According to our latest study on "Telecom Cloud Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis - by Component, Deployment, Service Model, and End User" the telecom cloud market size was valued at US$ 22.43 billion in 2024 and is expected to reach US$ 91.92 billion by 2031; it is estimated to record a CAGR of 22.4% from 2025 to 2031.

The telecom cloud market is segmented into five major regions-North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2024, followed by Asia Pacific and Europe, respectively.

The North America telecom cloud market is segmented into the US, Canada, and Mexico. As mobile devices, IoT applications, and 5G deployment continue to rise, telecom operators are increasingly compelled to upgrade their networks. Cloud-based solutions provide the agility and efficiency needed to support these evolving requirements. The presence of a robust ecosystem of cloud providers and technology innovators, along with substantial investments in cloud-native network functions and edge computing, is propelling adoption. Regulatory backing for network virtualization and adherence to data sovereignty requirements further drive adoption. Regulatory oversight intensified in 2025 following ATandT's agreement to a US$ 177 million settlement related to data breaches that exposed the personal information of tens of millions of customers. These breaches resulted from unauthorized access to customer data hosted on Snowflake's cloud platform, causing substantial financial and reputational impact for the company. Organizations across industries are adopting hybrid and multi-cloud strategies, prompting telecom operators to evolve by delivering cloud-based offerings such as unified communications, network-as-a-service (NaaS), and virtualized infrastructure. Further, strategic partnerships drive market growth. In 2024, OpenAI secured a landmark US$ 30 billion annual cloud agreement with Oracle, representing one of the largest contracts in the sector. This deal included leasing 4.5 gigawatts of computing capacity from Oracle, facilitating the establishment of multiple data centers throughout the US. The integration of AI and cloud technologies is significantly impacting Mexico's telecom infrastructure. C3ntro Telecom's deployment of Infinera's solutions exemplifies this trend, enhancing network capabilities between major cities such as Mexico City and Querandeacute;taro. These advancements support the burgeoning demand for high-speed connectivity, crucial for consumer and enterprise sectors.

The Europe telecom cloud market is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. In 2023, Deutsche Telekom announced its participation in an edge-cloud infrastructure project, underscoring the industry's focus on enhancing network capabilities through distributed computing. In 2024, Telefonica Germany migrated its 5G core network to AWS cloud, marking the first instance of a mobile operator transitioning its core network to a public cloud provider. This shift was exemplified by Telefonica's collaboration with AWS to pilot quantum technologies aimed at optimizing mobile network performance and preparing for future 6G developments. In 2025, Deutsche Telekom renewed its strategic partnership with Google Cloud through 2030, focusing on migrating its SAP landscape to the cloud as part of its internal SAP2SKY initiative. Additionally, Bouygues Telecom Business strengthened its enterprise solutions by acquiring SecInfra, a company specializing in IT infrastructure security, to enhance its cloud and cybersecurity offerings. These developments reflect a broader industry trend toward cloudification, with European telecom operators embracing cloud technologies to enhance network efficiency, scalability, and security. The strategic partnerships, acquisitions, technological advancements, and a push for digital sovereignty during 2023-2025 underscore the industry's commitment to digital transformation and innovation in the telecom sector.

Key Findings of Telecom cloud market Study:

The telecom cloud market is segmented into component, deployment, end user, and service model. Based on component, the market is bifurcated into solution and services. In terms of deployment, the market is categorized into public cloud, private cloud, and hybrid cloud. By end user, the market is divided into SMEs and large enterprises. Based on service model, the market is segmented into infrastructure-as-a-service, software-as-a-service, and platform-as-a-service. By geography, the market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South and Central America.

The global telecom cloud market, by component, is segmented into solution and services. The solution segment held the largest telecom cloud market share in 2024. The solutions segment in the telecom cloud market encompasses the software platforms, virtualization tools, and cloud-native infrastructure that enable telecom operators to modernize and manage their networks in a cloud environment. Solutions are crucial to enabling digital transformation across telecom networks. They allow communication service providers (CSPs) to scale services efficiently, reduce reliance on costly hardware, and deliver next-generation capabilities such as 5G, IoT, and edge computing. Additionally, ongoing partnerships with hyperscalers and tech providers are fueling innovation. For example, in February 2025, Dell Technologies announced its Open Telecom Transformation Program and new AI-powered solutions designed to accelerate network cloud transformation for CSPs. This initiative reflects growing industry momentum toward open, agile, and intelligent cloud-based telecom infrastructures. As telecom networks shift toward software-defined, virtualized models, the solutions segment will remain foundational in building secure, flexible, and future-ready telecom cloud environments. Increasing data traffic, the rising push for automation, growing customer expectations, and surging cost optimization imperatives are propelling the segment growth.

Services segment includes consulting, implementation, integration, and managed services that support telecom operators in adopting and optimizing cloud technologies. These services ensure the successful deployment, operation, and maintenance of cloud infrastructure and applications across hybrid, public, and private cloud environments. Services are essential to the telecom cloud ecosystem as they enable operators to navigate the complexity of cloud transformation. With telecom companies facing challenges such as interoperability, legacy integration, and compliance, expert services provide the necessary technical and strategic support to achieve seamless cloud migration and ongoing performance optimization. Additionally, the growing adoption of multi-cloud and edge computing models has intensified the demand for professional and managed services that ensure consistent service quality across distributed environments. Increasing complexity of telecom cloud deployments, growing need for faster time-to-market, and rising shortage of in-house cloud expertise. As telecoms prioritize efficiency and agility, the services segment remains a critical enabler of cloud success and market competitiveness.

AT&T Inc.; Amazon Web Services Inc; Telefonaktiebolaget LM Ericsson; Verizon Communications Inc; International Business Machines Corp; Cisco Systems Inc; Broadcom Inc; Microsoft Corp; Google LLC; and Telstra Corp Ltd. are among the key players profiled in the telecom cloud market report. Several other major players were studied and analyzed during the telecom cloud market analysis to get a holistic view of the market and its ecosystem. The telecom cloud market also provides detailed market insights, which help the key players strategize their growth. The report includes growth prospects owing to the current telecom cloud market trends and their foreseeable impact during the forecast period.

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