Telecom Cloud Market Size
Telecom Cloud Market was valued at USD 27.1 billion in 2023 and is anticipated to grow at a CAGR over 19.5% between 2024 and 2032. The proliferation of smartphones, IoT devices, and bandwidth-intensive applications is leading to data traffic growth, significantly boosting the telecom cloud industry. As users increasingly demand faster & more reliable connectivity, telecom operators need to leverage cloud technologies to efficiently manage and scale their networks, ensuring seamless connectivity and a superior user experience.
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Telecom operators face intense competition and pressure to optimize costs while delivering superior services. Telecom cloud solutions enable operators to reduce capital expenditures by replacing dedicated hardware with virtualized network functions running on commercial off-the-shelf hardware. Cloud technologies also facilitate automation, orchestration & self-service capabilities, leading to streamlined operations, improved efficiency, and reduced operational costs.
Telecom Cloud Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2023 |
| Telecom Cloud Market Size in 2023 |
USD 27.1 Billion |
| Forecast Period |
2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR |
19.6% |
| 2032 Value Projection |
USD 134 Billion |
| Historical Data for |
2018 – 2023 |
| No. of Pages |
282 |
| Tables, Charts & Figures |
344 |
| Segments covered |
Component, Service Model, Deployment Model, Organization Size, Application, and Region |
| Growth Drivers |
- Increasing data traffic and demand for high-speed connectivity
- Rising adoption of 5G networks
- Propelling demand for operational efficient solutions
- SMEs inclined toward cost-efficient cloud services
- Government initiatives to support digitalization
|
| Pitfalls & Challenges |
- Security and privacy risks
- Network reliability and service disruptions
|
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Engaging with cloud service providers can lead to vendor lock-ins, where an operator becomes dependent on a specific provider's technologies and services. This dependency can limit flexibility and hinder the operator’s ability to switch providers or integrate with other systems, thereby limiting the telecom cloud market growth. Interoperability challenges can also arise when integrating different cloud platforms or legacy systems. Telecom operators should carefully select their vendors, evaluate interoperability capabilities, and adopt open standards & APIs to mitigate these challenges.
COVID-19 Impact
The pandemic pushed businesses to embrace the digital world. They shifted to remote work and virtual meetings, which meant a major overhaul for many. Telecom companies stepped up to help out. They offered cloud services that made it easy for businesses to connect and collaborate from anywhere. This led to a surge in popularity for video conferencing, cloud-based messaging, and other online tools. Telecom companies made sure networks were strong enough to handle all the extra data and traffic. They provided the infrastructure and connectivity businesses needed to keep connected and running smoothly. As a result, cloud-based apps, software, and infrastructure services became more popular than ever before. Telecom companies were there to provide the foundation for this digital transformation.
Telecom Cloud Market Trends
Telecom operators are embracing multi-cloud strategies to leverage the benefits of different cloud service providers. Instead of relying on a single cloud platform, operators use multiple cloud providers for specific purposes such as IaaS, PaaS, or SaaS. This approach allows operators to optimize costs, gain access to specialized services, and avoid vendor lock-in. It also provides flexibility and resilience by distributing workloads across multiple clouds.
Telecom Cloud Market Analysis
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Based on component, the market is segmented into solution and service. The service segment held a market share of over 35% in 2023. The service segment includes professional service and managed service. With the increasing complexity of telecom cloud environments, the demand for professional and managed services is growing. Telecom operators are leveraging the expertise of service providers to ensure smooth implementation, optimize performance, and address security & compliance challenges. The growing reliance on service providers for efficient operations and cost optimization is fueling the service component segment progress.
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Based on application, the telecom cloud market is divided into Network Function Virtualization (NFV), Software-Defined Networking (SDN), Content Delivery Networks (CDN), and others. The network function virtualization segment accounted for over USD 4.5 billion in 2023. NFV allows telecom operators to replace dedicated hardware appliances with virtualized network functions running on standard servers. This shift helps reduce capital expenditures (CapEx) by eliminating the need for specialized hardware.
Additionally, NFV enables operators to achieve operational efficiencies through centralized management, automation, and orchestration of network functions. NFV facilitates the implementation of redundancy and failover mechanisms in the network. By virtualizing network functions and distributing them across multiple servers or data centers, operators can enhance network resilience and ensure service continuity in case of failures or disruptions.
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Telecom cloud services are gaining popularity in North America like wildfire! This means companies that help phone and internet providers manage their services through the cloud are expected to grow by a whopping 18% each year for the next few years. So, why is North America leading the pack? Well, we've got a bunch of big telecom players here who are eager to upgrade their networks and services with cloud solutions. Plus, we're all about the latest tech trends, like 5G, IoT, and AI, all of which need fast and flexible networks that telecom cloud solutions can provide.
Telecom Cloud Market Share
Major companies operating in the telecom cloud industry include,
- AWS
- Cisco
- Ericsson
- Fortinet
- Google
- Huawei Technologies Co.Ltd.
- IBM Corporation
- Juniper Networks Inc.
- Microsoft Corporation
- Nokia
- Oracle Corporation
- Orange
- Salesforce
- Verizon Communication
- VMWare
Telecom Cloud Market News
- In January 2023, Tech Mahindra and Microsoft announced a strategic collaboration to provide cloud-powered 5G core network modernization for telcos worldwide. Telcos will be able to build 5G use cases and satisfy customer demands in the rising Virtual Reality (VR), Augmented Reality (AR), edge computing, and IoT industries owing to the 5G core network transition.
The telecom cloud market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments
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By Component, 2018 – 2032
- Solution
- Service
- Professional service
- Managed service
By Deployment Model, 2018 – 2032
By Service Model, 2018 – 2032
- Software-as-a-Service (SaaS)
- Platform-as-a-Service (PaaS)
- Infrastructure-as-a-Service (IaaS)
By Organization Size, 2018 – 2032
By Application, 2018 – 2032
- Network Function Virtualization (NFV)
- Software-defined Networking (SDN)
- Content Delivery Networks (CDN)
- Others
The above information is provided for the following regions and countries
- North America
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Benelux
- Asia Pacific
- China
- India
- Japan
- Australia
- Singapore
- Latin America
- MEA
Frequently Asked Questions (FAQ)
What is the telecom cloud market worth?
Telecom cloud industry size was USD 27.1 billion in 2023 and will record over 19.5% CAGR between 2024 and 2032 due to the rising proliferation of smartphones, IoT devices, and bandwidth-intensive applications worldwide.
Why is the demand for telecom cloud services growing?
The service component segment held over 35% of the telecom cloud industry share in 2023 driven by the growing complexity of telecom cloud environments and the higher demand for professional and managed services.
What is the value of the North America telecom cloud market?
North America telecom cloud industry share is estimated to witness 18% CAGR from 2024-2032 owing to the well-established telecommunications operators and service providers in the region.
Which are the major telecom cloud industry players?
AWS, Cisco, Ericsson, Fortinet, Google, Huawei Technologies Co., Ltd., IBM Corporation, Juniper Networks Inc., Microsoft Corporation, Nokia, Oracle Corporation, Orange, Salesforce, Verizon Communication, and VMWare are some key telecom cloud companies.
