What Is The Telecom Cloud Market Size 2025 And Growth Rate?

The telecom cloud market size has grown rapidly in recent years. It will grow from $44.7 billion in 2024 to $51.67 billion in 2025 at a compound annual growth rate (CAGR) of 15.6%. The growth in the historic period can be attributed to hybrid and multi-cloud deployments, emergence of cloud-native architectures, early adoption of NFV (network function virtualization), adaptation to regulatory compliance, advancements in AI and machine learning integration.

What Is The Telecom Cloud Market Growth Forecast?

The telecom cloud market size is expected to see exponential growth in the next few years. It will grow to $111.19 billion in 2029 at a compound annual growth rate (CAGR) of 21.1%. The growth in the forecast period can be attributed to customer-centric solutions, enhanced security measures, expansion of cloud-native architectures, rising demand for edge computing, increased automation of network processes. Major trends in the forecast period include focus on customer experience, 5G network deployment, edge computing integration, open ran (radio access network), network slicing for customized services.

How Is The Telecom Cloud Market Segmented?

The telecom cloud market covered in this report is segmented –

1) By Type: Public Cloud, Private Cloud, Hybrid Cloud

2) By Computing Service: Infrastructure As A Service (IaaS), Platform As A Service (PaaS), Software As A Service (SaaS)

3) By Organization Size: SMEs, Large Enterprise

4) By Application: Data Storage, Achieving, Computing, Enterprise Application, Other Applications

5) By End users: BFSI, Retail, Manufacturing, Transportation And Distribution, Healthcare, Government, Media And Entertainment, Other End Users

Subsegments:

1) By Public Cloud: Multi-Tenant Public Cloud Solutions, Shared Infrastructure Public Cloud

2) By Private Cloud: Dedicated Private Cloud Solutions, Managed Private Cloud Services

3) By Hybrid Cloud: Hybrid Cloud Infrastructure, Hybrid Cloud Management Solutions

What Is Driving The Telecom Cloud Market? Work-From-Home Mechanisms Driving Growth Of Telecom Cloud Market

The increase in demand for work-from-home (WFH) mechanisms is a significant driving factor for the telecom cloud market. The COVID-19 pandemic has led to the adoption of the work-from-home mechanism. Due to the lockdown, organizations had to close their offices for a long time, leading people to work from home. The telecom cloud makes it possible to deploy workers outside the traditional office environment. For instance, in June 2023, according to a report issued by Forbes, a US-based business magazine and media company, as of 2023, 12.7% of full-time employees work from home, while 28.2% work in a hybrid model. By 2025, 32.6 million Americans will work remotely. Thus, an increase in the adoption of work from home is expected to lead to an increase in demand for telecom cloud solutions and services market growth.

What Is Driving The Telecom Cloud Market? The Rapid Implementation Of 5G Networks Driving Growth Of Telecom Cloud Market

The rapid implementation of 5G networks is expected to propel the growth of the telecom cloud market going forward. 5G networks refer to the fifth generation of wireless technology for mobile communication. It represents the latest and most advanced generation of cellular networks, succeeding 4G (LTE) networks. 5G networks offer much higher data speeds and lower latency, making them ideal for data-intensive applications. As 5G adoption grows, there will be a surge in data traffic, requiring telecom operators to expand their network capacity and capabilities. For instance, in May 2023, according to Telefonaktiebolaget LM Ericsson, a Sweden-based information and communication technology company, the deployment of 5G networks was in process, encompassing roughly 240 networks on a global scale and projected to increase by approximately 85% until 2028.Further, in April 2023, according to 5G Americas, a US-based wireless industry trade organization that represents 5G mobile networks and wireless technology in the Americas, 5G wireless connections increased by 76% to reach 1.05 billion in 2022.It is expected to reach 1.9 billion by the end of 2023 and 5.9 billion by 2027. Therefore, the 5G implementation will drive the growth of the telecom cloud market.

Who Are The Major Players In The Global Telecom Cloud Market?

Major companies operating in the telecom cloud market include AT&T Inc., BT Group PLC, Verizon Communications Inc., Vodafone Group PLC, China Telecommunications Corporation, Amazon Web Services Inc. (AWS), Microsoft Corporation, International Business Machines Corporation (IBM), VMware Inc., Telefonaktiebolaget LM Ericsson, Nokia Corporation, Cisco Systems Inc., Red Hat Inc., Mavenir Systems Inc., Huawei Technologies Co. Ltd., Google LLC, Oracle Corporation, Deutsche Telekom AG, China Mobile Communications Corporation, China Unicom (Hong Kong) Limited, Orange S. A., NTT Communications Corporation, SoftBank Group Corp., Singapore Telecommunications Limited (Singtel), Telstra Corporation Limited, CenturyLink Inc., Colt Technology Services Group Limited, Tata Communications Limited, Zayo Group Holdings Inc., Windstream Holdings Inc.

What Are The Key Trends Of The Global Telecom Cloud Market? AI-Powered Automation In The Telecom Cloud Market

Technology innovations and advancements is a key trend gaining popularity in the telecom cloud market. Many companies operating in the telecom cloud are developing technologically advanced solutions with improved features. Artificial Intelligence-powered automation is one such advancement in this market. Leading communication service providers (CSP) are utilizing or intend to employ artificial intelligence (AI) to automate self-diagnostics and problem identification. For instance, in February 2023, Snowflake, a US-based Data Cloud company, launched the Telecom Data Cloud, which integrates Snowflake’s data platform with both Snowflake- and partner-delivered solutions, along with industry-specific datasets. This new offering assists telecommunications service providers in eliminating data silos within their organizations and across the broader ecosystem, enabling secure, near real-time access to data. Users can enhance this data with machine learning (ML) models and share and analyze it to make informed decisions. Through the Telecom Data Cloud, Snowflake and its partner ecosystem aim to help telecommunications service providers accelerate digital transformation, enhance customer experiences, optimize operational efficiency, and capitalize on new data service opportunities.

What Are The Key Trends Of The Global Telecom Cloud Market? Strategic Partnerships To Expand Offerings

Major companies operating in the telecom cloud market are developing and expanding their operations through strategic partnerships. Strategic partnerships refer to a process in which companies leverage each other's strengths and resources to achieve mutual benefits and success. For instance, in July 2022, Deutsche Telekom, a German-based telecommunications company, and Google Cloud, the cloud computing services division of Google, a subsidiary of Alphabet Inc., a US-based technology company, joined forces to create a roadmap for the telecommunications industry. This partnership is all about bringing the capabilities of the cloud right to the edge of Deutsche Telekom's network, closer to mobile and connected devices.

Telecom Cloud Market Merger And Acquisition: IBM acquired Sentaca to strengthen hybrid cloud consulting and transform communications services.

In February 2022, IBM, a US-based technology and consulting company, acquired Sentaca for an undisclosed amount. This acquisition aimed to enhance IBM's hybrid cloud consulting business by integrating Sentaca’s expertise in telco consulting services and solutions. Sentaca is a US-based software consulting & professional services company specializing in automation, cloud native for telco and future networks.

Regional Outlook For The Global Telecom Cloud Market

North America was the largest region in the telecom market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the telecom cloud market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the telecom cloud market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

What Defines the Telecom Cloud Market?

The telecom cloud market includes revenues earned by entities providing engineering infrastructure sustainability talent cloud, infrastructure management services, intelligent engineering automation, intelligent process automation, knowledge process outsourcing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What is the Market Assessment and Strategic Outlook for the Telecom Cloud Industry?

The telecom cloud market research report is one of a series of new reports from The Business Research Company that provides telecom cloud market statistics, including Telecom cloud industry global market size, regional shares, competitors with a telecom cloud market share, detailed telecom cloud market segments, market trends and opportunities, and any further data you may need to thrive in the telecom cloud industry. This telecom cloud market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.