Telecom Cloud Market is Expected to Exceed $134bn by 2032
The telecom cloud market is set to grow from its current market value of more than $23 billion to over $134 billion by 2032.
The telecom cloud market is set to grow from its current market value of more than $23 billion to over $134 billion by 2032; as reported in the latest study by Global Market Insights, Inc.
According to the report, the industry is driven by the rising adoption of cloud computing, the expansion of 5G, and much more. The shift toward cloud computing in the telecommunications sector has revolutionized the way services are delivered and managed.
Telecom operators are leveraging the cloud to enhance scalability, reduce costs, and improve operational efficiency. Additionally, the rapid expansion of 5G networks and the Internet of Things (IoT) has generated a massive amount of data that needs to be stored, processed, and analyzed, creating a demand for robust cloud infrastructure. The growing popularity of Software-as-a-Service (SaaS) and virtualized network functions are propelling the telecom cloud market forward, offering flexibility and agility to service providers.
In terms of application, the industry is segmented into software-defined networking, network function virtualization, content delivery networks, and others. The telecom cloud market from the software-defined networking segment will expand notably from 2022 to 2032. SDN separates the network’s control plane from the underlying hardware, allowing operators to centrally manage and orchestrate network resources.
Telecom cloud provides the scalable and flexible infrastructure needed to host SDN controllers and network functions. By utilizing the cloud, operators can dynamically allocate resources, optimize traffic flow, and rapidly deploy network services.
Telecom cloud enables the virtualization of network functions, such as routers and switches, allowing for efficient resource utilization and cost savings. SDN, coupled with the telecom cloud, empowers operators with enhanced network agility, automation, and scalability, paving the way for future innovations in the telecommunications industry.
Based on components, the market is divided into service and solution. The telecom cloud market from the solution segment is projected to witness substantial growth up to 2032, as these solutions are tailored specifically to the unique needs of telecom operators. One of the key benefits of telecom cloud solutions is the ability to virtualize network functions, allowing operators to scale and deploy services more efficiently. These solutions also offer centralized management and automation capabilities, enabling operators to streamline their operations and reduce costs.
With telecom cloud solutions, operators can leverage the power of cloud computing to enhance their networks, improve customer experience, and drive innovation in the industry.
The APAC telecom cloud market has experienced significant growth in recent years. The expanding telecommunications industry, coupled with the increasing adoption of cloud computing, has driven this growth. Factors such as the rapid proliferation of smartphones, the growth of 4G and 5G networks, and the rising demand for digital services are fueling the demand for telecom cloud offerings. Additionally, governments in the region are promoting initiatives to enhance connectivity and digital infrastructure, further accelerating the adoption of telecom cloud solutions. With a vast population and evolving consumer preferences, the APAC telecom cloud market presents immense opportunities for service providers and technology vendors alike.
Some of the leading companies operating in the telecom cloud market are Nokia, AWS, Ericsson, Fortinet, Huawei Technologies Co. Ltd., Juniper Networks Inc., Microsoft Corporation, Cisco, Oracle Corporation, Orange, Salesforce, Verizon Communication, IBM Corporation, VMWare, and Google.
These market participants are focusing on mergers & acquisitions to expand their product & service portfolio, thus bettering the profit prospects. For instance, in July 2021, Ericsson completed the acquisition of Vonage Holdings Corp. This will allow Ericsson to have access to strong foundational elements, enabling it to offer a comprehensive range of communications solutions, including UCaaS, Communications Platform as a Service (CPaaS), and CCaaS.
