Global Telecom Cloud Market By Type (Public Cloud, Private Cloud, and Hybrid Cloud), By Computing Service (Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS)), By Application, By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global Telecom Cloud Market size was valued to be worth USD 23.6 billion in 2022. From 2023 to 2032, it is estimated to reach USD 127.6 billion by 2032; growing at a CAGR of 18.9%.

The telecommunication cloud is a next-generation network integrated into the computing network with software-defined networking, cloud-native technologies, and network function virtualization. As the name suggests, the telecom cloud is a term that migrated from the traditional landline service to an advanced cloud computing service. This shift enables the major key players to efficiently take advantage of network resources. Orchestration and automation are essential due to computing and network resources are scattered across various locations and clouds. It is mostly used in the telecom business and is called multi-cloud computing.

Note: Actual Numbers Might Vary In Final Report

Key Takeaways

• Rapid Growth: The Telecom Cloud Market size was valued at USD 23.6 billion in 2022 and is estimated to reach USD 127.6 billion by 2032, experiencing a CAGR of 18.9% during the forecast period.
• Driving Factors: The introduction of 5G technology has significantly boosted the digital transformation of the telecom industry, leading to the adoption of private clouds for efficient operations.
• Type Analysis: Public cloud is currently dominating the market, while private cloud is projected to experience steady growth over the course of its forecast period.
• Computing Services: Software as a Service (SaaS) holds the largest market share, while Platform as a Service (PaaS) is projected to experience significant growth.
• Application Analysis: Cloud migration has emerged as the dominant segment, driven by growing consumer interest for over-the-top cloud services and lower operating expenses.
• End-User Analysis: The BFSI segment holds the largest share, driven by the benefits of outsourcing non-core activities and increased communication options.
• Growth Opportunities: The demand for Software Defined Networking (SDN) and Network Function Virtualization (NFV) based cloud solutions is increasing, providing opportunities for infrastructure vendors to collaborate with technology providers.
• Latest Trends: The adoption of 5G technologies and the emergence of NFV are the major trends driving market growth, leading to increased virtualization and automation in the telecom industry.
• Regional Analysis: North America dominates the market, driven by significant ICT spending and entrepreneurial dynamism. The APAC region is also experiencing substantial growth, propelled by the adoption of cutting-edge technologies and the implementation of 5G.
• Key Market Players: Major players in the market include Juniper Networks, Inc., IBM Corporation, Mavenir, Metaswitch Network, Affirmed Networks, Fortinet, Orange, Huawei Technologies Co., Ltd., VMWare, Cisco, Nokia, and Ericsson.

Driving Factors

Introduction to 5G is The Major Factor Driving the Growth of the Market

The introduction of 5G has boosted the digital transformation of the telecom industry. With the rapid improvement in bandwidth, the major players are delivering superior user experiences. Due to the upgradation in the mobile network, there is a significant rise in the 5G, which is making various companies adopt their own private cloud, which can make their operation run efficiently. The rise in the adoption of the 5G network is the factor propelling the market’s growth. These are the factors that are boosting the market growth.

Restraining Factors

Interoperability and Portability Issues to Restrain Market Growth

The main issue which is faced by the cloud is portability which is required when the telecom cloud is considered. The goal of the cloud provider is to make the cloud move easily to various providers, and a unique set of services and products are offered by cloud providers. When the cloud is enabled with PaaS, which has three components such as platforms, management, and infrastructure, it is the major issue for the cloud provider. PaaS has many layers. When an organization uses PaaS, they are not conscious of the physical properties that are used in their usage, which acts as a restraint of the market. Also, the geographical location is another issue for the application deployment.

By Type Analysis

The Public Segment Dominates The Growth Of The Market.

The Public cloud segment dominates the growth of the market. The rise in the penetration of mobile devices and the internet, and the rapid digital transition between the industries, are driving the segment’s growth. On the other hand, the private cloud segment is expected to register as the fastest-growing segment during the forecast period. Due to the advancement in technologies, the growth of the segment has been observed. In addition, the rise in the volume of data in the BFSI, healthcare, IT & telecom, etc., is the factor for the segment’s growth.

By Computing Services Analysis

The SaaS Segment Dominates The Growth Of The Market

The Software as a Service segment dominates the market’s growth with a 50% market share. The SaaS is a service purchased as a subscription and built-in software. It includes a fully automated services lifestyle and a digitalized business experience for any carrier-grade network. The LaaS segment is expected to grow significantly during the forecasted period. The segment’s growth is seen due to the low cost of the segment, and the easy-to-access computing resource, which gives more flexibility to the enterprise.

Note: Actual Numbers Might Vary In Final Report

By Application Analysis

The Cloud Migration Segment Dominates The Growth Of The Market

The cloud migration segment dominates the growth of the market. The demand for over-the-top cloud services is driving the segment’s growth. In addition, it helps in declining administrative and operational expenses, which is a factor for market growth. Some benefits of cloud migration include managed operations, better enterprise productivity, improved QoS, etc. These are the factors propelling the development of the segments.

By End-User Analysis

The BFSI Segment Dominates The Growth Of The Market.

The BFSI segment dominates the growth of the market. Outsourcing non-core activities, which can help cut expenses and increase efficiency, drives market growth. With the greater communication choice, the alliance enables financial and banking service providers to give expanded amenities. The transportation segment is growing at a significant rate during the forecasted period. The telecommunication business in the transportation sector is driving the segment’s growth.

Key Market Segments

Based on Type Analysis

• Public Cloud
• Private Cloud
• Hybrid Cloud

Based on Computing Service

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

Based on Application

• Cloud Migration
• Traffic Management
• Network
• Data Storage
• Computing
• Other Applications

Based on End-User

• BFSI
• Retail
• Manufacturing
• Transportation & Distribution
• Healthcare
• Government
• Media & Entertainment
• Other End-Users

Growth Opportunity

Demand for SDN and NFV-Based Cloud Solutions to Replace Traditional Networking.

In the last few years, the network industry has grown tremendously. Some of the new technology, such as (NFV) Network Function Virtualization and (SDN) Software Defined Networks, have been developed with the help of virtualization and the cloud environment. The technologies have been made simple with the help of traditional hardware and software solutions, with the rise in the use of the NFV and SDN in the digital era. This is the major growth opportunity for the infrastructure vendors to start partnering with the organizations which provide technology, including the vendors that provide NFV and SDN solutions to the client.

Latest Trends

The Adoption of 5G Technologies and the Emergence Of NFV is the Major Trend.

With the rise in the adoption of the 5G technologies, telecom companies are expected to shift their operations to cloud-based in order to gain advantages of some of the benefits such as virtualization, automation, etc., which is expected to drive the growth of the telecom cloud market. The emergence of NFV allows telecom companies to virtualize functions such as load balancers, firewalls, etc. This technology is expected to grow in the coming years, which is the major trend for market growth during the forecasted period.

Regional Analysis

North America Dominates The Growth Of The Market

North America dominates the market’s growth and is expected to hold the largest market share during the forecast period. Significant ICT spending’s, Entrepreneurial dynamism, and innovations are some of the factors driving the market growth in the region. APAC region is growing at a significant rate during the forecast period. The developing economies in the region are creating potential opportunities in the market. The adoption of cutting-edge technologies and the implementation of 5G technologies is the factor that is propelling the growth of the market in the region.

Note: Actual Numbers Might Vary In Final Report

Key Regions and Countries Covered in this Report

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Due to the presence of several key players, the market is fragmented and is anticipated to witness competition in the market. Companies are heavily investing in research and development activities for the innovation of technologies in the telecom cloud market. Some of the key players are focusing on partnership and collaboration with other competitors to gain a strong market position, which can make the competitive landscape more versatile and dynamic, with the market expansion. The key major players are increasing their connectivity with the help of advanced technologies, which can help them gain a competitive edge in the market share.

Market Key Players

• Juniper Networks, Inc.
• IBM Corporation
• Mavenir
• Metaswitch Network
• Affirmed Networks
• Fortinet
• Orange
• Huawei Technologies Co., Ltd.
• VMWare
• Cisco
• Nokia
• Ericsson
• Other Key Players

Recent Developments

• AST SpaceMobile Inc. and Nokia collaborated in June 2022. It was a five-year agreement on 5G. The collaboration was done to increase universal coverage and connect underserved communities globally.
• Vodafone and Google Cloud collaborated in May 2021. It was a six years partnership that was done to build a new integrated platform called Nucleus.

Report Scope: