Telecom Cloud Market Size was valued at USD 20.6 Billion in 2022. The Telecom Cloud market industry is projected to grow from USD 24.4 Billion in 2023 to USD 80.4 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 18.57% during the forecast period (2024 - 2032).
The demand for better speed, rising internet connections and mobile device adoption, and quick digital transformation enablement are driving the market.
Figure 1: Telecom Cloud Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst ReviewTelecom Cloud Market Trends
The term "telecom cloud" refers to the transition of the telecommunications sector from antiquated landline services to cutting-edge cloud computing platforms. The move towards cloud computing allows businesses to utilize networking resources effectively. Telecom cloud infrastructure can help enterprises achieve information technology optimization using cloud computing. The move to cloud computing allows businesses to utilize networking resources effectively.
This development is known as deploying virtualized, programmable, and artificially intelligent network architecture. Using cutting-edge cloud business tactics that modify network architecture is another aspect. Some telecom cloud trends include rising internet and mobile device adoption and the quick digital transformation of various businesses.
In the coming years, rural areas across the globe are expected to see a significant surge in mobile networks, making it possible for the population to use the same high-speed internet service as used in urban areas. In addition, the growth of cloud data centers will boost telecom companies that offer cloud-based services.
On May 25, 2023, Quickplay, a cloud solutions provider for OTT, announced a partnership with Google Cloud to drive digital transformation opportunities for content providers, streaming providers, and broadcasters in the Middle East. The companies will jointly develop optimized solutions that leverage Google Cloud's new regional data center in Qatar. The solutions will enable streaming providers to design, deploy, and scale new cloud-native platforms with personalization capabilities to enable faster, cost-effective time to market and enhanced subscriber engagement & monetization.
On May 22, 2023, Nokia conducted a trial of its Cloud RAN solution on Bulgaria's A1 Group's commercial 5G network to explore the potential of Cloud RAN technology to evaluate A1's value in transitioning to the cloud. The trial utilized a commercial 3GPP standard 5G SA device using Nokia's Cloud RAN solution and AirFrame servers. This trial demonstrated the advancements in Nokia's larger-scale commercially viable Cloud RAN deployments and a suite of cloud deployment automation tools enhanced operational efficiency.
On May 22, 2023, TCS announced a partnership with Google Cloud for generative AI offerings. Under the partnership, TCS will leverage Google Cloud's generative AI services to design and deploy custom-tailored business solutions for clients. Google Cloud on generative AI will enable TCS to create value for its customers rapidly. TCS has already started working with clients in multiple industries to explore how generative AI can deliver value in their specific business contexts. It is also investing in assets, frameworks, and talent to harness the power of generative AI to enable growth and transformation for our customers.
On May 17, 2023, China Telecom do Brasil (CTB), a leading telecommunications and cloud computing provider, launched eSurfing Cloud services in Brazil. The new offering allows businesses to access public and private cloud services, combined with the security and control of private cloud through on-demand purchases that simplify the process for more targeted services. CTB's eSurfing Cloud services will enable Brazilian enterprises to leverage the latest cloud technologies with local support and expertise.
Figure 2: Technologies Driving the Telecom Cloud Market
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Many companies providing different technology as a service require a solid network to achieve desired results. The above figure shows that all the technologies driving the market for telecom cloud is expected to grow by more than 17% through the forecast period. This incremental demand will further push the market growth.
Based on deployment type, the Telecom Cloud market segmentation includes private, public, and hybrid. The private deployment segment accounted for the largest share for this market. Private infrastructure is controlled solely by an organization and is either on-site or off-site and is housed in the data center of the same business. Improved control, enhanced security, and data privacy, specialized computational resources like RAN, VNF, and edge apps and services, and cost-efficiency in unused capacities in an already existing data center are all made possible by private infrastructure for telcos.
Figure 3: Telecom Cloud by Deployment Type Insights
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
A hybrid cloud combines private and public clouds with interoperable, portable software and data. It enables carriers to control the burden by optimizing operations using a variety of patterns. It provides greater organizational agility, enhances resource allocation, maximizes infrastructure spending, allows scaling using the public cloud, and offers controls available in the private cloud deployment.
A hybrid cloud comprises two or more distinct clouds, at least one of which must be public and one of which must be private. Hybrid infrastructure makes data portability possible, which binds various entities with standardized or proprietary technology. This market's expansion is attributable to advantages in cost-effectiveness and scalability, as well as improved security and data privacy. It enables carriers to control the burden by optimizing operations using a variety of patterns. Enhancing organizational agility, resource allocation, infrastructure budget optimization, and scaling capabilities are all made possible by the private cloud deployment's public infrastructure and controls.
February 2023 - To launch re: do, a new stand-alone digital network service brand, LotusFlare, a provider of a cloud-native digital commerce and monetization service for communications and media service providers, announced a partnership with A1 Group, a European provider of digital services and communication solutions.
February 2023 - Arrcus presents disruptive 5G and multi-cloud networking to communication services providers at MWC 2023. Arrcus reduces the cost of 5G infrastructure, allowing CSPs to hasten service delivery and quickly monetize 5G and cloud infrastructure. This platform addresses a variety of use cases while modernizing 5G networks.
Based on the services model type, the Telecom Cloud market segmentation includes software as a service, platform as a service, and infrastructure as a service. The SaaS segment dominated the market by more than 50% in 2022. Additionally, A SaaS is a service that offers a commercial benefit, is obtained through a subscription model, and is developed using cloud-native software. Any carrier-grade network encompasses an entirely automated service lifecycle and a fully digitalized business experience. By adopting SaaS technology, telecommunications companies may quickly develop agile application frameworks that maximize resource allocation and lower overall complexity.
This adoption rate increases organizational agility and enables telecom companies to accept a constant rate of change. SaaS has been created with cloud-native software, provides a commercial advantage, and is accessible through a subscription model. It includes a fully digitalized business experience and a fully automated service lifecycle for any carrier-grade network.
The second-highest services model is anticipated to be the IaaS expected to grow at a CAGR of 16.18% through the forecast period. Infrastructure as a Service (IaaS) is a highly automated and standardized product that allows customers to access network and storage resources and computing resources on demand from a service provider. IaaS is a low-cost, simple-to-use computing resource allowing businesses to experiment with and test new business concepts and services. Businesses can avoid the usual dangers related to innovation, which leads to more significant growth. IaaS's ability to reduce infrastructure costs and shift the cost base from CAPEX to OPEX is its key benefit.
Telecommunications firms can create flexible application frameworks that optimize resource allocation and reduce overall complexity by implementing SaaS technologies. Because of this, telecom companies are more equipped to adapt to a steady rate of change and have increased organizational agility.
Based on application type, the Telecom Cloud market segmentation includes cloud migration, traffic management, network, data storage, and computing.
Moreover, the cloud migration category is also anticipated to dominate the market, with significant growth of 18.1% during the forecast period. Cloud migration covers several service types, including IaaS, PaaS, and SaaS, and offers a flexible pay-per-use approach, self-service provisioning, better elasticity, and redundancy. Benefits of cloud migration include better enterprise productivity, managed operations, improved QoS, flexible application deployment, and the OPEX business model. The market's growth is anticipated to be aided by the rising demand for over-the-top cloud services, declining operational and administrative expenses, and rising enterprise awareness of the telecom cloud.
The telecom cloud is a recent information and communication technology development that allows connections without hardware. It offers limitless network capacity to handle erratic data growth and improve user experience.
This market has been segmented by region into North America, Europe, Asia-Pacific, and the Rest of the World. Among these regions, the North American region dominated the market with a share of 39.9% in 2022 and is expected to lead the market through the forecast period. In the U.S. and Canada, there is a surge in the use of hybrid telco cloud installations, which enables the integration of best-in-class data analytics and artificial intelligence accessible in the public cloud sector to anticipate and meet the demands and preferences of consumers.
The businesses also use the cloud to eliminate silo databases, combine customer data, offer an engaging Omni channel customer experience, and develop a 360-degree view of the customer. Also, the rise of the North American telecom cloud market is fueled by rising funding and investment in data centers.
Figure 4: TELECOM CLOUD MARKET BY REGION 2022-2030
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
However, the Asia-Pacific telecom cloud market is expected to grow at the fastest CAGR of 22.48% through the forecast period. In the Asia-Pacific region, China and India dominated the telecom cloud industry. The Asia-Pacific region's telecom cloud market is propelled by the adoption of cutting-edge technologies and the expanding implementation of 5G networks.
Innovative technologies like the internet of things, cloud computing, and artificial intelligence have been embraced by market actors. Huge prospects for adopting telecom cloud services are presented by the quick adoption of 5G networks and infrastructure expansion throughout Asia and the Pacific, particularly in Singapore, Japan, Australia, South Korea, China, and India.
Communications service providers can swiftly expand their service capabilities to satisfy particular consumer needs using telecom cloud platforms. For instance, telecoms can create a bandwidth limit for a designated zone during a sporting event when high demand is anticipated and then normalize it when the demand is lower.
AT&T Inc., BT Group PLC, Verizon Communications Inc., Level 3 Communications Inc., Telefonaktiebolaget L.M. Ericsson, Deutsche Telekom, and NTT Communications Corporation are some prominent participants. These businesses are progressively engaging in mergers, acquisitions, and product launches to create and launch new technologies and goods in the market. As a result, there will be a substantial market concentration.
BT Group PLC
Telefonaktiebolaget LM Ericsson
Verizon Communications Inc.
Telstra Corporation Ltd.
Fortinet
Orange
VMWare
Nokia
Ericsson
February 2023: - To assist banks fulfill client requests, Oracle launched new cloud-based services. The Cloud-native, software-as-a-service suite will provide corporate and retail banks the agility to update their banking apps to meet client demands.
February 2023:- All Google Cloud customers now have access to Google's new "Immersive Stream for XR" service, which eliminates the need for specialized software or sophisticated hardware to fully immerse users in 3D or augmented reality environment.
Private
Public
Hybrid
Software as a service
Platform as a service
Infrastructure as a service
Cloud migration
Traffic management
Network
Data storage
Computing
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 20.6 Billion |
| Market Size 2023 | USD 22.1 Billion |
| Market Size 2030 | USD 80.4 Billion |
| Compound Annual Growth Rate (CAGR) | 18.57% (2023-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2019 to 2022 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Deployment Type, Services Model Type, Application Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | AT&T Inc., BT Group PLC, Verizon Communications Inc., Level 3 Communications Inc., Telefonaktiebolaget L.M. Ericsson, Deutsche Telekom, and NTT Communications Corporation |
| Key Market Opportunities | Modernization of the information technology industry |
| Key Market Dynamics | Faster service deployment and scalability Telecom cloud platforms' adaptability and affordability |
Frequently Asked Questions (FAQ) :
The market for Telecom Cloud was USD 20.6 Billion in 2022.
The Telecom cloud market is expected to be USD 80.4 Billion in 2030.
The growth rate for the Telecom Cloud market is 18.57% through the forecast period.
At present, the North American region holds the largest market share.
The major players dominating the market are AT&T Inc., BT Group PLC, Verizon Communications Inc., Level 3 Communications Inc., Telefonaktiebolaget L.M. Ericsson, Deutsche Telekom, and NTT Communications Corporation.
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Research Analyst Level II With a technical background in information technology & semiconductors, shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the ict/semiconductor domain. shubham holds a bachelor’s in information and technology and a master of business administration (mba). shubham has executed over 150 research projects for our clients under the brand name market research future in the last 2 years. his core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. he is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. he has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. he has worked on the projects of top tech brands such as ibm, google, microsoft, aws, meta, oracle, cisco systems, samsung, accenture, vmware, schneider electric, dell, hp, ericsson, and so many others. he has worked on metaverse, web 3.0, zero-trust security, cyber-security, blockchain, quantum computing, robotics, 5g technology, high-performance computing, data centers, ai, automation, it equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.
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