Taiwan Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Taiwan Telecom Market size is estimated at USD 10.57 billion in 2024, and is expected to reach USD 12.53 billion by 2029, growing at a CAGR of 3.46% during the forecast period (2024-2029).

Key Highlights

• The adoption of advanced technologies drives the Taiwanese telecom market growth, with a robust focus on R&D, manufacturing, and innovation bolstered by key players like Foxconn, TSMC, and HTC. These players bolster Taiwan's ICT sector and contribute significantly to the overall tech landscape.
• Taiwan's ICT industry played a pivotal role in the introduction of Rakuten Mobile's Open RAN service in Japan, leveraging its position as a hub for many of the country's core telecom hardware suppliers. Encouraged by this success, Taiwan's industry leaders are now eyeing a larger share of the total telecom supplier industry, traditionally dominated by European players, by developing their own Open RAN applications.
• As the demand for 5G solutions surges, there's a notable trend of Taiwan's telecom software providers collaborating with local hardware suppliers. With the evolution of networks towards software-defined, virtualized systems and cloud-based architectures, Taiwan's hardware manufacturers are actively seeking partnerships with global entities to craft innovative telecom applications.
• In June 2023, Taiwan's Ministry of Digital Affairs (MODA) launched the 5G Private Network Project, introducing licenses spanning up to a decade. US telecom software and cloud service providers are urged to forge partnerships with Taiwanese counterparts under this initiative.
• In April 2023, MODA took a significant step by inviting Internet service providers to seek proof-of-concept licenses for its Digital Resilience Verification Program. This program evaluates the efficacy of non-synchronous LEO satellites as a backup network during natural or manmade disasters.
• Despite the adverse effects of the COVID-19 pandemic on jobs and manufacturing in the telecom sector, the demand for both voice and data services, along with a resilient telecom infrastructure, has surged. This heightened demand, especially with the increasing reliance on wireless traffic, exerts more pressure on cellular infrastructure.
• As remote work, video conferencing, and telecom technologies emerge as pivotal post-pandemic business enablers and streaming platforms like Netflix dominate the entertainment landscape, Taiwanese telecom vendors are rolling out enticing voice, data, and OTT services to meet the escalating subscriber demands.

Taiwan Telecom Market Trends

Voice Services are Witnessing a Strong Growth Rate

• Increased adoption of smartphones and rising internet connectivity in Taiwan have fueled the demand for voice services. GSMA projects that smartphone adoption in Taiwan will surge to 96% by 2030, up from 86% in 2023. Additionally, the rapid deployment of 5G networks and a maturing device ecosystem have accelerated 5G adoption beyond initial expectations.
• Wired communication media, known for its superior stability compared to wireless counterparts, is witnessing heightened demand. Wired connections are less susceptible to external interferences, as they rely on physical wires for data transmission. This stability makes wired communication ideal for professional applications, boasting faster speeds than wireless alternatives.
• The default voice codec in 5G smartphones leverages the 3GPP's standardized enhanced voice services (EVS). While EVS can function on 4G networks, its use has yet to be universal. Notably, EVS promises superior voice quality compared to the narrowband and HD voice offerings in 2G to 4G networks.
• Further, AI and ML are revolutionizing the 5G-Advanced technology landscape. A prime example is Chunghwa Telecom, which leverages AI-driven smart energy solutions to reduce potential energy consumption while maintaining a top-notch user experience. This breakthrough highlights the viability of a high-performing, sustainable network and its importance in handling the surge in mobile data, especially from advanced applications.
• In December 2023, Taiwan Mobile, a consistent member of the "Taiwan Sustainability Index" for six years, made significant strides. Its merger with Taiwan Star formed the formidable "5G Team Taiwan." Leveraging 5G NR Carrier Aggregation technology, Taiwan Mobile is consolidating the 60MHz and 40MHz bands in the 3.5GHz spectrum, offering users an unprecedented 100MHz 5G bandwidth. Taiwan Mobile aims to complete the network integration by 2024.
• Moreover, the adoption of cloud-native architecture is becoming paramount for communication service providers, especially with the advent of 5G and the looming 6G era. By decoupling software from hardware, cloudification boosts network efficiency and automation and emerges as a linchpin in cost management within the increasingly intricate network landscape.

Rise of OTT to Support the Growth of the Taiwanese Telecom Market

• In Taiwan, changing consumer habits are driving a surge in popularity for over-the-top (OTT) platforms as more households pivot from traditional cable TV to audiovisual content on their mobile devices, computers, and smart TVs. This shift is part of a broader trend where viewers seek more flexible and on-demand content options.
• GSMA reports that in 2023, Taiwan's subscriber penetration hit 95%, which is projected to climb to 96% by 2030. The country witnessed a significant increase in internet subscribers during the COVID-19 pandemic, a trend expected to fuel the demand for data and messaging services in the post-pandemic landscape. This increase in internet penetration also drives the growth of digital services and online entertainment.
• Streaming giants such as YouTube and Netflix are reshaping how Taiwanese audiences consume content, offering a more personalized viewing experience. These platforms provide vast content that caters to diverse tastes and preferences, making them highly attractive to modern viewers. In Taiwan, Netflix, YouTube, and Disney+ reign as the top OTT platforms, with Disney+ notably outpacing its global counterparts in growth. The rapid adoption of these services highlights a significant shift in consumer behavior toward digital media consumption.
• Streaming music and video, over-the-top (OTT) media, is a burgeoning trend in Taiwan. The market has swiftly expanded, with many platforms offering diverse original content. Consequently, the OTT landscape has evolved into a fiercely competitive arena. To carve a niche, these local platforms are now strategizing to differentiate themselves.
• In March 2024, 17LIVE Group Limited and mm2 Asia Limited inked an MoU to bolster their entertainment offerings and production capabilities. This partnership fosters closer ties between 17LIVE, Taiwan's premier live-streaming platform, and mm2, a prominent media and entertainment entity.
• Taiwan's audiovisual sector focuses on the evolution of over-the-top (OTT) media services. These services, delivered directly over the Internet, are a focal point for the Taiwanese government. They aim to fortify the local OTT industry and ensure a balanced playing field for international and domestic operators. Such initiatives are poised to fuel the growth of OTT and PayTV services in Taiwan's telecom market.

Taiwan Telecom Industry Overview

The Taiwanese telecom market is semi-consolidated because of the presence of major companies. Some key players are AT&T, Chunghwa Telecom Co. Ltd, Chief Telecom Inc., Far EasTone Telecommunications Co. Ltd, and Taiwan Mobile. Key players in this market are introducing new innovative products and forming partnerships and collaborations to gain competitive advantages.

• February 2024 - Chunghwa Telecom and Ericsson took a significant step in propelling Taiwan's 5G development by signing a MoU. Their joint efforts are toward enhancing 5G-Advanced technology, specifically focusing on Extended Reality (XR), time-critical communication, industrial automation, 5G RedCap, AI-driven network energy-saving solutions, and intelligent network operations. Beyond immediate goals, this collaboration paves the way for research and development in mobile technology's next generation.
• February 2024 - Fujitsu Limited and Chunghwa Telecom Co. Ltd entered a 2-year strategic partnership to jointly explore implementing an All-Photonics Network (APN) in Taiwan, aligning with the IOWN initiative. This collaboration aims to pave the way for the network in Taiwan, emphasizing high capacity, low latency, and energy efficiency, ultimately fostering innovation and sustainability in the region.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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