.jpg)
Global spending on telco network cloud infrastructure and software is projected to expand from $17.4 billion in 2025 to $24.8 billion by 2030, achieving a compound annual growth rate (CAGR) of 7.3%, as outlined in Omdia’s Telco Network Cloud Market Tracker – 2025 Annual Forecast Report. This growth reflects the accelerating adoption of cloud-native technologies and AI-driven automation among communications service providers (CSPs), with a 12% increase anticipated in 2025, doubling the 2024 rate.
The report emphasizes AI's pivotal role in telco cloud evolution, with over 62% of operators viewing AI/ML support as essential for cloud infrastructure choices. Vendors such as NVIDIA, Red Hat, and VMware are facilitating on-premises AI capabilities customized for telco needs, enhancing network operations through predictive analytics and automation. “Telcos are rapidly modernizing their infrastructure to support cloud-native network functions and AI-driven automation,” said Inderpreet Kaur, Senior Analyst at Omdia. This focus on AI infrastructure accelerates the shift toward intelligent, scalable network environments.
Cloud-native transformation is gaining momentum, with spending on Kubernetes-based platforms projected to surge at a 25% CAGR, while investments in legacy VM-only setups decline. CSPs are increasingly migrating to containerized network functions (CNFs), alongside virtualized network functions (VNFs), supported by mature automation frameworks. Public cloud adoption for network workloads is set to climb from 3% in 2024 to 13% by 2030, bolstered by hyperscalers' telco-specific offerings that ensure seamless integration and performance.
Red Hat dominates the cloud infrastructure management segment with a 25% share, establishing itself as the premier vendor for telco cloud platforms. The report also surveys key suppliers including Ericsson, Huawei, Nokia, Oracle, SUSE, VMware by Broadcom, Wind River, and ZTE, highlighting their roles in enabling hybrid VNF and CNF deployments. Cloud-native strategies align closely with telco automation objectives, urging vendors to adopt CI/CD pipelines and GitOps for lifecycle management of clusters and workloads.
This forecast from Omdia underscores the transformative impact of AI and cloud-native technologies on the telco sector, positioning CSPs to achieve greater efficiency, scalability, and innovation in network operations through strategic infrastructure investments.
Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets grounded in real conversations with industry leaders and hundreds of thousands of data points, make our market intelligence our clients’ strategic advantage. From R&D to ROI, we identify the greatest opportunities and move the industry forward.
TechIntelPro empowers B2B technology decision-makers with the latest industry trends, deep insights, leadership perspectives and actionable intelligence to drive both organizational and professional milestones—and thrive on the tech pulse.