Telecom Cloud Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Telecom Cloud Market is Segmented by Type (Solution, Services, and Other Types), Application (Billing and Provisioning, Traffic Management, and More), Cloud Platform (SaaS, Iaas, and PaaS), End User (BFSI, Retail, Manufacturing, and More) and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

Telecom Cloud Market Size and Share

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Telecom Cloud Market Analysis by Mordor Intelligence

The telecom cloud market size is estimated at USD 31.34 billion in 2025 and is forecast to reach USD 105.93 billion by 2030, advancing at a 27.58% CAGR. Operators are steering capital toward cloud-native core networks that unlock 5G monetization, accelerate edge computing, and compress operating costs. Converging trends—Open RAN deployment, network-functions virtualization, and hybrid-cloud adoption—are altering how connectivity is engineered and sold. Spending commitments such as AT&T’s USD 14 billion Open RAN deal with Ericsson underscore the scale of transition. Vodafone’s USD 1.5 billion pact with Microsoft highlights how multi-cloud frameworks address performance, sovereignty, and compliance expectations. Verizon’s multi-access edge computing trials cutting latency in half exemplify how edge-cloud federation positions carriers for Industry 4.0 revenue pools.

Key Report Takeaways

  • By solution type, Solution offerings led with 53.6% revenue share of the telecom cloud market in 2024; Services are projected to expand at a 27.7% CAGR through 2030.
  • By platform, Infrastructure-as-a-Service captured 49.3% telecom cloud market share in 2024, whereas Platform-as-a-Service is forecast to climb at a 29.2% CAGR to 2030.
  • By application, Billing and Provisioning held 45.7% share of the telecom cloud market size in 2024, while Traffic Management is poised for a 28.1% CAGR to 2030.
  • By end user, BFSI commanded 32.7% of telecom cloud market share in 2024; Healthcare exhibits the fastest expansion at a 28.8% CAGR through 2030.
  • By region, North America accounted for 35.3% of revenue in 2024, yet Asia-Pacific is on track for a 27.3% CAGR between 2025 and 2030.

Segment Analysis

By Type: Services Gain Momentum as Managed Models Scale

In 2024 solution segment held 53.6% share, reflecting operators’ first-wave focus on foundational cloud stacks. Yet Services are accelerating at a 27.7% CAGR, forecast to close the gap as carriers outsource operations to specialist partners. Unified communication, CDN, and security workloads continue to lift Solution revenues, but managed hosting, professional services, and network-as-a-service contracts are growing faster.

Operators increasingly adopt managed models to de-risk transformation and redeploy staff toward customer innovation. Colocation footprints give carriers proximity to edge zones, while professional-service engagements address skills shortages. This trend signals a structural shift toward opex-based consumption, aligning telco spending with traffic elasticity and subscriber seasonality across the telecom cloud market.

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By Application: Traffic Management Outpaces Traditional OSS Pillars

Billing and Provisioning retained 45.7% of telecom cloud market size in 2024, underpinning revenue assurance activities critical to every carrier. Traffic Management, however, is projected to grow 28.1% annually as 5G data surges strain networks. Cisco’s Ultra Traffic Optimization and Opanga’s RAIN AI showcase AI-driven congestion relief that boosts QoE without fresh spectrum buys.

AI-infused engines that predict congestion and reroute packets in real time are becoming must-have capabilities. HCL’s Augmented Network Automation illustrates 20% capacity lifts alongside OPEX cuts, explaining the outsized growth. Ancillary workloads such as security analytics and customer-experience portals also migrate to cloud in lockstep, reinforcing application-layer diversification within the telecom cloud market.

By Cloud Platform: PaaS Captures Developer Mindshare

Infrastructure-as-a-Service retained 49.3% telecom cloud market share in 2024 because virtual machines and bare-metal servers remain baseline for VNFs and legacy workloads. Platform-as-a-Service is rising 29.2% a year as micro-services, containers, and CI/CD pipelines move center stage. Ericsson and Google Cloud’s 5G Core-as-a-Service lets operators instantiate slices in minutes, proving PaaS can meet telecom grade SLAs.

Container orchestration and serverless models lower development overhead and shorten release cycles, magnetizing network application teams toward PaaS. SaaS remains niche for now because carriers prefer control over network layers, though targeted SaaS offerings in analytics and compliance are emerging. The shift underscores how the telecom cloud market is aligning with mainstream cloud-native tooling.

Telecom Cloud Market
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Note: Segment shares of all individual segments available upon report purchase

By End User: Healthcare Surges Behind BFSI Leadership

BFSI dominated with 32.7% share of telecom cloud market size in 2024 as digital banking, trading, and fraud analytics depend on low-latency secure infrastructure. Healthcare, though smaller, is advancing 28.8% CAGR as telehealth, imaging, and remote monitoring scale. AT&T’s medical-imaging service exemplifies how centralized cloud repositories improve diagnostic workflows.

Manufacturing is adopting private LTE and edge clouds for smart factories, evidenced by Dow Chemical’s Industry 4.0 rollouts. Retail leans on omnichannel and real-time inventory, while government and smart-city projects focus on public safety and mobility. Media and Entertainment continues to push CDN capacity and live streaming, diversifying demand across the telecom cloud market.

Geography Analysis

North America accounted for 35.3% revenue in 2024 as early 5G roll-outs, established hyperscaler partnerships, and favorable regulations aligned. Carriers monetized edge services and enterprise connectivity, strengthening regional leadership in the telecom cloud market. Federal funding streams for rural 5G also bolster investment momentum.

Asia-Pacific is projected to expand at 27.3% CAGR through 2030, supported by government digitalization programs and massive data-center investments. AWS’s USD 15 billion commitment and Microsoft’s USD 2.9 billion plan in Japan illustrate capital intensity, while Huawei’s 77% cloud-service revenue jump in 2023 signals domestic demand acceleration. China’s USD 9.2 billion 2023 cloud-infrastructure spend positions its carriers and local providers for growth.

Europe remains a sizeable market, where stringent sovereignty mandates foster sovereign-cloud builds and spark Open RAN experiments. Energy-efficiency goals align with cloud consolidation, giving European carriers strategic imperatives to modernize networks. Middle East and Africa and Latin America show rising adoption curves fueled by smart-city initiatives, fintech penetration, and mobile-first demographics, though regulatory gaps and skills shortages temper near-term scale.

Telecom Cloud Market
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Competitive Landscape

Competition centers on alliances rather than head-to-head battles. Vodafone’s decade-long USD 1.5 billion collaboration with Microsoft typifies how operators secure hyperscaler innovation while hyperscalers access carrier distribution. Ericsson, Nokia, and Samsung embed cloud APIs into RAN portfolios, ensuring relevance as network functions shift to software. Google Cloud, AWS, and Microsoft Azure tailor carrier-grade PaaS stacks, competing on automation, AI, and sovereignty guardrails.

Pure-play vendors fill niches—Mavenir in cloud-native IMS, Metaswitch in virtual session border control—while systems integrators handle complex multicloud choreography. The Global Telco AI Alliance reveals consortium models aimed at diluting hyperscaler dominance by co-developing multilingual LLMs. Competitive intensity is moderate; value creation hinges on ecosystem orchestration rather than zero-sum share grabs across the telecom cloud market.

Telecom Cloud Industry Leaders

  1. AT&T Inc

  2. BT Group PLC

  3. Telefonaktiebolaget LM Ericsson

  4. Verizon Communications Inc.

  5. Telstra Corporation Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
Telecom Cloud Market Competitive Landscape.png
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Recent Industry Developments

  • June 2025: Ericsson and Google Cloud launched “Ericsson On-Demand,” a SaaS 5G core platform enabling elastic scaling and AI-assisted troubleshooting.
  • June 2025: Microsoft announced USD 400 million to expand Swiss cloud and AI data centers.
  • May 2025: Lumen Technologies’ Q1 2025 results showed USD 929 million Adjusted EBITDA and extended direct-fiber access to Google Cloud.
  • February 2025: O2 Telefónica activated the world’s first commercial Cloud RAN network on 5G SA with Ericsson.
  • February 2025: Deutsche Telekom posted EUR 29.8 billion (USD 32.1 billion) revenue, up 6.5%, reflecting cloud-centric growth.

Table of Contents for Telecom Cloud Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Surge in 5G roll-outs demanding cloud-native core networks
    • 4.2.2 Growing adoption of hybrid and multi-cloud by telecom operators
    • 4.2.3 Cost efficiency via NFV-enabled OPEX savings
    • 4.2.4 Convergence of Open RAN accelerating RAN-cloudification
    • 4.2.5 Edge-cloud federation enabling ultra-low-latency enterprise 4.0
    • 4.2.6 Sustainability pledges shifting telcos to green public clouds
  • 4.3 Market Restraints
    • 4.3.1 Data-sovereignty and security compliance hurdles
    • 4.3.2 Integration complexity with legacy BSS/OSS stacks
    • 4.3.3 Shortage of cloud-native skills in telco ops teams
    • 4.3.4 High cross-border cloud exit-cost risk exposures
  • 4.4 Supply-Chain Analysis
  • 4.5 Regulatory Landscape
  • 4.6 Technological Outlook
  • 4.7 Porter's Five Force Analysis
    • 4.7.1 Bargaining Power of Suppliers
    • 4.7.2 Bargaining Power of Buyers
    • 4.7.3 Threat of New Entrants
    • 4.7.4 Threat of Substitutes
    • 4.7.5 Intensity of Competitive Rivalry
  • 4.8 Assesment of Macroeconomic Factors on the Market

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Type
    • 5.1.1 Solution
    • 5.1.1.1 Unified Communication and Collaboration
    • 5.1.1.2 Content Delivery Network
    • 5.1.1.3 Other Solutions
    • 5.1.2 Service
    • 5.1.2.1 Colocation Services
    • 5.1.2.2 Network Services
    • 5.1.2.3 Professional Services
    • 5.1.2.4 Managed Services
    • 5.1.3 Other Types
  • 5.2 By Application
    • 5.2.1 Billing and Provisioning
    • 5.2.2 Traffic Management
    • 5.2.3 Other Applications
  • 5.3 By Cloud Platform
    • 5.3.1 Software-as-a-Service (SaaS)
    • 5.3.2 Infrastructure-as-a-Service (IaaS)
    • 5.3.3 Platform-as-a-Service (PaaS)
  • 5.4 By End User
    • 5.4.1 BFSI
    • 5.4.2 Retail
    • 5.4.3 Manufacturing
    • 5.4.4 Transportation and Distribution
    • 5.4.5 Healthcare
    • 5.4.6 Government
    • 5.4.7 Media and Entertainment
    • 5.4.8 Other End Users
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.1.3 Mexico
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Argentina
    • 5.5.2.3 Colombia
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Spain
    • 5.5.3.6 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 Japan
    • 5.5.4.3 South Korea
    • 5.5.4.4 India
    • 5.5.4.5 Taiwan
    • 5.5.4.6 Rest of Asia-Pacific
    • 5.5.5 Middle-East and Africa
    • 5.5.5.1 Middle-East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 United Arab Emirates
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle- East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Nigeria
    • 5.5.5.2.3 Egypt
    • 5.5.5.2.4 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)}
    • 6.4.1 ATandT Inc.
    • 6.4.2 Verizon Communications Inc.
    • 6.4.3 BT Group plc
    • 6.4.4 Deutsche Telekom AG
    • 6.4.5 NTT Communications Corp.
    • 6.4.6 China Telecommunications Corp.
    • 6.4.7 Telstra Corp. Ltd
    • 6.4.8 Telefonaktiebolaget LM Ericsson
    • 6.4.9 CenturyLink (Lumen Technologies)
    • 6.4.10 Singapore Telecommunications Ltd
    • 6.4.11 Telus Corp.
    • 6.4.12 Swisscom AG
    • 6.4.13 Amazon Web Services
    • 6.4.14 Microsoft Azure
    • 6.4.15 Google Cloud
    • 6.4.16 IBM Cloud
    • 6.4.17 Oracle Communications Cloud
    • 6.4.18 Huawei Cloud
    • 6.4.19 VMware (Telco Cloud Platform)
    • 6.4.20 Cisco Systems (Telco Cloud)

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-Space and Unmet-Need Assessment
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Global Telecom Cloud Market Report Scope

Telecom cloud is a new advancement in information and communication technology, where hardware is not used to connect. It provides unlimited network capacity to manage 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 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 (North America (US, Canada), Europe (UK, France, Germany, Italy, and Rest of Europe), Asia Pacific (India, China, Japan, and Rest of Asia-Pacific), and Rest of the World).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Type Solution Unified Communication and Collaboration
Content Delivery Network
Other Solutions
Service Colocation Services
Network Services
Professional Services
Managed Services
Other Types
By Application Billing and Provisioning
Traffic Management
Other Applications
By Cloud Platform Software-as-a-Service (SaaS)
Infrastructure-as-a-Service (IaaS)
Platform-as-a-Service (PaaS)
By End User BFSI
Retail
Manufacturing
Transportation and Distribution
Healthcare
Government
Media and Entertainment
Other End Users
By Geography North America United States
Canada
Mexico
South America Brazil
Argentina
Colombia
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
Japan
South Korea
India
Taiwan
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
By Type
Solution Unified Communication and Collaboration
Content Delivery Network
Other Solutions
Service Colocation Services
Network Services
Professional Services
Managed Services
Other Types
By Application
Billing and Provisioning
Traffic Management
Other Applications
By Cloud Platform
Software-as-a-Service (SaaS)
Infrastructure-as-a-Service (IaaS)
Platform-as-a-Service (PaaS)
By End User
BFSI
Retail
Manufacturing
Transportation and Distribution
Healthcare
Government
Media and Entertainment
Other End Users
By Geography
North America United States
Canada
Mexico
South America Brazil
Argentina
Colombia
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
Japan
South Korea
India
Taiwan
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
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Key Questions Answered in the Report

What is the current value of the telecom cloud market?

The telecom cloud market is valued at USD 31.34 billion in 2025.

How fast is the telecom cloud market expected to grow?

It is forecast to register a 27.58% CAGR, reaching USD 105.93 billion by 2030.

Which region is growing the quickest?

Asia-Pacific is projected to advance at a 27.3% CAGR thanks to heavy infrastructure spending and digital-government programs.

Why are services outpacing solutions in growth?

Operators increasingly outsource cloud operations to managed-service providers, driving the Services segment at a 27.7% CAGR as they focus internal resources on innovation.

What is the biggest restraint facing telecom cloud adoption?

Data-sovereignty and security compliance hurdles subtract 3.2 percentage points from forecast CAGR, particularly in regions with strict localization laws.

Telecom Cloud Market Report Snapshots