. TEM solutions can help telecom companies meet these requirements by providing automated expense tracking and reporting capabilities, resulting in increased market demand.
 

Telecom expense management is a systematic approach to tracking, analyzing, and optimizing these expenses, leading to cost control, better resource allocation & improved operational efficiency. Moreover, rising remote work policies are further amplify the need for effective TEM solutions, ensuring transparency, security & compliance while managing telecom assets and services. As businesses continue to embrace digital transformation, the market is expected to grow during the forecast period.
 

A notable hurdle that can hinder the telecom expense management market growth is the constant evolution and complexity of telecom services, technologies, and pricing models. As the telecom industry rapidly progresses with new offerings including 5G, IoT & cloud-based communication solutions, telecom expense management providers may face difficulties in keeping their systems updated and relevant. Integrating diverse data sources, ensuring real-time monitoring, and handling international operations will further compound the challenge. Additionally, organizations may resist adopting new telecom expense management solutions due to the existing internal processes or concerns about data security and privacy.
 

COVID-19 Impact

The COVID-19 pandemic significantly impacted the demand for Telecom Expense Management (TEM) solutions and services. With remote work becoming the norm, organizations faced increased complexities in managing telecom expenses, including data usage, communication tools, and mobile devices for a dispersed workforce. This led to a surge in demand for TEM solutions that offered cost optimization, real-time visibility, and centralized management of telecom expenses. The pandemic highlighted the importance of efficient telecom expense management, driving businesses to invest in TEM solutions to navigate the challenges posed by the remote work environment.
 

Telecom Expense Management Market Trends

TEM solutions help organizations identify cost-saving opportunities, eliminate billing errors, and negotiate better contracts with telecom providers, making them attractive for businesses looking to reduce expenses. Rising adoption of mobile devices worldwide will further drive lucrative revenue to the TEM industry through 2032. According to the latest facts and figures by the International Telecommunication Union, about three-quarters or 73% of the population aged 10 and over globally owned a mobile phone in 2022. The proliferation of smartphones, tablets, and other mobile devices in enterprises necessitates better management of mobile expenses, contributing to the demand for TEM solutions.
 

Telecom Expense Management Market Analysis

The hosted services segment accounted for 62.1% of the telecom expense management market share in 2022. Hosted services offer a cost-effective and efficient solution to businesses. With hosted services, companies can outsource the management of their telecom expenses to specialized providers, alleviating the burden of in-house management. This approach enables organizations to access expert telecom expense management capabilities, advanced analytics, and real-time reporting without the need for significant upfront investments.
 

The telecom expense management market from invoice management segment held over USD 850 million revenue in 2022, owing to its pivotal role in ensuring accurate billing and cost control. By implementing robust invoice management solutions, businesses can efficiently process, validate, and reconcile telecom invoices. This enables them to identify billing errors, negotiate better contracts, and eliminate unnecessary expenses. With streamlined invoice management processes, companies gain better visibility into their telecom spending, empowering them to make data-driven decisions and optimize their telecom budgets effectively.
 

North America telecom expense management market with a share of over 35% in 2022 and is set to cross USD 2 billion by 2032, due to the escalating demand for cost-effective and efficient telecom management solutions. TEM solutions offer numerous benefits, such as reducing telecom expenses, improving inventory management, and enhancing customer experience. To illustrate, a leading US retailer was able to save over $1 million annually by implementing TEM solutions. As more businesses recognize the immense value of TEM technology, the market can anticipate continued growth and innovation in North America.
 

Telecom Expense Management Market Share

Major companies operating in the telecom expense management market are

• Calero-MDSL
• Econocom
• CGI
• Avotus Corporation
• Accenture
• MDSL
• Anatole
• Valicom
• Dimension Data
• Sakon Inc.
• Tangoe, Inc.
• WidePoint Solutions Corporation

These companies are prioritizing strategic partnerships, launching new products, and commercialization efforts to expand their market reach.
 

Telecom Expense Management Industry News

• In July 2023, IBM announced the acquisition of Resilient, a provider of incident response and threat intelligence solutions. This acquisition will help IBM expand its TEM capabilities and provide customers with a more comprehensive view of their security posture.
   

This telecom expense management market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Solution

• Dispute management
  • Dispute management
  • Invoice management
  • Ordering & provisioning management
  • Sourcing management
  • Usage management
  • Others

Market, By Service

• Hosted services
• Managed services

Market, By Deployment

• On-premises
• Cloud

Market, By Enterprise Size

• SME
• Large enterprises

Market, By Industry Vertical

• BFSI
• Consumer goods & retail
• Healthcare
• IT & telecom
• Manufacturing & automotive
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia