Telecom Cloud Market

Market Overview:

The global telecom cloud market size reached USD 48.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 206.8 Billion by 2033, exhibiting a growth rate (CAGR) of 16.63% during 2025-2033. The increasing demand for scalable, cost-effective communication solutions, along with the rising need for enhanced network performances, widespread digital transformation and rapid increase in data traffic are key factors fueling the market growth globally. At present, North America dominates the market due to advanced infrastructure, high investment in 5G technologies, and strong presence of major telecom companies.

Telecom cloud is a term used to define the shift in the telecommunication industry from conventional machine-based landline services to cloud computing services. It enables the utilization of networking resources efficiently and provides unlimited network capacity to manage unpredictable data growth and offer an enhanced customer experience. It delivers immediate technical and profitable business values with minimal management effort or service provider interaction. Moreover, it facilitates the virtualization of storage, servers and networks, reduces the cost of infrastructure, and allows efficient sharing of resources. In recent years, telecom cloud solutions have gained traction across various industries, including banking, financial services and insurance (BFSI), healthcare, retail, media and entertainment, manufacturing, government, and transportation.

Telecom Cloud Market Trends:

Advancements in Communication and Information Technology (IT)

Advancements in communication and IT are crucial factors of the telecom cloud market, especially with the introduction of specialized cloud solutions like AWS's European Sovereign Cloud. This innovation addresses the growing demand for telecom cloud services from public sector organizations and industries facing strict regulatory requirements. The European Sovereign Cloud offers a tailored solution to meet rigorous data residency and security standards, ensuring that sensitive government and enterprise data remains compliant with local regulations. The telecom cloud market overview highlights how these advancements are shaping the demand for specialized solutions across various sectors. As more enterprises seek cost-effective solutions for scaling their operations, the trend of outsourcing cloud services is rising. Companies are turning to external providers like AWS to reduce administrative overhead, enhance operational effectiveness, and remain competitive in a progressively digital landscape. This shift toward specialized, compliance-focused cloud solutions is contributing to the growth of the market, as businesses strive for better flexibility, security, and performance.

Increasing 5G Integration

The telecom cloud market forecast indicates significant growth, primarily driven by the widespread adoption of 5G technology. 5G integration with cloud infrastructure is transforming the telecom industry by enhancing network efficiency and enabling ultra-fast, low-latency connectivity. Telecom companies are leveraging cloud-based solutions to deploy and manage 5G networks more effectively, allowing for scalable and flexible operations. For instance, in October 2024, Siemens and LS telcom partnered to provide private 5G wireless technology for industrial use. This collaboration aims to offer a comprehensive 5G solution for industrial customers, allowing them to operate a self-sufficient wireless infrastructure. The partnership includes consulting, licensing, planning, and complete implementation of the 5G network. The cloud provides the processing power required to handle the vast data generated by 5G, enabling seamless connectivity for applications such as autonomous vehicles, smart cities, and augmented reality. The telecom cloud market trends show increasing investments in infrastructure and innovation as companies strive to meet the growing demand for advanced 5G services and next-gen connectivity solutions. Additionally, cloud infrastructure supports the virtualization of network functions, reducing the need for physical hardware and improving the speed at which new 5G services can be launched and scaled.

Rising Adoption of Hybrid Cloud

Telecom providers are increasingly adopting hybrid cloud models to combine the advantages of both private and public clouds. This approach offers flexibility, allowing businesses to manage sensitive data in private clouds while leveraging the scalability and cost-effectiveness of public clouds for less critical workloads. Hybrid cloud solutions enable telecoms to provide secure and scalable infrastructures that meet the growing demand for data privacy, regulatory compliance, and diverse workload management. The widespread adoption of hybrid cloud models is expected to significantly increase telecom cloud market share, as it allows telecom providers to offer tailored solutions that balance data security, scalability, and cost efficiency. For instance, in October 2024, OVHcloud and Bouygues Telecom Entreprises announced their partnership to provide midsize enterprises with easy access to hybrid cloud solutions. This collaboration aims to help organizations define their cloud strategy and strengthen the security and resilience of their IT environment. By leveraging OVHcloud's expertise and infrastructure, Bouygues Telecom Entreprises aims to offer end-to-end support for cloud migration projects, ensuring optimized use of the cloud while controlling costs and reducing environmental impact. By integrating these cloud models, providers can optimize resource allocation, improve operational efficiency, and ensure robust security, catering to the needs of various industries while controlling costs and ensuring business continuity.

AI and Automation

According to telecom cloud market analysis, AI and automation are key factors driving the growth of the telecom cloud sector. AI helps optimize networks by predicting traffic patterns, adjusting resources dynamically, and enhancing bandwidth efficiency. Predictive maintenance allows operators to detect potential failures before they occur, minimizing downtime and reducing repair costs. Automation streamlines service delivery, from provisioning to billing, improving customer experience. Furthermore, AI-driven cybersecurity strengthens defenses against evolving threats by detecting and mitigating risks in real-time, ensuring secure network operations. For instance, in February 2024, Lenovo announced edge AI collaborations with major telecom providers. The initiatives aim to deliver AI workloads for customers, including smart city applications and sustainability efforts. Lenovo also unveiled purpose-built AI devices and infrastructure solutions with a focus on sustainability. These collaborations mark a significant step in bringing AI to the forefront of telecommunications and cloud technology. These advancements are contributing to the telecom cloud market growth further across the globe.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global telecom cloud market report, along with forecasts at the global, regional and country level from 2025-2033. Our report has categorized the market based on type, computing services, application and end user.

Breakup by Type:

• Public Cloud
• Private Cloud
• Hybrid Cloud

Breakup by Computing Services:

• SaaS
• IaaS
• PaaS

Breakup by Application:

• Computing
• Data Storage
• Achieving
• Enterprise Application
• Others

Breakup by End User:

• BFSI
• Retail
• Manufacturing
• Transportation and Distribution
• Healthcare
• Government
• Media and Entertainment
• Others

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global telecom cloud market. Detailed profiles of all major companies have also been provided. Some of the companies covered include:

• Amazon Web Services Inc. (Amazon.com Inc.)
• BT Group plc
• China Telecom Corporation Limited
• Dell Technologies Inc.
• Deutsche Telekom AG
• Google LLC
• International Business Machines Corporation
• Microsoft Corporation
• Nippon Telegraph and Telephone Corporation
• Oracle Corporation
• Singapore Telecommunications Limited
• Telefonaktiebolaget LM Ericsson
• Telstra Corporation Limited
• Telus Corporation
• Verizon Communications Inc.

(Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.)

Telecom Cloud Market News:

• In May 2025, Zain Jordan and Ericsson announced a cloud-native BSS transformation project to modernize telecom services and boost 5G monetization and customer experience. The upgrade leverages Ericsson’s Cloud Native Infrastructure and monetization portfolio. This move supports Jordan’s broader digital transformation goals.
• In March 2025, Tata Communications launched Vayu, a next-gen cloud fabric designed to simplify enterprise IT by integrating IaaS, PaaS, AI, and security into one ecosystem. Vayu offers up to 30% cost savings, supports multi-cloud environments, and includes AI tools like NVIDIA GPUs and an AI Studio. It features zero-trust security and complies with India’s 2025 data protection regulations.
• In March 2025, China Telecom hosted the TeleAI Ecosystem Future Summit at MWC Barcelona, focusing on AI's role in driving industrial transformation. The company unveiled its AI-driven ecosystem, including the "Xingchen" AI system and intelligent computing cloud. With collaborations from global partners, China Telecom aims to lead AI and cloud convergence for industry-wide digital transformation.
• In January 2025, Bharti Airtel announced its partnership with Google Cloud to launch a sovereign cloud service in India. This offering will ensure data stays within the country, adhering to local regulations. The collaboration aims to serve Indian government and enterprise clients, providing secure, AI-enhanced cloud services.
• In August 2024, Lambda announced a strategic partnership with SK Telecom to expand cloud services in South Korea. As a part of this endeavor, SK Telecom will deploy Lambda’s AI Cloud platform into SK Broadband’s Gasan data center, introducing a South Korea-based GPU cloud service. This move is expected to bolster SK Telecom’s leadership in AI services and capabilities while unlocking new business opportunities.
• In June 2024, Dell Technologies and Ericsson announced their partnership to facilitate the transformation of telecom networks to the cloud. By integrating their industry expertise with telecom software and solutions, the collaboration aims to guide communications service providers (CSPs) through their cloud transformation journeys, addressing concerns such as limited time and budget, reliability, and security. The partnership plans to develop tailored network cloud transformation plans, introduce Ericsson Cloud RAN software on Dell PowerEdge servers, and co-develop services to simplify deployment processes.
• In October 2023, Bharti Airtel (“Airtel”), one of India’s leading telecommunications service providers announced the launch of Airtel CCaaS (Contact Center as a Service) – an industry first omni-channel cloud platform that offers a unified experience for all contact center solution required by an enterprise.

Report Scope: