• Growing prioritization of experience-centric network strategies is driving adoption of SQM and CEM platforms, with over 65% of telecom operators investing in real-time performance monitoring to reduce churn and strengthen service reliability.

• Increasing deployment of AI-driven analytics is transforming customer experience insights, with automation improving issue detection accuracy by more than 45% and enabling proactive service restoration at scale.

• Widespread rollout of 5G infrastructure is accelerating demand for advanced SQM solutions, with more than 55% of operators requiring granular QoS tracking to manage latency-sensitive applications and network slicing workloads.

• Enhanced focus on omnichannel engagement is reshaping CEM investments, delivering up to 30% improvement in customer satisfaction through unified experience management across digital and assisted touchpoints.

• Expansion of cloud-native OSS/BSS modernization is supporting scalable SQM architectures, with over 40% of operators adopting cloud-based quality assurance platforms to streamline operations.

• Rising emphasis on predictive service assurance is reducing outage risks, with machine-learning models improving early anomaly detection by more than 35% across high-traffic telecom environments.

• Growing regulatory pressure to ensure fair quality standards is influencing investment priorities, with compliance-driven initiatives accounting for nearly 25% of SQM and CEM upgrades globally.

• In 2023, a major telecom-vendor entered a strategic partnership with a global cloud-services provider to deliver integrated SQM & CEM solutions via SaaS platforms, aiming to enable real-time service-quality monitoring and proactive customer experience remediation for mobile and fixed-line operators.

• In 2024, a leading analytics firm completed a significant acquisition of a specialist call-transcription and sentiment-analysis startup, expanding its capabilities in text and voice analytics within the SQM & CEM domain and reinforcing growth in AI-driven customer-experience optimisation for telecom providers.

In this report, the Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market has been segmented by Type, Application and Geography. This market is expanding as telecom operators prioritize network performance visibility, customer journey optimization, and real-time service assurance to reduce churn and strengthen competitive positioning. Continuous digital transformation, rising mobile data consumption and the shift toward 5G-driven experience models accelerate the adoption of analytics-led SQM and CEM solutions across global telecom environments.

Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, Segmentation by Type

The Type segmentation includes Enterprise Feedback Management, Web Analytics, Text Analytics and Speech Analytics. These analytics capabilities enable telecom providers to measure service experiences, interpret customer sentiment and identify performance gaps across multi-channel interactions. The growing emphasis on AI-based insights and automated experience scoring continues to strengthen demand across carriers and communication-service providers.

Enterprise Feedback Management

Enterprise Feedback Management supports structured collection and analysis of customer input across surveys, digital interfaces and service channels. Telecom operators use these insights to refine support operations, network service quality and customer-engagement strategies.

Web Analytics

Web Analytics plays a critical role in monitoring digital self-service portals, online account management platforms and customer journeys. Insights from platform behavior help improve digital channel performance and enhance user satisfaction.

Text Analytics

Text Analytics extracts meaningful insights from chat logs, emails and social media interactions. Telecom companies use it to identify trending issues, resolve complaints faster and optimize customer support operations.

Speech Analytics

Speech Analytics is widely used for call-center optimization, enabling real-time emotion detection, automated quality scoring and performance enhancement across voice-support interactions.

Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, Segmentation by Application

The Application segmentation includes Small & Medium Businesses and Larger Enterprises. Adoption varies based on network complexity, customer base size and investment priorities. Growing digitization and the need to optimize customer lifetime value drive implementation across all organization scales.

Small & Medium Businesses

Small & Medium Businesses adopt SQM and CEM platforms to improve service performance visibility, streamline customer support and manage digital engagement efficiently with cost-effective analytics tools.

Larger Enterprises

Larger Enterprises deploy comprehensive CEM and SQM frameworks covering network analytics, omnichannel experience optimization and churn prediction. Their large subscriber base and multi-service offerings require real-time monitoring and AI-enabled insight generation.

Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market, Segmentation by Geography

The Geography segmentation highlights different market adoption levels based on telecom infrastructure maturity, investment capabilities and customer experience priorities across global regions. Rising 5G deployments, increased digital service consumption and strong competitive pressure accelerate regional demand for advanced SQM and CEM platforms.

North America

North America leads due to advanced telecom networks, strong investment in customer experience platforms and high competition among major service providers.

Europe

Europe shows steady growth supported by stringent quality-of-service regulations, digital transformation programs and multi-country telecom operations requiring centralized experience management.

Asia Pacific

Asia Pacific expands rapidly driven by large subscriber bases, rural-to-urban digital transition and widespread 4G–5G adoption increasing the need for service-quality optimization.

Middle East & Africa

Middle East & Africa witness rising demand as telecom operators invest in network modernization, digital services and multi-channel experience platforms.

Latin America

Latin America sees increasing adoption due to growing mobile internet usage, competition among operators and demand for improved QoS and customer retention strategies.

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.

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

• 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

• 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

• 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.

Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market is expanding rapidly as telecom operators adopt advanced strategies to improve service delivery, enhance user satisfaction, and optimize network performance. More than 48% of companies emphasize AI-driven analytics, real-time monitoring, and predictive service capabilities. Strong collaboration, cross-industry partnerships, and selective mergers are ensuring consistent growth across consumer and enterprise segments.

Market Structure and Concentration
The market reflects moderate concentration, with nearly 53% of share held by leading telecom software providers and analytics firms. Larger players implement integrated strategies involving big data, cloud platforms, and network automation, while smaller firms deliver niche innovation. This structure enables balanced growth and long-term expansion across global telecom operations.

Brand and Channel Strategies
Around 49% of companies strengthen their brand positioning by highlighting customer-centric approaches, service reliability, and transparency. Diverse channel strategies include direct operator contracts, partnerships with system integrators, and cloud-based delivery models. Strong collaboration with telecom operators continues to reinforce growth and expand adoption of SQM and CEM platforms.

Innovation Drivers and Technological Advancements
Nearly 59% of vendors are investing in technological advancements such as AI, machine learning, customer journey mapping, and 5G-enabled analytics. Innovation aligns with digital transformation strategies, improving personalization and network optimization. Ongoing partnerships with telecom operators and technology providers are fueling growth and enabling broad expansion in customer experience management.

Regional Momentum and Expansion
Asia-Pacific leads with more than 55% of adoption, supported by telecom expansion and digital-first strategies. North America emphasizes collaboration on advanced analytics and service differentiation, while Europe focuses on regulatory compliance and customer-centric partnerships. Regional initiatives are creating strong growth momentum in both developed and emerging markets.

Future Outlook
The future outlook for SQM and CEM highlights robust growth, with nearly 62% of stakeholders prioritizing customer-first strategies, predictive analytics, and 5G integration. Expanded collaboration, advanced partnerships, and continuous innovation will drive long-term expansion, positioning SQM and CEM as essential pillars of next-generation telecom service delivery.

Key players in Service Quality Management (SQM) and Telco Customer Experience Management (CEM) Market include

• Amdocs
• Huawei
• Ericsson
• Nokia
• Adobe Inc.
• Cisco
• Oracle
• IBM
• eGain Corporation
• Netcracker Technology
• Medallia
• HP
• Alcatel-Lucent
• Microsoft
• Comarch

In this report, the profile of each market player provides following information:

• Market Share Analysis
• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis