Telecom Cloud Market Analysis

Telecom Cloud Market Overview

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

Demand For Better Telecom Infrastructure Boosts the Market Growth

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.

Latest Industry News On Telecom Cloud Market

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.

Telecom Cloud Market Segment Insight

Telecom Cloud by Deployment Type Insights

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.

Telecom Cloud by Services Model Insights

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.

Telecom Cloud Application Insights

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.

Telecom Cloud Regional Insights

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.

Telecom Cloud Key Market Players & Competitive Insights

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.

Key Companies in the Telecom Cloud market includes

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  AT&T Inc

  
  


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  BT Group PLC

  
  


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  Telefonaktiebolaget LM Ericsson

  
  


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  Verizon Communications Inc.

  
  


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  Telstra Corporation Ltd.

  
  


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  Fortinet

  
  


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  Orange

  
  


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  Huawei Technologies Co., Ltd.

  
  


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  VMWare

  
  


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  Cisco

  
  


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  Nokia

  
  


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  Ericsson

  
  

Telecom Cloud Industry Developments

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.

Telecom Cloud Market Segmentation

Telecom Cloud Deployment Outlook

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  Private

  
  


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  Public

  
  


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  Hybrid

  
  

Telecom Cloud Services Model Outlook

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  Software as a service

  
  


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  Platform as a service

  
  


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  Infrastructure as a service

  
  

Telecom Cloud Application Outlook

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  Cloud migration

  
  


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  Traffic management

  
  


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  Network

  
  


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  Data storage

  
  


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  Computing

  
  

Telecom Cloud Regional Outlook

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  North America

  
  

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    US

    
    
  
  
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    Canada

    
    
  
  
  
  

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  Europe

  
  

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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  

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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America