The telecom cloud market was USD 17.9 billion in 2022, and it will reach USD 92.6 billion by 2030, powering at a rate of 22.80% by the end of this decade.
The industry is powered by the surge in the need for robust network connectivity, increase in 5G standards and in IoT use, and development of cloud-native environments.
The SaaS category dominated the industry, with 58% share in the past. PaaS is extremely popular since programmers want to lay emphasis on coding and not on building and upholding the infra. PaaS lets businesses of the back-end processes and offers the necessary building blocks for responding to requirement, therefore taking companies to the next level of success.
The hybrid cloud will grow the fastest, with a rate of about 24.5%, in the years to come, as a result of the requirement for both private and public clouds to support the IT environment.
The hybrid model lets organizations to quickly generate their work environments on either the private or public cloud at no extra cost for the infra. This model taps limitless cloud resources, ready to be scaled up or down as there is a modification in the workflow, guarantees enterprises of speed and innovation, assures business continuousness, and improves security.
Large enterprises had the greater market share, of 64%. This is mostly because MNCs are quickly accepting cloud solutions for managing large customer databases. For example, General Electric has accepted a cloud-first strategy with AWS, helping the former’s IT teams get out of running and building data centers and refocus its resources on innovation.
Amongst the major factors powering the growth of the industry is the snowballing preference for better connectivity. Strong network connectivity allows large businesses to function effortlessly as it makes communication with customers efficient and remote data access possible, with strong cybersecurity.
Furthermore, the strong importance of organizations on the acceptance of technologies for example AI, ML and cloud computing, requiring a high network capacity, is subsequent in the increasing demand for advanced networking devices in wide-ranging industries.
APAC telecom cloud market will experience the fastest growth, with a rate of over 24%, in the years to come. In China, in the third quarter of 2022 the spending on cloud infra services increased 8% YoY and reached virtually USD 8 billion, accounting for over 10% of the global spending. Alibaba, Baidu AI, Tencent, and Huawei Cloud are the top companies of the country.
It is because of the increase in the need for strong network connectivity, the demand for telecom cloud will continue to grow in the years to come.
