Cloud Providers to Secure 9% of 5G Standalone Workloads Market by 2027: Dell’Oro

A recent report from Dell’Oro Group predicts that Hyperscale Cloud Providers (HCPs) are positioned to seize a significant slice of the 5G Standalone (5G SA) Workloads market by 2027, capturing approximately 9 percent of the market share.
Top 3 Cloud providers Q2 2023The research firm unveiled this insight in its updated report titled “5G Workloads Moving to the Public Cloud,” shedding light on the evolving landscape of 5G SA workloads deployment.

The cumulative revenues for Public Cloud 5G SA Workloads are projected to soar to a remarkable $5.4 billion over the next five years, accompanied by an impressive five-year compound annual growth rate (CAGR) of 65 percent.

Around 240 communications service providers (CSPs) have launched 5G services and about 35 have deployed or launched 5G standalone (SA).

The most common 5G services launched by service providers for consumers are enhanced mobile broadband (eMBB), Fixed Wireless Access (FWA), gaming and some AR/VR-based services, such as training and education, according to the June 2023 Ericsson Mobility Report.

However, Dell’Oro Group acknowledges that the forecast has undergone adjustment due to the slower-than-expected migration of Mobile Network Operators (MNOs) to 5G SA for their enhanced Mobile Broadband (eMMB) networks, and the cautious approach adopted by Enterprises in rolling out their 5G SA private wireless networks.

A recent report leading research firm Canalys said worldwide cloud infrastructure services spending increased 16 percent to $72.4 billion in the second quarter of 2023. Amazon Web Services (AWS), Microsoft Azure and Google Cloud are the top three Cloud service providers.

While a portion of Enterprise networks have been commercially deployed, the majority remains entrenched in long-term Proofs-of-Concept or field trials that can extend over several years.

This dynamic has led to Dell’Oro Group’s projection that Hyperscale Cloud Providers, including industry giants such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure, will amass a combined 6 percent of the market’s revenues in the forthcoming half-decade. These providers are anticipated to host 5G workloads on their respective public clouds, signifying their expanding influence in the evolving 5G ecosystem.

Dave Bolan, Research Director at Dell’Oro Group, emphasized the ongoing significance of HCPs in the unfolding narrative of 5G workloads migration. He noted, “As a result, we forecast that HCPs such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure will capture a cumulative 6 percent of the market revenues over the next five years by hosting 5G workloads on their respective public clouds.”

Moreover, Dell’Oro Group’s comprehensive report encompasses Hyperscale Cloud Providers’ revenues attributed to the Edge, including Multi-Access Edge Computing (MEC) and virtualized Radio Access Network (vRAN) components. This analysis forecasts the Edge’s cumulative revenues to surge to an impressive $1.3 billion within the next five years. The Edge segment is projected to experience the highest growth among HCPs, boasting an anticipated CAGR of 86 percent.

Interest from Hyperscale Cloud Providers also extends to the IP Multimedia Subsystem (IMS) Core and virtualized Radio Access Network (vRAN), underscoring the comprehensive strategy these providers are adopting to carve a substantial niche in the evolving 5G landscape.