A new report projects an annual growth rate of 20.3% until 2030, with public cloud models and platforms as key components of the ecosystem.
The global market for cloud telecommunications (Telecom Cloud) will reach $56.0 billion USD (about €51.7 billion) in 2030, up from an estimated $22.3 billion USD in 2025, according to a report by analysis firm MarketsandMarkets™. This represents a compound annual growth rate (CAGR) of 20.3% between 2025 and 2030.
This rapid progress reflects the profound digital transformation underway in the sector, driven by technologies such as network function virtualization (NFV), edge computing, artificial intelligence automation, and the widespread deployment of 5G.
Cloud, a fundamental pillar of future telecommunications
Cloud solutions enable telecom operators to replace legacy infrastructure with flexible, software-defined architectures capable of orchestrating resources in real time and adapting to hybrid and multi-vendor environments. These platforms support critical functions like core network deployment, radio access management, and low-latency edge services.
According to the report, the sectors most adopting this approach include telecommunications, manufacturing, and autonomous mobility—all needing real-time processing, ultra-reliable connectivity, and scalable networks. As such, cloud is establishing itself as a key infrastructure for multi-access edge computing (MEC), Open RAN, and native cloud 5G core networks.
Cloud platforms lead growth
Among the various components analyzed, the platform segment—including infrastructures and virtualization environments like VMware Cloud Foundation, AWS Outposts, and Azure for Operators—is projected to hold the largest market share during this period. These platforms allow for scaling 5G networks, reducing operational costs, and facilitating interoperability in complex environments.
Partnerships like Broadcom and Deutsche Telekom or Nokia and AWS are accelerating the adoption of these secure, optimized telecom solutions. Additionally, the shift towards Open RAN architectures, along with increasing regulatory focus on data sovereignty, emphasizes the need for robust, flexible, and localizable platforms.
Public cloud model dominates due to scalability and efficiency
The public cloud deployment model will be predominant because of its ability to scale quickly and reduce costs. Platforms like AWS, Azure, and Google Cloud enable operators to deploy virtualized network functions and 5G or IoT services without complex physical infrastructure.
An example of this trend is Nokia’s Cloud RAN-as-a-Service on AWS, which simplifies 5G network deployment by leveraging public cloud elasticity. The promotion of Open RAN 2.0, driven by the O-RAN Alliance, also fosters interoperable, software-defined networks that benefit from the cloud.
North America leads the market due to infrastructure and favorable regulations
The report indicates North America as the region with the largest market share during 2025–2030, driven by advanced technology infrastructure, strong 5G adoption, and supportive regulatory environment. The U.S. Department of Commerce has launched the NextGen Telecom initiative, providing incentives for cloud-based 5G infrastructure.
In Canada, the CRTC has promoted policies to accelerate edge deployments, especially in smart city and IoT projects. Partnerships like Verizon and Google Cloud utilizing Anthos for telecom workloads further position the region as a leader in cloud-native networks and AI-based automation.
Key players and market strategies
Leading companies include tech giants such as AWS, Microsoft, Google, IBM, Oracle, and Broadcom, as well as key telecom equipment providers like Nokia, Ericsson, and Huawei. These firms are combining organic and inorganic strategies—through alliances, acquisitions, product launches, and international expansion—to strengthen their positions and expand globally.
The ecosystem also features specialized firms such as Mavenir, Amdocs, Virtusa, ZTE, Juniper Networks, NFWare, Intellias, and UK Cloud Communications, which are advancing cloud-specific solutions for operators.
A market in the midst of redefinition
The growth of the telecom cloud market stems from operators’ critical need to evolve toward more agile, efficient networks prepared for an increasingly digital and demanding environment. In this context, the combination of NFV, edge computing, intelligent automation, and deployment models in public or hybrid clouds will drive the transformation pace.
Cloud not only reduces costs and enhances scalability but also enables new business models based on distributed services, private 5G, Open RAN, and autonomous networks. The report concludes that telecom cloud is not just a technical evolution but the new foundation upon which the future global digital telecommunications infrastructure will be built.