Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market
By Provider;
Internet Service Provider (Isp), Telecom Service Provider (Tsp), Managed Service Provider (Msp), and OthersBy Channels;
Company Website, Branch/Store, Web, Call Center, Mobile, and Social MediaBy Product Type;
Enterprise Feedback Management (EFM), Text Analytics, Speech Analytics, and Web AnalyticsBy End-User;
Small & Medium Businesses (SMBS) and Large EnterprisesBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market Overview
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market (USD Million)
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market was valued at USD 4,683.30 million in the year 2024. The size of this market is expected to increase to USD 8,803.14 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 9.4%.
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market
*Market size in USD million
CAGR 9.4 %
Study Period | 2025 - 2031 |
---|---|
Base Year | 2024 |
CAGR (%) | 9.4 % |
Market Size (2024) | USD 4,683.30 Million |
Market Size (2031) | USD 8,803.14 Million |
Market Concentration | Medium |
Report Pages | 369 |
Major Players
- Adobe Systems
- Amdocs
- Alcatel-Lucent
- Cisco
- Egain Corporation
- Ericsson
- HP
- IBM
- Nokia Siemens Network
- Oracle
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market
Fragmented - Highly competitive market without dominant players
The Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market is gaining momentum as telecom companies intensify efforts to deliver reliable and tailored services. Growing customer demands and rising competition are driving investments in technologies that enhance service consistency and satisfaction. Over 65% of telecom organizations are deploying advanced experience management systems to optimize retention and reduce churn rates.
Technology Integration Driving Transformation
The adoption of AI, automation, and data analytics is redefining service frameworks within SQM and CEM. Approximately 58% of providers use intelligent platforms to monitor service quality, forecast disruptions, and offer real-time support. These systems shift the focus from reactive issue resolution to a proactive and predictive approach, enhancing operational control and customer experience outcomes.
Focus on Proactive Customer Engagement
The shift toward real-time, personalized interactions is accelerating across telecom services. About 70% of companies are leveraging journey analytics and behavioral insights to anticipate and resolve issues before they escalate. This leads to higher satisfaction metrics, reduced churn, and increased lifetime customer value through proactive service touchpoints.
Rising Importance of Real-Time Monitoring
The emphasis on instant visibility and performance tracking is growing, with 67% of telecom operators utilizing real-time dashboards and analytics tools. These systems enable data-driven decision-making and timely interventions. The focus on quantifiable experience outcomes reinforces the critical role SQM and CEM solutions now play in achieving telecom excellence.
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market Recent Developments
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Telcos increasingly use AI to enhance customer experience management (CEM). Advanced tools now enable operators to correlate network performance with customer behavior, improving investments and detecting network anomalies that could lead to churn. For instance, CX scores help prioritize critical network issues and allocate capital more effectively, boosting both customer satisfaction and ROI.
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Predictive models are transforming telco customer experiences. Operators leverage integrated data systems to anticipate and resolve customer concerns, such as billing issues or service outages, before customers report them. This proactive approach reduces call center loads, enhances self,service options, and improves customer retention through targeted interventions.
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market Segment Analysis
In this report, the Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market has been segmented by Provider, Channels, End-User, and Geography.
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, Segmentation by Provider
The Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market has been segmented by Provider into Internet Service Provider (Isp), Telecom Service Provider (Tsp), Managed Service Provider (Msp), and Others.
Internet Service Provider (ISP)
Internet Service Providers play a critical role in the Service Quality Management and Telco CEM market, offering broadband services that necessitate real-time performance monitoring. ISPs contribute to nearly 30% of the market as customer expectations for speed, uptime, and personalized service continue to rise.
Telecom Service Provider (TSP)
Telecom Service Providers dominate the market with a 40% share, leveraging advanced customer experience management solutions to handle voice, messaging, and data traffic across large user bases. Enhanced network reliability and customer engagement tools remain top priorities in this segment.
Managed Service Provider (MSP)
Managed Service Providers comprise about 20% of the market, focusing on delivering integrated service management and proactive network monitoring. These providers enhance service quality for businesses by offering customizable IT and network solutions that ensure end-user satisfaction.
Others
Other providers, accounting for the remaining 10%, include cloud-based service enablers and digital communication platforms. They contribute by enhancing latency-sensitive services, optimizing customer interactions, and driving innovations in digital service delivery.
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, Segmentation by Channels
The Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market has been segmented by Channels into Company Website, Branch/Store, Web, Call Center, Mobile, and Social Media.
Company Website
Company websites are critical in the SQM and CEM ecosystem, offering customers a seamless interface for accessing services, resolving issues, and submitting feedback. This channel represents nearly 20% of interactions, making it a focus area for user experience optimization.
Branch/Store
Despite the digital shift, physical branches continue to influence customer experience strategies, particularly for complex queries or transactions. With about 10% share, this channel is essential for fostering trust through personalized service delivery.
Web
The web channel encompasses third-party digital platforms used for customer onboarding, billing, and technical support. It accounts for approximately 15% of interactions and requires consistent quality monitoring to ensure a unified customer journey.
Call Center
Call centers remain one of the most heavily used channels, handling around 25% of customer touchpoints. They play a central role in issue resolution, and organizations increasingly use call monitoring tools and speech analytics to track service performance.
Mobile
Mobile platforms—via apps and messaging—enable on-the-go access to services and are responsible for about 20% of interactions. Businesses invest in mobile experience management to track performance and deliver real-time updates to users.
Social Media
Social media platforms contribute to roughly 10% of customer interactions, serving as powerful tools for public engagement, complaint resolution, and brand monitoring. Real-time feedback and social sentiment are now integral to customer experience management.
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, Segmentation by Product Type
The Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market has been segmented by Product Type into Enterprise Feedback Management (EFM), Text Analytics, Speech Analytics, and Web Analytics
Enterprise Feedback Management (EFM)
Enterprise Feedback Management solutions are essential for capturing and managing customer input across various channels. Accounting for nearly 35% of the market, EFM enables companies to transform feedback into actionable insights, improving service delivery and customer retention.
Text Analytics
Text Analytics tools are designed to process unstructured text from multiple customer interaction points, including emails, social media, and surveys. This segment, which makes up 25% of the market, enhances the ability to detect emerging customer needs and emotional tone.
Speech Analytics
Speech Analytics offers a data-driven approach to analyzing call center recordings, helping organizations uncover service quality issues and evaluate customer satisfaction. With a 20% market share, it is increasingly used for real-time performance enhancement and CX compliance.
Web Analytics
Web Analytics platforms help monitor user activity on websites, enabling companies to refine their digital engagement strategy. Representing 20% of the market, this segment is crucial for understanding how visitors interact with content, forms, and navigation paths.
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, Segmentation by End-User
The Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market has been segmented by End-User into Small & Medium Businesses (SMBS) and Large Enterprises
Small & Medium Businesses (SMBs)
Small & Medium Businesses are emerging as a strong segment in the Service Quality Management and Telco CEM market, contributing close to 35% of the total share. These companies are focusing on cloud-native and AI-enabled tools that provide real-time insights, cost-efficiency, and improved customer experience without heavy infrastructure investments.
Large Enterprises
Large Enterprises hold a dominant 65% market share, benefiting from scalable customer engagement solutions and robust performance monitoring platforms. These organizations utilize predictive analytics and automated workflows to deliver consistent, high-quality service across all customer interaction points, driving stronger brand reputation and user loyalty.
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, Segmentation by Geography
In this report, the Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market Share (%), by Geographical Region
North America
North America leads the Service Quality Management and Telco CEM market, accounting for nearly 35% of global revenue. The region’s robust telecom infrastructure, early adoption of AI and analytics, and emphasis on customer satisfaction metrics fuel its dominant position.
Europe
Europe contributes around 25% to the market, supported by increasing investments in digital transformation, regulatory emphasis on data protection, and widespread deployment of customer journey analytics. Telecom providers in this region are highly focused on enhancing user experience.
Asia Pacific
Asia Pacific is a fast-growing region, with a 20% market share, owing to the explosive growth in mobile connectivity, expanding 5G rollouts, and demand for scalable experience management platforms. The region offers significant opportunities for vendors targeting customer engagement optimization.
Middle East and Africa
Middle East and Africa hold nearly 10% of the global market, with growing focus on modernizing telecom services. The expansion of broadband infrastructure, combined with the increasing need for customer satisfaction tracking, is driving adoption in this region.
Latin America
Latin America captures close to 10% of the market, led by rising use of smart devices, demand for real-time customer support, and digital upgrades across telecom operators. Regional growth is centered on improving service delivery standards and customer loyalty.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
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Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers
- Adoption of AI and Machine Learning for Quality Monitoring
- Regulatory Compliance Requirements
- Demand for Real-Time Analytics and Insights
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Expansion of Cloud-Based SQM Solutions - The rapid expansion of cloud-based SQM solutions is significantly driving the growth of the Service Quality Management and Telco Customer Experience Management market. These cloud-native platforms offer scalability, cost efficiency, and real-time monitoring capabilities, which are essential for telecom operators aiming to improve customer satisfaction.
Cloud-based SQM tools enable faster deployment, centralized data management, and integration with multiple touchpoints, empowering telecom providers to capture and analyze customer experience across voice, data, and digital channels. These solutions help in identifying service degradation quickly and ensure timely resolution.
By eliminating the need for complex on-premise infrastructure, cloud SQM platforms allow operators to focus on quality assurance and network optimization. They also support the integration of advanced features like AI-driven analytics and automated workflows, enhancing overall service delivery.
As the telecom industry faces mounting pressure to enhance user experiences, the shift toward cloud-based quality monitoring has become both a strategic necessity and a competitive differentiator.
Restraints
- Data Security and Privacy Concerns
- Lack of Skilled Workforce in Advanced Analytics
- High Implementation Costs
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Resistance to Cultural Change in Quality Management Practices - Despite technological advancements, the market faces challenges due to resistance to cultural change in quality management practices. Many telecom organizations continue to rely on legacy systems and traditional metrics, limiting their ability to adopt modern, customer-centric approaches.
Implementing new SQM and CEM systems often requires significant changes in internal workflows, performance evaluation criteria, and employee responsibilities. This transition can face pushback from departments unprepared for or unwilling to embrace digital transformation.
The absence of a clear change management strategy leads to slow adoption rates, ineffective utilization of tools, and failure to generate actionable insights from available data. Organizational silos further exacerbate the problem, making it difficult to align quality improvement efforts across different teams.
This resistance requires strong leadership, clear communication of benefits, and the creation of a culture that prioritizes customer experience and continuous improvement over legacy practices.
Opportunities
- Enhancement of Predictive Analytics Capabilities
- Expansion in Healthcare and BFSI Sectors
- Development of Omni-Channel Customer Support
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Focus on Proactive Service Quality Improvement - The rising focus on proactive service quality improvement presents a major opportunity for the SQM and Telco CEM market. Telecom operators are increasingly shifting from reactive problem-solving to predictive performance management to address issues before they affect the customer experience.
Advanced SQM systems now incorporate machine learning algorithms and predictive analytics to detect potential faults, optimize network resources, and suggest real-time corrective actions. These capabilities empower providers to deliver consistent, high-quality service that enhances customer loyalty and brand trust.
Proactive quality management also supports the optimization of resource allocation, reduces customer churn, and improves the overall Net Promoter Score (NPS). Operators investing in such solutions position themselves as service leaders in an increasingly competitive telecom landscape.
This opportunity aligns with the growing demand for 5G networks, IoT connectivity, and digital service ecosystems, making it crucial for telecom providers to evolve their SQM and CEM strategies proactively.
Competitive Landscape Analysis
Key players in Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market include
- Adobe Systems
- Amdocs
- Alcatel-Lucent
- Cisco
- Egain Corporation
- Ericsson
- HP
- IBM
- Nokia Siemens Network
- Oracle
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market Share Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Provider
- Market Snapshot, By Channels
- Market Snapshot, ByProduct Type
- Market Snapshot, By End-User
- Market Snapshot, By Region
- Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Adoption of AI and Machine Learning for Quality Monitoring
- Regulatory Compliance Requirements
- Demand for Real-Time Analytics and Insights
- Expansion of Cloud-Based SQM Solutions
- Restraints
- Data Security and Privacy Concerns
- Lack of Skilled Workforce in Advanced Analytics
- High Implementation Costs
- Resistance to Cultural Change in Quality Management Practices
- Opportunities
- Enhancement of Predictive Analytics Capabilities
- Expansion in Healthcare and BFSI Sectors
- Development of Omni-Channel Customer Support
- Focus on Proactive Service Quality Improvement
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, By Provider, 2021 - 2031 (USD Million)
- Internet Service Provider (Isp)
- Telecom Service Provider (Tsp)
- Managed Service Provider (Msp)
- Others
- Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, By Channels, 2021 - 2031 (USD Million)
- Company Website
- Branch/Store
- Web
- Call Center
- Mobile
- Social Media
- Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, By End-User, 2021 - 2031 (USD Million)
- Small & Medium Businesses (SMBS)
- Large Enterprises
- Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, By Product Type, 2021 - 2031 (USD Million)
- Enterprise Feedback Management (EFM)
- Text Analytics
- Speech Analytics
- Web Analytics
- Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, By Provider, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Adobe Systems
- Amdocs
- Alcatel-Lucent
- Cisco
- Egain Corporation
- Ericsson
- HP
- IBM
- Nokia Siemens Network
- Oracle
- Company Profiles
- Analyst Views
- Future Outlook of the Market