Global Telecom Cloud Market Size, Share & Industry Trends Analysis Report By Type, By Application, By Computing Services, By Services Type, By Organization Size, By Vertical, By Regional Outlook, Strategy, Challenges and Forecast, 2021 - 2027

Analysis of Market Size & Trends

The Global Telecom Cloud Market size is expected to reach $63.8 billion by 2027, rising at a market growth of 21.1% CAGR during the forecast period.

The term telecom cloud refers to the telecommunications industry's transition from traditional landline services to modern cloud computing solutions. Companies can take advantage of networking resources more efficiently due to their shift to cloud computing. The telecom cloud market will benefit industries by allowing them to use cloud computing for information technology optimization.

Mobile networking hardware manufacturers, such as 5G equipment makers, and mobile telephony software development businesses can bundle their products with the cloud data center orchestration capabilities and sell them to CSPs in regional markets throughout the world as full solutions.

When combined with infrastructure-as-code methodologies, the level of operational standardization enabled by NFV and the inherent benefits of virtualization provide a tried and proven method for TSPs to deploy new technologies across all regions of service according to the demands of scale while saving money on data center networking costs. International vendors can bundle their product with the data center orchestration software as a full solution, which can then be trained by integrators or telecom personnel for use as mobile telephony.

COVID-19 Impact Analysis

The COVID-19 pandemic has impacted various segments of the business domain. Due to the imposition of various regulations across the globe like complete lockdown, ban on import & exports and temporary ban on manufacturing units, many companies have witnessed a decline in their sales and revenue. In addition, this pandemic has compelled companies to shift to cloud-based solutions to overcome various challenges.

In many regions of the world, adoption of next-generation communication technologies such as 5G network deployments has accelerated, and service automation has become a top priority. According to research published by Nokia, more than 64% of communication service providers are focusing on boosting the automation of operational services using cloud technology. Owing to these features and rapid pace of digitalization, the demand for telecom cloud would witness a surge in the coming years.

Market Growth Factors:

Quick deployment and scalability of services

Telecom cloud solutions and services enable telecom operators and communication service providers to rapidly scale up when demand is high and scale down when demand is low, allowing for faster deployment and scalability of services. Scaling up and down with these modern telecom cloud platforms is substantially faster and less expensive than with legacy on-premises telephony systems. This would enable telecom operators and communication service providers to strike a more effective balance between their services and cost management, which would lead to a far more flexible business model.

High demand for cloud native environments as well as Open RAN and a private 5G network

The transition to the cloud for many telecom companies has been made easy by the digital transformation and the workflows for the new business. Cloud technologies are being adopted by businesses in order to get a competitive advantage and differentiate themselves in the market. In the future, investment on cloud infrastructure and business intelligence (BI) is likely to rise.

Marketing Restraining Factor:

Risk of information loss

The digital era has seen a buzzing technology called the cloud, but the cloud develops some serious concerns. The risk of data loss is always there when users do not have the information saved in their private systems. This risk of data loss exists when the data is unintentionally deleted by the user, thinking that it would be saved somewhere else or when the system gets corrupted. Overwriting of data is also one of the serious concerns of the clients.

Type Outlook

On the basis of type, the telecom cloud market is segmented into public cloud, private cloud, and hybrid cloud. The private cloud segment procured a substantial revenue share in the telecom cloud market in 2020. Rapid technical advancements have fueled the growth of the private cloud segment. The rise of internet-based services and applications, such as social media, video streaming, and online payments, has raised the demand for secure data storage. Similarly, the growing volume of data in industries like BFSI, IT & telecom, healthcare, government, retail, and others has prompted these industries to utilize private cloud services.

Application Outlook

By application, the telecom cloud market is divided into Enterprise Application, Data Storage, Computing, Archiving and others. The enterprise application segment acquired the maximum revenue share in the telecom cloud market in 2020. Enterprise application software is a collection of programs that share business applications and organizational modelling tools to provide unrivalled functionality. Any computer-based information system would be incomplete without EA software. Through business level support functionality, EA software eventually improves efficiency and productivity.

Computing Services Outlook

Based on the computing services, the telecom cloud market is fragmented into SaaS, PaaS and IaaS. The SaaS segment dominated the telecom cloud segment with the largest revenue share in 2020. Network maintenance, network device monitoring, monthly status reporting, upgrade/patching deployment, and user management are all examples of these services, which would attract more customers in the forecast years.

Services Type Outlook

On the basis of services type, the telecom cloud market is bifurcated into Network & Management Services and Colocation Services. The network & management services segment witnessed the highest revenue share in the telecom cloud market in 2020. This growth is attributed to the various services provided under this segment including network maintenance, monitoring of attached network devices, monthly status reporting, upgrade/patching deployment, and user management.

Organization Size Outlook

By organization size, the telecom cloud market is segregated into small & medium sized enterprises and large enterprises. The small & medium sized enterprises segment acquired a significant revenue share in the telecom cloud market in 2020. It is due to the fact that these telecom cloud services are cost effective and are easy to deploy, which makes it convenient for SMEs to operate in the competitive world.

Vertical Outlook

Based on vertical, the telecom cloud market is divided into BFSI, retail & consumer goods, healthcare, manufacturing, media & entertainment and others. The BFSI sector dominated the telecom cloud market with the largest revenue share in 2020. The banking, financial services, and insurance industry has begun outsourcing non-core tasks in order to decrease costs. Banks benefit from outsourcing since it allows them to save expenses and increase efficiency. As a result, channelized content insights and precise banking information are required, which can be unified via a telecom cloud solution.

Telecom Cloud Market Report Coverage

Report Attribute	Details
Market size value in 2020	USD 17.9 Billion
Market size forecast in 2027	USD 63.8 Billion
Base Year	2020
Historical Period	2017 to 2019
Forecast Period	2021 to 2027
Revenue Growth Rate	CAGR of 21.1% from 2021 to 2027
Number of Pages	370
Number of Tables	654
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
Segments covered	Type, Application, Computing Services, Services Type, Organization Size, Vertical, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Quick deployment and scalability of services High demand for cloud native environments as well as Open RAN and a private 5G network
Restraints	Risk of information loss

Regional Outlook

Region-wise, the telecom cloud market is analyzed across North America, Europe, Asia Pacific and LAMEA. North America emerged as the leading region in telecom cloud market with the maximum revenue share in 2020 and is anticipated to continue this trend over the forecast period. This growth is attributed to the fact that large companies with technically skilled staff have a significant presence across this region, which would provide constant revolutionary technology.

KBV Cardinal Matrix - Telecom Cloud Market Competition Analysis

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Verizon Communications, Inc. is the major forerunner in the Telecom Cloud Market. Companies such as Orange S.A., Deutsche Telekom AG, Telefonica S.A. are some of the key innovators in the Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Telstra Corporation, Orange S.A. (Orange Business Services), Telefonica S.A., Vodafone Group Plc, Deutsche Telekom AG, AT&T, Inc. (AT&T Intellectual Property), Verizon Communications, Inc., BT Group plc, Lumen Technologies, Inc., and SK Telecom Co., Ltd.

Recent Strategies Deployed in Telecom Cloud Market

» Partnerships, Collaborations and Agreements:

• Oct-2021: Lumen extended its partnership with Cisco, an American multinational technology conglomerate corporation. This partnership includes a new solution viz. Lumen Solutions for Cisco Unified Communications Manager Cloud (UCMC). In addition, the new solution would integrate Cisco's sophisticated, cloud-based collaboration services with the reliability and speed of Lumen's global fiber network, which makes it well-suited for the companies that have already invested in Cisco Webex or those that are planning to do it.
• Oct-2021: Verizon formed a partnership with AWS, a subsidiary of Amazon providing on-demand cloud computing platforms and APIs. Following the partnership, Verizon introduced private mobile edge computing for enterprises with AWS Outposts. Moreover, Verizon's private mobile edge compute solution with AWS Outposts is available for enterprise customers across the U.S. Moreover, Verizon 5G Edge with AWS Outposts can be considered as a cloud computing platform that brings compute and storage services to the edge of the network on the customer premises. Verizon 5G Edge with AWS Outposts is a cloud computing infrastructure that offers compute and storage capabilities to customers' premises at the network's edge. 
• Sep-2021: BT Group partnered with Oracle, an American multinational computer technology corporation. Following the partnership, the BT Group selected Oracle Communications Cloud-Native Converged Policy Management to optimize its network resources and introduce new 5G capabilities to market rapidly. In addition, the solution would allow BT to rapidly and smoothly test and install 5G services such as live streaming and zero-rated 5G content across its EE mobile network.
• Sep-2021: Telefónica signed a multi-year agreement with IBM, an American multinational technology corporation. Following the partnership, IBM intelligent automation software and services would be deployed to UNICA Next, Telefónica’s first-ever, cloud-native, 5G core network platform. Moreover, Telefónica's goal with UNICA Next is to gain the agility, reliability, and efficiency necessary to continuously improve its services.
• Sep-2021: Telefonica entered into a multi-year partnership with Oracle, an American multinational computer technology corporation. Following the partnership, the two companies would together expedite Telefonica's cloud deployment and the development of new communication services for consumers as well as the companies.
• Jul-2021: AT&T formed a collaboration with Google, an American multinational technology company. Following the collaboration, the two companies introduced new solutions across AT&T's 5G and Google Cloud's edge computing offerings, including AT&T's on-premises Multi-access Edge Compute (MEC) solution, and AT&T Network Edge offerings through LTE, 5G, and wireline.
• Jul-2021: BT Group came into a partnership with Microsoft, an American multinational technology corporation. This partnership would boost innovation and development in the telecom industry and redefine the future of voice calling. Moreover, the partnership would enable the development of innovative new cloud-based products and services for BT’s voice customers and the broader telecoms sector.
• Jul-2021: Verizon signed a five-year agreement with Ericsson, a Swedish telecom company. Under this agreement, Verizon would use various technology solutions of Ericsson to expand its ultra-wideband 5G coverage. These solutions include Ericsson Spectrum Sharing, Massive MIMO, and the Ericsson Cloud Radio Access Network.
• Jul-2021: Vodafone joined hands with Nokia, a Finnish multinational telecommunication, information technology, and consumer electronics company. Following the collaboration, the two companies together designed an Anomaly Detection Service, a machine learning (ML) product, running on Google Cloud, to rapidly identify and alleviate network anomalies before they become a pain for the Vodafone customers. Moreover, the new service is developed on Nokia Bell Labs technology and would be available across Vodafone’s pan-European network.
• Jun-2021: AT&T came into a partnership with Microsoft, an American multinational technology corporation. Following the partnership, the two companies would bring the carrier's 5G workloads to the Azure for Operators platform and provide AT&T access to Microsoft artificial intelligence, cloud, and edge technology to help with launching new 5G-enabled services.
• May-2021: Verizon partnered with RingCentral, a company that offers companies different cloud-based business communications solutions. Under this partnership, the two entities would jointly develop a unique co-branded service, RingCentral with Verizon, smooth integrated unified communications as a service (UCaaS) solution for enterprise businesses.
• Apr-2021: BT Group joined hands with Telefónica, a Spanish multinational telecommunications company. Under this partnership, the two companies would together run a multi-operator and multi-location trial with the help of the MobiledgeX platform running on top of edge infrastructure offered by the engaged operators.
• Apr-2021: Verizon teamed up with Amazon Web Services, a subsidiary of Amazon providing on-demand cloud computing platforms. Following the collaboration, the two companies introduced a mobile edge computing platform that covers a private 5G network and AWS Outposts. The new platform would be suitable for applications in factories, warehouses, and corporate business campuses. Moreover, the managed service offering utilizes Verizon's network for Outposts connectivity wherein Outposts can be defined as the on-premises IT system that includes computing, storage, and memory options.
• Mar-2021: Lumen joined hands with IBM, an American multinational technology corporation. Following the collaboration, the two companies would combine IBM Cloud Satellite with the Lumen edge platform to allow customers to leverage hybrid cloud services in near real-time and develop unique solutions at the edge.
• Feb-2021: Deutsche Telekom formed a collaboration with Reply, a company that specializes in consulting, system integration, and digital services. Following the collaboration, the two companies introduced the Access 4.0 (A4) platform. Moreover, the two companies would together substitute traditional hard-wire systems with extremely automated and microservice-based technologies.
• Feb-2021: Lumen extended its partnership with VMware, an American cloud computing and virtualization technology company. Following this partnership, the two companies would accelerate the design, development, and delivery of edge computing and safer, work-from-anywhere solutions. Moreover, the integrated capabilities of the two entities would allow customers to provide enhanced experiences for any application, to any device, from the global cloud core to the distributed network edge.

» Acquisitions and Mergers:

• Jul­2021: Telefónica completed the acquisition of Altostratus Cloud Consulting, a company that specializes in multi-cloud services and Google Cloud Premier Partner for Southern Europe. The acquisition would expand the cloud capabilities of Telefonica, including extremely highly qualified professionals to the company, and strengthen the industry by extending its positioning with the main hyperscalers.

» Product Launches and Product Expansions:

• Jun-2021: Orange introduced Europe’s first 5G Stand Alone (SA) fully end-to-end cloud network from devices to IS in a cloud-native mode. Through this launch, the company would continue to differentiate and lead through the quality of experience it provides to its consumers as it advances toward a "zero-touch network".

» Geographical Expansions:

• Dec-2021: Telstra expanded its geographical reach by expanding its network infrastructure in the US. Following the expansion, the company would triple its capabilities at a primary data center in Ashburn, Virginia. This would bolster the global telecommunications and technology company’s ongoing efforts to support customers across the U.S. by making network investments and including new points of presence (PoP).
• Nov-2021: Nov Vodafone expanded its geographical reach by expanding its core network in Europe. Following this, the company would implement VMware’s comprehensive Telco Cloud Platform to manage the workloads on its 5G standalone core networks across Europe. In addition, VMware's goal is to automate and coordinate all network processes and services for the telecom's core networks, regardless of whatever vendor they come from.

Scope of the Study

Market Segments Covered in the Report:

By Type

• Public Cloud
• Private Cloud and
• Hybrid Cloud

By Application

• Enterprise Application
• Data Storage
• Computing
• Archiving, and
• Others

By Computing Services

• SaaS
• IaaS, and
• PaaS

By Services Type

• Network & Management Services and
• Colocation Services

By Organization Size

• Large Enterprises and
• Small & Medium Enterprises

By Vertical

• BFSI
• Retail & Consumer Goods
• Healthcare
• Manufacturing
• Media & Entertainment and
• Others

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Telstra Corporation
• Orange S.A. (Orange Business Services)
• Telefonica S.A.
• Vodafone Group Plc
• Deutsche Telekom AG
• AT&T, Inc. (AT&T Intellectual Property)
• Verizon Communications, Inc.
• BT Group plc
• Lumen Technologies, Inc.
• SK Telecom Co., Ltd.