Global Telecom Cloud Market Growing Significantly due to Increasing Adoption of Hybrid Cloud

The telecom cloud market is forecasted to grow at a high rate owing to the growing demand for hybrid cloud in telecom sector

The Global Telecom Cloud Market is expected to grow at a CAGR of 19.1% and expected to reach 81.1 Bn by 2027

The global telecom cloud market is witnessing strong growth across the globe owing to the increasing adoption of hybrid cloud. Hybrid cloud provides a mixed computing, storage, and service environment consisting of internal infrastructure, private cloud services and public clouds such as Amazon Web Services (AWS) or Microsoft Azure through orchestration across different platforms. The technological companies are expeditiously shifting towards hybrid cloud from public and private cloud technologies. For instance, in July 2021, Movistar Empresas, a Spain based company announced a partnership agreement with the International Business Machines Corporation (IBM) ecosystem, to collaborate with IBM’s cloud for telecommunications. The collaboration will benefit Movistar to get advancements of hybrid cloud architecture and develop next generation business solutions in the region of Colombia. 

The shift from private and public cloud to hybrid cloud is attributed to the primary and important advantage of the hybrid cloud that is its agility. As the necessity to adjust and convert direction quickly is a key principle in digital business, businesses often need a combination of public cloud, private cloud, and on-premises resources to achieve the agility they need in order to achieve a competitive edge. Moreover, the cloud technology used in telecommunication sector also ensures the lessening of operational and administrational costs which is anticipated to further propel the global telecom cloud market growth in the forecast year.

The services segment, based on component is estimated to grow significantly throughout the forecast period. The services segment is further sub divided as professional services, colocation services, managed services, and network services. The telecom companies are increasingly focusing on providing cloud services owing to their benefits such as reduced IT expense, automatic updates, scalability, and collaborations efficiency among others. For instance, in October 2021, Telecom Italia announced a partnership with Oracle Corporation to offer cloud services in Italy. The cloud services are majorly targeted at enterprises and public entities to implement multi-cloud-strategy.

Global Telecom Cloud Market by Region Outlook (Revenue, USD Billion, 2021-2027)

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

In terms of geography, the North America held the largest market share in the year 2020 and is expected to show similar growth trends during the forecast period for global telecom cloud market. This region is witnessing growth owing to the well-developed technological infrastructure which is best suitable for the telecom cloud sector. Global telecom cloud market vendors here are aimed to engulf newer technological advancements in the business. For instance, in March 2020, North American-based company; AT&T has worked with Google Cloud to help businesses leverage Google Cloud technology and capabilities at the edge, including 5G, using AT & T's network connectivity. AT&T and Google Cloud are also 5G edge computing solutions that combine key Google Cloud technologies with edge computing to help businesses solve real-world business problems in AT&T's network.

The Global Telecom Cloud Market Segmentation:

  • By Type Outlook (Revenue, USD Billion, 2021-2027)
    • Public Cloud
    • Private Cloud
    • Hybrid Cloud
  • By Component Outlook (Revenue, USD Billion, 2021-2027)
    • Solution
      • Content Delivery Network
      • Unified Communication and Collaboration
      • Other Solutions
    • Service     
      • Professional Services
      • Colocation Services
      • Managed Services
      • Network Services
  • By Cloud Services Outlook (Revenue, USD Billion, 2021-2027)
    • Infrastructure-as-a-Service
    • Software-as-a-Service
    • Platform-as-a-Service
  • By Application Outlook (Revenue, USD Billion, 2021-2027)
    • Data Storage
    • Achieving
    • Computing
    • Enterprise Application
  • By End User Industry Outlook (Revenue, USD Billion, 2021-2027)
    • BFSI
    • Retail
    • Manufacturing
    • Transportation and Distribution
    • Healthcare
    • Other (Government, Media and Entertainment)

Key Findings:

  • Based on type, the hybrid cloud segment was accounted for the largest telecom cloud market share in 2020 and is expected to continue its dominance throughout the forecast period
  • Based on the component, the services segment held the largest market share in 2020 for the global telecom cloud market
  • Based on cloud services, the Platform-as-a-Service segment accounted for the largest market share in 2020 followed by Software-as-a-Service
  • based on application, the computing segment is accounted to hold the largest telecom cloud market share during the forecast period
  • Based on end-user industry, the BFSI industry segment held the majority of market shares for global telecom cloud market
  • Based on regions, the North America region is anticipated to hold a largest market share in the year 2020 in the telecom cloud market analysis

Company Profiles and Competitive Intelligence

The key players operating in the global telecom cloud market are:

  1. Amazon Web Services Inc. (Aws)
  2. Oracle Corporation
  3. Microsoft Corporation
  4. Alphabet Inc. (Google)
  5. International Business Machines Corporation (IBM)
  6. Alibaba Group
  7. Dell and Red Hat Inc.
  8. AT&T Inc.
  9. China Telecom
  10. Verizon Communications Inc.
  11. Singapore Telecommunications Ltd.
  12. Orange Business Services
  13. Lumen Technologies Inc.
  14. BT Group PLC
  15. Telefonica S.A 
  16. Nippon Telegraph and Telephone Corporation
  17. Vodafone Group PLC
  18. Deutsche Telekom A.G
  19. Telstra Corporation Limited
  20. SK Telecom Co. Ltd
  21. Saudi Telecom Company
  22. Emirate Tele Group Company PJSC
  23. Rogers Communications Inc.
  24. Telefonaktiebolaget LM Ericsson
  25. CenturyLink, Inc.
  26. Level 3 Communications, Inc.
  27. Kamatera Cloud
  28. Serverspace
  29. Linode
  30. ScalaHosting
  31. Cloudways
  32. OVHcloud

Recent News:

  • In July 2020, Telefonaktiebolaget LM Ericsson has announced that XL Axiata has decided to deploy a 5G-ready cloud core technology solution in the region of eastern Indonesia. It includes Ericsson Cloud Packet Core and NFVI (Network Functions Virtualization Infrastructure) solutions. Ericsson's solution will help XL Axiata simplify operations and secure 5G revenue in preparation for these increased data traffic.
  • In December 2020, SK Telecom has launched SKT 5GX Edge, a 5G edge cloud service. It connects to the AWS Wavelength Zone at SK Telecom Korea Communications Office to provide users with ultra-low latency for data-intensive services.

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