Telecom Cloud Market is Projected to Reach US$ 91.92 Billion By 2031; it is Expected To Register a CAGR of 22.4% | The Insight Partners

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Sep 04, 2025, 10:01 ET

NEW YORK, Sept. 4, 2025 /PRNewswire/ -- According to a new comprehensive report from The Insight Partners, the global telecom cloud market is owing to the 5G deployment and network optimization and rising demand for cost-efficient network operations.

The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the Telecom Cloud market comprises a vast array of component, deployment mode, service model, end user, and geography, which are expected to register strength during the coming years.

Overview of Report Findings

Market Dynamics and Insights: The telecom cloud market is experiencing robust growth, driven by a confluence of technological, operational, and market-centric factors. One of the primary drivers is the rising demand for scalable, cost-efficient infrastructure as telecom operators shift from traditional hardware-based systems to cloud-native network architectures. This transition enables enhanced agility, faster deployment of services, and lower capital expenditure, aligning with operators' strategic goals of modernization and digital transformation. Additionally, the growing adoption of 5G technology is accelerating the need for cloud-based solutions to support high-speed, low-latency connectivity, massive device integration, and edge computing capabilities. Telecom cloud platforms provide the necessary flexibility to manage these complex, data-intensive networks effectively.

Moreover, the increasing focus on network function virtualization (NFV) and software-defined networking (SDN) is reinforcing the adoption of telecom cloud solutions, allowing operators to decouple hardware from software, streamline network management, and reduce operational overhead. The market is further supported by the rising proliferation of IoT devices, which require reliable, scalable, and secure cloud infrastructure for data processing and analytics. Regulatory mandates on data localization and cybersecurity are also prompting telecom providers to invest in secure, compliant cloud environments.

Finally, strategic collaborations between telecom companies and global cloud providers are expanding market opportunities, enabling telcos to co-develop next-generation services and tap into new revenue streams. Together, these factors are creating a compelling business case for sustained investment in telecom cloud technologies across emerging and developed markets.
Regional Insights: The North America telecom cloud market is being propelled by a combination of advanced technological infrastructure, high cloud adoption rates, and strong investments in next-generation network capabilities.

A key growth driver is the region's rapid deployment of 5G networks, which require scalable, flexible, and low-latency cloud infrastructure to support diverse use cases such as autonomous vehicles, smart cities, and real-time analytics. Telecom operators in the U.S. and Canada are increasingly leveraging cloud-native architectures and virtualized network functions to reduce operational complexity, enhance service agility, and lower total cost of ownership. This shift is further supported by the widespread implementation of network function virtualization (NFV) and software-defined networking (SDN), enabling more efficient network management and quicker service innovation. Additionally, North America's mature digital ecosystem, characterized by a strong enterprise cloud market and high mobile penetration, provides fertile ground for telecom cloud expansion.

The presence of major hyperscale cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud—often in partnership with telecom operators—is accelerating the development and commercialization of edge computing solutions and multi-access edge computing (MEC) infrastructure. Regulatory support for data security, privacy, and spectrum management is also contributing to a stable and innovation-friendly environment. Furthermore, growing demand for high-speed connectivity, driven by remote work, digital entertainment, and IoT proliferation, continues to push telecom providers toward agile, cloud-based network solutions. These dynamics collectively position North America as a leading and strategically significant market for telecom cloud adoption and innovation.
Geographical Insights: North America is expected to dominate the telecom cloud market with the highest market share in 2024.

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Market Segmentation

Based on component, the telecom cloud market is bifurcated into solution and services.
In terms of deployment model, the telecom cloud market is divided into public cloud, private cloud, and hybrid cloud.
On the basis of service model, the telecom cloud market is segmented into Software-as-a-Service, Infrastructure-as-a-Service, and Platform-as-a-Service
By end user, the telecom cloud market is bifurcated into SMEs and large enterprises.
The telecom cloud market is segmented into five major regions: North America, Europe, Asia Pacific, the Middle East and Africa, and South and Central America.

Competitive Strategy and Development

Key Players: A few major companies operating in the Telecom Cloud market include AT&T Inc., Amazon Web Services Inc, Telefonaktiebolaget LM Ericsson, Verizon Communications Inc, International Business Machines Corp, Cisco Systems Inc, Broadcom Inc, Microsoft Corp, Google LLC, and Telstra Corp Ltd, among others.
Trending Topics: Cloud BSS OBSS Market, Cloud Infrastructure Market among others.

Global Headlines on the Telecom Cloud Market

'Xtelify, the digital subsidiary of Bharti Airtel, announced the launch of its telco-grade, sovereign cloud platform — Airtel Cloud — and an advanced AI-powered software platform to support global telecom providers. These cutting-edge solutions mark a major milestone in Airtel's mission to empower businesses with secure, scalable, and intelligent digital infrastructure'.
'Google Cloud has opened up its massive global data network to external users with the launch of Cloud WAN, a 'fully managed, reliable, and secure enterprise backbone to transform enterprise wide area network (WAN) architectures'.

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Conclusion

The Telecom Cloud market is witnessing significant expansion, driven by increasing demand for network scalability, enhanced service delivery, and reduced operational costs. Cloud-native technologies, NFV, and SDN are transforming traditional telecom operations, enabling agile and flexible infrastructure. Moreover, the deployment of 5G networks and edge computing is accelerating cloud adoption among telecom operators. Strategic partnerships and investments in cloud platforms are further strengthening market growth. The shift towards hybrid and multi-cloud environments is expected to provide telecom providers with increased resilience and service innovation.

The report from The Insight Partners, therefore, provides several stakeholders including Telecom Cloud providers, law enforcement & government agencies, cybersecurity firms, regulatory & standards organizations, and end-users with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

Conclusion

The functional safety market is poised for significant growth driven by increasing automation, stringent regulations, and the adoption of advanced technologies. Opportunities abound across various industries, regions, and market segments, offering immense potential for companies to innovate, collaborate, and expand their presence. As industries continue to evolve, the demand for robust, integrated, and intelligent safety solutions will only intensify, making functional safety a critical enabler for sustainable and reliable operations in the future.

The report from The Insight Partners, therefore, provides several stakeholders—including component providers, system technology integrators, system manufacturers and others—with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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