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US Telecom Expense Management Market

ID: MRFR/ICT/13851-HCR
100 Pages
Garvit Vyas
October 2025

US Telecom Expense Management Market Research Report: By Service Type (Managed Services, Professional Services, Cloud Services, Software), By Deployment Type (On-Premise, Cloud-Based), By Enterprise Size (Small Enterprises, Medium Enterprises, Large Enterprises) and By End User (Telecommunications, IT Services, Financial Services, Healthcare) - Forecast to 2035

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US Telecom Expense Management Market Infographic
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US Telecom Expense Management Market Summary

As per MRFR analysis, the US telecom expense management market size was estimated at 654.12 USD Million in 2024. The telecom expense-management market is projected to grow from 705.6 USD Million in 2025 to 1505.11 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 7.87% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US telecom expense-management market is experiencing a transformative shift driven by automation and data analytics.

  • The market is witnessing increased adoption of automation technologies to streamline telecom expense processes.
  • A strong focus on data analytics is emerging, enabling organizations to derive actionable insights from telecom expenditures.
  • Integration of cloud solutions is becoming prevalent, enhancing flexibility and scalability in telecom expense management.
  • Rising operational costs and a heightened focus on cost optimization are key drivers influencing market growth.

Market Size & Forecast

2024 Market Size 654.12 (USD Million)
2035 Market Size 1505.11 (USD Million)

Major Players

Tangoe (US), Calero-MDSL (US), Verizon (US), AT&T (US), Cimpl (CA), Telecom Expense Management (US), Mediacom (US), Sierra Wireless (CA)

US Telecom Expense Management Market Trends

The telecom expense-management market is currently experiencing a notable evolution, driven by the increasing complexity of telecom services and the growing need for organizations to optimize their communication expenditures. As businesses expand their digital footprints, the management of telecom expenses has become a critical focus area. Companies are now seeking solutions that not only streamline billing processes but also provide insights into usage patterns and cost-saving opportunities. This shift is indicative of a broader trend towards enhanced financial oversight and operational efficiency in the telecommunications sector. Moreover, advancements in technology are playing a pivotal role in shaping the telecom expense-management market. The integration of artificial intelligence and machine learning into expense management solutions appears to enhance the accuracy of data analysis and reporting. Organizations are increasingly adopting automated systems that facilitate real-time monitoring of telecom expenses, thereby enabling proactive decision-making. This trend suggests a movement towards more sophisticated and responsive expense management strategies, which could lead to significant cost reductions and improved resource allocation in the long term.

Increased Adoption of Automation

The telecom expense-management market is witnessing a surge in the adoption of automation technologies. Organizations are increasingly implementing automated solutions to streamline their expense management processes. This trend is driven by the need for efficiency and accuracy in managing telecom costs, as manual processes often lead to errors and inefficiencies. Automation not only reduces administrative burdens but also enhances visibility into spending patterns, allowing companies to make informed decisions.

Focus on Data Analytics

There is a growing emphasis on data analytics within the telecom expense-management market. Companies are leveraging advanced analytics tools to gain insights into their telecom usage and expenditures. This trend indicates a shift towards data-driven decision-making, where organizations can identify cost-saving opportunities and optimize their telecom strategies. By harnessing data, businesses can better understand their spending habits and make adjustments to improve overall efficiency.

Integration of Cloud Solutions

The integration of cloud-based solutions is becoming increasingly prevalent in the telecom expense-management market. Organizations are recognizing the benefits of cloud technology, such as scalability and flexibility, in managing their telecom expenses. This trend suggests a move towards more agile expense management systems that can adapt to changing business needs. Cloud solutions also facilitate collaboration and accessibility, enabling teams to manage expenses from various locations.

US Telecom Expense Management Market Drivers

Rising Operational Costs

The telecom expense-management market is experiencing a surge in demand due to rising operational costs faced by organizations. As companies strive to optimize their budgets, the need for effective expense management solutions becomes paramount. In 2025, it is estimated that telecom expenses account for approximately 3-5% of total operational costs for many businesses. This trend indicates a growing awareness among enterprises regarding the importance of managing telecom expenses efficiently. By leveraging telecom expense-management solutions, organizations can identify cost-saving opportunities, streamline processes, and enhance overall financial performance. The increasing complexity of telecom billing and the variety of services offered further necessitate the adoption of specialized management tools, making this driver a critical factor in the growth of the telecom expense-management market.

Shift Towards Remote Work

The telecom expense-management market is witnessing a notable shift towards remote work, which has transformed how organizations manage their telecom expenses. As remote work becomes a permanent fixture for many companies, the demand for effective telecom expense management solutions has surged. In 2025, it is projected that remote work-related telecom expenses will account for over 30% of total telecom costs for businesses. This shift necessitates a reevaluation of existing expense management practices, as organizations must now account for increased mobile and internet usage among remote employees. Consequently, telecom expense-management solutions that provide visibility and control over these expenses are becoming increasingly vital. This driver underscores the importance of adapting to changing work environments and the role of telecom expense-management in facilitating this transition.

Regulatory Compliance Requirements

The telecom expense-management market is significantly influenced by the evolving landscape of regulatory compliance requirements. Organizations are increasingly required to adhere to various regulations concerning data privacy, financial reporting, and telecommunications services. In the US, compliance with regulations such as the Federal Communications Commission (FCC) guidelines and the Sarbanes-Oxley Act has become essential for businesses. Failure to comply can result in substantial fines and reputational damage. Consequently, companies are turning to telecom expense-management solutions to ensure they meet these regulatory standards while effectively managing their telecom expenses. This driver highlights the necessity for organizations to integrate compliance features into their expense management strategies, thereby fostering growth in the telecom expense-management market.

Increased Focus on Cost Optimization

The telecom expense-management market is experiencing heightened interest due to an increased focus on cost optimization among organizations. As businesses strive to enhance profitability and operational efficiency, managing telecom expenses has emerged as a critical area of focus. In 2025, it is estimated that organizations that implement effective telecom expense-management solutions can achieve cost savings of up to 25%. This potential for significant savings is driving companies to invest in specialized management tools that provide visibility into telecom spending, identify inefficiencies, and streamline processes. The emphasis on cost optimization reflects a broader trend within organizations to leverage technology for financial management, thereby positioning the telecom expense-management market as a key player in the quest for operational excellence.

Technological Advancements in Telecom

The telecom expense-management market is being propelled by rapid technological advancements in the telecommunications sector. Innovations such as 5G technology, IoT devices, and advanced analytics are reshaping the telecom landscape, leading to more complex billing structures and service offerings. As organizations adopt these new technologies, they face challenges in managing their telecom expenses effectively. In 2025, it is anticipated that the integration of IoT devices will increase telecom expenses by approximately 20% for many businesses. This complexity necessitates the use of sophisticated telecom expense-management solutions that can provide insights into usage patterns, optimize costs, and enhance decision-making. Thus, the ongoing technological evolution serves as a significant driver for the growth of the telecom expense-management market.

Market Segment Insights

By Service Type: Managed Services (Largest) vs. Cloud Services (Fastest-Growing)

In the US telecom expense-management market, managed services dominate the service type segment, accounting for a significant share. With the increasing complexity of telecom expenses, enterprises are increasingly opting for managed services to streamline their operations and enhance efficiency. Conversely, cloud services are experiencing rapid growth, driven by the shift towards digital transformation and the demand for flexible, scalable solutions. The adoption of cloud-based solutions is reshaping how organizations manage their telecom expenses, positioning cloud services as a key player in this evolving market. The growth trends in this segment show that while managed services hold a substantial market share, cloud services are gaining traction due to their innovative capabilities. Factors contributing to this rapid growth include the rising adoption of remote work, which necessitates efficient telecom expense management solutions. Moreover, the integration of advanced technologies such as AI and machine learning within cloud services is enhancing their appeal, making them essential for organizations looking to optimize costs and improve overall management.

Managed Services: Dominant vs. Cloud Services: Emerging

Managed services in the US telecom expense-management market offer organizations comprehensive support in managing telecom resources, providing a tailored approach that helps businesses control costs, optimize usage, and ensure compliance with regulations. This segment is characterized by its established customer base and repeat business relationships, emphasizing stability and reliability. On the other hand, cloud services are emerging as an essential solution, favored for their flexibility and scalability. As companies increasingly require adaptive solutions to manage fluctuating expenses and complex billing structures, cloud services are evolving to meet these needs. Their innovative features enable businesses to gain real-time insights into spending and usage patterns, empowering organizations to make informed decisions and enhance their operational efficiency.

By Deployment Type: Cloud-Based (Largest) vs. On-Premise (Fastest-Growing)

In the US telecom expense-management market, the deployment type segment showcases a distinct split between cloud-based and on-premise solutions. Currently, cloud-based solutions hold a majority share, driven by their scalability and cost-effectiveness. On the other hand, on-premise solutions, while traditionally preferred by larger enterprises, are gaining momentum as organizations seek more control over their data management processes. The growth trends in this segment are influenced by various factors including the increasing need for remote access and the advantages of cloud computing. Businesses are rapidly adopting cloud-based solutions for their flexibility and lower upfront costs, while the on-premise segment is seeing a resurgence due to enhanced security protocols and regulatory compliance demands, thus becoming the fastest-growing deployment option in the market.

Deployment Type: Cloud-Based (Dominant) vs. On-Premise (Emerging)

Cloud-based solutions dominate the deployment segment in the telecom expense-management landscape due to their ease of use and lower total cost of ownership. These solutions offer businesses enhanced flexibility, allowing them to scale easily according to their requirements without the heavy upfront investment of on-premise systems. In contrast, on-premise solutions are emerging as a viable alternative for companies that prioritize data security and prefer more control over their IT infrastructure. The ongoing evolution in technology indicates that the on-premise deployment type is rapidly adapting, incorporating modern features to meet contemporary needs while still serving a niche market of enterprises that require stringent security measures.

By Enterprise Size: Medium Enterprises (Largest) vs. Small Enterprises (Fastest-Growing)

In the US telecom expense-management market, the distribution among enterprise sizes reveals that medium enterprises hold the largest market share, benefiting from their established infrastructure and demand for efficient expense management solutions. Small enterprises, however, are emerging as the fastest-growing segment, driven by the rising adoption of digital solutions and cloud-based services, seeking to optimize their operational costs and streamline expense tracking. Growth trends in this segment are primarily influenced by the increasing complexity of telecom expenses and the need for improved visibility and control over these costs. Medium enterprises are integrating advanced expense management systems to enhance their operational efficiency, while small enterprises are leveraging innovative technology to respond to their unique needs. This trend is further supported by a growing recognition of the importance of expense management for financial health and sustainability.

Medium Enterprises: Dominant vs. Small Enterprises: Emerging

Medium enterprises are characterized by their substantial operational scale and established infrastructure, making them highly effective in utilizing telecom expense-management solutions to streamline costs and enhance overall efficiency. They typically possess greater resources and capabilities to invest in comprehensive expense management tools, resulting in optimized telecom expenses and better financial forecasting. On the other hand, small enterprises are rapidly emerging, driven by the need to manage telecom expenses efficiently without a large-scale budget. They are increasingly adopting user-friendly digital solutions tailored to their specific requirements, allowing them to compete effectively in a fast-paced market. This dynamic presents a unique opportunity for vendors to develop targeted offerings that address the distinct needs of both segments, fostering growth and innovation in the sector.

By End User: Telecommunications (Largest) vs. Healthcare (Fastest-Growing)

In the US telecom expense-management market, the distribution of market share among end users reveals that telecommunications services hold the largest stake, contributing significantly owing to extensive usage in business operations and infrastructure. IT services follow closely, leveraging their role in enhancing telecom systems and management strategies. Financial services also represent a notable segment due to their reliance on communication tools, while healthcare, though smaller in current share, showcases a growing demand for management services as digital health solutions become more prevalent. The growth trends in this segment are driven by the increasing complexity of telecom services and the rising need for efficient expense management among businesses. Telecommunications will likely continue its dominance, but healthcare is rapidly emerging, fueled by advancements in telemedicine and digital health technologies. The heightened emphasis on cost management across various sectors also stimulates growth as enterprises recognize the importance of optimizing telecom expenses for better financial health.

Telecommunications: Telecom Services (Dominant) vs. Healthcare Services (Emerging)

The telecommunications sector is characterized by its established infrastructure and extensive use of telecom services across various businesses, making it a dominant force in the US telecom expense-management market. It benefits from a continuous evolution of technology, providing robust solutions for managing telecom expenses effectively. Conversely, healthcare services are considered an emerging segment, increasingly adopting telecom expense-management solutions as they integrate advanced technologies like telehealth. These emerging services aim at improving patient outcomes while also carefully overseeing telecom costs linked to digital health initiatives. The burgeoning intersection of technology and healthcare indicates substantial growth potential, reflecting changing priorities in operational management, where efficient expense tracking becomes critical.

Get more detailed insights about US Telecom Expense Management Market

Key Players and Competitive Insights

The telecom expense-management market is currently characterized by a dynamic competitive landscape, driven by the increasing complexity of telecom services and the need for businesses to optimize their telecom expenditures. Key players such as Tangoe (US), Calero-MDSL (US), and Verizon (US) are actively shaping the market through strategic initiatives focused on digital transformation and enhanced service offerings. Tangoe (US) emphasizes innovation in its expense management solutions, leveraging advanced analytics to provide clients with actionable insights. Meanwhile, Calero-MDSL (US) has positioned itself as a leader in integrating telecom expense management with broader IT asset management, thereby enhancing its value proposition. Verizon (US), with its extensive network infrastructure, focuses on providing comprehensive solutions that integrate telecom expense management with its core telecommunications services, thereby creating a synergistic effect that enhances customer retention and satisfaction.

The business tactics employed by these companies reflect a moderately fragmented market structure, where collaboration and strategic partnerships play a crucial role. Companies are increasingly localizing their services to cater to regional demands while optimizing their supply chains to enhance efficiency. This collective influence of key players fosters a competitive environment where innovation and customer-centric solutions are paramount.

In October 2025, Tangoe (US) announced a strategic partnership with a leading cloud service provider to enhance its telecom expense management platform. This collaboration aims to integrate cloud-based analytics tools, allowing clients to gain deeper insights into their telecom spending patterns. The strategic importance of this move lies in Tangoe's ability to offer a more comprehensive solution that aligns with the growing trend of cloud adoption among enterprises, potentially increasing its market share.

In September 2025, Calero-MDSL (US) launched a new AI-driven analytics feature within its telecom expense management suite. This feature is designed to automate the identification of cost-saving opportunities, thereby streamlining the decision-making process for clients. The introduction of AI capabilities signifies a critical shift towards automation in expense management, positioning Calero-MDSL as a forward-thinking player in the market.

In August 2025, Verizon (US) expanded its telecom expense management services to include enhanced mobile device management solutions. This strategic expansion reflects Verizon's commitment to providing a holistic approach to telecom management, addressing the growing need for businesses to manage mobile assets effectively. By integrating mobile device management with expense management, Verizon is likely to strengthen its competitive edge and enhance customer loyalty.

As of November 2025, the telecom expense-management market is witnessing trends that emphasize digitalization, sustainability, and AI integration. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to leverage complementary strengths and enhance their service offerings. Looking ahead, competitive differentiation is expected to evolve, with a notable shift from price-based competition towards innovation, technology, and supply chain reliability. Companies that can effectively harness these trends will likely secure a more prominent position in the market.

Key Companies in the US Telecom Expense Management Market market include

Industry Developments

Significant recent developments in the US Telecom Expense Management Market reveal increasing investment and innovation across key players such as Telesoft, Wolverine Solutions Group, and CaleroMDSL. IBM announced a strategic partnership with Tangoe in September 2023, enhancing their telecom expense management services. Discussions in the market surrounding the growth forecast indicate a USD 3.3 billion valuation, attributed to the rise in demand for cost-saving technologies and analytics solutions. Companies like ExpenseWire and Mobility Admin are introducing advanced automation to improve service delivery and client satisfaction.

In terms of mergers and acquisitions, Aptela acquired Fusion Connect in August 2023, indicating consolidation trends in the sector which are focusing on expanding service offerings. Cimpl and Vantage Mobility International are also eyeing potential partnership synergies, driven by the need for comprehensive telecom management solutions. As larger organizations look to optimize expenses and manage resources more efficiently, the current market trends are projected to collectively enhance operational capabilities among these corporations.

Major happenings over the last two years also include the integration of AI-driven functionalities by Valicom, attracting attention from various industry stakeholders and contributing to the evolving landscape of telecom expense management in the US.

Future Outlook

US Telecom Expense Management Market Future Outlook

The telecom expense-management market is projected to grow at a 7.87% CAGR from 2024 to 2035, driven by increasing demand for cost optimization and digital transformation.

New opportunities lie in:

  • Integration of AI-driven analytics for real-time expense tracking.
  • Development of mobile expense management applications for remote teams.
  • Partnerships with telecom providers for bundled service offerings.

By 2035, the market is expected to achieve robust growth, driven by innovative solutions and strategic partnerships.

Market Segmentation

US Telecom Expense Management Market End User Outlook

  • Telecommunications
  • IT Services
  • Financial Services
  • Healthcare

US Telecom Expense Management Market Service Type Outlook

  • Managed Services
  • Professional Services
  • Cloud Services
  • Software

US Telecom Expense Management Market Deployment Type Outlook

  • On-Premise
  • Cloud-Based

US Telecom Expense Management Market Enterprise Size Outlook

  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises

Report Scope

MARKET SIZE 2024 654.12(USD Million)
MARKET SIZE 2025 705.6(USD Million)
MARKET SIZE 2035 1505.11(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 7.87% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Tangoe (US), Calero-MDSL (US), Verizon (US), AT&T (US), Cimpl (CA), Telecom Expense Management (US), Mediacom (US), Sierra Wireless (CA)
Segments Covered Service Type, Deployment Type, Enterprise Size, End User
Key Market Opportunities Integration of artificial intelligence for enhanced cost optimization in telecom expense-management market.
Key Market Dynamics Rising demand for cost optimization drives innovation in telecom expense-management solutions amid evolving regulatory frameworks.
Countries Covered US

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FAQs

What is the expected market size of the US Telecom Expense Management Market in 2024?

The US Telecom Expense Management Market is expected to be valued at 691.9 million USD in 2024.

What will be the market size of the US Telecom Expense Management Market by 2035?

By 2035, the US Telecom Expense Management Market is anticipated to reach a valuation of 1200.0 million USD.

What is the expected compound annual growth rate (CAGR) for the US Telecom Expense Management Market from 2025 to 2035?

The expected CAGR for the US Telecom Expense Management Market is 5.133% from 2025 to 2035.

Which service type in the US Telecom Expense Management Market is projected to have the highest value by 2035?

The Managed Services segment is projected to reach 450.0 million USD by 2035.

What are the key players in the US Telecom Expense Management Market?

Major players include Telesoft, IBM, CaleroMDSL, Tangoe, and Accenture.

What is the anticipated market growth for Cloud Services in 2035 within the US Telecom Expense Management Market?

Cloud Services is expected to be valued at 350.0 million USD by 2035.

What challenges are faced by the US Telecom Expense Management Market?

Challenges include integrating new technologies and managing diverse telecom environments efficiently.

How will the Professional Services segment perform from 2024 to 2035 in terms of market value?

The Professional Services segment is expected to grow from 150.0 million USD in 2024 to 250.0 million USD by 2035.

What growth opportunities exist within the US Telecom Expense Management Market?

Growth opportunities lie in emerging technologies such as AI and automation in expense management.

What impact does the growth of remote work have on the US Telecom Expense Management Market?

The growth of remote work is increasing the demand for telecom expense management solutions across organizations.

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