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    US Telecom Cloud Market

    ID: MRFR/ICT/14978-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US Telecom Cloud Market Research Report: By Deployment Type (Private, Public, Hybrid), By Services Model (Software as a service, Platform as a service, Infrastructure as a service) and By Application (Cloud migration, Traffic management, Network, Data storage, Computing) - Forecast to 2035

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    US Telecom Cloud Market Infographic
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    US Telecom Cloud Market Summary

    The US Telecom Cloud market is projected to experience substantial growth, reaching 50 USD Billion by 2035.

    Key Market Trends & Highlights

    US Telecom Cloud Key Trends and Highlights

    • The market valuation is anticipated to grow from 7.2 USD Billion in 2024 to 50 USD Billion by 2035.
    • The compound annual growth rate (CAGR) for the period from 2025 to 2035 is estimated at 19.26%.
    • This growth trajectory indicates a robust expansion in cloud-based telecom services across the United States.
    • Growing adoption of cloud technologies due to increasing demand for scalable solutions is a major market driver.

    Market Size & Forecast

    2024 Market Size 7.2 (USD Billion)
    2035 Market Size 50 (USD Billion)
    CAGR (2025-2035) 19.26%

    Major Players

    SAP, Oracle, Rackspace, Cisco, IBM, Microsoft, AT&T, T-Mobile, Verizon, Google, Salesforce, Accenture, Amazon, Dell

    US Telecom Cloud Market Trends

    The US Telecom Cloud Market is witnessing strong trends shaped by various key market drivers. One of the main drivers is the increasing demand for scalable and flexible cloud solutions that enable telecom operators to manage vast amounts of data efficiently. This trend is propelled by the rise of 5G networks in the US, which requires seamless integration of cloud technologies for optimal performance and service delivery. Additionally, the pandemic has accelerated the digital transformation across sectors, leading to a heightened focus on cloud-based solutions for remote operations, collaboration, and customer engagement.

    Opportunities in the US Telecom Cloud Market are vast, particularly in providing innovative solutions such as Software-Defined Networking (SDN) and Network Function Virtualization (NFV).

    These technologies allow telecom companies to offer more efficient and customizable services. Furthermore, the growing emphasis on cybersecurity in the telecom sector is opening avenues for providers to develop robust cloud security solutions, addressing the concerns associated with data protection in cloud services. Recent trends in the market indicate a shift towards multi-cloud strategies, where telecom companies are leveraging multiple cloud services to enhance resilience and flexibility. Furthermore, increased investment in artificial intelligence and machine learning is transforming service delivery, enabling telecom firms to optimize network performance and gain insights from data.

    The US market is also focused on compliance and regulatory requirements, which dictate how telecom operators manage consumer data in the cloud. As these trends continue to evolve, businesses in the US Telecom Cloud Market are positioned to adapt and innovate, capturing new growth opportunities.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Market Segment Insights

    Telecom Cloud Market Deployment Type Insights

    The US Telecom Cloud Market is witnessing substantial growth, particularly when examining the Deployment Type segment, which is crucial in determining how telecom services are delivered and consumed. The Deployment Type can be classified into three primary categories: Private, Public, and Hybrid. Each of these has unique characteristics and plays a significant role in shaping the landscape of telecom cloud services.

    Private cloud deployments are often preferred by organizations requiring enhanced security, control, and compliance, as they offer a tailored environment to manage sensitive data and mission-critical applications.This segment is particularly important for regulated industries such as finance and healthcare, where data governance is paramount. 

    On the other hand, Public clouds are capturing considerable attention due to their scalability and cost-effectiveness, allowing businesses to rapidly adapt to changing market demands without the need for significant upfront investment in infrastructure. Public clouds promote agility and are ideal for companies looking to innovate quickly and enhance their operational efficiency. The Hybrid cloud approach combines the strengths of both Private and Public models, offering organizations greater flexibility and strategic resource allocation.

    This model caters to businesses seeking to balance between secure data handling and expansive computing resources, enabling them to customize their IT environments based on specific operational needs. Factors driving the adoption of these Deployment Types include the increasing need for digital transformation, demand for scalability, and the growing emphasis on operational efficiency. Organizations are presenting robust opportunities for service providers to tailor solutions based on unique requirements and regulatory frameworks.

    Each of these Deployment Types contributes uniquely to the overall landscape, enabling businesses in the US to navigate the complexities of modern telecommunications effectively.The US Telecom Cloud Market segmentation within Deployment Types showcases a diverse array of options that collectively support varied enterprise strategies and technological capabilities.

    Telecom Cloud Market Services Model Insights

    The Services Model in the US Telecom Cloud Market plays a crucial role in shaping the landscape of cloud solutions offered to businesses and individuals alike. It primarily comprises Software as a Service, Platform as a Service, and Infrastructure as a Service, each contributing significantly to the market's growth trajectory. Software as a Service has gained popularity due to its flexibility and reduced maintenance costs, allowing users to access applications remotely without the need for installations. Platform as a Service enables developers to build, manage, and deploy applications without the complexities associated with infrastructure management, fostering innovation and accelerating time-to-market.

    Infrastructure as a Service, on the other hand, offers scalability and cost-effectiveness, allowing organizations to dynamically adjust their resources based on demand. The overall structure of the US Telecom Cloud Market is evolving, supported by digital transformation efforts within various industries and the increasing reliance on cloud-based solutions for operational efficiency. Key drivers such as the growing focus on data security, enhanced collaboration, and the rise of remote work are propelling market expansion. As organizations continue to embrace these services, the landscape is likely to see continued evolution, with opportunities emerging for enhanced integration and automation within cloud platforms.

    Telecom Cloud Market Application Insights

    The Application segment of the US Telecom Cloud Market plays a crucial role in driving digital transformation across various industries. This segment encompasses key areas such as Cloud migration, Traffic management, Network optimization, Data storage, and Computing resources, all contributing to the overall growth of the market. The trend towards Cloud migration is significantly reshaping how businesses operate, facilitating agility and reducing operational costs. Traffic management applications are increasingly important as they optimize data flow and enhance the user experience, particularly with the rise of streaming services and online communications.

    Network optimization ensures efficient resource allocation, while Data storage solutions address increasing data volumes that businesses face today. Computing resources provide essential infrastructure for enterprise applications, allowing businesses to scale efficiently. This segment reflects the dynamic and evolving requirements of organizations in the US, aiming for increased efficiency, scalability, and innovation in their operations. Continuous advancements in technology and the need for flexible solutions are driving the expansion and significance of these application domains within the US Telecom Cloud Market.

    Get more detailed insights about US Telecom Cloud Market Research Report - Forecast till 2035

    Key Players and Competitive Insights

    The US Telecom Cloud Market has been experiencing rapid growth, driven by the increasing demand for cloud-based services among telecom operators and enterprises. The rising need for agility, scalability, and cost-efficiency in operations has led businesses to adopt cloud solutions for their IT infrastructures and service offerings. As a result, various competitors are striving to carve a significant market share, leading to innovations and tailored services that cater to diverse customer needs.

    The competitive landscape consists of established tech giants and agile newcomers, with strategies ranging from mergers and acquisitions to strategic partnerships, all aiming to enhance service delivery while maintaining a competitive edge.

    SAP is firmly positioned in the US Telecom Cloud Market, recognized for its robust portfolio of cloud-based solutions that enhance business operations for telecommunications providers. The company's cloud solutions focus on creating seamless customer experiences by leveraging real-time data and advanced analytics. SAP's strengths lie in its scalability, integrative capabilities, and a solid reputation for providing enterprise resource planning and operational support systems.

    By fostering collaborations with telecom partners to deliver specialized solutions, SAP has successfully established a strong market presence, offering tailored products that resonate with the specific needs of telecom operators in the US, positioning itself as a trusted partner in transforming their digital operations.

    Oracle, on the other hand, has made substantial inroads within the US Telecom Cloud Market through its comprehensive suite of cloud solutions tailored for the telecom industry. The company specializes in providing essential services, including database management systems, application development, and next-generation infrastructure as a service solutions. Oracle’s strengths are reinforced by its extensive product offerings that cater specifically to telecoms, enabling them to enhance customer engagement, reduce operational costs, and improve data management. The company has pursued strategic mergers and acquisitions that bolster its capabilities in cloud technology and expand its service offerings in the telecom sector.

    Overall, Oracle’s established presence in the market, combined with its continuous innovation and focus on client-specific solutions, solidifies its role as a leader among competitors in the US Telecom Cloud Market.

    Key Companies in the US Telecom Cloud Market market include

    Industry Developments

    The US Telecom Cloud Market has experienced significant developments in recent months. Notably, in October 2023, IBM announced the expansion of its Cloud Pak for Telecommunications, aimed at enhancing network efficiency for telecom operators. Similarly, Oracle has been focusing on providing comprehensive cloud solutions tailored to the telecom sector, driving growth in service offerings. In September 2023, T-Mobile and Verizon emphasized their investments in 5G technology as part of their cloud strategies, exploring integrations with advanced cloud solutions to enhance customer experiences. Additionally, Amazon Web Services launched new features aimed at optimizing network operations for telecom customers.

    In terms of mergers and acquisitions, Cisco acquired a cloud service provider in August 2023 to bolster its presence in the telecom cloud segment, further proving its commitment to innovation. Over the past few years, major players like Salesforce and Microsoft have significantly increased their presence in the market, contributing to a rise in valuation, which is now valued in the hundreds of billions USD. These shifts are driving transformational changes in how telecom companies operate and deliver services across the United States.

    Market Segmentation

    Outlook

    • Cloud migration
    • Traffic management
    • Network
    • Data storage
    • Computing

    Report Scope

    Report Scope:
    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 5.86(USD Billion)
    MARKET SIZE 2024 7.2(USD Billion)
    MARKET SIZE 2035 50.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 19.265% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED SAP, Oracle, Rackspace, Cisco, IBM, Microsoft, AT and T, TMobile, Verizon, Google, Salesforce, Accenture, Amazon, Dell
    SEGMENTS COVERED Deployment Type, Services Model, Application
    KEY MARKET OPPORTUNITIES 5G infrastructure development, Cloud-based communication solutions, Network function virtualization (NFV), Enhanced customer experience tools, IoT integration with telecom services
    KEY MARKET DYNAMICS 5G deployment acceleration, Increased demand for scalability, Cloud-native application adoption, Focus on cost efficiency, Enhanced data security requirements
    COUNTRIES COVERED US

    FAQs

    What is the expected market value of the US Telecom Cloud Market in 2024?

    The US Telecom Cloud Market is expected to be valued at 7.2 billion USD in 2024.

    What will be the market value of the US Telecom Cloud Market by 2035?

    By 2035, the US Telecom Cloud Market is anticipated to reach a value of 50.0 billion USD.

    What is the expected CAGR for the US Telecom Cloud Market from 2025 to 2035?

    The expected CAGR for the US Telecom Cloud Market from 2025 to 2035 is 19.265 percent.

    What are the market values of the Private, Public, and Hybrid deployment types in 2024?

    In 2024, the Private deployment type is valued at 1.8 billion USD, Public at 3.6 billion USD, and Hybrid at 1.8 billion USD.

    What is the projected market value for Public deployment type by 2035?

    The Public deployment type is projected to reach 18.0 billion USD by 2035.

    Who are the major players in the US Telecom Cloud Market?

    Key players in the US Telecom Cloud Market include SAP, Oracle, Rackspace, Cisco, IBM, Microsoft, AT&T, T-Mobile, Verizon, Google, Salesforce, Accenture, Amazon, and Dell.

    What is the expected market value of the Private deployment type by 2035?

    The Private deployment type is expected to reach a value of 12.0 billion USD by 2035.

    What are the growth drivers for the US Telecom Cloud Market?

    Growth drivers for the US Telecom Cloud Market include increasing demand for virtualized telecommunications and the shift towards cloud-based solutions.

    What is the future outlook for Hybrid deployment in the US Telecom Cloud Market?

    The Hybrid deployment type is forecasted to grow significantly, reaching a value of 20.0 billion USD by 2035.

    How will the current global scenario impact the US Telecom Cloud Market?

    The current global scenario is likely to present both opportunities and challenges for the US Telecom Cloud Market, influencing growth and innovation strategies.

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