AI & 5G to cause telecom cloud market to experience ‘paradigm shift’

The telecom cloud market is set for fast expansion as operators roll out 5G and lean harder on AI and edge computing. Verified Market Research expects the sector to grow from US$50.51 billion in 2024 to US$258.99 billion by 2032, a compound annual growth rate of 22.67% from 2026. The report links this to rising use of hybrid and multi-cloud, demand for AI-driven network automation and analytics, and the shift to cloud-native network designs using SDN and NFV.

Telecom providers are using cloud platforms to speed up service launches, cut operating costs and scale networks more easily, while AI and edge tools support predictive maintenance, security and customer service. North America leads the market, helped by large 5G deployments and the influence of hyperscalers such as AWS, Microsoft and Google Cloud. Major telecom players highlighted include BT Group, AT&T, Ericsson, Deutsche Telekom, NTT and Orange Business Services. The report notes that while cloud migration brings high upfront costs and challenges for smaller operators, especially around skills and ongoing maintenance, long-term benefits and rising demand for scalable, lower-cost cloud-based BSS/OSS continue to push the market forward.