Policy Management In Telecom Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 2.41 Billion |
| Market Size (2030) | USD 3.95 Billion |
| Growth Rate (2025 - 2030) | 10.38% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Policy Management In Telecom Market Analysis by Mordor Intelligence
The policy management in telecom market size stood at USD 2.41 billion in 2025 and is forecast to reach USD 3.95 billion by 2030, advancing at a 10.38% CAGR. This performance reflects the rapid shift to cloud-native 5G core architectures where policy control becomes the orchestration layer for network slicing, real-time roaming protection, and AI-assisted quality-of-service enforcement. Operators favor managed services over in-house builds, and they increasingly deploy policy functions in public or hybrid clouds to gain elastic scaling and reduce operational complexity. Security and parental-control use cases dominate deployments because regulators demand pervasive content filtering and threat mitigation, whereas roaming and interconnect policy registers the fastest expansion as regulatory mandates for bill-shock prevention tighten in key markets. Competitive intensity revolves around vendors that can blend telecom-grade reliability with cloud-agnostic design while embedding artificial intelligence for intent-based policy decisions.
Key Report Takeaways
- By component, services led with 68.53% of policy management in telecom market share in 2024 and are tracking an 11.34% CAGR through 2030, underscoring the pivotal role of professional services in complex 5G core migrations.
- By deployment Model, cloud-based deployments accounted for 62.34% of the policy management in telecom market size in 2024 and are advancing at 11.58% CAGR through 2030.
- By application, security and parental-control applications captured 46.14% share of the policy management in telecom market size in 2024, while roaming and interconnect policy is progressing at a 13.68% CAGR through 2030.
- By operator Type, fixed and broadband operators held 40.65% of policy management in telecom market share in 2024, yet Mobile Network Operators are expanding fastest at 12.53% CAGR through 2030.
- By geography, North America commanded 39.21% of the policy management in telecom market in 2024 and Asia-Pacific is set for the sharpest climb with a 14.01% CAGR through 2030.
Global Policy Management In Telecom Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rising mobile-data traffic and fair-usage enforcement | +2.8% | Global with highest impact in APAC and MEA | Medium term (2-4 years) |
| CSP transition to cloud-native 5G-core architectures | +3.2% | North America and EU leading, APAC following | Long term (≥ 4 years) |
| Regulatory push for real-time roaming bill-shock prevention | +1.5% | EU and North America, expanding to APAC | Short term (≤ 2 years) |
| Monetisation needs for network slicing and enterprise SLAs | +2.1% | Global with early adoption in developed markets | Medium term (2-4 years) |
| AI-assisted dynamic QoS and intent-based policies | +1.8% | North America and EU core, spill-over to APAC | Long term (≥ 4 years) |
| Private-network PCC demand from Industry 4.0 campuses | +1.4% | Germany, Japan, South Korea, expanding globally | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Rising Mobile-Data Traffic and Fair-Usage Enforcement
Exploding traffic from generative AI video assistants and extended-reality applications is reshaping the policy management in telecom market as operators replace static volume caps with AI-driven, intent-based resource allocation. The technical hurdle centers on inspecting encrypted flows at scale while sustaining sub-millisecond latencies, which is prompting edge-deployed policy engines equipped with machine-learning inference. Samsung’s AI-enhanced user-plane patent highlights how suppliers now embed intelligence directly into 5G core elements.[1]Samsung Patent, “Method and apparatus for processing traffic by using artificial intelligence model in wireless communication system,” patent.nweon.com Operators must also heed net-neutrality rules, forcing a balance between optimization and fairness, and thereby fueling demand for sophisticated policy governance frameworks within the policy management in telecom market.
CSP Transition to Cloud-Native 5G-Core Architectures
Replacing monolithic PCRF systems with disaggregated policy control functions embodies the most consequential architectural overhaul for the policy management in telecom market since packet-switched networks emerged. Three UK’s 9 Tbps cloud-native core underscores how dynamic instantiation drives capacity leaps and operational agility. Multi-cloud alliances, such as Telefónica’s AWS and Google Cloud collaborations, mitigate vendor lock-in and accelerate innovation. Vendors that package cloud-agnostic policy functions with telecom-grade reliability are positioned to command a larger slice of the policy management in telecom market.
Regulatory Push for Real-Time Roaming Bill-Shock Prevention
New EU and North American rules demand sub-second roaming cost notifications, compelling operators to deploy subscriber-centric policy engines that traverse international network boundaries. [2]Ofcom, “Statement: Mobile roaming – Strengthening customer protections,” ofcom.org.uk Implementing 3GPP Secure Edge Protection Proxy and low-latency charging flows challenges legacy stacks, making proven multi-country deployments a competitive differentiator. Cisco’s home-routed roaming features in its 5G UPF exemplify embedded compliance capabilities. [3]Cisco, “UCC 5G UPF Configuration and Administration Guide,” cisco.comAs a result, roaming policy control emerges as the fastest-growing slice of the policy management in telecom market.
Monetisation Needs for Network Slicing and Enterprise SLAs
Enterprises now seek performance guarantees rather than mere connectivity, requiring dynamic policy orchestration that decomposes end-to-end SLAs across multiple domains. Airtel’s 5G core deployment highlights charging and policy solutions as central to new revenue streams. Research on deep-learning SLA decomposition demonstrates how automation can reduce operational friction. Vendors equipped with industry-specific templates and automated compliance reporting can secure greater influence in the policy management in telecom industry.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Legacy PCRF/BSS integration complexity | -1.8% | Global, particularly in mature markets with extensive legacy footprints | Medium term (2-4 years) |
| Operator CAPEX constraints in low-ARPU markets | -2.1% | APAC emerging markets, Africa, Latin America | Short term (≤ 2 years) |
| Security concerns around multi-vendor cloud deployments | -1.2% | EU and North America | Long term (≥ 4 years) |
| Edge-cloud orchestration immaturity | -0.9% | Global, highest impact in private networks | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Legacy PCRF/BSS Integration Complexity
Decades of bespoke policy rules and intertwined charging flows form a thick technical barrier when operators modernize. Telesur’s phased BSS migration with Cerillion illustrates the rigorous testing cycles necessary to safeguard service continuity. Hybrid overlays reduce risk yet elongate timelines, delaying full migration to cloud-native functions and suppressing near-term demand in the policy management in telecom market.
Operator CAPEX Constraints in Low-ARPU Markets
In price-sensitive regions, tariff hikes help fund 5G but still leave scant headroom for advanced policy control. India’s latest INR 239 to INR 349 prepaid jump (USD 2.86 to USD 4.17) underscores the revenue squeeze. Vodafone Idea’s USD 5.98-6.58 billion three-year spend plan shows the scale of finance required. Lower upfront-cost SaaS models, therefore, gain traction within the policy management in the telecom market.
Segment Analysis
By Component: Services Drive Implementation Complexity
Services constituted 68.53% of policy management in telecom market share in 2024 and are growing at 11.34% CAGR as operators lean on vendor expertise for cloud-native migrations. The sheer intricacy of replacing legacy PCRF while sustaining live traffic expands the addressable pool for consulting, integration, and managed operations. Ericsson’s 50 5G charging wins, covering 25% of mobile users, illustrate how scale and services intertwine to lock in long-term revenue streams.
Solutions cover the remaining portion of the policy management in telecom market. Standardized software now embeds AI inference for encrypted-traffic categorization, but the absence of operator-specific customizations often exposes performance gaps during multi-generation network handoffs. Vendors therefore bundle modular software with outcome-driven service packages, a hybrid approach that broadens the policy management in telecom industry customer base.
By Deployment Model: Cloud Migration Accelerates
Cloud-based configurations held 62.34% of policy management in telecom market size in 2024, with an 11.58% CAGR propelled by hyperscaler collaboration, automated CI/CD pipelines, and elastic scaling. o2 Telefónica’s commercial Cloud RAN illustrates the continuum from access to core when policy functions operate as microservices across distributed clouds.
On-premises and hybrid deployments persist where data sovereignty or ultra-low-latency requirements prevail. These environments use containerized policy functions but run them on bare-metal edge clouds co-located with UPF nodes. The coexistence of public and private clouds compels vendors to deliver platform-agnostic binaries, ensuring that the policy management in telecom market continues to converge toward flexible deployment choice.
By Application: Security Policies Lead, Roaming Accelerates
Security and parental-control use cases represented 46.14% of policy management in telecom market size in 2024 as threat vectors multiplied across 5G and Wi-Fi convergence points. T-Mobile’s managed SASE launch with Palo Alto Networks shows how carriers fold advanced security into connectivity bundles.
Roaming and interconnect policy will expand fastest at 13.68% CAGR through 2030. Real-time spend caps and transparent billing notifications compel carriers to re-platform legacy roaming architectures onto cloud-native policy engines that span multiple public-land-mobile networks. The heightened pace secures additional share for roaming-focused suppliers in the policy management in telecom market.
Note: Segment shares of all individual segments available upon report purchase
By Operator Type: Fixed Operators Lead, MNOs Accelerate
Fixed and broadband carriers claimed 40.65% policy management in telecom market share in 2024 by unifying fiber, cable, and fixed wireless under common policy frameworks. Convergence requires policy engines that natively interpret multiple access-technology attributes such as DSL vectoring profiles and PON optical levels, a capability that entrenches fixed players at the top of the revenue stack.
Mobile Network Operators, however, post the highest 12.53% CAGR by capitalizing on 5G network slicing for enterprise and IoT. Their push into private-network services necessitates slice-specific policy domains, escalating demand within the policy management in telecom market. MVNOs adopt lightweight cloud solutions that incorporate preconfigured traffic classes, accelerating time-to-revenue in competitive wholesale landscapes.
Geography Analysis
North America led the policy management in telecom market with 39.21% share in 2024 thanks to early 5G standalone launches, robust regulatory oversight, and enterprises that require stringent SLA guarantees. FCC spectrum innovation that blends satellite and terrestrial assets forces policy engines to harmonize heterogeneous access domains. Canada’s wholesale MVNO access rules create fresh competitive pressure, pushing operators to deploy granular, subscriber-centric policy logic.
Asia-Pacific holds the fastest trajectory at 14.01% CAGR. The region’s 1.8 billion mobile subscribers and government-backed digitalization programs fuel large-scale 5G rollouts. Japan’s 98.1% nationwide 5G coverage accompanied by millimeter-wave targets accelerates adoption of low-latency policy functions. GSMA forecasts that mobile technologies account for 5.3% of regional GDP, underscoring the macroeconomic tailwind behind the policy management in telecom market.
Europe, the Middle East and Africa, and South America make up the balance. GDPR compliance fuels demand for local data processing, and Industry 4.0 campuses in Germany and GCC smart-city initiatives spark private 5G projects that require dedicated policy slices. The geographic diversity of rules and spectrum availability obliges vendors to deliver configurable policy templates, ensuring that the policy management in telecom market continues to grow across all regions.
Competitive Landscape
The policy management in telecom market remains moderately consolidated as tier-one infrastructure vendors leverage entrenched BSS/OSS footprints to upsell cloud-native PCC suites. Ericsson, Nokia, and Huawei bundle charging, policy, and user-plane software with professional services, making switching costs significant for operators.
Specialist software firms pursue differentiation via AI-driven intent engines and multi-cloud portability. Patent filings on AI-enhanced packet classification and Open RAN-oriented policy APIs indicate a brisk innovation cadence. Mavenir’s network-slicing delivery for the Norwegian Armed Forces demonstrates how niche suppliers can secure high-value projects in defense and industrial campuses.
Private 5G for manufacturing plants represents an emerging battleground. A leading semiconductor maker adopted private 5G to support deterministic latency and dedicated bandwidth, highlighting incremental revenue streams for policy vendors that master SLA decomposition and slice performance assurance. Vendors able to traverse both telco and enterprise domains will secure a long-term advantage in the policy management in telecom industry.
Policy Management In Telecom Industry Leaders
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Amdocs Ltd.
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Telefonaktiebolaget LM Ericsson
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Huawei Technologies Co., Ltd.
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Oracle Corporation
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Cisco Systems, Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- March 2025: Huawei launched AI-Centric 5.5G solutions with GigaGear, GreenPulse, and GainLeap frameworks to expand multi-factor monetization capabilities.
- February 2025: Bharti Airtel partnered with Ericsson for 5G Core deployment that includes Charging and Policy solutions critical for 5G monetization.
- February 2025: o2 Telefónica introduced the first commercial Cloud RAN network running in a 5G-standalone environment using Ericsson technology.
- January 2025: Three UK selected Ericsson to build Europe’s largest mobile packet core, tripling capacity to 9 Tbps.
Global Policy Management In Telecom Market Report Scope
| Solutions |
| Services |
| On-premises |
| Cloud-based (public, private, hybrid) |
| Mobile Data Policy Control |
| Voice/VoLTE and IMS Policy |
| Roaming and Interconnect Policy |
| Security/Parental-control and Content Policy |
| Mobile Network Operators (MNO) |
| Fixed/Broadband Operators |
| Mobile Virtual Network Operators (MVNO) |
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Netherlands | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia and New Zealand | ||
| ASEAN | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Egypt | ||
| Rest of Africa | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| By Component | Solutions | ||
| Services | |||
| By Deployment Model | On-premises | ||
| Cloud-based (public, private, hybrid) | |||
| By Application | Mobile Data Policy Control | ||
| Voice/VoLTE and IMS Policy | |||
| Roaming and Interconnect Policy | |||
| Security/Parental-control and Content Policy | |||
| By Operator Type | Mobile Network Operators (MNO) | ||
| Fixed/Broadband Operators | |||
| Mobile Virtual Network Operators (MVNO) | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Netherlands | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia and New Zealand | |||
| ASEAN | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Egypt | |||
| Rest of Africa | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
Key Questions Answered in the Report
What is the projected value of policy management in telecom by 2030?
The policy management in telecom market size is forecast to reach USD 3.95 billion by 2030.
Which deployment model is growing fastest within policy control?
Cloud-based policy management posts the highest 11.58% CAGR due to elastic scaling and lower operational complexity.
Why are services so dominant in policy control spending?
Services capture 68.53% share because operators rely on expert integration and migration support when moving from legacy PCRF to cloud-native architectures.
Which application segment leads revenue today?
Security and parental-control policies lead with 46.14% share driven by regulatory demands for content filtering and cybersecurity safeguards.
Which region offers the highest growth potential?
Asia-Pacific shows the strongest outlook with a 14.01% CAGR supported by large subscriber bases and government-backed 5G investment programs.
How will network slicing influence policy management demand?
Network slicing creates new revenue streams that require granular, SLA-aware policies, pushing operators to invest in AI-enabled, cloud-native policy engines.
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