Global Telecom Cloud Market by Component (Solution, Services (Professional Services, Managed Services)), By Deployment Mode (Private, Public, Hybrid), By Organization Size (SMEs, Large Enterprises), By Service Model (Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS)), By Application (Networking, Data Storage & Computing, Traffic Management, Cloud Migration, Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 27.60 Billion
CAGR (2026-2031)	17.13%
Fastest Growing Segment	Private
Largest Market	North America
Market Size (2031)	USD 71.27 Billion

Market Overview

The Global Telecom Cloud Market will grow from USD 27.60 Billion in 2025 to USD 71.27 Billion by 2031 at a 17.13% CAGR. The Global Telecom Cloud Market involves the virtualization of telecommunications infrastructure, enabling operators to host network functions and business applications on public, private, or hybrid cloud platforms. This architectural shift allows service providers to decouple software from proprietary hardware, facilitating greater network agility and operational scalability. The growth of this sector is primarily supported by the critical need for cost reduction in network operations and the industry-wide transition toward software-defined networking and network function virtualization.

Furthermore, the market is heavily driven by the extensive deployment of 5G networks, which demand the elasticity and low latency that only cloud-native environments can provide. According to 5G Americas, in 2024, global 5G connections reached 2.25 billion, creating a substantial requirement for cloud-based infrastructure to support this expanding subscriber base and associated data traffic. However, a significant challenge impeding market expansion is the complexity of data security and sovereignty, as operators must navigate stringent regulatory compliance requirements when migrating sensitive user data and core network functions to cloud environments.

Key Market Drivers

The Integration of Artificial Intelligence in Network Operations is fundamentally reshaping the telecom cloud landscape by automating complex management tasks and enhancing predictive maintenance capabilities. As operators deploy cloud-based software-defined networking, AI algorithms are essential for dynamically allocating bandwidth and managing network slicing without human intervention. This synergy between AI and cloud infrastructure directly addresses the industry's urgent mandate to optimize operational expenditures. According to NVIDIA, February 2024, in the 'State of AI in Telecommunications' report, 77% of telecom respondents confirmed that AI helped to reduce costs, while 83% agreed it had a net positive revenue impact. Consequently, the adoption of AI-driven analytics accelerates the reliance on scalable cloud platforms to process the vast datasets generated by modern networks.

Concurrently, the Migration to Cloud-Native Network Architectures is becoming imperative to manage the exponential surge in data consumption and support 5G Standalone deployments. Legacy monolithic hardware cannot efficiently scale to meet current bandwidth requirements, compelling service providers to adopt containerized microservices hosted in the cloud. According to the Ericsson Mobility Report, June 2024, global mobile network data traffic grew 25% between the first quarter of 2023 and the first quarter of 2024, creating an immediate necessity for the elasticity provided by cloud-native environments. This structural transformation is underpinned by massive industry investment in next-generation infrastructure. According to the GSMA, in 2024, operator capital expenditure is forecast to reach $1.5 trillion between 2023 and 2030, with 90% of this investment directed toward 5G networks, effectively cementing the role of the telecom cloud as the backbone of future connectivity.

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Key Market Challenges

The complexity of data security and sovereignty stands as a substantial impediment to the expansion of the Global Telecom Cloud Market. As operators transition core network functions to cloud environments, they face stringent regulatory requirements regarding where data resides and how it is protected. This necessity to navigate a labyrinth of local data laws forces service providers to adopt fragmented security architectures, which increases operational overhead and diminishes the agility that cloud migration aims to deliver. Consequently, the fear of non-compliance and potential data breaches causes many operators to hesitate in moving mission-critical workloads to public or hybrid clouds, thereby slowing the overall adoption rate.

This operational fragmentation is substantiated by recent industry findings. According to the Cloud Security Alliance, in 2025, 54% of organizations utilized four or more distinct tools to manage data risks, leading to inefficiencies and conflicting information. Such tool sprawl complicates the oversight required for maintaining sovereignty, forcing operators to divert resources toward managing security integration rather than network innovation. This environment of heightened complexity and risk directly hampers the market's growth momentum by eroding the efficiency gains that are central to the value proposition of the telecom cloud.

Key Market Trends

The Adoption of Hybrid and Multi-Cloud Architectures for Network Resilience is redefining how telecommunications operators structure their infrastructure to ensure continuity and compliance. By distributing network functions across on-premises private clouds and diverse public cloud platforms, service providers can mitigate the risks associated with vendor lock-in and potential service outages while strictly adhering to data sovereignty regulations. This architectural approach allows operators to secure sensitive workloads in controlled private environments while simultaneously leveraging the massive computational elasticity of hyperscalers for non-critical applications. The industry-wide commitment to this operational model is substantial. According to HCL Industry Software, June 2024, in the 'Survey: Operator Opinions and Strategies for 5G, AI/ML, ORAN, Cloud, and Energy Usage', 98% of respondents expect their companies to use cloud technologies in their network strategies, with hybrid clouds predominating over public-only options.

Concurrently, the Acceleration of Open RAN Deployments via Cloud Infrastructure is dismantling traditional proprietary radio access networks in favor of virtualized, software-centric alternatives. This trend utilizes cloud-native principles to disaggregate hardware from software, enabling operators to run radio network functions as microservices on standard off-the-shelf servers rather than specialized equipment. This fundamental shift not only fosters a more competitive multi-vendor ecosystem but also significantly enhances network flexibility and automation capabilities. Major infrastructure providers are rapidly scaling their support for these open interfaces to meet the demand for disaggregated connectivity. According to Ericsson, November 2024, in the 'Open RAN Progress Report', the company has deployed over one million radios that are hardware-ready for the next generation of Open Fronthaul technology, signaling a massive readiness to transition toward cloud-based radio architectures.

Segmental Insights

The Private segment is projected to witness the fastest growth within the Global Telecom Cloud Market due to heightened requirements for data security and network control. Telecommunication operators increasingly adopt private cloud infrastructures to manage sensitive subscriber information while adhering to rigorous data sovereignty laws. This deployment model offers dedicated resources that allow companies to maintain strict compliance with guidelines established by national regulatory authorities. Consequently, the preference for isolated environments over shared public platforms drives the rapid expansion of this segment as operators prioritize risk mitigation and reliability.

Regional Insights

North America holds the leading position in the global telecom cloud market, driven by the early adoption of fifth-generation network technologies and the extensive presence of major cloud infrastructure providers. Large telecommunication enterprises in the region actively invest in network virtualization to reduce operational costs and increase service flexibility. Additionally, the Federal Communications Commission supports this growth through regulatory frameworks that facilitate spectrum availability for commercial use. These factors create a stable environment for cloud integration, ensuring the region remains the primary hub for market development.

Recent Developments

• In July 2025, Orange France and Samsung Electronics achieved a technological breakthrough by completing the first 4G and 5G calls on a fully virtualized and Open RAN-compliant network in France. This field trial, conducted in a live environment, utilized Samsung's virtualized RAN software and triple-band radios integrated with a cloud platform provided by Wind River. The successful test demonstrated the viability of open, software-based architectures for modern telecommunications networks, paving the way for wider deployment. The project highlighted the operational benefits of cloud-native infrastructure, including potential reductions in hardware costs and energy consumption.
• In June 2025, Ericsson announced a strategic collaboration with Amazon Web Services (AWS) to advance the development of autonomous networks through the use of "Agentic AI." This partnership focused on integrating the company's cognitive network solutions with AWS's cloud infrastructure and artificial intelligence models to automate complex telecommunications operations. The initiative aimed to enable communications service providers to optimize network performance, reduce operational costs, and facilitate intent-based decision-making. By leveraging generative AI agents, the companies sought to drive the industry toward higher levels of network autonomy, improving both efficiency and customer experience.
• In June 2024, Nokia expanded its strategic partnership with Google Cloud to accelerate the development of 5G applications using standardized global network application programming interfaces (APIs). The company announced that its "Network as Code" platform would operate on Google Cloud, leveraging advanced generative artificial intelligence capabilities to enhance developer productivity and innovation. This collaboration aimed to bridge the gap between telecommunications networks and the global developer community, initially focusing on industry-specific use cases such as healthcare. The initiative provided developers with the necessary software tools to rapidly create secure and reliable enterprise and consumer applications.
• In February 2024, Samsung Electronics and Amazon Web Services (AWS) showcased a significant advancement in telecommunications by successfully demonstrating an end-to-end virtualized network running on public cloud infrastructure. This initiative highlighted the integration of the company's virtualized Radio Access Network (vRAN) and core solutions with AWS's cloud services, aiming to provide operators with flexible, scalable, and sustainable network management options. The collaboration underscored the potential for public cloud environments to support commercial-grade mobile networks, offering a pathway for service providers to accelerate their digital transformation and adopt software-centric architectures.

Key Market Players

• AT&T Inc.
• BT Group PLC
• Verizon Communications Inc.
• Telstra Corporation Ltd
• Telefonaktiebolaget LM Ericsson
• Deutsche Telekom
• NTT Communications Corporation
• CenturyLink Inc
• Singapore Telecommunications Limited
• China Telecommunications Corporation

By Deployment Mode	By Organization Size	By Service Model	By Application	By Region
Private Public Hybrid	SMEs Large Enterprises	Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS)	Networking Data Storage & Computing Traffic Management Cloud Migration Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Telecom Cloud Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Telecom Cloud Market, By Deployment Mode:

• Private
• Public
• Hybrid

• Telecom Cloud Market, By Organization Size:

• SMEs
• Large Enterprises

• Telecom Cloud Market, By Service Model:

• Software as a Service (SaaS)
• Platform as a Service (PaaS)
• Infrastructure as a Service (IaaS)

• Telecom Cloud Market, By Application:

• Networking
• Data Storage & Computing
• Traffic Management
• Cloud Migration
• Others

• Telecom Cloud Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE