Global revenue from Telco Cloud will grow to US$29.3 billion by 2025.
prnewswire | November 24, 2020
Worldwide telco cloud income will develop to US$29.3 billion by 2025, up from US$8.7 billion out of 2020, at a 5-year Compound Annual Growth Rate (CAGR) of 27%. The telco cloud development will be driven principally by cloud foundation related ventures, for example, Virtual Network Functions (VNFs), Management and Network Orchestration (MANO), and Cloud Native Functions (CNFs). By 2025, the telco cloud market will be worth US$10 billion in North America, US$9 billion in Asia-Pacific (APAC), and US$8.2 billion in Europe, figures worldwide tech market warning firm, ABI Research in its new whitepaper, The 36 Transformative Technology Stats You Need to Know for 2021.
This presentation of cloudified conditions in the telco business scene likewise presents a few movements in the worth chain. For instance, telcos are currently being introduced a subsequent choice of telco cloud arrangement—the multi-seller approach, in which diverse organization gear merchants are liable for various segments of the telco.
Another 5G Core and Edge Networks trend highlighted in the whitepaper: 5G network slicing stands to create approximately US$8.9 billion by 2026 at a CAGR of 76%. "Arguably that is a drop in the bucket for Communication Service Provider (CSP) service revenue. CSPs continue to possess strong network assets, namely low-latency, last-mile access and core network capabilities," Don Alusha, Senior Analyst at ABI Research points out. But for the broader industry, capturing significant new growth opportunity will vary in line with their corresponding digitization initiatives and readiness to adopt new technologies like 5G core networks and cloud-native principles. Conversely, hyperscalers like Microsoft and Amazon are cognizant of these dynamics and are positioning themselves accordingly with telco-specific solutions like Amazon Web Services (AWS) Wavelength and Microsoft Azure Edge Zones, particularly on edge computing deployments. "Though moderate in the next 5 years, new value creation abounds, but the jury is still out who captures what parts of the bigger emerging 5G edge and network slicing ecosystem," Alusha says.
About the whitepaper, Stuart Carlaw, ABI Research's Chief Research Officer says, "We have selected, from among the many millions of data points ABI Research creates each year, to focus on some enlightening data points that matter in the year ahead. Aspects like Tiny Machine Learning (TinyML), private cellular networks, Open Radio Access Network (RAN), blockchain, smart manufacturing platforms, and even connected cows point to how technology advancements are allowing our physical world to be better connected, managed, and efficient. The forecasts presented in this paper may be easy to dismiss but are very important directional indicators of the technology-enabled world of the future."
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