The telecom cloud market is reaching optimum heights of growth and will continue to increase in the upcoming years. The estimation of market growth from 2016 to 2022 is expected to elevate from 9 billion USD to 29 billion USD with a CAGR of 20 percent.
Telecom cloud is a term that defines the migration of telecommunication industries from outdated landline services to advanced cloud computing systems. The shift towards cloud computing enables companies to take advantage of networking resources in an efficient way. The telecom cloud market will benefit industries to utilize cloud computing for optimization of information technology.
The adoption of telecom cloud will result in lowering the cost, providing elasticity in work practices, and increase in speed as most operation happens automatically. The telecom cloud market helps organizations to grab new opportunities for business like telecom cloud standardized interface.
The telecommunication industries work mostly in remote regulated markets, which allows them to strengthen their local presence. It enables companies to build a strong foundation for communication between enterprises and consumers. As the importance of the telecom cloud market is increasing, several data and application areas are shifting from on-premise towards on-cloud. The on-premise process of the telecommunication industry needed constant management of data by the company itself, whereas on-cloud, someone else will manage and maintain it. The on-cloud process facilitates easy access to connect the user to their information on the server.
The telecom cloud market provides connectivity which escalates the access networks value and gives numerous opportunities to the service providers. The factor influencing the telecom cloud market is modernization in the field of Information technology which reflects the maximum utilization of the user cloud services. The IT modernization provides extraordinary chances to save money and to make innovations in an efficient modern environment.
The report describes the market overview of the telecom cloud industry and also shows the impact of the COVID19 outbreak on the market. A brief analysis of market dynamics is provided, along with a segment overview. It also discusses regional analysis and key players in driving the entire telecom cloud industry market growth.
The COVID19 outbreak has shown adverse implications on business practices, and the severity decreased the pace of global economic growth. The impact of the pandemic affected various fields such as banking, insurance, financial services, infrastructure, manufacturing, and automotive sectors. Significant changes in the preferences of customers can be seen, and buying behavior of customers has different patterns now.
The extreme circumstances of the lockdown created disturbances in the supply chain as well as production units. The demands for commodities and products started declining in the outbreak of the COVID19 pandemic. As manufacturing units were closed, the demand-supply gap escalated in the global market. However, the telecom cloud market was rising to greater heights during the pandemic as there was an enormous demand for collection as well as storage of data. Companies have seen heavy data traffic in online platforms as lockdown restrictions increased their usage.
The telecom cloud market growth is anticipated to increase to a greater extent in the next few months in different sectors. The fields of Government offices, banking, insurance, manufacturing sector, automotive as well as infrastructure sector will demand more for telecom cloud as these sectors need it for voice and data. The increase in policies of working remotely and people spending their maximum time at home led to huge data consumption. All these factors explain that the telecom cloud market demand was fuelled during the COVID19 pandemic.
The IT organizations and telecommunication industry are the most important driving force of the telecom cloud market. The main drivers of this evolving market are the modernization of information technology. The modernization process in the IT field represents optimum utilization of the resources and cloud services in reaping out the benefits in a modern and efficient environment. The advancements in the telecom cloud market outlook lead to the idea of more cost-saving methods and boost the idea of innovation.
Even during the pandemic, the major driving forces were able to sustain the market value. As people stayed at home during lockdown and companies preferred to allow working remotely, the huge consumption of data led to an increase in the demand for the telecom cloud industry. The global market economy due to the telecom cloud market size will grow exponentially as it is able to generate demand even in critical circumstances.
The advent of cloud computing in the telecom market industry led to the shifting of data and several application areas toward on-cloud rather than on-premise to create new business opportunities in the telecom cloud market. The migration of the telecommunication industry towards on-cloud increases the user base as it interests them in connecting to their information on the server. The entire communication industry believes in regulating working practices locally, which in turn strengthens their local presence and creates a strong bond between enterprises and customers. So, with IT modernization and telecommunication industries accepting cloud computing, the telecom cloud market will reach its highest potential.
The telecom cloud market opportunities depend on connectivity which escalates the access networks value and avails opportunities for the network service providers. The impact of COVID19 has also created opportunities to expand the telecom cloud market share in order to fulfill the need for increased data and voice. Global telecom cloud market players have an immense role in developing new models that can meet the expectation and demands of customers.
The telecom cloud market trends have witnessed market restraints during the phase of the COVID 19 pandemic. The closure of business practices and workplaces declined the global economy growth rate. A serious disruption happened in the manufacturing and supply units. The supply chain was disturbed across organization verticals, and it created a wide gap between demand and supply.
The lockdown measures put a halt on manufacturing sites which eventually created a loss to the market. However, the demand for the telecom cloud market was never degraded. In fact, the heavy usage of data through public and remote working practices resulted in increased demand in industries for telecom cloud. From 2017 to 2019, there was severe demand for cloud computing, but in 2020 the demand raised more towards adopting telecom cloud. The telecom cloud market report shows that the telecom cloud market is growing exponentially, and the growth will continue for the next many years.
The telecom cloud market size is expanding in the past few years, and the market growth is also unprecedented. However, there are certain challenges regarding the telecom cloud market growth. One of such challenges is security concerns related to the utilization of public cloud services. Public cloud services are operated by third-party service providers and offered on the public internet, which creates concern for the security and constraints the telecom cloud market growth.
Value Chain Analysis
The telecom cloud market revenue and share are increasing day by day. The market size has increased to USD 23.1 billion in 2019, which portrays the overall growth in the telecom cloud market. From 2022 to 2026, the growth rate forecasted is 20 percent that can spurge the growth of the cloud market economy. The revenue generation of the telecom cloud market forecast suggests that it will reach a greater extent by 2026 than the growth of the previous time period. The telecom cloud market value each increasing each passing day, and it can hold a major position in a global market economy.
The telecom cloud market all over the world is segregated into different parts on the grounds of applications, solutions, services, cloud platforms, and end-users. Applications include the processes of customer management, billing, traffic management. The solution consists of Unified communication and collaboration (UCC), Web RTC, content delivery network (CDN). Services majorly comprise of two types- first is network and second is communication. The cloud platform comprises SaaS, IaaS, and PaaS. End-users include banking, entertainment, insurance, government offices, healthcare, transportation, and many more sectors.
The telecom cloud market study is done on various regions such as North America, Europe, Asia Pacific, and the rest of the world. In North America, organizations are quickly adopting telecom cloud services for good connectivity and communication. The employees in these organizations have excellent technical knowledge and willingly increase the utilization of telecom cloud services which helps North America to dominate the telecom cloud market. The Asia Pacific region is believed to increase telecom cloud market share in the forecast years. In Europe, a cloud initiative has started that will enable companies to store and manage the data, which will boost the digital market in Europe and improve the competitiveness for data-driven innovation.
Competitive Landscape of Telecom Cloud Market
The telecom cloud market key players are:
Frequently Asked Questions (FAQ) :
The telecom cloud market is assessed to mark 20% CAGR.
The telecom cloud market is poised to expand at a healthy pace due to rising adoption of advanced technologies in the telecom industry for increasing efficiency of services.
The valuation of the telecom cloud market, by 2027, is expected to be USD 29 Bn.
By application, the telecom cloud market is segmented into billing, traffic management, customer management & provisioning, and others.
The segments assessed on the basis of cloud platform are SaaS, PaaS, and IaaS.