The market is poised to achieve revenue generation worth USD 29 Billion approximately by 2022, at a slated CAGR of 20 percent in the course of the forecast period, as stated in the report by Market Research Future (MRFR).
Drivers and Restraints
With the increasing importance of cloud computing in telecommunication industry various applications areas and data are moved from on-premise to on-cloud to benefit the user by making them connected to their data on server. The need for IT optimization that may lead to decreasing costs, and more elasticity and speed has augmented the pace of growth of the market. Connectivity raises the value of access networks and provides network service providers with new business opportunities The major driving factor for expansion of telecom cloud market is IT modernization which implies full utilization of public cloud services for availing advantages of cost saving and innovation in a well-established up-to-date IT environment. Modern IT platform is also encouraging the digital business. The improved transparency of major cloud providers will also contribute to the growth of global telecom cloud market. Connectivity provided by telecom cloud raises the value of access networks and provides new business opportunity to network service providers.
The growth of this market is slated to be hindered by security issue related to usage of public cloud services in a protected manner.
The Global telecom cloud Market has been segmented on the basis of applications, services, cloud platform, solutions, and end users. Services segment comprises of communication as a service, and network as a service. Applications segment consists of customer management & provisioning, billing, and traffic management, among others. Solutions include Content Delivery Network (CDN), Unified Communication and Collaboration (UCC), WebRTC and Over-the-Top (OTT), among others. Cloud platform comprises of PaaS, SaaS, and IaaS. End users consists of banking, government, healthcare, transportation and entertainment, among others.
The regional analysis of telecom cloud market is being analyzed for regions such as North America, Asia pacific, Europe and rest of the world. North America is touted to dominate the telecom cloud market due to improved penetration of organization with employees holding strong technical knowledge who are willing to rapidly adopt the telecom cloud services for better communication and connectivity. It also provides enhanced technologies for encouraging the telecom cloud market in the North American region. Asia pacific will observe growth in forecast period owing to government regulatory norms regarding adoption of best in class technologies. In Europe, a European cloud initiative is beginning to offer telecom companies with an infrastructure for storing and managing data and computers, providing higher performance computers for processing of data and higher speed connectivity for transportation of data. The telecom cloud of European region is poised to position Europe as data driven innovation thereby enhancing competitiveness and boosting the digital market of Europe.
The major market players in the market for telecom cloud are AT&T Inc.(U.S.), Verizon Communications, Inc.(U.S.), Telus Corporation (U.S.), BT Group PLC (U.K.), CenturyLink, Inc.(U.S.), NTT Communications Corporation (Japan), Fusion Telecommunications International, Inc.(U.S.), T-Mobile International AG(Germany), China Telecommunications Corporation (China), and Telstra Corporation Limited (Australia) among others.
The global telecom cloud market has a highly competitive scenario. Therefore, the market players are increasing their investments towards research and development projects, and marketing activities to maintain their position in the market over the review period. Furthermore, there is an expected rise in mergers, strategic business partnerships, acquisitions, and joint ventures, to uphold the competitive nature of the market in the foreseeable future.