Telecom Cloud Market Size & Share, by Deployment Model (Private, Hybrid, Public); Enterprise (Large Enterprises, Small & Medium Enterprises); Function Type (Virtual Network Function (VNF), Cloud-native Network Function (CNF)); Service Type (SaaS, IaaS, PaaS); Application (Data Storage, Achieving, Computing, Enterprise Application) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 2562
  • Published Date: Apr 03, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Telecom Cloud Market size is anticipated to surpass USD 120 Billion by the end of 2036, growing at a CAGR of 23% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of telecom cloud was USD 17 Billion. The rise in demand for 5G is expected to drive the growth of the market. For instance, currently, there are 296 commercial 5G networks around the world, and it is expected that this number will increase to 438 in 2025. Therefore, the growing number of 5G networks globally is also impacting the market growth positively. The demand for cloud services is expected to increase as 5G's assured low latency and increased speed become available. It is expected that service providers and end users will benefit from these opportunities. For instance, with the announcement of a new 5G private network partnership between Orange Spain and Ericsson ERIC, marking a historic milestone in the country's digital transformation, Spain's B2B sector is set to receive a boost.

Furthermore, cloud-based customer relationship management (CRM) and customer experience platforms empower telcos to personalize services, anticipate customer needs, and deliver a superior user experience. The telecommunications industry benefits from the use of cloud-based analytical and artificial intelligence capabilities, allowing it to obtain valuable data on customer behavior that can enable it to make strategic decisions to enhance its service offerings. Therefore, this factor is bolstering the market growth.


Telecom Cloud Market
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Telecom Cloud Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Demand for Cloud-native Solutions - Demand for cloud-native network functions is expected to be fueled by rapid growth in industries and other technologies. Its effectiveness is influenced by the reduced automation and flexibility of cloud computing through traditional virtual networking functions. As the use of technologies such as Network Function Virtualization and Software Defined Networks (SDN) has increased globally, the technologies have been made simpler by replacing traditional hardware with software solutions. In addition, the SDN solutions directly detached data planes from control planes and thus enabled networks and programmable software to be driven by them. Therefore, this factor is expected to accelerate the growth of the market.
  • Increasing Demand from Business Operations - Significant changes in company operations worldwide have been brought about by the improvement of communications and information technology. A wide range of government and public sector organizations use key information infrastructure services. For instance, Amazon Web Services (AWS) is launching a new cloud service called the AWS European Sovereign Cloud. This cloud service is designed specifically to help public sector customers and those in highly regulated industries meet the most stringent regulatory data residency and operational requirements in Europe. In addition, enterprises are becoming more and more interested in outsourcing services to meet the growing demand for their activities. In response to increasing demand for over-the-top cloud services, increased enterprise awareness of telecom cloud, and a reduction in administration and operating costs, the global telecom cloud market is expected to develop.
  • Increased Data Consumption - In particular due to increased data demand, the market for telecommunications cloud services is rapidly developing. For instance, the number of internet users around the world has reached 5.3 billion by 2023, meaning that about two-thirds of the population has access to the Internet.  Due to the widespread adoption of Digital Technologies, including cloud computing and the Internet of Things, there has been a significant increase in data traffic leading to an increasing number of telecommunications services that use Cloud Services. The market is undergoing a paradigm shift to cloud solutions as businesses and individuals look for more agile, flexible, safe & cost-effective ways of storing data.

Challenges

  • Growing Concerns Regarding Data Security - The risk of cybersecurity could increase as the telecommunications sector expands its cloud services. For suppliers and operators, this increases the complexity. This technology contains strong data that could be damaged by a single error in the safety system. Therefore, the industries need to put in place comprehensive solutions and monitor all alerts with care. Global risks are increasing, such as internal threats, Third Party Risks, and so on. For instance, in the first half of 2022, there has been a 48% increase in phish attacks, with 11,395 cases costing businesses over USD 13.4 million. Therefore, the increase in threats may hinder the growth of the market.
  • Increased Risk of Information Loss may Hamper the Growth of the Market
  • Deployment Location and Interoperability Issues may Impede the Market Growth

Telecom Cloud Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 23%

Base Year Market Size (2023)

~ USD 17 Billion

Forecast Year Market Size (2036)

~ USD 120 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Telecom Cloud Segmentation

Deployment Model (Private, Hybrid, Public)

Public cloud segment in the telecom cloud market is expected to hold a share of 48% during the forecast period. The public cloud deployment model offers various benefits to enterprises. For instance, the average spending on public cloud is expected to reach USD 196.75 in 2024. The way companies manage their IT budgets is changing due to public cloud services. Traditionally, significant investments have been made in purchasing and operating hardware, but the approach to operational expenditure in the cloud is changing the financial landscape. Therefore, the growing adoption of public cloud services is propelling the growth of the segment. For instance, the investment by NORD Holding will initiate a corporate merger to form a platform that is 100% focused on public cloud solutions and offers transformation and management services for public clouds. The majority of the shares in Cloudwrdig, Innovations On, and DION Solutions are acquired by NORD Holding.

Enterprise (Large Enterprises, Small & Medium Enterprises)

Small & Medium Enterprises segment in the telecom cloud market is anticipated to hold the largest share of 57% during the forecast period. Small and medium-sized enterprises, which employ less than 5,000 workers, are not subsidiaries. The SME segment is the fastest-growing segment, as it has adopted the pay-as-you-go model strategy, empowering businesses to scale up and grow more quickly. Better productivity, more efficient designs, improved product quality, reduced costs of introducing new products, better insights into critical Processes, improvements in reporting & analysis, better standards & regulatory compliance, improvements to the design review & approval process, better communication with each other as well as increased resource utilization are the key reasons for SMEs' adoption of cloud solutions and services are the following. SMEs now demand an instinctive graphical interface to facilitate complete user adoption and highly configurable functionality in applications.

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

          Deployment Model

  • Private
  • Hybrid
  • Public

          Enterprise

  • Large Enterprises
  • Small & Medium Enterprises

          Function Type

  • Virtual Network Function (VNF)
  • Cloud-native Network Function (CNF)

          Service Type

  • SaaS
  • IaaS
  • PaaS

          Application

  • Data Storage
  • Achieving
  • Computing
  • Enterprise Application

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Telecom Cloud Industry - Regional Synopsis

North American Market Forecast

North American telecom cloud market is expected to hold a share of 35% during the forecast period. The region is embracing cloud computing services which is propelling the growth of the market. Also, the expansion can be attributed to the growing adoption of 5G technology in the region. In addition to this, the presence of the key telecom industries and major market players is expected to boost the market growth in North America. For instance, between 2010 and 2020, telecommunications companies around the world invested about USD 1.8 trillion in infrastructure. Therefore, growing investment in telecom infrastructure is also bolstering the growth of the market. Furthermore, in the US, the growing and swiftly changing digital data is accelerating the market growth in the region.

APAC Market Statistics

Telecom cloud market in Asia Pacific is poised to hold a significant share of 28% by the end of 2036. The adoption of new and advanced technologies is driving the market for telecommunications cloud services in Asia Pacific. Innovative technologies such as the Internet of Things, cloud computing, and AI have been introduced by market players. Increasing healthcare expenditure, the expansion of healthcare sectors, and increasing government initiatives are also factors driving growth in Asia Pacific's telecom cloud market.

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Telecom Cloud Market Regional
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Companies Dominating the Telecom Cloud Landscape

top-features-companies
    • Dell Technologies
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Google Cloud
    • VMware, Inc.
    • IBM Corporation
    • Cisco Systems, Inc.
    • Amazon Web Series, Inc.
    • Oracle Corporation
    • Microsoft Corporation
    • Huawei Technologies Co., Ltd.
    • HCL Technologies

In-the-news

In The News

  • February 2024 - To achieve better economics and flexibility while maintaining network reliability, Dell Technologies has announced new solutions to help CSPs facilitate the transition of their networks into cloud computing and operating systems. To make it easier for communications service providers to deploy, operate, and simplify support and lifecycle management of disaggregated network cloud infrastructure, Dell is using its decades of experience in digital transformation and deep industry partnerships to develop telecommunications solutions that reduce risk.
  • February 2023 - Google Cloud announced three new telecommunications products to help communications service providers digitally transform their networks, using hybrid MWCcloud principles and unlock new revenue opportunities at the Telecoms Industry's biggest event of the year in 2023. The new telecommunications products, Telecom Network Automation, Telecom Data Fabric, and Telecom Subscriber Insight, will provide CSPs with a unified cloud solution enabling them to build, deploy, and operate hybrid cloud-native networks; collect and manage network data; and improve customer experience through artificial intelligence and Analytics.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 2562
  • Published Date: Apr 03, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing demand for cloud-native solutions, increasing demand from business operations, and increased data consumption are the major factors driving the growth of the telecom cloud market.

The market size of telecom cloud is anticipated to attain a CAGR of 23% over the forecast period, i.e., 2024-2036

The major players in the market are Dell Technologies, Google Cloud, VMware, Inc., IBM Corporation, Cisco Systems, Inc., Amazon Web Series, Inc., Oracle Corporation, Microsoft Corporation, Huawei Technologies Co., Ltd., HCL Technologies, and others.

The small & medium enterprises segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Telecom Cloud Market Report Scope
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