Telecom Cloud Market

Segmentation By Type (Solution and Services); By Deployment (Public Cloud, Private Cloud, Hybrid Cloud); By Service Model (Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS)); By Application (Citizen services and Developers); By End-user (Civilians, Industries – IT, Manufacturing and Others) – Global Demand Analysis & Opportunity Outlook 2028

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Report ID: 2562 | Published On: Feb 03, 2023
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Growth Drivers

Increase in Internet Users Globally

The World Bank has published the report by the International Telecommunication Union which states that in 2017, 49% out of every 100 people on the planet were reported to use internet on daily basis. This is anticipated to become a major growth factor for the telecom cloud market in the coming years. Besides network connectivity, telecom giants who provide manufacturing solutions and services paired with cloud-based cost-effective delivery have a tremendous business opportunity in future.

Rise of OTT services

With the emergence of over-the-top (OTT) platforms, the web traffic management for the ISPs and the telecoms has become very difficult and costly. Telecoms have been looking towards cloud-based network operations as a viable option to improve operational efficiency, which is predicted to be another growth factor for the market.

Aftermath of COVID-19

The lockdown measures that were taken globally as a result of the COVID-19 pandemic have resulted in increased internet consumption across the world. However, the telecom giants have predicted that this would lead to huge traffic and major operational inefficacies and appealed to all streaming services and OTT platforms to restrict video resolution to Standard Definition (SD). Experts predict Cloud infrastructure will enable telecoms to overcome this challenge.


Rebuilding Infrastructure and Cyber Threats

Moving from the traditional, i.e., wired to wireless infrastructure is a challenge and is associated with huge capital investment. Moreover, a cyber-attack on a telecom operator can disrupt entire network services for phones and internet thereby leading to data thefts, crippling businesses and sometimes shut down government operations. These are major factors estimated to hinder the market growth.

Telecom Regulations and Lack of Skilled Professionals

The telecom regulators across the world such as the FCC in the U.S. and TRAI in India often interfere with the telecoms strategic decisions. Lack of technical skills and proficiency among telecoms in cloud-based infrastructure and deployment are some other factors predicted to result in a negative growth of the market over the forecast period.

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Market Size and Forecast

In today’s digital world, an individual with a mobile containing a data plan is empowered with infinite possibilities. However, the telecoms or network providers face significant operational challenges to maintain the serviceability with increasing costs. The cloud enables deployment of software and services with minimum operational costs. This cost-effective solution is driving telcos to consider cloud as a potential platform for future operations and thus the telecom cloud market is anticipated to record a significant CAGR during the forecast period of 2020-2028. Based on service type, the market is segmented into Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS), out of which, the highest market share is estimated to be held by SaaS segment. This can be attributed to the requirement of this form of service by businesses globally. The market is further segmented by application into citizen services and developers, out of which, the citizen services segment was predicted to be the largest revenue generating segment in 2019 owing to the requirement of connectivity and internet services to the public. Additionally, the hosting services for app developers further contributed to the growth of the segment. Based on the type of deployment, the telecom cloud market is further bifurcated into public cloud, private cloud and hybrid cloud. The segment for private cloud is anticipated to hold the leading share in the market throughout the forecast period. 

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Market Segmentation

Our in-depth analysis of the telecom cloud market includes the following segments:

By Type

  • Solution
  • Services

By Deployment

  • Public cloud
  • Private cloud
  • Hybrid cloud

By Service Model

  • Software as a Service (SaaS)
  • Platform as a Service (PaaS)
  • Infrastructure as a Service (IaaS)

By Application

  • Citizen services
  • Developers

By End-user

  • Civilian
  • Industries – IT, Manufacturing
  • Others

By Region

On the basis of regional analysis, the telecom cloud market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America is anticipated to hold the largest share in the market on account of presence of leading players in the region which develop and market telco cloud solutions and services. The growing requirements to reduce operational costs and rise in OTT cloud services are predicted to drive the market growth. The market in Asia Pacific region is anticipated to grow at the highest rate during the forecast period as a result of growth in digitalization, number of internet users and IoT devices in the region, particularly in countries such as China, India and Japan.

The telecom cloud market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC,  Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
  • Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis.
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis    

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Top Featured Companies Dominating the Market

In The News

  • In April, 2020, Microsoft acquired Affirmed Networks to push Azure cloud capabilities to 5G service providers

  • On Oct 1, 2019, NTT Communications Corporation, a Japan Telecom giant, in collaboration with Wasabi Technologies, Inc., a U.S. based object storage service provider launched Enterprise Cloud Wasabi Object Storage service at low cost and scalable object storage.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

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