Telecom Cloud Market Size, Share, and Trends 2024 to 2034

Telecom Cloud Market Size to Reach USD 131.47 Bn by 2032

The global telecom cloud market size was estimated at US$ 35 billion in 2022 and it is expected to surpass around US$ 131.47 billion by 2032 with a significant CAGR of 14.2% from 2023 to 2032.

Region Insights

Asia-Pacific dominated the telecom cloud market in 2022. China and India dominated the telecom cloud market in Asia-Pacific region. The telecom cloud market in Asia-Pacific region is being driven by the adoption of latest and advanced technologies as well as growing deployment of 5G networks. The market players adopted innovative technologies such as internet of things, cloud computing, and artificial intelligence. The other factors such as driving the growth of Asia-Pacific telecom cloud market are growing healthcare expenditure, expansion of healthcare sector, and growing government initiatives.

North America, on the other hand, is expected to develop at the fastest rate during the forecast period. For better communication and connectivity, businesses in North America are fast acceptance and adoption of telecom cloud services. These companies’ personnel have good technical information and are eager to boost the use of telecom cloud services, allowing North America to dominate the telecom cloud industry. In addition, the growing fundings and investments in data centers are also driving the expansion of North America telecom cloud market.

Growth Factors

The movement of telecommunication sectors from obsolete landline services to sophisticated cloud computing technologies is referred to as telecom cloud. The organizations can take benefit of networking resources more efficiently as a result of the migration to cloud computing. The global telecom cloud market will help different sectors take use of cloud computing for information technology efficiency.

The COVID-19 pandemic has substantially accelerated digitalization. In terms of growth, the COVID-19 epidemic has proven to be a pivotal event for the telecom cloud sector. The growing need for work from home methods, as well as the expedited transition to the cloud for fundamental cost reduction and other reasons, will propel the global telecom cloud market forward.

The global telecom cloud market’s revenue is predicted to be boosted by ongoing research and development initiatives. These initiatives are largely funded by the market players. The strategic partnerships are also a big aspect of the telecom cloud business. The market players engage in these actions in order to improve their power, which leads to the rise in the telecom cloud market’s growth rate.

The communications and information technology improvement have resulted in significant changes in worldwide company operations. The crucial information infrastructure services are used by a variety of government and public sector organizations. Furthermore, to satisfy the increased demand from business operations, enterprises are increasingly interested in cloud services. The global telecom cloud market is predicted to develop in response to rising demand for over-the-top cloud services, increased enterprise knowledge of telecom cloud, and decreased administrative and operational expenses.

The global telecom cloud market is also growing due to the rising government activities in terms of research and development. The government of emerging and established nations are collaborating with major market players for development of telecom cloud industry. Thus, the global telecom cloud market is expected to grow at a rapid pace in near future.

Report Scope of the Telecom Cloud Market

Type Insights

The services segment dominated the telecom cloud market in 2022. Within the telecom cloud market, network services represented a considerable market share in the services segment. The telecom operators can reuse underutilized networking resources and capitalize on existing business partnerships due to the migration to cloud services. Due to the increasing requirement to sustain telecom infrastructure around the world, network services that include network virtualization in the telecom cloud market are seeing significant growth.

The solutions segment is projected to reach remarkable growth during the forecast period. The content delivery network sub segment is growing at a rapid pace in the solutions segment. The content delivery network adoption is predicted to increase among enterprises in both small and large sectors, since it enables scalability to match the demands of evolving technologies, saves money, and reduces network administration workload.

Computing Service Insights

The IaaS segment dominated the telecom cloud market in 2022. Infrastructure as a service (IaaS) is highly automated and standardized product in which a service provider’s computer resources, together with networking and storage capabilities, are made available on demand to consumers. In few minutes, resources can be scaled and flexed, and usage is tracked. The customers have direct access to self service interfaces, which include graphical user interfaces and automated programming interfaces. The customer’s data center host multi-tenant or single tenant resources.

The SaaS segment is expected to witness significant growth during the forecast period. The software as a service (SaaS) is a software distribution paradigm in which a cloud provider hosts and makes applications available to end users via the internet. In this arrangement, an independent software vendor may hire a third-party cloud provider to host the application.

Application Insights

The BFSI segment dominated the telecom cloud market in 2022. The BFSI sector are outsourcing non-core activities in order to cut expenses and increase efficiency. As a result, directed content perceptions and precise banking data are required, which can be combined via telecom cloud solution. By providing greater communication choices, the alliances enable banking and financial service providers to give expanded amenities.

The transportation segment is expected to drive strong growth during the forecast period. Every day, the telecommunications business in the transportation sector generates massive amounts of data and information, necessitating extensive data management and storage services. As a result, the use of telecom cloud systems in this area is rapidly increasing.

Key Developments

• SK Telecom introduced SKT 5GX Edge, a 5G edge cloud service, in December 2020. It connects to AWS Wavelength Zones placed at SK Telecom’s telecom offices in South Korea to provide consumers with ultra-low latency for data intensive services.
• XL Axiata has chosen Telefonaktiebolaget LM Ericsson to provide 5G ready cloud core technology solutions in East Indonesia, the company said in July 2020. This covers Ericsson’s Cloud Packet Core and NFVI technology. Ericsson’s solutions will assist XL Axiata in preparing for this rise in data traffic, streamlining operations and ensuring 5G income. 
• Microsoft and AT&T announced a multi-year deal in September 2020, designating Microsoft AT&T’s preferred cloud supplier for non-network applications. AT&T announced in a public announcement that it will migrate the majority of its non-network workloads to Azure by 2024.
• Juniper Networks closed the acquisition of Mist Systems, an artificial intelligence powered networking startup, in April 2019, with the goal of using Mist’s technology to enhance enterprise sales with an artificial intelligence driven end to end approach. 

Telecom Cloud Market Players

• AT&T Inc.
• Telus Corporation
• China Telecommunications Corporation
• T-Mobile International AG
• Fusion Telecommunications International, Inc.
• Verizon Communications, Inc.
• CenturyLink, Inc.
• NTT Communications Corporation
• Telstra Corporation Limited
• BT Group PLC

Market Segmentation:

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Deployment Mode

• Public Cloud
• Private Cloud
• Hybrid Cloud

By Type

• Solutions
• Unified Communication and Collaboration
• Content Delivery Network
• Other Solutions
• Services
• Colocation Services
• Network Services
• Management Service
• Content Management
• Supply Chain Management
• Business Support system(BSS)

By Computing Service

• IaaS
• PaaS
• SaaS

By Organization Size

• SMEs
• Large Enterprise

By Application

• Data Storage
• Achieving
• Computing
• Enterprise Application
• Cloud delievery model
• Communication and collaboration
• Network cloud migration
• Over-The-Top
• Other Applications

End User

• BFSI
• Retail and Consumer Goods
• Healthcare and Life Sciences
• Media and Entertainment
• Government
• Automotive
• Energy and Utilities
• Other End Users

 By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa