The Telecom Cloud Market is expected to develop rapidly at a CAGR of XX% during the projected period of 2020–2027. It is due to the increase in demand for bundled billing solutions, reduced billing costs, and rising mobile penetration. Prepaid clients constitute the major segment of the industry, with cloud billing systems being used by more than 80% of GSM subscribers worldwide.
Telecom providers are focusing on supplying a range of packaged services to meet the demands of expanding prepaid customers. Thus, it is expected to propel the growth of the telecom cloud billing industry. Due to the rising market rivalry, operators are offering varied Value-Added Services (VAS) with different payment methods, such as postpaid, prepaid, data, IPTV, voice, and Voice Over Internet Protocol (VOIP).
Telecommunication firms generally operate in distant controlled markets, allowing them to broaden their local reach. It assists businesses in laying a solid base for enterprise-to-consumer communication. As the telecom cloud sector is growing, many data and application domains are migrating from on-premise to on-cloud.
The telecommunication industry needs on-premise data maintenance, whereas on-cloud data maintenance is handled and maintained by someone else. On-cloud services enable its users to connect their data to the server.
The telecom cloud market provides a connection that increases the value of access networks and offers more options to service providers. Advancements in information technology drive the telecom cloud industry, representing the biggest consumption of cloud services. It allows considerable cost savings and innovation in the workplace. Telecommunication businesses have expertise in connecting and distributing data.
Telecom businesses are increasingly resorting to cloud storage solutions to avoid network disruptions and run multiple servers simultaneously at different locations. The introduction of cloud technology by telecom service providers has created a new market for global telecom infrastructure.
Factors such as improved use of cloud technology and organizational understanding of the advantages of cloud services are expected to drive telecom cloud market growth in upcoming years. Additionally, increased telecom cloud usage due to its lower administrative costs is also contributing to the growth of the telecom cloud market. Increased demand for over-the-top cloud services and the prevalence of complex and sophisticated cloud infrastructure would open up new potential for the telecom cloud market to grow during the projection period.
In the future, rising telecom regulations and the increased danger of data loss will function as market restrictions for the telecom cloud. The most significant hindrance to industrial growth will be increased complexity and a lack of technological skills.
| Report Metric | Details |
|---|---|
| Base Year | 2021 |
| Study Period | 2017-2029 |
| Forecast Period | 2023-2031 |
| CAGR | 2.6% |
| Market Size | 423 |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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IP communication requires a large quantity of bandwidth, which is why broadband is so important. As internet connections improve, high-bandwidth videos and apps are used. The global average internet speed is expected to be more than double between 2020–2025, i.e., from 62.5 Mbps to >130 Mbps.
Fixed broadband speed projections are influenced by the adoption of fiber-to-the-home (FTTH), high-speed DSL, cable broadband, and total broadband penetration. Japan, South Korea, and Sweden lead the world in internet speed due to their extensive FTTH adoption. The specifications for 5G technology are still in the early stages of development.
Some developed nations have already implemented 5G systems that use a millimeter-wave spectrum to offer low-latency and high-capacity fixed wireless broadband networks. At millimeter-wave frequencies, a tiny beamwidth antenna may be employed, allowing the generated power to be targeted precisely, along with preserving high-speed capacity.
The unique features of millimeter-waves allow for near-line-of-sight wireless networks and point-to-multipoint technologies, allowing a single transmitter to support several transceivers at various locations.
The market offers various alternative solutions such as unified communication, content delivery network, collaboration system, and other prominent solutions. These alternative solutions offered by the market are becoming popular due to the increasing use of the internet and smart devices.
As a result, enterprises are increasingly discovering the need for embracing new technologies to improve organizational agility and operational efficiency. They use instant messaging (IM), mobility, audio, file sharing, whiteboarding, web-based video conferencing, and social networking platforms, along with traditional communication technologies, such as phone, email, voice mail, and unified messaging.
A rapid rise in media content and digitalization among organizations across a variety of end-user industries fuel the need for content delivery network solutions.
The banking, financial services, and insurance industries have begun to outsource non-core work to minimize the non-core operations. Outsourcing can assist banks in reducing costs and increasing efficiency. As a result, channelized content insights and precise financial data are required. Collaboration allows banks and financial service providers to provide better services through improved communication possibilities. Customers and staff may use the technology for face-to-face conversations about various financial solutions across the world.
The adoption of telecom cloud technology further contributes to a better client experience. The banking, financial services, and insurance industries are seeing major growth opportunities in the telecom cloud market. The expansion could be attributed to an increasing need for telecom cloud services to improve employee training, banking education, and consumer communication.
Large firms equipped with skilled workers have made significant inroads into North America, bringing continual technical developments. North America has observed a major surge in mobility and the high consumption of smart devices due to IT consumerization, which are prominent reasons for regional domination.
Moreover, several major manufacturers are attempting to provide vertical-specific WebRTC customized solutions in the region, considering the growing need for reduced cost, and user-friendly web communication solutions, which will drive market development indirectly.
COVID-19 has pushed the region to a unique defining moment, demanding the regional telecom providers to speed up the transition to the cloud. It acts as a framework to develop adaptability, new perspectives and products, and functional efficiency improvements that the ongoing economic, health, social, and cultural downturn mandates.
Over the projection period, the APAC is expected to have the highest CAGR. The region is undergoing a significant transition in terms of the new technology implementation in numerous businesses. The rapid deployment of 5G networks and the expansion of infrastructure across the APAC, particularly in Singapore, Japan, Australia, South Korea, China, and India, provides enormous prospects for telecom cloud adoption.
During the COVID-19 pandemic, the APAC telecom cloud business is expanding quickly. AI, cloud computing, and the Internet of Things (IoT) are increasingly used to operate linked equipment in hospitals, medical institutes, and other healthcare organizations. Firms in this region are implementing a remote working strategy for their staff to ensure corporate continuity. As a result, telecom cloud solutions for businesses are in high demand across the region.
The market offers various alternative solutions such as unified communication, content delivery network, collaboration system, and other prominent solutions. These alternative solutions offered by the market are becoming popular due to the increasing use of the internet and smart devices.
As a result, enterprises are increasingly discovering the need for embracing new technologies to improve organizational agility and operational efficiency. They use instant messaging (IM), mobility, audio, file sharing, whiteboarding, web-based video conferencing, and social networking platforms, along with traditional communication technologies, such as phone, email, voice mail, and unified messaging.
A rapid rise in media content and digitalization among organizations across a variety of end-user industries fuel the need for content delivery network solutions.
Some prominent players in the Telecom Cloud market are
