Indonesia Communication Services Market Size (2024 - 2029)

Indonesia Communication Services Market Analysis

The Indonesia Communication Services Market size is estimated at USD 17.30 billion in 2024, and is expected to reach USD 19.70 billion by 2029, growing at a CAGR of 2.63% during the forecast period (2024-2029).

• The Indonesian communications services market thrives as a mobile-centric industry, with strong economic growth positioning Indonesia as one of the fastest-growing telecom markets worldwide. The development is driven by mobile and fixed broadband subscriptions and increased household penetration.
• Growth in the Indonesian telecom sector due to the expanded coverage, greater affordability, service improvements, increased data usage, and higher smartphone penetration of its fiber-optic network and 5G coverage through significant capital expenditure investments is likely to boost the country's communication services market.
• Accelerating growth of 4G and 5G networks, switching 2G and 3G voice services to packet-switched services building on voice-over Long-Term Evolution (VoLTE) and Voice over New Radio (VoNR) is propelling the growth of the Indonesia communication service market. Growing technological advancement and the evolution of networks are factors that enable the development of the market in Indonesia. The country's consumers, enterprises, and industries benefit from high-quality, easy-to-use voice and numerous innovative communication services.
• Rising trends of over-the-top (OTT) voice services have driven the adoption of more advanced communication services, such as video calling and video messaging, in Indonesia in recent years. Growing demands to offer an entirely satisfactory voice experience in many mobile scenarios with high quality of service (QoS) is compelling market vendors to provide solutions tailored to customer requirements.
• VoLTE and VoNR provide an easy-to-use and high-quality experience. Also, Wi-Fi calling is natively supported in all major smartphone brands and is widely deployed in CSP networks. Benefits such as improved indoor voice coverage and cheaper international calls drive Wi-Fi calling adoption significantly. 5G mobile subscribers are projected to grow significantly in Indonesia by 2030 with the help of significant players like Indosat and Telkomsel.
• COVID-19 has increased the trend of working from home and becoming accustomed to new routines in daily life. The transition toward new digital behaviors plays a critical role in communications services. As network traffic loads shifted from city centers and office areas to suburban residential areas and the fixed residential network absorbed a larger share of traffic, Indonesia also experienced an increased demand for communication services. This behavior will likely continue during the post-pandemic era, propelling market growth under study.

Indonesia Communication Services Industry Segmentation

Communication services are the remote transmission of voice, data, texts, sound, and images. Enterprises in Indonesia are adopting communication services to perform in the ever-increasing competitive environment with a zero-cost advantage in maintaining technology infrastructure. Communication services comprise fixed voice, fixed data, mobile voice, and other IT services. Communication Services enable customers and enterprises to transform their workforce, service, or infrastructure management and deliver a cloud-first, agile, automation, and intelligence-based solution that can support broader corporate goals of product diversification, innovation, and revenue growth.

The Indonesian communication services market is segmented by type (fixed voice, fixed data, mobile voice, and other IT services). The market sizes and forecasts regarding value (USD) for all the above segments are provided.