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IDC Forecasts Fastest Growth in Wholesale and Retail Industries for U.S. Telecommunications Services

Posted on: Monday, 18 July 2005, 09:07 CDT

From 2004 to 2009 spending on telecommunications services will grow the fastest within the wholesale industry, followed by retail, healthcare, and financial services, according to IDC. Combined, these four vertical markets will comprise nearly 28.4% of the total spending on telecommunications services by 2009. Alone, the wholesale industry will account for 7.5% of the total market spend on telecommunications services by 2009, at $12.4 billion, with a five-year CAGR of 8.3%.

The above average growth in telecommunications expenditures within the wholesale industry is driven by the need to improve sales and marketing effectiveness as wholesalers struggle against disintermediation in the supply chain. Retail spending is attributed to the fact that retail companies are dependent on telecommunications to accomplish core business processes, including sales and marketing, employee coordination, and supply chain management. Likewise, the competitive healthcare industry is working to improve the speed and accuracy of capturing and transmitting customer information, to improve customer-related processes.

In general, there is a wide variation in spending and growth rates by industry on telecommunications services, underscoring the point that "as revenue opportunities in telecommunications services mature, identifying growth opportunities in vertical markets is going to become a more critical pursuit," according to Daniel Corsetti, senior analyst with IDC's Vertical Market Research group.

Overall spending on telecommunications services is expected to exceed $165.2 billion by 2009, from the $154.4 billion spent in 2004, a CAGR of 1.4%. Melanie Posey, research director for Telecom Markets at IDC adds, "Wireless and IP services can be expected to drive telecom growth in the near future. However, despite the significant amount of attention given to these data services, as well as their higher growth rates, the bulk of telecommunications revenue is going to continue to be supported by voice services."

As the first study of its kind, the U.S. Telecommunications Services 2005-2009 Forecast by Vertical Market (IDC #33560) provides an overview and five-year forecast of the telecommunications services industry. Additionally, it provides extensive analysis of the drivers influencing end-user spending on telecommunications services within seventeen vertical industries, thus underscoring opportunities for vendors and service providers to penetrate verticals providing the fastest growth and adoption rates.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a division of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com

All product and company names may be trademarks or registered trademarks of their respective holders.

Source: Business Wire

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