Telecom Cloud Market to Grow by USD 63.68 Billion (2024-2028), Enterprise Mobility Drives Revenue, Report Highlights AI's Role in Market Evolution - Technavio

NEW YORK, Dec. 5, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The global telecom cloud market  size is estimated to grow by USD 63.68 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  29.7%  during the forecast period. Rising enterprise mobility and need to improve efficiency is driving market growth, with a trend towards rising telecom dependence after covid-19. However, stringent regulatory compliance  poses a challenge. Key market players include Alphabet Inc., Amazon.com Inc., AT and T Inc., BT Group Plc, Cisco Systems Inc., Dell Technologies Inc., Deutsche Telekom AG, Etisalat, Fortinet Inc., Huawei Technologies Co. Ltd., International Business Machines Corp., Juniper Networks Inc., Mavenir Systems Inc., Microsoft Corp., Nokia Corp., Oracle Corp., Orange SA, Telstra Corp. Ltd., Verizon, and VMware Inc..

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Key Market Trends Fueling Growth

Telecom cloud market is witnessing significant trends with the adoption of Software-Defined Networking (SDN) and Network Function Virtualization (NFV) for 5G rollout. SDN and NFV enable telecom operators to offer cloud-native, open-source solutions with independent lifecycles and system immutability. SMEs and public enterprises are increasingly demanding private cloud services for industrial operations and organizational work. TM Forum, Microsoft Azure, Google Cloud, Tech Mahindra, and other service providers are offering communications cloud services to meet this demand. 5G technology brings lower latency and higher speed capabilities, driving the need for cloud services for mobile users. Cyber threats and data security are major concerns, with service providers focusing on data security and cybersecurity. Multi-cloud computing and cloud-based technologies are also gaining popularity, with Amazon Web Services (AWS) for Telecom and offerings from Cisco Telco Cloud, Microsoft Cloud, Open Telekom Cloud, and others. The trend towards automation, orchestration, and virtualized network infrastructure continues, with the adoption of artificial intelligence and cloud business strategies driving digital transformation. Digital media behemoths like Netflix and YouTube are driving network congestion, highlighting the importance of service automation and scalability. CapEx and OpEx considerations, B2B solutions, and 5G network installations are also key factors influencing the telecom cloud market. 

The COVID-19 pandemic led to a significant increase in the use of telecommunications for work and education from home. This demand put pressure on telecommunications infrastructure and services. Consequently, the need for telco cloud applications grew as telcos and communication providers sought to manage network traffic and maintain quality of service during peak usage. With the continuing trend of remote work post-pandemic, the importance of cloud-based telco solutions is expected to remain high. 

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•         Telecom Cloud Market: Overcoming Challenges with SDN, NFV, 5G, IoT, and More The Telecom Cloud Market faces several challenges as businesses and mobile users demand more cloud services, especially with the rollout of 5G technology. Service providers must address the adoption of Software-Defined Networking (SDN) and Network Function Virtualization (NFV) to build virtualized network infrastructure and enable automation and orchestration. SMEs and public enterprises require cloud services to support industrial operations and organizational work, leading in demand for private cloud solutions. Telecom operators face cyber threats, including inside threats and network congestion, necessitating data security and cybersecurity measures. 5G technology offers low latency and higher speed capabilities, making it crucial for cloud communication. Cloud-native technologies, open-source software, and system immutability are essential for independent lifecycles and scalability. Cloud business strategies, digital transformation, and multi-cloud computing are key trends, with Amazon Web Services (AWS), Microsoft Azure, Google Cloud, Tech Mahindra, and other service providers offering solutions. Service providers must ensure data consumption, CapEx and OpEx management, B2B solutions, and 5G network installations while addressing cybersecurity concerns. Digital media behemoths like Netflix and YouTube add to network traffic, necessitating service automation and the ability to handle over-the-top cloud services. Telecom operators must navigate these challenges to meet the evolving needs of their customers.

•         Telecom cloud services must adhere to multiple regulations and standards, ensuring compliance with data privacy, security, and consumer protection. Regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) necessitate obtaining user consent before collecting and utilizing data, as well as implementing security measures. Telecom cloud providers must secure their networks against cyber threats, including hacking and malware. Compliance with industry standards, like the Payment Card Industry Data Security Standard (PCI DSS), is also mandatory.

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This telecom cloud market report extensively covers market segmentation by

1. Deployment 
• 1.1 Public
• 1.2 Private
• 1.3 Hybrid
2. End-user 
• 2.1 Large enterprises
• 2.2 Small and medium enterprises
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Public-  The public segment dominates the global telecom cloud market, accounting for the largest market share in 2023. This growth can be attributed to the cost-effectiveness and scalability of public cloud services. Telecom companies can align their operating expenses with actual usage through pay-as-you-go pricing models, eliminating the need for substantial upfront investments in hardware and software. Public cloud platforms are vital for telecom firms undergoing digital transformation. They offer the infrastructure and tools for adopting cloud-native applications, data analytics, artificial intelligence, and IoT. Modernizing legacy systems and enhancing agility enable telecom companies to improve customer experiences. Security concerns are being addressed with advancements in cloud security, including encryption, access controls, and compliance certifications. These factors will drive the growth of the public segment of the global telecom cloud market during the forecast period.

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The Telecom Cloud Market is experiencing rapid growth as Communications Service Providers (CSPs) embrace 5G technology and digital transformation. Cloud services, including Microsoft Azure, Google Cloud, and Microsoft Cloud, are becoming essential for telecoms to offer scalability and flexibility to Small and Medium Enterprises (SMEs). Artificial intelligence (AI) and automation are key drivers, enabling network function virtualization and software-defined networking. Data security and cybersecurity are top priorities, with cloud-native technologies providing solutions. The Internet of Things (IoT) and Platform-as-a-Service (PaaS) are also transforming the industry, allowing for multi-cloud computing and cloud-based technologies to address network congestion and deliver digital media content from digital entertainment giants. Virtualized network infrastructure and programmable network infrastructure are crucial components of this evolution, ensuring network performance and agility.

The Telecom Cloud Market is experiencing significant growth as businesses and telecommunication operators embrace SDN and NFV technologies to build communications clouds for 5G and IoT applications. SMEs and public enterprises are adopting cloud services, including over-the-top cloud offerings, for their industrial operations and organizational work. TM Forum, Microsoft Azure, Google Cloud, and other service providers are leading the charge with their innovative offerings, such as Azure Operator Nexus, Open Telekom Cloud, Cisco Telco Cloud, and AWS for Telecom. 5G technology's low latency and higher speed capabilities are driving demand for cloud communication solutions, while cyber threats and data security concerns persist. Cloud-native technologies, such as open-source software, offer system immutability and independent lifecycles. The 5G rollout and the need for scalability and flexibility are key adoption drivers. Service providers must address inside threats and ensure data security and cybersecurity to meet businesses' needs. Desktop virtualization, automation, orchestration, virtualized network infrastructure, and programmable network infrastructure are essential components of cloud business strategies. Digital transformation, data consumption, and multi-cloud computing are shaping the future of telecom cloud demand. CapEx and OpEx considerations, B2B solutions, and 5G network installations are also critical factors. Digital media behemoths, such as Netflix and YouTube, are contributing to network congestion, further emphasizing the importance of cloud-based technologies.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Deployment
• Public
• Private
• Hybrid
• End-user
• Large Enterprises
• Small And Medium Enterprises
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio