The global telecoms cloud services market is on track to grow at a 20% CAGR over the next five years to reach $34.59 billion by 2023, according to Research And Markets.
In a new report, the research firm predicts that the market will increase from $12.45 billion in 2017.
This growth will be driven by increasing demand for over-the-top cloud services, lower operational and administrative costs for telcos, as well as growing awareness of the telco cloud among business executives.
North America is anticipated to hold the largest share of the market by 2023, the report adds. ResearchAndMarkets attributes the dominance of the region to the recent increase in mobility in the market, as well as the explosion of smart mobile device due to the consumerization of IT.
As with the broader cloud market, the telco cloud segment is divided into software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS) offerings. Unified communications and collaboration solutions are expected to dominate the market.
Key players in the market include Japan’s NTT Com, Singtel and China Telecom. In line with the prediction that North America will capture the lion’s share of the market, US operators AT&T, Verizon, Verizon Wireless, CenturyLink, and Level 3 are also expected to be major players.