Telecom Cloud Market Size & Share, by Deployment Model (Private, Hybrid, Public); Enterprise (Large Enterprises, Small & Medium Enterprises); Function Type (Virtual Network Function (VNF), Cloud-native Network Function (CNF)); Service Type (SaaS, IaaS, PaaS); Application (Data Storage, Achieving, Computing, Enterprise Application) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Growth Drivers

• Growing Demand for Cloud-native Solutions - Demand for cloud-native network functions is expected to be fueled by rapid growth in industries and other technologies. Its effectiveness is influenced by the reduced automation and flexibility of cloud computing through traditional virtual networking functions. As the use of technologies such as Network Function Virtualization and Software Defined Networks (SDN) has increased globally, the technologies have been made simpler by replacing traditional hardware with software solutions. In addition, the SDN solutions directly detached data planes from control planes and thus enabled networks and programmable software to be driven by them. Therefore, this factor is expected to accelerate the growth of the market.
• Increasing Demand from Business Operations - Significant changes in company operations worldwide have been brought about by the improvement of communications and information technology. A wide range of government and public sector organizations use key information infrastructure services. For instance, Amazon Web Services (AWS) is launching a new cloud service called the AWS European Sovereign Cloud. This cloud service is designed specifically to help public sector customers and those in highly regulated industries meet the most stringent regulatory data residency and operational requirements in Europe. In addition, enterprises are becoming more and more interested in outsourcing services to meet the growing demand for their activities. In response to increasing demand for over-the-top cloud services, increased enterprise awareness of telecom cloud, and a reduction in administration and operating costs, the global telecom cloud market is expected to develop.
• Increased Data Consumption - In particular due to increased data demand, the market for telecommunications cloud services is rapidly developing. For instance, the number of internet users around the world has reached 5.3 billion by 2023, meaning that about two-thirds of the population has access to the Internet.  Due to the widespread adoption of Digital Technologies, including cloud computing and the Internet of Things, there has been a significant increase in data traffic leading to an increasing number of telecommunications services that use Cloud Services. The market is undergoing a paradigm shift to cloud solutions as businesses and individuals look for more agile, flexible, safe & cost-effective ways of storing data.

Challenges

• Growing Concerns Regarding Data Security - The risk of cybersecurity could increase as the telecommunications sector expands its cloud services. For suppliers and operators, this increases the complexity. This technology contains strong data that could be damaged by a single error in the safety system. Therefore, the industries need to put in place comprehensive solutions and monitor all alerts with care. Global risks are increasing, such as internal threats, Third Party Risks, and so on. For instance, in the first half of 2022, there has been a 48% increase in phish attacks, with 11,395 cases costing businesses over USD 13.4 million. Therefore, the increase in threats may hinder the growth of the market.
• Increased Risk of Information Loss may Hamper the Growth of the Market
• Deployment Location and Interoperability Issues may Impede the Market Growth