What is the Historic and Current Scenario of the AI In Telecommunication Market?
The ai in telecommunication market has seen considerable growth due to a variety of factors.
•The market size of Artificial Intelligence in telecommunication has witnessed substantial growth in the few recent years. It is forecasted to expand from $3.41 billion in 2024 to $4.74 billion in 2025, with a compound annual growth rate (CAGR) of 38.9%.
The significant growth during the historical period is due to factors such as increased network complexity, escalated customer service expectations, the surge in data alongside the need for its analysis, challenges in network security, competition, and the requirement for operational efficiency.
What are the Forecasted Growth and Key Factors of the AI In Telecommunication Market?
The ai in telecommunication market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of AI in telecommunications is projected to experience significant expansion in the upcoming years, reaching "$19.42 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 42.3%.
Reasons for this growth during the predicted period include the broadening of the 5G network, objectives to improve customer experience, integration of edge computing, intensifying concerns over cybersecurity, and a surge in demand for network automation. Key trends forecasted for this period encompass the utilization of AI in revenue assurance, refining spectrum management with AI, usage of AI in edge computing to provide low-latency services, the deployment of AI in virtualized network functions, and eco-friendly telecommunications through AI.
What Are The Leading Drivers Of Growth In The AI In Telecommunication Market?
The surge in over-the-top (OTT) services is projected to boost the development of AI in the telecommunications sector. The term "Over-The-Top" (OTT) pertains to apps and services offered via the internet, circumventing traditional modes of distribution such as cable, satellite, and broadcast television. The demand for OTT services has seen a significant increase in recent years, with consumers progressively diverging from typical media consumption patterns and opting for the comfort and adaptability of online streaming. Telecommunications providers, acknowledging the rising demand for OTT services, have made sure their networks are capable of accommodating this higher traffic. For example, as per data from WebFX, a US-based digital marketing solutions provider that uses tech, 85% of American millennials have a subscription to at least one OTT video service as of August 2022, and 70% of users spend more than three hours daily on mobile OTT video content. Also, by 2027, the number of active OTT AVOD users will surpass 3.5 million, and Netflix will boast 221 million active members globally, becoming the largest OTT service. Hence, the escalating over-the-top (OTT) services are bolstering the evolution of the AI in telecommunications market.
How Are The Segments Defined Within The Global AI In Telecommunication Market?
The AI in telecommunication market covered in this report is segmented –
1) By Component: Solution, Service
2) By Technology: Machine Learning, Natural Language Processing (NLP), Data Analytics, Other Technologies
3) By Deployment Model: On-Premise, Cloud
4) By Application: Customer Analytics, Network Security, Network Optimization, Self-Diagnostics, Virtual Assistance, Other Applications
Subsegments:
1) By Solutions: Network Optimization, Network Security, Customer Analytics, Virtual Assistants, Predictive Maintenance
2) By Services: Professional Services, Managed Services
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How Are New Trends Expected To Influence The Growth Of The AI In Telecommunication Market?
Leading entities in the AI in telecommunications market are steering towards technological innovations including technical controls. These are designed to bolster data security, ensure regulatory adherence, enhance operational effectiveness, and promote responsible AI use throughout their networks. Technical controls encompass various technology-oriented safeguarding measures such as firewalls, encryption, and access limits to protect data and information systems from threats. As an illustration, the GSM Association (GSMA), a UK trade body, introduced the Responsible AI (RAI) Maturity Roadmap for telecoms in September 2024. This plan gives telecom operators a structure for evaluating and elevating their responsible AI usage. It includes tools to evaluate the current maturity level against strategic objectives and advice for the adoption of optimum practices. Five fundamental aspects are highlighted: organizational vision, AI governance, regulatory compliance via technical controls, third-party collaboration, and effective change management. By prioritizing elements like fairness, human supervision, privacy, transparency, and sustainability, this roadmap is setting the telecom industry up as a frontrunner in the responsible integration of AI.
Who Are the Key Players in the AI In Telecommunication Market?
Major companies operating in the AI in telecommunication market include:
• Intel Corporation
• Nuance Communications Inc.
• Infosys Limited.
• ZTE Corporation
• IBM Corporation
• Google LLC
• Microsoft Corporation
• Salesforce Inc.
• Cisco Systems Inc.
• NVIDIA Corporation
• Evolv Technology Solutions Inc.
• AI Incorporated
• Sentient Technologies LLC
• Comcast Corporation
• Verizon Communications Inc.
• Windstream Holdings Inc.
• Nokia Corporation
• Amazon Web Services Inc.
• Tech Mahindra Limited
• Huawei Technologies Canada Co. Ltd.
• Samsung Electronics Co. Ltd.
• Orange Business
• Deutsche Telekom AG
• Telefonaktiebolaget LM Ericsson
• China Mobile Limited
• China Telecom Corporation Limited
• China Unicom (Hong Kong) Limited
• Vodafone Group Plc
• BT Group plc
What Is The Most Dominant Region In The AI In Telecommunication Market?
North America was the largest region in the AI in telecommunication market in 2024.Asia-Pacific is expected to be the fastest-growing region in the global AI in telecommunication market report during the forecast period. The regions covered in the AI in telecommunication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
