Telecom Cloud Statistics and Facts (2025)

Introduction

Telecom Cloud Statistics: Telco Cloud is a modern network setup that combines software-defined networking (SDN), virtualization, and cloud-based technology. It builds a shared computing system that works across multiple locations and cloud platforms, allowing for better automation and coordination. This change helps telecom companies launch services faster, adjust to shifting network needs, and use resources more effectively, supporting the growth of the Telecom Cloud Market. Originally influenced by data center virtualization, the arrival of 5G led to using newer tools like containers, microservices, and mixed (hybrid) cloud setups.

Telco Cloud changes how networks are built, run, and maintained using Network Functions Virtualization (NFV), SDN, artificial intelligence (AI), and distributed computing. By following cloud business strategies, telecom providers are becoming more flexible, open, and efficient, helping them succeed in their digital transformation goals. This article will shed more light on Telecom Cloud Statistics.

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• In 2023, the telecom cloud market generated $28.1 billion in total revenue.
• Earnings from public cloud services are expected to reach $55.51 billion by 2032, while private cloud services may bring in $41.85 billion.
• Hybrid cloud services are also forecasted to make $30.24 billion.
• The global telecom cloud market runs on a shared system of computing services.
• Telecom Cloud Statistics stated that Software as a Service (SaaS) takes the lead, holding 50% of the overall market share.
• Amazon Web Services (AWS) has a 16% public cloud market share.
• At the same time, Microsoft Azure Stack has grown steadily, from 14% in 2017 to 41% in 2023, showing that more users are choosing Microsoft’s cloud services for private cloud solutions.
• The most popular use of hybrid cloud setups is data backup and disaster recovery.
• Telecom Cloud Statistics stated that around 73% of hybrid cloud workloads are used to secure data and keep businesses running smoothly in case of emergencies.
• Companies earning over $30 billion annually are leading the way in investing in telco cloud upgrades.
• On average, these businesses are spending $348 million every year to support their telecom cloud transformation efforts.

What is Telecom Cloud?

Telco cloud is a term used for telecom companies’ cloud-based systems and services. These services usually include virtual versions of network functions, software-controlled networking (SDN), and network function virtualization (NFV), all provided through a cloud setup. The main goal is to help telecom providers manage their networks better, lower costs, and launch new services more quickly.

These cloud-based telecom systems use a spread-out computing setup that combines SDN, NFV, and cloud-native tools. The network and computing systems are located in different places and on cloud platforms, so strong automation and coordination tools are needed to keep everything running smoothly.

(Reference: infosys.com)

To move from old telecom systems to a telco cloud setup, companies must use virtualization tools and shift their services to the cloud. This change also includes installing SDN and NFV technology, which help power the main features of the telco cloud. These tools allow telecoms to offer flexible, quick-to-scale services while saving both capital expenses (CapEx) and operating costs (OpEx), which improves their overall efficiency and profits.

The key purpose of the telco cloud is to create a shared, cloud-based system that can manage all the different network tasks needed to provide communication services. These tasks are separated from physical equipment in a telco cloud and run as virtual or cloud-native functions on a single platform. Each task handles a specific job, like running a firewall or controlling how network traffic is balanced, helping companies deliver better service at a lower cost.

Telecom Cloud Market Size Statistics

• The global Telecom Cloud Market was valued at USD 23.6 billion in 2022.
• It is projected to reach approximately USD 127.6 billion by 2032, expanding at a CAGR of 18.9% from 2023 to 2032.
• The public cloud currently holds the dominant market share in the telecom cloud sector.
• Private cloud is expected to show steady growth during the forecast period.
• Software as a Service (SaaS) accounts for the largest share among telecom cloud computing services.
• Platform as a Service (PaaS) is forecasted to experience significant growth in the coming years.
• Cloud migration leads all application segments, driven by increased demand for over-the-top (OTT) cloud services and the need to reduce operational costs.
• The BFSI sector holds the largest end-user share, driven by advantages like outsourcing non-core activities and enhanced digital communication.
• A surge in demand for Software Defined Networking (SDN) and Network Function Virtualization (NFV) is creating growth opportunities for telecom infrastructure providers.
• The adoption of 5G and emergence of NFV technologies are contributing to accelerated virtualization and automation in telecom networks.
• North America holds the largest regional market share, supported by high ICT investments and robust startup ecosystems.
• The Asia-Pacific (APAC) region is witnessing rapid growth due to 5G rollout and increased adoption of advanced digital technologies.
• U.S. telecom providers have invested nearly USD 275 billion in 5G network infrastructure.
• 5G adoption is increasing global demand for telecom cloud services, enabling faster speeds and lower latency.
• A well-designed cloud-native infrastructure with open-source technologies offers improved system uptime, shared management, and data security.
• The integration of 5G with cloud-native tools is driving innovation and market expansion for telecom providers.
• A well-established cloud strategy is helping telecom firms improve service delivery, reduce costs, and enhance competitiveness globally.
• Key market participants include IBM Corporation, Juniper Networks, Cisco, Nokia, Ericsson, VMWare, Mavenir, Metaswitch Network, Affirmed Networks, Fortinet, Huawei Technologies, and Orange.

(Source: precedenceresearch.com)

• However, with this rapid growth, cybersecurity risks are becoming a bigger concern. Since cloud systems store sensitive information, even a small security mistake can lead to major problems.
• Telecom companies must use strong security solutions and take every warning seriously.
• Cyber threats—like insider issues, third-party risks, and other attacks—are increasing worldwide.
• These growing dangers could slow market growth, making it more important for telecom providers to tighten security, protect their data, and keep services running smoothly.

Telecom Cloud Application Statistics

(Source: gminsights.com)

• The telecom cloud market is divided into several applications: Network Function Virtualization (NFV), Software-Defined Networking (SDN), Content Delivery Networks (CDN), and others.
• In 2023, the NFV segment was valued at over $4.5 billion.
• NFV lets telecom companies replace expensive, dedicated hardware with virtual network functions that run on standard servers.
• This shift helps cut capital expenditures (CapEx) by removing the need for special hardware.
• Telecom Cloud Statistics stated that NFV also helps improve efficiency by allowing centralized control, automation, and coordination of network tasks.
• It makes setting up backup systems and automatic switches easier to keep services running smoothly if something goes wrong.
• By spreading virtualized network functions across multiple servers or data centers, telecom companies can make their networks more reliable and ensure services stay up and running during problems.

Investment in Telecom Cloud Statistics

(Reference: scoop.market.us)

• Telecom companies (telcos) invest in cloud upgrades based on how much yearly money they make.
• Firms with over $30 billion in yearly revenue spend the most, with an average of $348 million annually going toward telco cloud upgrades.
• Those making between $21 billion and $30 billion a year still invest a lot, with an average of $306 million annually.
• Telcos earn between $11 billion and $20 billion and spend much less, on average spending around $155 million annually.
• Telecom Cloud Statistics stated that companies with yearly revenue between $5 billion and $10 billion invest the least, averaging about $90 million per year toward cloud upgrades.
• These spending trends show that telcos’ ability and priorities to adopt cloud technology differ depending on how much revenue they generate.

Telecom Cloud Component Statistics

(Source: gminsights.com)

• The telecom cloud market is divided into two segments: solution and service. In 2023, the service segment comprised over 35% of the market share, including professional and managed services.
• As telecom cloud systems become more complex, the demand for these services is increasing.
• Telecom Cloud Statistics stated that Telecom operators use service providers’ expertise to ensure smooth setups, improve performance, and manage security and compliance issues.
• The growing need for these services to keep operations running smoothly and reduce costs is driving the growth of the service segment.

Hybrid Cloud Statistics

(Reference: scoop.market.us)

• Hybrid cloud models are becoming more popular for workloads with different deployment uses.
• The most common application is backup or disaster recovery, with 73% of deployments using hybrid cloud models to protect data and ensure business continuity.
• Application development comes next, with 70% of deployments using hybrid cloud environments to support flexible and scalable development.
• Archiving is another major use, with 54% of deployments using hybrid clouds for efficient data storage and management.
• Cloud bursting, which lets workloads easily move between on-site infrastructure and the cloud, is used in 51% of deployments to smoothly manage changing demands.
• Telecom Cloud Statistics stated that security processes are also important, with 47% of deployments using hybrid cloud models to improve data security and compliance.
• Lastly, asset tracking is used in 45% of deployments, and hybrid cloud environments help monitor and manage assets more effectively.
• These trends show how hybrid cloud solutions are flexible and can meet the needs of various industries and sectors.

(Reference: scoop.market.us)

• Companies are turning to hybrid cloud solutions for many reasons, depending on their business needs.
• The top reason is better security, with 43% of organizations using hybrid cloud setups to protect data and follow strict security and compliance rules.
• Another key reason is the need for faster and more flexible development. About 42% of companies adopt hybrid cloud so they can quickly adjust to market changes and speed up application building and launch.
• Telecom Cloud Statistics stated that 41% of businesses choose hybrid cloud to access top cloud services and tools tailored to their unique needs.
• Improving business flexibility and encouraging innovation also motivate 40% of companies to adopt a hybrid cloud, helping them explore new ideas and move forward with digital upgrades.
• Saving money is also a big reason. Around 34% of organizations use hybrid cloud to reduce cloud service costs while improving backup systems and disaster recovery, showing how hybrid cloud brings financial and operational benefits in today’s fast-paced business world.

Telecom Regional Statistics

(Reference: precedenceresearch.com)

• The global telecom cloud market is studied across regions like North America, Europe, Asia Pacific, South America, and the Middle East & Africa. In 2021, North America led the market with a 34.5% share of total revenue.
• In the U.S. and Canada, hybrid telecom cloud setups are growing fast.
• These systems let companies use public cloud services’ advanced data analytics and artificial intelligence (AI). This helps predict and meet customer needs more effectively.
• Telecom providers also use cloud systems to remove data silos, organize customer data in one place, deliver a smooth multichannel experience, and build a complete view of each customer.

(Source: grandviewresearch.com)

• In the Asia Pacific region, countries like South Korea, Japan, Singapore, Australia, India, and China are seeing rapid growth in infrastructure and 5G networks, creating big opportunities for telecom cloud adoption.
• Telecom Cloud Statistics stated that Government support and favourable policies encourage businesses to expand in this area, helping the economy grow.
• Other reasons behind the market’s growth in this region include lower management and operating costs, strong demand for OTT (over-the-top) cloud services, and increasing business awareness of the benefits of telecom cloud solutions.

Benefits of Telecom Cloud Statistics

Cloud computing has huge benefits for telecom. A telco cloud strategy can help cut costs, improve customer satisfaction, and make businesses more flexible.

Today, telecom companies use cloud technology to:

#1. Create Unique Services

• Cloud telecom solutions help businesses develop special services and apps that competitors can’t easily copy. Using methods like Agile and DevOps with a cloud-native setup allows telecom companies to speed up service launches and quickly add new cloud-based apps and features, leading to faster revenue growth.

#2. Offer New Business Solutions

• With full access to public cloud services anytime, anywhere, and on any device, telecom companies can quickly deliver customized solutions for businesses. The telco cloud also makes it easier to collaborate with business partners to create new solutions.

#3. Make Money from 5G

• For most mobile operators, making money from 5G networks is important. However, they can only do this efficiently by using the telco cloud’s core and edge network capabilities.

#4. Protect Customers

• The telco cloud improves service reliability and helps telecom companies quickly respond to problems or changes in demand. This ensures better service and keeps prices competitive, reducing customer churn.

#5. Build Stronger Relationships with Customers

• With hybrid telco cloud setups, telecom businesses can use advanced data analytics and artificial intelligence (AI) from public cloud services. These tools can help them better predict what customers want, gather all customer data in one place, create a complete view of each customer, and offer a smooth omnichannel experience.

#6. Scale Quickly

• The telco cloud can grow across different data centers, central offices, public cloud spaces, and edge locations, giving nearly unlimited capacity in a hybrid setup. This lets businesses handle traffic spikes, fix issues, support more remote workers, add new customers, and scale up or down as needed.

#7. Telecom Cloud Services & Solutions

• Adopting telecom cloud services can help your business grow faster and unlock new opportunities.

Conclusion

By 2025, the telecom cloud market is expected to grow quickly as more companies shift to cloud-based platforms. The rollout of 5G, the rising use of AI and big data, and the growing adoption of hybrid cloud setups are key drivers of this growth. Leading telecom firms invest billions of dollars to improve network performance, reduce operating costs, and deliver better services.

With North America and Asia Pacific leading in adoption, the global telecom cloud sector is on track to become a major part of the digital economy—helping networks become faster, smarter, and more cost-effective. We have shed enough light on Telecom Cloud Statistics through this article.