What's Happening?
The telecommunications industry is undergoing a significant transformation with a focus on modernizing infrastructure to support cloud-native network functions and AI-driven automation. According to Omdia's
Telco Network Cloud Market Tracker – 2025 Annual Forecast Report, global spending on telco network cloud infrastructure and software is projected to increase from $17.4 billion in 2025 to $24.8 billion by 2030, marking a compound annual growth rate of 7.3%. This growth is driven by the increasing adoption of cloud-native tooling, automation frameworks, and the integration of AI and GenAI into network operations. The report highlights a 12% growth in cloud adoption among communications service providers (CSPs) expected in 2025, doubling the rate seen in 2024.
Why It's Important?
The shift towards cloud-native and AI-driven network functions is crucial for the telecommunications industry as it seeks to enhance efficiency and reduce operational costs. This transformation is expected to benefit technology vendors like NVIDIA, Red Hat, and VMware, who are providing AI capabilities tailored for telco environments. The increased spending on Kubernetes-based platforms and the rise in public cloud usage for network workloads indicate a significant shift in how telecom operators manage their infrastructure. This evolution is likely to lead to improved service delivery and innovation in the telecom sector, potentially impacting a wide range of industries that rely on robust communication networks.
What's Next?
As the telecommunications industry continues to embrace cloud-native and AI technologies, stakeholders can expect further advancements in automation and network management. Technology vendors are encouraged to adopt CI/CD pipelines and GitOps practices to automate the lifecycle of network workloads. The ongoing transformation may also lead to new partnerships and collaborations between telecom operators and technology providers, fostering innovation and potentially reshaping the competitive landscape of the industry.
