What are the Historical Developments and Current Growth Metrics of the Generative Artificial Intelligence AI In Telecom Market?
The generative artificial intelligence ai in telecom market has seen considerable growth due to a variety of factors.
• The market size of generative artificial intelligence (AI) in telecom has experienced a meteoric rise in the past few years. Its value is projected to escalate from $0.48 billion in 2024 to $0.73 billion in 2025, representing a compound annual growth rate (CAGR) of 53.5%.
Key factors driving this progress during the historical period include escalating demand for improved customer service, increased embrace of automation, proliferation of over-the-top services, and the rising number of players in the telecom sector.
What is the Forecasted Market Size and CAGR for the Generative Artificial Intelligence AI In Telecom Market?
The generative artificial intelligence ai in telecom market is expected to maintain its strong growth trajectory in upcoming years.
• The market for generative artificial intelligence (AI) within the telecommunications sector is projected to experience significant expansion in the coming years. Estimates suggest a growth to $4.03 billion by 2029, with a compound annual growth rate (CAGR) of 53.2%.
The expansion in the estimated period can be linked to the rising acceptance of generative AI-operated chatbots, increased initiatives for smart cities, broader digital penetration, a surge in the volume of internet of things devices, and escalating network requirements. The projected timeline also signifies advancements in AI technologies, ingenious telecom solutions, incorporation of groundbreaking technologies, progression in digital transformation and innovation, and amalgamation of internet of things edge computing.
What Key Factors and Trends Are Driving The Growth Generative Artificial Intelligence AI In Telecom Market?
As Internet of Things (IoT) devices continue to proliferate, the growth of generative artificial intelligence within telecom markets is being accelerated. IoT devices, which are interconnected and use advanced connectivity to transmit and trade data across networks, are becoming more prevalent due to technological advancements, decreasing costs, and a growing demand for automation and data-oriented insights. AI's role in telecom can enhance IoT device connectivity by streamlining network management and forecasting maintenance needs, thereby improving efficiency and scalability. A report from Ericsson, a Sweden-based telecom company, mentioned in April 2024 that global IoT connections reached 15.7 billion in 2023 and projected a 16% increase, amounting to 38.8 billion connections by 2029. Consequently, the surge in IoT devices is fuelling the growth of generative AI in the telecom sector.
What Are The Market Segments In The Generative Artificial Intelligence AI In Telecom Market?
The generative artificial intelligence (AI) in telecom market covered in this report is segmented –
1) By Type: Text-Based, Image-Based, Voice-Based
2) By Component: Software, Services
3) By Deployment: On-Premises, Cloud-Based, Edge, Hybrid
4) By Application: Network Optimization, Predictive Maintenance, Improve Call Center Operations And Customer Support, Personalized Product Or Service Recommendations, Security And Fraud Detection, marketing And Personalized Product Recommendations, Other Applications
Subsegments:
1) By Text-Based: Chatbots And Virtual Assistants, Automated Customer Support, Sentiment Analysis Tools, Text Summarization And Generation
2) By Image-Based: Visual Quality Inspection, Image Recognition Systems, Augmented Reality (AR) Applications, Facial Recognition Technologies
3) By Voice-Based: Voice Assistants, Speech Recognition Systems, Voice Biometrics For Security, Voice Analysis For Customer Insights
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What Trends Are Shaping The Generative Artificial Intelligence AI In Telecom Market?
Top companies in the generative artificial intelligence field in the telecom market are focusing their efforts on the development of technically superior solutions, including GenAI Telco platforms, to improve customer experiences and optimize network efficiency. GenAI Telco platforms employ AI to automate processes, optimize network management, and elevate the customer experience in the telecom industry. An example of this is the launch of the GenAI Telco Solution by Netcracker Technology, a US-based IT company, in September 2023 in a bid to expedite the acceptance of high-value use cases in the telecom sector. This solution provides communication service providers (CSPs) a secure platform to utilize their crucial telecom data and knowledge for the benefit of their customers, partners, and businesses. GenAI Telco Platform comes equipped with knowledge management facilities for creating, testing, and enhancing telecom-specific scenarios including customer service, business operations, sales, and network management. Through integration with established AI models, this solution enables CSPs to enhance customer interactions, improve operational productivity, and realize significant cost reduction while maintaining compliance with data protection regulations.
Who Are the Key Players In The Generative Artificial Intelligence AI In Telecom Market?
Major companies operating in the generative artificial intelligence (AI) in telecom market are:
• Amazon Web Services
• Microsoft Corporation
• Verizon Communications Inc.
• AT&T Inc.
• Deutsche Telekom AG
• Huawei Technologies Co. Ltd.
• International Business Machines Corporation
• Vodafone Group Public Limited Company
• Telefónica S.A.
• Nvidia Corporation
• Telefonaktiebolaget LM Ericsson
• Capgemini SE
• NTT DATA
• Infosys Limited
• Wipro Limited
• Amdocs Limited
• Ciena Corporation
• Netcracker Technology Corporation
• UiPath Inc.
• Gsma Advisory Services Ltd
• C3.AI inc
• LeewayHertz Technologies Pvt Ltd
• Subex Ltd
• Alepo Technologies Private Limited
• Cresta Intelligence Inc
• Xaltius Pte. Ltd.
• Binmile Technologies Private Limited's
• Kanerika
What Are The Regional Insights Into The Generative Artificial Intelligence AI In Telecom Market?
North America was the largest region in the generative AI in telecom market in 2024. The regions covered in the generative artificial intelligence (AI) in telecom market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
