Telecom cloud market seen hitting $125 billion by 2030

Allied Market Research projects the global telecom cloud market will grow from $18 billion in 2020 to $125 billion by 2030, powered by IT modernization, remote work, and rising data traffic. Public cloud led in 2020, while private cloud is forecast to grow fastest.

Why it matters: - Telecom operators and IT vendors are chasing a fast-growing market tied to cloud migration, automation, and rising network demand. - The forecast points to a major shift in how telecom infrastructure is built, with cloud services becoming central to cost control and scalability. - The market is expected to expand even as demand patterns change after the pandemic, including more remote work and heavier data use.

What happened: - Allied Market Research said the global telecom cloud market was valued at $18 billion in 2020 and is projected to reach $125 billion by 2030. - The forecast implies a 21.8% compound annual growth rate from 2021 to 2030. - The report covers the global telecom cloud market by type, computing services and end user.

The details: - Public cloud held the largest share in 2020 and is expected to keep its lead. - Private cloud is projected to be the fastest-growing type as vendors push higher privacy standards. - IaaS generated the most revenue in 2020 among computing services. - PaaS is expected to post the fastest growth among computing services. - BFSI was the top end-user segment in 2020. - Healthcare and life sciences is forecast to grow the fastest among end users. - North America dominated the market in 2020. - Asia-Pacific is expected to post strong growth in the coming years. - Key drivers include rapid expansion of IT and telecom companies, modernization of information technology, and the push for more cost-saving and innovation-friendly services. - Increased internet and mobile penetration, plus higher big data consumption, are supporting demand. - Pandemic-era lockdowns drove heavy data use and accelerated telecom cloud deployment. - Telecom networks saw surging traffic during the pandemic, which increased demand for bandwidth. - 5G deployments and service automation were accelerated after COVID-19 disruptions. - Nokia reported that more than 64% of communication services providers focused on improving operational automation with cloud technology. - AMR said more than 25% of the workforce is expected to keep working from home after the pandemic. - The report names Microsoft, AWS, Google, Oracle, IBM, AT&T, Verizon, Dell, Etisalat and Telstra among the companies profiled. - The report sample page is available here. - Purchase options are available here. - More information is available here.

Between the lines: - The forecast reflects a broader telecom industry move toward cloud-based operations, not just a standalone software trend. - The split between public cloud leadership and faster private cloud growth suggests buyers want both scale and tighter data control. - The report links future demand to structural changes such as remote work, higher traffic loads and automation, which may keep cloud spending elevated.

What's next: - Telecom cloud adoption is expected to keep rising as operators modernize networks and expand automation. - Asia-Pacific growth could narrow the gap with North America if digital infrastructure investment continues. - Private cloud, PaaS and healthcare-related demand are positioned as the report's fastest-moving segments.

The bottom line: - The telecom cloud market is moving from niche infrastructure play to a core part of telecom modernization, with public cloud still leading and private cloud gaining speed.