AI in Telecommunication Global Market Report 2024

The ai in telecommunication market has grown exponentially in recent years. It will grow from $2.48 billion in 2023 to $3.47 billion in 2024 at a compound annual growth rate (CAGR) of 40.1%. The growth observed in the historical period can be attributed to several factors, including the increased complexity of networks, rising customer service expectations, the need for extensive data analysis due to data explosion, challenges in network security, and the influence of competition on operational efficiency.

The ai in telecommunication market is expected to see exponential growth in the next few years. It will grow to $13.5 billion in 2028 at a compound annual growth rate (CAGR) of 40.4%. The anticipated growth in the forecast period can be attributed to several factors, including the expansion of 5G networks, heightened goals for enhancing customer experience, integration of edge computing, growing concerns about cybersecurity, and an increased demand for network automation. Noteworthy trends expected in the forecast period encompass the application of AI in revenue assurance, the optimization of spectrum management with AI, the use of AI in edge computing for low-latency services, the implementation of AI in virtualized network functions, and the pursuit of green telecommunications through the application of AI.

The growth of the AI in telecommunications market is closely linked to the expanding presence of Over-The-Top (OTT) services. OTT services encompass applications and services delivered over the Internet, bypassing traditional distribution methods such as cable, satellite, and broadcast television. The rising demand for OTT services is a result of consumers increasingly embracing the convenience and flexibility of streaming content online, leading to a shift away from traditional media consumption models. In August 2022, WebFX reported that 85% of American millennials subscribe to at least one OTT video service, and 70% of users consume more than three hours of mobile OTT video content daily. Projections indicate that by 2027, there will be over 3.5 million active OTT AVOD users, with Netflix becoming the largest OTT service with 221 million active members worldwide. This surge in the adoption of over-the-top services is a driving force behind the growth of AI in the telecommunications market.

The rapid deployment of 5G networks is another significant factor propelling the growth of AI in the telecommunications market. 5G networks, representing the fifth generation of wireless technology, bring advancements such as higher data speeds, low latency, and support for a massive number of connected devices. The complexity introduced by these features necessitates the use of AI to manage and optimize networks efficiently. In May 2023, Telefonaktiebolaget LM Ericsson reported that around 240 5G networks were being deployed globally, with a projected increase of approximately 85% until 2028. Moreover, 5G wireless connections increased by 76% to reach 1.05 billion in 2022, according to 5G Americas, and are expected to reach 1.9 billion by the end of 2023 and 5.9 billion by 2027. The rapid implementation of 5G networks is a key driver fueling the growth of AI in the telecommunications market.

Technological advancements emerge as a pivotal trend in the AI in telecommunications market, with companies actively embracing new technologies to maintain their market positions. For example, in October 2021, Ericsson, a multinational networking and telecommunications company based in Sweden, introduced the Network Data Analytics Function (NWDAF) solution. This cloud-native offering leverages machine learning and AI to enable service providers to analyze and optimize network performance, detect issues, and resolve them swiftly. NWDAF provides real-time insights into network data, empowering service providers to make informed decisions to enhance service quality and customer experience. As a crucial component in 5G network infrastructure, NWDAF allows service providers to monitor and optimize the network in real time, ensuring a seamless user experience.

Major companies in the AI telecommunications market are directing their efforts toward innovative solutions, such as generative AI tools tailored for telecommunications operators, to maintain their market positions. A generative AI tool tailored for telecommunications operators is specialized software designed to harness generative artificial intelligence (AI) to address specific challenges within the telecommunications industry. The GenAI Telco Solution, introduced by Netcracker in September 2023, allows operators to input data directly, enabling the generative AI to build, test, and optimize scenarios specific to telecom operations. This includes areas such as customer care, business operations, sales, and network operations. The GenAI Telco Solution is designed to handle the unique challenges faced by telcos, where confidential and dynamic data can pose obstacles to leveraging real-time information effectively. The solution features the GenAI Trust Gateway, seamlessly integrating with telco IT and data analytics environments. This emphasis on technological innovation contributes to the continued advancement of AI applications in the telecommunications industry.

In March 2022, Microsoft Corporation, a prominent US-based technology corporation, completed the acquisition of Nuance Communications Inc. for an undisclosed amount. This strategic acquisition represents a major step for Microsoft, enabling the company to expand and strengthen its artificial intelligence (AI) capabilities and solutions across various sectors. Nuance Communications Inc., a software technology company based in the United States, specializes in conversational AI and speech recognition.

Major companies operating in the ai in telecommunication market report are 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., Ericsson AB, 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.

North America was the largest region in the AI in telecommunication market in 2023. 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. The countries covered in the ai in telecommunication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components of AI in telecommunication include solutions and services. Solutions refer to algorithms or models designed to address specific problems or tasks using machine learning techniques. The deployment models for these solutions include on-premise and cloud, utilizing various technologies such as machine learning, natural language processing (NLP), data analytics, and others. AI in telecommunication finds applications in various areas, including customer analytics, network security, network optimization, self-diagnostics, virtual assistance, and more.

The AI in telecommunication market research report provides AI in telecommunication market statistics, including AI in telecommunication industry global market size, regional shares, competitors with AI in telecommunication market share, detailed AI in telecommunication market segments, market trends and opportunities, and any further data you may need to thrive in the AI in telecommunication industry. This AI in telecommunication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The AI in telecommunication market includes revenues earned by entities by robotics process automation (RPA), chatbots and virtual assistants, and network security. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The AI in telecommunication market consists of sales of CPU, graphics processors, and semiconductors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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