The global Telecom Cloud Market is projected to grow at a CAGR of 19.7% in terms of value, from 2019 to reach USD 59.25 Billion by 2026, according to a new report by Reports and Data. OTT (Over-the-top) consumers demand more flexibility in scheduling, arranging videos, live events, and recording of favorite shows, thereby pushing the service providers to opt for more resources, infrastructure scalability, and computing resources to cater demands. By adopting a cloud-based workflow, video service providers can efficiently hand off duty for the infrastructure and networking supporting their OTT services. Telecom cloud can be instrumental in meeting the needs of OTT service providers, thus resulting in the growth of the market.
The telecom cloud market Modernization of IT platforms is estimated to fuel the growth of the market in the forecast period. As some of the largest communication service providers across the globe modernize their networks, they facilitate large enterprises to transform the way they involve with a progressively digital world. By leveraging IP-based technology, UCaaS (Unified Communications-as-a-Service), embedded communications (such as voice, chat, and video built into web and business applications) and other novelties on an IP network, communication service providers and the organizations they cater to can provide enhanced service to their customers and reap higher margins by reducing their expenses along with the lower total cost of ownership delivered by software-defined real-time communications (RTC).
Increasing demand for over-the-top cloud services is one of the significant factors influencing market growth. The telecom cloud leads to low operational costs, which is expected to drive the market growth in the forecast period. By deploying cloud computing, service providers can host services and software at a considerably lower cost. Provisioning and virtualization software allows organizations to efficiently assign computing resources, thus lowering the cost of hardware. Service providers can locate facilities at low-cost locations, provisioning, which cannot be replicated by most enterprises, resulting in low up-front costs.
Additionally, the proliferation of the internet, especially in developing nations, is expected to propel the growth of the telecom cloud market in the upcoming years.
Key participants include AT&T Inc., Verizon Communications Inc., Ericsson, Deutsche Telekom, BT Group PLC, CenturyLink Inc., Orange Business Services, NTT Communication Services, Singapore Telecommunications Limited, and Telstra Corporation Limited, among others.
Key findings from the report:
• By offering, solutions contributed to a larger market share in 2018 as the solution offerings in the market comprise unified communication and collaboration (UC&C), content delivery network (CDN), and other solutions.
• By service type, SaaS dominated the market in 2018 and is expected to witness a growth rate of 19.2% in the forecast period. The swift growth of on-demand services among consumers has resulted in a high demand for this service type in the telecom cloud market.
• By organization size, small & medium-sized enterprises are expected to witness a higher CAGR of 20.5% in the period 2019-2026 as services and solutions have the potential to produce enhanced efficiency, quality, and business productivity.
• By industry verticals, BFSI (Banking, financial services and insurance) held the largest market share in 2018 and is expected to grow at a rate of 19.6% in the forecast period.
• North America dominated the market in 2018 and is expected to experience a growth rate of 19.1% in the forecast period. The market dominance of North America is attributed to the presence of leading telecom companies mainly in the U.S. and Canada
The growing concerns pertaining to spectrum crunch in the developing nations are driving the market for telecom cloud as it helps telecom companies to increase their profitability in the telecom market. In countries with a high population, especially Countries in the Asia Pacific region, the telecom cloud plays an instrumental role in enabling telecom market players to gain a competitive edge in the market.
Incorporating cloud computing platforms into telecommunication allows Network functions virtualization (NFV) to virtualize servers, networks, and storage augments the utilization of available system resources and lowers infrastructure cost. Besides, network virtualization offers the implementation of numerous applications and features an open environment. Thus, telecom cloud virtualization is linked to many significant advantages, including enhanced scalability, flexibility of deployment, and a reduction in cost of the equipment, which permits reiteration of application software, better support for resolving faults, and enhanced security, among others.