Telecom Cloud Market Forecasts to 2028 - Global Analysis By Cloud Service Model (Infrastructure as a Service, Software as a Service and Platform as a Service), Component (Services, Solutions and Platform), Deployment Mode (Private Cloud, Hybrid Cloud and Public Cloud), NFV Software (NFVI and VNFs/CNFS), Organization Size, Application, End User and By Geography
Estimated Year Value (2022)
US $11.5 BN
Projected Year Value (2028)
US $44.0 BN
CAGR (2022 - 2028)
North America, Europe, Asia Pacific, South America, and Middle East & Africa
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa
Highest Growing Market
According to Stratistics MRC, the Global Telecom Cloud Market is accounted for $11.5 billion in 2022 and is expected to reach $44.0 billion by 2028 growing at a CAGR of 25.1% during the forecast period. The term "telecom cloud" refers to the transition of the telecommunications sector from antiquated landline services to cutting-edge cloud computing platforms. The shift towards cloud computing makes it possible for businesses to effectively utilise networking resources. The telecom cloud market will help industries use cloud computing for information technology optimisation. As some of the largest communication service providers across the globe modernize their networks, they facilitate large enterprises to transform the way they involve with a progressively digital world, by leveraging IP-based technology, UCaaS (Unified Communications-as-a-Service), embedded communications (such as voice, chat, and video built into web and business applications) and other novelties on an IP network.
According to Digital Ocean, in 2021, 74 % of enterprises indicated using cloud hosting/infrastructure services such as AWS EC2 or Azure VMs.
Emergence of 5G standard and IoT usage in 5G catalyze demand
The launch of 5G has sped up the telecom sector's digital transformation as the fourth industrial revolution gets under way. The delivery of enhanced end-user experiences has been made possible by rapid bandwidth gains, and 5G wireless promises to speed up this process even more. Numerous businesses are using private clouds to operate their operations effectively as a result of the large increase in 5G caused by the upgrading of mobile networks. The virtual radio access network (vRAN) platform is being developed by Deutsche Telekom, a telecommunications service provider, using VMware telco cloud to change its network and support both LTE and 5G networks.
Portability and interoperability issues
When considering telecom cloud, problems with the cloud, such as portability, must be addressed. Cloud service providers offer a distinctive range of goods and services with the aim of making it simple to shift the cloud to different providers. The main problem occurs when PaaS, which has three components: platform, infrastructure, and management, is enabled with regard to the cloud. PaaS is made up of numerous layers. The actual components that are utilised by a PaaS are unknown to the organisation using it. Deploying applications in different regions of the world presents additional problems. Data overwriting is a problem that arises when portability is completed.
Demand for SDN and NFV-based cloud-native solutions to replace traditional networking model
Over the last few decades, network infrastructure has expanded significantly. Virtualization and the cloud environment have been used in the development of technologies like Software-Defined Network (SDN) and Network Function Virtualization (NFV). By substituting software for traditional hardware, NFV and SDN have become easier to utilise as their application in the contemporary digital era has grown. This has been a big driver for infrastructure vendors to start collaborating with businesses that offer technology, such those who offer NFV and SDN to customers. By explicitly separating the data plane from the control plane, SDN-based solutions enable software-defined networking. From an industrial perspective, this is essential to thriving in this virtual environment.
Risk of information loss
The widely used and popular cloud technology has given rise to some severe issues, one of which is the constant risk of data loss in the event that users do not have the information saved on their personal systems. Data loss from the cloud can result from user error or inadvertent deletion, data overwriting, and criminal activity. When a user accidentally deletes data under the assumption that it would be saved elsewhere or when the system becomes faulty, there is a danger of data loss. Over time, the large data centres update them continuously. Because the user has less control over the data's visibility and management, it is harder for the user to monitor every decision he takes, which might pose a major threat to the user's data.
The COVID-19 pandemic has had an effect on different business domain segments. Many businesses have seen a drop in their sales and revenue as a result of the implementation of various rules around the world, such as total lockdown, bans on import and export, and temporary bans on industrial facilities. Additionally, in order to address a number of issues, this epidemic has forced businesses to switch to cloud-based solutions. The adoption of 5G network deployments and other next-generation communication technologies has increased in many parts of the world, and service automation is now a key concern. These characteristics and the quickening pace of digitalization will lead to a rise in demand for telecom cloud in the upcoming years.
The software as a service segment is expected to be the largest during the forecast period
The software as a service segment is estimated to have a lucrative growth. SaaS refers to a cloud-based approach that uses the internet to offer customers software or apps on demand. The WFH model has been embraced by the majority of businesses across all industries to protect worker welfare and uphold operational effectiveness, fueling a surge in demand for SaaS-based collaboration tools. SaaS business applications are provided by several industry leaders including Microsoft, Sales force, SAP, Oracle, Adobe, and IBM for a variety of departments.
The private cloud segment is expected to have the highest CAGR during the forecast period
The private cloud segment is anticipated to witness the fastest CAGR growth during the forecast period. A private infrastructure gives telecoms better control, better security and data privacy, specialised computational resources like RAN, VNF, and edge apps and services, as well as cost-efficiency in underused capacities in an already existing data centre. Additionally, organisations can utilise the unused capabilities through cloud interfaces, giving them access to the same tools and benefits of cloud management software, including automated management, a self-service interface, and the opportunity to sell unused capacities to associate businesses.
Region with highest share:
North America is projected to hold the largest market share during the forecast period owing to early adoption of cloud computing services by many North American states, especially the US, gave the continent the largest market share among other continents. The area has pressured its residents to follow BOD and utilise less internal facilities. As a result, the region now leads the telecom cloud market in revenue. Although the fundamental benefit of the cloud is the reduction in capital costs, it is currently employed to boost agility and flexibility and hasten the adoption of new technologies.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period, owing to high prospects exist for the deployment of the telecom cloud due to the Asia Pacific region's significant infrastructure growth and the quick development of the 5G network. Companies are encouraged to grow in this region by government efforts and policies, which promote economic growth. A few factors contributing to the expansion of the local economy are the decline in administrative and operational costs, the high demand for over-the-top cloud services, and business awareness of telecom cloud.
Key players in the market
Some of the key players profiled in the Telecom Cloud Market include Metaswitch Networ, Juniper Networks, Inc., Fortinet, IBM Corporation, Cisco, Mavenir, Affirmed Networks, VMWare, Huawei Technologies Co., Ltd., Ericsson, Nokia, Orange, Vodafone and AWS.
In May 2021, Vodafone and Google Cloud entered into a six-year strategic partnership to build a powerful new integrated data platform called Nucleus. It will house a new system called Dynamo to drive data throughout Vodafone.
In May 2021, AWS extended its partnership with Ericsson to certify its mission-critical telecom BSS product portfolio on the AWS cloud platform.
In January 2021, IBM and Telefonica paired up for hybrid cloud. Telefonica will offer Cloud Garden 2.0, an environment incorporating IBM Cloud Pak solutions and Red Hat OpenShift, to help enterprises redesign their applications to run in public or private clouds or on-premises with links to clouds.
Cloud Service Models Covered:
• Infrastructure as a Service
• Software as a Service
• Platform as a Service
• Extr Services
Deployment Modes Covered:
• Private Cloud
• Hybrid Cloud
• Public Cloud
NFV Softwares Covered:
• Network Functions Virtualization Infrastructure (NFVI)
• Virtual Network Functions (VNFs)/Cloud-Native Network Function (CNFS)
Organization Sizes Covered:
• Large Enterprises
• Traffic Management
• Data Storage, and Computing
• Enterprise Application
• Other Applications
End Users Covered:
• Healthcare & Life Sciences
• Media & Entertainment
• Retail & Consumer Goods
• Transportation and Distribution
• Energy and Utilities
• Other End Users
• North America
o Rest of Europe
• Asia Pacific
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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Table of Contents
1 Executive Summary
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
3 Market Trend Analysis
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Telecom Cloud Market, By Cloud Service Model
5.2 Infrastructure as a Service
5.3 Software as a Service
5.4 Platform as a Service
6 Global Telecom Cloud Market, By Component
6.2.3 Network Services
6.2.4 Colocation Services
6.3.1 Unified Communication and Collaboration
6.3.2 Content Delivery Network
6.3.3 Other Solutions
7 Global Telecom Cloud Market, By Deployment Mode
7.2 Private Cloud
7.3 Hybrid Cloud
7.4 Public Cloud
8 Global Telecom Cloud Market, By NFV Software
8.2 Network Functions Virtualization Infrastructure (NFVI)
8.3 Virtual Network Functions (VNFs)/Cloud-Native Network Function (CNFS)
9 Global Telecom Cloud Market, By Organization Size
9.2 Large Enterprises
10 Global Telecom Cloud Market, By Application
10.2 Traffic Management
10.3 Data Storage, and Computing
10.5 Enterprise Application
10.5.1 Communication and collaboration
10.5.2 Cloud Migration
10.5.4 Network cloud migration
10.6 Other Applications
11 Global Telecom Cloud Market, By End User
11.2 Healthcare & Life Sciences
11.4 Media & Entertainment
11.5 Retail & Consumer Goods
11.7 Transportation and Distribution
11.10 Energy and Utilities
11.11 Other End Users
12 Global Telecom Cloud Market, By Geography
12.2 North America
12.3.6 Rest of Europe
12.4 Asia Pacific
12.4.5 New Zealand
12.4.6 South Korea
12.4.7 Rest of Asia Pacific
12.5 South America
12.5.4 Rest of South America
12.6 Middle East & Africa
12.6.1 Saudi Arabia
12.6.4 South Africa
12.6.5 Rest of Middle East & Africa
13 Key Developments
13.1 Agreements, Partnerships, Collaborations and Joint Ventures
13.2 Acquisitions & Mergers
13.3 New Product Launch
13.5 Other Key Strategies
14 Company Profiling
14.1 Metaswitch Network
14.2 Juniper Networks, Inc.
14.4 IBM Corporation
14.7 Affirmed Networks
14.9 Huawei Technologies Co., Ltd.
List of Tables
1 Global Telecom Cloud Market Outlook, By Region (2020-2028) ($MN)
2 Global Telecom Cloud Market Outlook, By Cloud Service Model (2020-2028) ($MN)
3 Global Telecom Cloud Market Outlook, By Infrastructure as a Service (2020-2028) ($MN)
4 Global Telecom Cloud Market Outlook, By Software as a Service (2020-2028) ($MN)
5 Global Telecom Cloud Market Outlook, By Platform as a Service (2020-2028) ($MN)
6 Global Telecom Cloud Market Outlook, By Component (2020-2028) ($MN)
7 Global Telecom Cloud Market Outlook, By Services (2020-2028) ($MN)
8 Global Telecom Cloud Market Outlook, By Professional (2020-2028) ($MN)
9 Global Telecom Cloud Market Outlook, By Managed (2020-2028) ($MN)
10 Global Telecom Cloud Market Outlook, By Network Services (2020-2028) ($MN)
11 Global Telecom Cloud Market Outlook, By Colocation Services (2020-2028) ($MN)
12 Global Telecom Cloud Market Outlook, By Solutions (2020-2028) ($MN)
13 Global Telecom Cloud Market Outlook, By Unified Communication and Collaboration (2020-2028) ($MN)
14 Global Telecom Cloud Market Outlook, By Content Delivery Network (2020-2028) ($MN)
15 Global Telecom Cloud Market Outlook, By Other Solutions (2020-2028) ($MN)
16 Global Telecom Cloud Market Outlook, By Platform (2020-2028) ($MN)
17 Global Telecom Cloud Market Outlook, By Deployment Mode (2020-2028) ($MN)
18 Global Telecom Cloud Market Outlook, By Private Cloud (2020-2028) ($MN)
19 Global Telecom Cloud Market Outlook, By Hybrid Cloud (2020-2028) ($MN)
20 Global Telecom Cloud Market Outlook, By Public Cloud (2020-2028) ($MN)
21 Global Telecom Cloud Market Outlook, By NFV Software (2020-2028) ($MN)
22 Global Telecom Cloud Market Outlook, By Network Functions Virtualization Infrastructure (NFVI) (2020-2028) ($MN)
23 Global Telecom Cloud Market Outlook, By Virtual Network Functions (VNFs)/Cloud-Native Network Function (CNFS) (2020-2028) ($MN)
24 Global Telecom Cloud Market Outlook, By Organization Size (2020-2028) ($MN)
25 Global Telecom Cloud Market Outlook, By Large Enterprises (2020-2028) ($MN)
26 Global Telecom Cloud Market Outlook, By SMEs (2020-2028) ($MN)
27 Global Telecom Cloud Market Outlook, By Application (2020-2028) ($MN)
28 Global Telecom Cloud Market Outlook, By Traffic Management (2020-2028) ($MN)
29 Global Telecom Cloud Market Outlook, By Data Storage, and Computing (2020-2028) ($MN)
30 Global Telecom Cloud Market Outlook, By Achieving (2020-2028) ($MN)
31 Global Telecom Cloud Market Outlook, By Enterprise Application (2020-2028) ($MN)
32 Global Telecom Cloud Market Outlook, By Communication and collaboration (2020-2028) ($MN)
33 Global Telecom Cloud Market Outlook, By Cloud Migration (2020-2028) ($MN)
34 Global Telecom Cloud Market Outlook, By Over-The-Top (2020-2028) ($MN)
35 Global Telecom Cloud Market Outlook, By Network cloud migration (2020-2028) ($MN)
36 Global Telecom Cloud Market Outlook, By Other Applications (2020-2028) ($MN)
37 Global Telecom Cloud Market Outlook, By End User (2020-2028) ($MN)
38 Global Telecom Cloud Market Outlook, By Healthcare & Life Sciences (2020-2028) ($MN)
39 Global Telecom Cloud Market Outlook, By BFSI (2020-2028) ($MN)
40 Global Telecom Cloud Market Outlook, By Media & Entertainment (2020-2028) ($MN)
41 Global Telecom Cloud Market Outlook, By Retail & Consumer Goods (2020-2028) ($MN)
42 Global Telecom Cloud Market Outlook, By Manufacturing (2020-2028) ($MN)
43 Global Telecom Cloud Market Outlook, By Transportation and Distribution (2020-2028) ($MN)
44 Global Telecom Cloud Market Outlook, By Government (2020-2028) ($MN)
45 Global Telecom Cloud Market Outlook, By Automotive (2020-2028) ($MN)
46 Global Telecom Cloud Market Outlook, By Energy and Utilities (2020-2028) ($MN)
47 Global Telecom Cloud Market Outlook, By Other End Users (2020-2028) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
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