Telecom Cloud Market Size and Growth 2031

The telecom cloud market is expected to register a CAGR of 22.4% during 2023–2031. The growing demand for cloud-based solutions and the adoption of advanced technology are likely to remain a key trend in the market.

Telecom Cloud Market Analysis

• The growth of the market is driven by rapid digitalization across industries and a rise in internet use and handheld devices. Moreover, the increasing demand for high connectivity and the rise of cloud computing are expected to drive the development of the market.
• The increasing adoption of telecom cloud among various industries such as retail, banking institutions, and healthcare is expected to boost the market growth.

Telecom Cloud Market Overview

• The shift towards 5G networks is significantly driving the growth of the telecom cloud market, propelled by advancements in technology and connectivity. North America holds a substantial market share of the telecom cloud market owing to the implementation of new technologies and the influence on people to use in-house facilities of telecom cloud.
• Moreover, in May 2024, Mavenir announced the signing of a five-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS), set to influence the deployment of telecom workloads running on AWS. This type of collaboration is expected to fuel the growth of the telecom cloud market.

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Telecom Cloud Market: Strategic Insights

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Telecom Cloud Market Drivers and Opportunities

Increase In Demand for High-Speed Data

• Rapid digitalization across industries influences the need for high-speed data connection. The rise in adoption of 5G networks & increase in data usage from online platforms such as online gaming, social media, and e-commerce sites for online business drive the market of telecom cloud. Similarly, advancements in information and communication technology also drive the demand for high connectivity.
• The growing use of handheld devices for work, entertainment, and e-learning raises demand for high-speed connectivity data and also increases the demand for telecom cloud. The outbreak of the COVID-19 pandemic in 2021 further accelerated the demand for high-speed connectivity due to the promotion of work-from-home and e-learning initiatives.

Increasing Adoption of SDN and NFV-based Cloud-native

• Innovative technologies, such as Network Function Virtualization (NFV) and Software-Defined Networks (SDN), are developed using cloud environment and virtualization. The use of these technologies has increased in the digital era. Infrastructure vendors have been strongly encouraged to collaborate with technology providers offering NFV and SDN to clients.
• The SDN solutions separated the data plane from the control plane, allowing for a programmable and software-driven network. Despite the strong technological reasons for implementing SDN solutions, opposition from the networking industry could hinder the adoption of SDN. Succeeding in this digital landscape is crucial for industrial success.

Telecom Cloud Market Report Segmentation Analysis

Key segments that contributed to the derivation of the telecom cloud market analysis are component, service model, organization size, and industry vertical.

• Based on components, the market is bifurcated into software and services. The software segment held a significant market share in 2023.
• Based on the service model, the market is segmented into infrastructure-as-a-service, software-as-a-service, platform-as-a-service, and others. The infrastructure-as-a-service segment held a significant market share in 2023.
• In terms of organization size, the market is segmented into SMEs and large Enterprises. The large enterprises segment held a substantial share of the market in 2023.
• Based on industry vertical, the market is segmented into BFSI, retail and consumer goods, healthcare, energy and utilities, transportation and logistics, IT and telecom, media and entertainment, and others. The BFSI segment held a significant market share in 2023.

Telecom Cloud Market Share Analysis by Geography

The geographic scope of the telecom cloud market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

• The telecom cloud market in North America has seen significant growth, driven by technological advancements, shifting consumer preferences, and strong economic expansion, positioning the region as a leader in the global telecom cloud market.
• Additionally, companies in the US place a high value on digitalization. They are often considered early adopters of next-generation technology such as the Internet of Things, big data analytics, intelligent systems, connected businesses, AR, ML, and VR, as well as the most recent telecommunication technologies, including 4G, 5G, and LTE.

Telecom Cloud Market Regional Insights

The regional trends and factors influencing the Telecom Cloud Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Telecom Cloud Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Telecom Cloud Market Report Scope

Telecom Cloud Market Players Density: Understanding Its Impact on Business Dynamics

The Telecom Cloud Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Telecom Cloud Market are:

1. AT&T, Inc.
2. BT Group PLC
3. CenturyLink
4. Fusion Telecommunications International, Inc.
5. NTT Communications Corporation
6. Orange Business Services

Disclaimer: The companies listed above are not ranked in any particular order.

 

Telecom Cloud Market News and Recent Developments

The telecom cloud market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the telecom cloud market are listed below:

• Ericsson has announced an expansion of its successful and long-standing partnership with Google Cloud to develop an Ericsson Cloud RAN solution on Google Distributed Cloud (GDC) that offers integrated automation and orchestration and leverages AI/ML for additional communications service providers (CSP) benefits.

(Source: Ericsson, Company Website, September 2023)

• Cloud Software Group Inc. and Microsoft Corp. announced their collaboration through an eight-year strategic partnership agreement. The agreement will strengthen the go-to-market collaboration for the Citrix® virtual application and desktop platform and support the development of new cloud and AI solutions with an integrated product roadmap. Additionally, Cloud Software Group will make a $1.65 billion commitment to the Microsoft cloud and its generative AI capabilities.

(Source: Microsoft, Company Website, April 2024)

Telecom Cloud Market Report Coverage and Deliverables

The “Telecom Cloud Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Telecom cloud market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Telecom cloud market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Telecom cloud market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the telecom cloud market
• Detailed company profiles