According to Verified Market Research, the telecom cloud market is expected to generate a revenue of US$258.99 billion by 2032, in part due to high hybrid cloud adoption, continued demand for AI-driven network automation and edge computing.

Its report, Telecom Cloud Market Size and Forecast, suggested the telecom cloud landscape will continue to evolve rapidly, growing at a CAGR of 22.67% from 2026 to 2032. The market was valued at $50.51 billion in 2024.

Notably, the surge in 5G deployment and continued adoption of cloud services by the telecommunications industry is behind the predicted surge in revenue. As enterprises transition towards digital-first strategies, the report found cloud computing is becoming the “backbone” of next-generation telecom infrastructure.

The rise of 5G and AI to bolster telco performance

Verified Market Research stated the fast rollout of 5G networks is transforming the Telecom Cloud Market and increasing demand for technologies like software-defined networking (SDN) and network function virtualisation (NFV).

It found that telecom companies gain faster service rollout, operating costs and greater scalability when they move towards cloud-native designs.

Likewise, there is rising demand for AI integration and edge computing, as telecom companies are using edge computing and AI-driven automation to maximise network performance. Verified Market Research found in its report that investments into AI-powered analytics, improving predictive maintenance, security and customer service are driving changes across the telecom cloud market.

Driven by large 5G rollouts, significant cloud adoption and leading partnerships across the industry, North America remains dominant in the market. Technology companies like AWS, Microsoft and Google Cloud contribute to new innovation, Verified Market Research said, which the report said has inevitably driven demand for cloud-native telecom solutions.

“Setting worldwide norms for next-generation telecom infrastructure, this supremacy improves network scalability, service automation and revenue development,” the report noted.

The report identifies the major players across the market as BT Group, AT&T, Ericsson, Deutsche Telekom, NTT and Orange Business Services, among other leading telcos.

Prioritising hybrid cloud growth

As telecom companies continue to move to hybrid and multi-cloud architectures, the report said this adaptability helps companies maximise their resources. It noted that cloud-based BSS/OSS solutions can work to simplify network management and service monetising, therefore benefitting the telecom cloud market.

“Demand keeps rising as companies look for scalable, reasonably priced cloud solutions,” the report added.

Although changing to cloud-based telecom infrastructure requires high upfront costs, the report said the long-term advantages are strong.

However, it noted that SMEs experience challenges in IT infrastructure demand, talent gaps and continuous cloud maintenance – arguing that these barriers prevent the telecom cloud market from expanding, particularly in areas with more limited budgets.

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