Telecom Cloud Market - Growth, Trends, Forecasts (2020 - 2025)

The market is segmented by Type (Solution, Service), Application (Billing and Provisioning, Traffic Management), Cloud Platform (Software-As-A-Service (SAAS), Infrastructure-As-A-Service (IAAS), Platform-As-A-Service (PAAS)), End User, and Geography.

Market Snapshot

Study Period:

2020-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

19.9 %

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Market Overview

The telecom cloud market was valued at USD 21.93 billion in 2019 and is expected to reach USD 62.68 billion by 2025. It is expected to witness a growth of 19.9% during the forecast period (2020-2025). The latest trend of cloud-technology has enabled a way for telecommunication organizations to migrate to the internet, where there is no longer the need to have costly hardware for businesses to stay connected to the rest of the world.

  • The advancements in the information and communications technology have brought remarkable changes in the global business operation. Various government and public enterprises are dependent on important information infrastructure services. Also, organizations are now showing more interest in cloud services to meet the growing demand from business operations.
  • The increasing demand for over the top cloud services, lower operational and administrative costs, and growing awareness about telecom cloud among enterprises are expected to boost the growth of the market.
  • With the rising demand for cost-effective and user-friendly browser-based communication solutions, many notable vendors are looking to introduce vertical-specific WebRTC solutions and services in North America, which is indirectly expected to boost the growth of the market.
  • However, the risk of cyber threats poses a big challenge to market growth, as cyber attacks on telecommunication operators can disrupt services for phone and internet consumers, cripple businesses, and shut down government operations.
  • Due to the Covid-19 pandemic, the telecom industry is experiencing a transformational period of advancement to adjust itself as per new technologies and cloud patterns. With an increasing number of people currently working from home, obtaining educational resources for homeschooling, and streaming video entertainment is on the rise. Given this, the telco industry is naturally seeing spikes in voice, data, and broadband services.

Scope of the Report

Telecom cloud is actually a new advancement in information and communication technology, where there is no use of hardware to get connected. It provides unlimited network capacity to manage the unpredictable data growth and offer a superior customer experience.Cloudification considers the conversion of applications, data storage, and compute cycles that benefit from cloud computing. The market study categorizes the telecom cloud market into by type, application, cloud platform, end user, and geographic analysis, throughout the forecast period.

Type
Solution
Unified Communication and Collaboration
Content Delivery Network
Other Solutions
Service
Colocation Services
Network Services
Professional Services
Managed Services
Application
Billing and Provisioning
Traffic Management
Other Applications
Cloud Platform
Software-as-a-Service
Infrastructure-as-a-Service
Platform-as-a-Service
End User
BFSI
Retail
Manufacturing
Transportation and Distribution
Healthcare
Government
Media and Entertainment
Other End Users
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

Solution Expected To Dominate the Telecom Cloud Market

  • The solution offerings in the market include unified communication and collaboration, content delivery network, and other solutions. This is majorly owing to the increasing internet and mobile device penetration.
  • With this, businesses increasingly acknowledge the need to leverage advanced technologies, in order to improve business agility and gain operational efficiencies.
  • They are deploying a broad array of communications and collaboration applications, including telephone, email, voice mail, and unified messaging, instant messaging (IM) and presence, audio, web, and video conferencing, file sharing and white-boarding, mobility, social networking, and more. 
  • Additionally, the exponentially rising media content and demand for rich video content among the increasing online users, along with the trend of digitization among the organizations across end-user verticals spurs the need for content delivery network solutions.

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North America Holds the Major Share in the Telecom Cloud Market

  • North America witnessed a huge penetration from large enterprises with technically-skilled employees, providing continuous innovative technologies.
  • The dominance of this region can be attributed to the recent increase in mobility and the explosion of smart mobile devices due to the consumerization of IT.
  • Moreover, with the rising demand for cost-effective and user-friendly browser-based communication solutions, many notable vendors are looking to introduce vertical-specific WebRTC solutions and services in North America, which is indirectly expected to boost the growth of the market.
  • COVID-19 has created a new inflection point that requires every telecom provider in the region to dramatically accelerate the move to the cloud as a foundation for digital transformation to build the resilience, new experiences and products, and structural cost reduction that the ongoing health, economic, and societal crisis demands.

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Competitive Landscape

The major players include AT&T Inc., BT Group PLC, Verizon Communications Inc., Level 3 Communications Inc., Telefonaktiebolaget L.M. Ericsson, Deutsche Telekom, and NTT Communications Corporation. These players are increasingly undertaking mergers and acquisitions and product launches to develop and introduce new technologies and products in the market. Hence, the market concentration will be high.

  • Jul 2020 - Telefonaktiebolaget LM Ericsson announced that it was selected by XL Axiata to deploy 5G-ready cloud core technology solutions in East Indonesia. This includes Ericsson Cloud Packet Core and Network Functions Virtualization Infrastructure (NFVI) solution.Ericsson’s solutions will help XL Axiata to prepare for this increase in data traffic, simplify operations and secure 5G revenues.
  • Mar 2020 - AT&T collaborated with Google Cloud to help enterprises take advantage of Google Cloud’s technologies and capabilities using AT&T network connectivity at the edge, including 5G. Additionally, AT&T and Google Cloud intend to deliver a portfolio of 5G edge computing solutions that bring together AT&T’s network, Google Cloud’s leading technologies, and edge computing to help enterprises address real business challenges.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increasing Adoption of Hybrid Cloud in Telecom

      2. 4.2.2 Lower Operational and Administration Costs

    3. 4.3 Market Challenges

      1. 4.3.1 Risk of Security Breaches

      2. 4.3.2

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitutes

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Impact of COVID-19

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Solution

        1. 5.1.1.1 Unified Communication and Collaboration

        2. 5.1.1.2 Content Delivery Network

        3. 5.1.1.3 Other Solutions

      2. 5.1.2 Service

        1. 5.1.2.1 Colocation Services

        2. 5.1.2.2 Network Services

        3. 5.1.2.3 Professional Services

        4. 5.1.2.4 Managed Services

    2. 5.2 Application

      1. 5.2.1 Billing and Provisioning

      2. 5.2.2 Traffic Management

      3. 5.2.3 Other Applications

    3. 5.3 Cloud Platform

      1. 5.3.1 Software-as-a-Service

      2. 5.3.2 Infrastructure-as-a-Service

      3. 5.3.3 Platform-as-a-Service

    4. 5.4 End User

      1. 5.4.1 BFSI

      2. 5.4.2 Retail

      3. 5.4.3 Manufacturing

      4. 5.4.4 Transportation and Distribution

      5. 5.4.5 Healthcare

      6. 5.4.6 Government

      7. 5.4.7 Media and Entertainment

      8. 5.4.8 Other End Users

    5. 5.5 Geography

      1. 5.5.1 North America

      2. 5.5.2 Europe

      3. 5.5.3 Asia-Pacific

      4. 5.5.4 Latin America

      5. 5.5.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 AT&T Inc.

      2. 6.1.2 BT Group PLC

      3. 6.1.3 Verizon Communications Inc.

      4. 6.1.4 Telstra Corporation Ltd

      5. 6.1.5 Telefonaktiebolaget LM Ericsson

      6. 6.1.6 Deutsche Telekom

      7. 6.1.7 NTT Communications Corporation

      8. 6.1.8 CenturyLink Inc

      9. 6.1.9 Singapore Telecommunications Limited

      10. 6.1.10 China Telecommunications Corporation

      11. 6.1.11 Telus Corporation

      12. 6.1.12 Swisscom AG

  7. *List Not Exhaustive
  8. 7. INVESTMENT ANALYSIS

  9. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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