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Work-From-Home Mechanisms Driving Growth Of Telecom Cloud Market: Strengthening the Growth Trajectory of the Telecom Cloud Market
Telecom Cloud Market
What Is the Expected CAGR for the Telecom Cloud Market Through 2025?
The telecom cloud market's dimensions have expanded swiftly in the past few years. The market, which was valued at $44.7 billion in 2024, is anticipated to increase to $51.67 billion in 2025, with a compound annual growth rate (CAGR) of 15.6%. The historic growth is largely due to factors such as the utilization of hybrid and multi-cloud deployments, the rise of cloud-native architectures, early enforcement of NFV (network function virtualization), adaptation to regulatory compliance, and the progress seen in AI and machine learning integration.
What's the Projected Size of the Global Telecom Cloud Market by 2029?
In the coming years, the telecom cloud market is projected to experience remarkable growth, expanding to a market size of $111.19 billion by 2029. This represents a compound annual growth rate (CAGR) of 21.1%. The accelerated growth during the forecast period is likely due to factors such as the focus on solutions tailored to customer needs, improved security measures, the proliferation of cloud-native architectures, growing demand for edge computing, and more automated network processes. Emerging trends expected to shape this growth phase include an emphasis on customer experience, the deployment of 5G networks, integration of edge computing, open RAN (radio access network), and network slicing for bespoke services.
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Top Growth Drivers in the Telecom Cloud Industry: What's Accelerating the Market?
The surge in need for work-from-home (WFH) systems is significantly propelling the telecom cloud market. The advent of the COVID-19 pandemic triggered the uptake of the WFH model. Owing to lockdown restrictions, businesses were forced to shut their offices for extended periods, prompting a shift towards home-based work. The telecom cloud enables employee deployment beyond conventional office spaces. For example, a report from Forbes, a US-based business magazine and media company, in June 2023 stated that 12.7% of full-time workers were operating from home and 28.2% were functioning under a hybrid model. By 2025, it is projected that around 32.6 million Americans will be working remotely. Therefore, the escalating adoption of the WFH system is anticipated to stimulate demand for telecom cloud solutions and services, fostering market growth.
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What Trends Will Shape the Telecom Cloud Market Through 2029 and Beyond?
Innovations and advancements in technology are becoming a significant trend in the telecom cloud market. Numerous companies in this industry are developing technically enhanced solutions with superior capabilities. One such advancement is the automation powered by Artificial Intelligence (AI). Top-tier communication service providers (CSP) are employing or planning to use AI to automate self-diagnostics and problem identification procedures. For instance, Snowflake, a Data Cloud company based in the U.S., launched the Telecom Data Cloud in February 2023. This service combines Snowflake's data platform with solutions delivered in-house and through partners, along with datasets specific to the industry. This new provision helps telecommunication service providers to eradicate data silos in their organizations and across their broader ecosystems, facilitating safe, near real-time access to data. Users can refine this data using machine learning (ML) models, share it, and analyze it for informed decision-making. With the Telecom Data Cloud, Snowflake and its partner ecosystem aim to aid telecommunication service providers in speeding up their digital transformation, improving customer experiences, enhancing operational efficiency, and tapping into new data service opportunities.
What Are the Main Segments in the Telecom Cloud Market?
The telecom cloud market covered in this report is segmented -
1) By Type: Public Cloud, Private Cloud, Hybrid Cloud
2) By Computing Service: Infrastructure As A Service (IaaS), Platform As A Service (PaaS), Software As A Service (SaaS)
3) By Organization Size: SMEs, Large Enterprise
4) By Application: Data Storage, Achieving, Computing, Enterprise Application, Other Applications
5) By End users: BFSI, Retail, Manufacturing, Transportation And Distribution, Healthcare, Government, Media And Entertainment, Other End Users
Subsegments:
1) By Public Cloud: Multi-Tenant Public Cloud Solutions, Shared Infrastructure Public Cloud
2) By Private Cloud: Dedicated Private Cloud Solutions, Managed Private Cloud Services
3) By Hybrid Cloud: Hybrid Cloud Infrastructure, Hybrid Cloud Management Solutions
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Which Top Companies are Driving Growth in the Telecom Cloud Market?
Major companies operating in the telecom cloud market include AT&T Inc., BT Group PLC, Verizon Communications Inc., Vodafone Group PLC, China Telecommunications Corporation, Amazon Web Services Inc. (AWS), Microsoft Corporation, International Business Machines Corporation (IBM), VMware Inc., Telefonaktiebolaget LM Ericsson, Nokia Corporation, Cisco Systems Inc., Red Hat Inc., Mavenir Systems Inc., Huawei Technologies Co. Ltd., Google LLC, Oracle Corporation, Deutsche Telekom AG, China Mobile Communications Corporation, China Unicom (Hong Kong) Limited, Orange S. A., NTT Communications Corporation, SoftBank Group Corp., Singapore Telecommunications Limited (Singtel), Telstra Corporation Limited, CenturyLink Inc., Colt Technology Services Group Limited, Tata Communications Limited, Zayo Group Holdings Inc., Windstream Holdings Inc.
Which Regions Will Dominate the Telecom Cloud Market Through 2029?
North America was the largest region in the telecom market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the telecom cloud market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
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