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The telecom cloud market size is forecast to increase by USD 31.53 billion at a CAGR of 20.89% between 2022 and 2027. Market growth depends on several key factors, notably the increasing adoption of enterprise mobility solutions to enhance operational efficiency. Additionally, substantial investments by companies in research and development contribute significantly to market expansion. Moreover, the emergence of 5G technology has played a pivotal role in transforming the landscape of enterprise mobility, offering faster and more reliable connectivity. These factors collectively drive market growth, highlighting the critical role of technological advancements and strategic investments in shaping the future of enterprise mobility solutions. Furthermore, the growing trend towards remote work and the need for seamless collaboration across geographically dispersed teams are driving the demand for enterprise mobility solutions. The ability of these solutions to enhance employee productivity and streamline business operations is also a key factor propelling market growth.
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This market report extensively covers market segmentation by Deployment (public, private, and hybrid ), End-user (large enterprises, small, and medium enterprises ), and Geography (North America, Europe, APAC, South America, and Middle East and Africa) and geography North America, Europe, APAC, South America, and the Middle East and Africa.
The public segment was valued at USD 4.09 billion in 2017. In 2022, the market was led by the public sector, driven by increasing globalization. The demand for public telecom cloud services is on the rise, especially in developing economies like China, India, Brazil, Indonesia, and Mexico, where a growing number of SMEs seek business-related insights, including telecom solutions. Public telecom cloud services are internet-based, with data centers shared among multiple organizations, presenting a higher risk of online cyberattacks.
However, key market players are investing in advanced IT security to enhance the security of telecom cloud services. Integrating public telecom cloud services can improve services for various stakeholders, supporting reliable and decentralized operations, and fostering the development of smart environments like smart cities and smart energy. As a result, the public segment market is expected to grow during the forecast period.
North America is estimated to contribute 36% to the growth of the global market during the forecast period. It is the fastest-growing region in the market when compared to other regions. The potential benefits of telecom cloud solutions, like low power consumption and improved write speed, are propelling the adoption of telecom cloud among SMEs. SMEs face constant pressure to upgrade themselves and keep pace with rapid technological advances, hence gaining a competitive edge over their competitors.
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The market is experiencing rapid growth driven by technologies like SDN, NFV, and 5G, enabling more flexible and efficient network infrastructure. Public cloud deployment, including services like PaaS, is transforming the industry, with key players like TM Forum and Microsoft Azure leading the way. Public enterprises and telecommunication operators are increasingly adopting over-the-top cloud services to meet the demands of telephone and internet customers. Cloud-native technologies, coupled with automation and orchestration, are enhancing operations while artificial intelligence is being leveraged for cyber threat detection. These developments are integral to the industry's digital transformation and managing the increasing data consumption trends.
The growth of the market during the forecast period is significantly influenced by the increasing enterprise mobility and the drive to enhance efficiency. Enterprise mobility management involves overseeing mobile devices, wireless networks, and other mobile computing services in a business context. As enterprises seek to boost employee productivity, enhance customer relationships, streamline operations, and improve business processes, the adoption of enterprise mobility solutions and bring-your-own-device (BYOD) policies rises. This adoption is supported by the integration of cloud-native technologies, which enable flexibility and scalability.
Additionally, artificial intelligence plays a crucial role in optimizing these solutions, while network infrastructure advancements support seamless connectivity. Overall, this trend reflects a broader digital transformation in the business landscape. With the continuous evolution of advanced devices, mobile technologies, a growing number of smartphone users, and the emergence of IoT, enterprise mobility management undergoes rapid transformation. Cloud-based enterprise mobility solutions enable real-time access to business data and reports for enterprises, field workforces, on-site managers, customers, and technicians. These factors contribute to the growth of the market during the forecast period.
An emerging trend in the market is the rising dependence on telecommunications after COVID-19, which is expected to positively impact market growth. The outbreak of COVID-19 led to widespread adoption of remote work and online education to curb the spread of the virus. As a result, there was a surge in demand for telecommunications services as individuals relied on them for work and study purposes. This increased dependence on telco cloud applications during the pandemic.
Cloud-based telco solutions also played a crucial role in managing network traffic and ensuring quality of service during peak demand. The telecommuting trend is expected to persist even after the pandemic, with a significant portion of the workforce expected to continue working from home. McKinsey and Company estimates that more than 25% of the workforce will maintain remote work arrangements post-pandemic. This sustained telecommuting will drive the demand for telco cloud solutions, further fueling the growth of the telecommunication cloud market.
Compliance with regulatory requirements presents a significant challenge that could hinder the growth of the market in the forecast period. Telecom cloud services must adhere to various regulations and standards related to data privacy, security, and consumer protection. For instance, providers must comply with the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the US to ensure data privacy.
Additionally, telecom cloud services must follow regulations like the US Federal Trade Commission Act (FTC Act) to protect consumers from unfair practices. Non-compliance may result in severe consequences, including fines, legal actions, and reputational damage. As a result, regulatory compliance may potentially impact the market's growth in the forecast period.
The market is fragmented in nature. Some significant players include Alphabet Inc., Amazon.com Inc., AT and T Inc., BT Group Plc, Cisco Systems Inc., Dell Technologies Inc.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
, Deutsche Telekom AG, Etisalat, Fortinet Inc., Huawei Technologies Co. Ltd., International Business Machines Corp., Juniper Networks Inc., Mavenir Systems Inc., Microsoft Corp., Nokia Corp., Oracle Corp., Orange SA, Telstra Ltd., Verizon Communications Inc., and VMware Inc.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market is evolving rapidly with the emergence of key players like Google Cloud and Microsoft Corporation, offering innovative solutions such as Azure Operator Nexus and AWS for Telecom. This growth is fueled by the increasing demand for cloud communication and the adoption of 5G technologies, enabling higher speed capabilities and low latency. Service providers are leveraging software-defined networking and network function virtualization to enhance network infrastructure. Additionally, the market is witnessing a surge in demand for private cloud solutions, driven by the need for secure data transmission and storage. As businesses and industrial operations embrace digital transformation, the telecom cloud sector is poised for continued growth, offering efficient solutions for service automation and digital media delivery.
Furthermore. the market is witnessing robust growth driven by the increasing demand for private cloud services and the adoption of hybrid or remote work models. Companies like Tech Mahindra and offerings such as Microsoft Cloud and Oracle Cloud for Telcos are reshaping the industry. 5G rollout is further fueling demand, with a focus on data security and cybersecurity to combat cyber threats and inside threats. As Communications Service Providers implement cloud business strategies, they leverage virtualized network infrastructure and programmable network infrastructure to meet the needs of mobile users and ensure network scalability. The market is also influenced by the growth of B2B solutions and the emergence of multi-cloud computing to address network congestion and cater to the demands of digital media behemoths like Netflix and YouTube.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.89% |
Market growth 2023-2027 |
USD 31.53 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.67 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, Canada, China, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., AT and T Inc., BT Group Plc, Cisco Systems Inc., Dell Technologies Inc., Deutsche Telekom AG, Etisalat, Fortinet Inc., Huawei Technologies Co. Ltd., International Business Machines Corp., Juniper Networks Inc., Mavenir Systems Inc., Microsoft Corp., Nokia Corp., Oracle Corp., Orange SA, Telstra Ltd., Verizon Communications Inc., and VMware Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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