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Forecast of the global telecommunications server market over the next five years

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Author : JIUZHOU
Update time : 2023-11-17 11:04:30
About the latest prediction of a certain Group. In the next five years, driven by NFV and edge applications. The global telecommunications server market will grow at a compound annual growth rate of 19%.

A Group released a latest report on the telecommunications server market. The report shows momentum driven by the growing popularity of Network Function Virtualization and edge use cases. They expect the global telecom server market to grow at a compound annual growth rate (CAGR) of 19% over the next five years.




In the report, insights are derived through comprehensive analysis of various relevant markets.

These markets include:
5G workloads in the public cloud
Broadband access
Data center IT capital expenditures
Ethernet Campus Switch
Mobile core network
Mobile RAN
Open RAN
Dedicated wireless

Relative to October 2022 report. The research firm lowered its forecast for the telecommunications server market. This is due to several factors:
Economic headwinds leading to lower spending on mobile network infrastructure
Challenges of adopting Open RAN and MEC
The company's previous estimates for servers deployed on operational support systems (OSS) and business support systems (BSS) were inflated
Even compared to the growth of cloud computing. The shift to server-based architecture for telecom equipment is still in its early stages.
They predict that the telecommunications server market will have a five-year compound annual growth rate of 19%. They expect it to reach $12.5 billion by 2027. Slightly higher than the overall data center growth rate of 15%.
Service providers tend to use commercial off-the-shelf servers for network functions virtualization. The purpose is to reduce costs and replace dedicated hardware.
As telecoms embrace open network architectures and the edge gains momentum. The highly competitive server market is gaining momentum.
They predict that the edge will account for 45% of telecom server revenue by 2027. It promises resiliency, efficiency and immersive experiences, prompting vendors to compete for dominance in this growing space.

Additional highlights about this Telecom Server Forecast report:
1. From 2022 to 2027. Revenues from the centralized data center use case are expected to grow at a CAGR of 11%. Edge data center use cases are expected to grow 38% during the same period.
2. Compared to centralized data centers for telecommunications applications. Server revenue from edge data centers is expected to achieve higher growth rates.
3. They expect AI to be implemented both at the network core and at the edge. The core of the artificial intelligence engine is based on raw data from Internet traffic.
Automate real-time and near-real-time decision-making. And dynamically allocate network resources in real time.

At the edge, new AI use cases are primarily related to computer vision. These enable applications such as industrial automation, autonomous driving, security and various consumer services.


 
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