Telecom Cloud Market To Generate Revenue Worth $92.6 Billion by 2030

The global telecom cloud market is projected to generate USD 92.6 million revenue by 2030, advancing at a CAGR of 22.80% during 2022–2030. The key factors driving the market are the increasing requirement for strong network connectivity, rising adoption of 5G and IoT, and growing usage of cloud-native environments.

Telcom cloud is a strong cloud infrastructure and a defined software that allows telecommunication firms to add services rapidly, respond faster to the changes in network demand, and adeptly manage central and decentralized resources.

Due to norms such as social distancing and work from home, the telecom sector has grown rapidly in the last couple of years; hence, a positive impact on the market was seen during the pandemic. The telecom sector was a key resource keeping economies around the world moving amidst the pandemic, by enabling business-critical connectivity and flexible and remote working arrangements. Thus, network usage rose steeply, with many telcos reporting large spikes.

Public Cloud Has a Significant Share in the Market

Public cloud held a significant share, of more than 30%, in 2022, mainly because it offers a shared platform to the general public through an internet connection. This cloud works on the pay-as-per-use model and is administrated by the cloud service provider, who is a third party. Here, the same storage is utilized by multiple users simultaneously. Additionally, it is owned, managed, and operated by businesses, universities, government organizations, or a consortium of these entities.

Moreover, public cloud offers an on-demand, hyperscale environment. In response to the changing business needs and dynamic market conditions, the scale of the usage of applications, cloud, and resources can be increased or decreased dynamically and automatically with the public cloud, and users and workloads remain agile and drive competitive advantages.

Moreover, North America held the largest share in 2022, owing to the growing pace of technological advances in the region. Additionally, the presence of major market players with their strong technical expertise boosts the market. Many organizations are adopting telecom cloud services for improving connectivity and communication. Moreover, the region has a well-established infrastructure and fast internet connectivity. In the last 10 years, many large investments have been approved by the U.S. Congress for its further advancement. The USD 20-trillion U.S. economy depends on a vast and diversified infrastructure, from roads, bridges, and railroads to ports and electrical grids, all of which, in turn, now depend on high-speed internet for intercommunication.

Europe also holds a significant share in the market, owing to the growing rate of advancements in technologies and government initiatives, including the European Cloud Initiative. In 2021, the European Commission put together standards, tools, and services to create a common framework for managing user identity and access, allowing researchers to find, access, and reuse the results stored in the EOSC. The EOSC is an environment for hosting and processing research data.

Similarly, the Gaia-X project has been set up to develop a common framework for the European data infrastructure and generates an association between public and private organizations.

Major players operating in the telecom cloud market include Amazon Web Services Inc., Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, Alphabet Inc., VMware Inc., Intellias Ltd., Huawei Technologies Co. Ltd., Telefonaktiebolaget LM Ericsson, and ZTE Corporation.