The Global Artificial Intelligence in Telecommunication Market is expected to reach a value of
The market has seen a significant increase in the recent past and is predicted to grow significantly during the forecasted period as well.
Artificial Intelligence (AI) is playing an important role in improving network performance within the telecom industry. By including AI, telecom providers can effectively analyze data gathered from network sensors, allowing them to identify & address potential issues before they increase into outages, such a proactive approach allows telecom companies to take preventative measures, creating a more reliable & uninterrupted network service for their customers.
Market Dynamic
The growth of AI solutions across different telecom applications is driving the market growth. The increasing availability of AI-powered smartphones, offering features such as robust security, image recognition, and voice recognition, in comparison to traditional phones, is a major driver of AI's growth in the telecommunication sector. Additionally, AI simplifies complex telecom processes, making them more approachable. In addition, the growth in Over-The-Top (OTT) services like video streaming has revolutionized how audio & video content is distributed and consumed, leading to an increase in demands from consumers. To manage this growing traffic, telecom companies witness growing operational costs. AI comes to the aid of reducing these costs through lower human involvement in network configuration & maintenance, supporting the industry to streamline its operations efficiently.
However, a major challenge to the market is the lack of compatibility between telecommunication systems and AI technology, which may restrain the market to grow at its full potential during the forecasted period.
Research Scope and Analysis
By Component
As a component, the market is divided into two categories that are solutions and services, in 2023, the solution segment is taking the lead in the global AI in telecommunication market & is anticipated to maintain its dominance throughout the forecasted period, which is primarily because many key players in the market of telecommunication with complex communication demands require customized networking solutions.
In addition, the services segment is also anticipated to experience high growth due to the increasing demand for professional & managed services to meet the growing demand of the telecom sector in AI applications. This increased demand is set to drive the overall growth of global AI in telecommunication market.
By Deployment
In 2023, the on-premises deployment leads the market share in the AI in Telecommunication market, as on-premises deployment is a method where the AI systems & software are installed & operated within the telecom company's physical infrastructure rather than depending on external cloud-based services, which is preferred by various telecom companies for reasons such as data security, compliance, & full control over their AI systems. In addition, On-premises deployment enables telecom companies to keep sensitive customer data within their own data centers, creating better privacy & regulatory adherence. However, it may require higher initial investments in hardware & maintenance compared to cloud-based solutions. Yet, this deployment option provides telecom companies with a customized AI environment that aligns with their specific needs & security requirements.
By Technology
Natural Language Processing (NLP) plays a major driving role in the AI in Telecommunication market IN 2023, as NLP is a technology that allows computers to understand, interpret, & generate human language. In addition, NLP is used to analyze & process large text & speech data, making it easier for telecom companies to take out valuable insights from customer interactions, social media conversations, & other sources of unstructured data. However, telecom providers use NLP to improve customer service via chatbots & virtual assistants that can contain & respond to natural language queries, enhancing customer satisfaction & operational efficiency. Additionally, NLP supports sentiment analysis, fraud detection, & network optimization, contributing significantly to the overall effectiveness of AI applications in the telecommunication sector.
By Application
The global artificial intelligence (AI) in the telecommunication market is categorized into Network Optimization, Customer Analytics,
Network Security, Self-Diagnostics, & Virtual Assistance segments based on its applications. Among these, the virtual assistance segment holds the largest market share in 2023, mainly because of its transformative impact on customer interactions & support services. AI-powered virtual assistants grow in handling customer queries, providing personalized recommendations, & performing tasks like bill payments or service activations, which leads to enhanced customer satisfaction, fewer wait times, & growth in operational efficiency. Virtual assistants are available 24/7, providing consistent service & limiting the need for human intervention, as they seamlessly integrate with different channels like websites, apps, & voice interfaces, delivering convenient & convenient customer experiences. The rise in demand for improved customer support & the preference for self-service options are major factors contributing to the dominance of the virtual assistance segment in the AI in the telecommunication market.
The Global Artificial Intelligence in Telecommunication Market Report is segmented on the basis of the following:
By Component
• Solution
• Service
By Deployment
• Cloud
• On-Premise
By Technology
• NPL (Natural Language Processing)
• Machine Learning
• Data Analytics
By Application
• Network Security
• Network Optimization
• Customer Analytics
• Virtual Assistance
• Self-Diagnostics
Regional Analysis
North America holds the largest market share of 37.1% of the total revenue of the overall global AI in the telecommunication market, and it's projected to maintain its leadership in the coming years, which is due to the region being quick to adopt cutting-edge technologies. Additionally, the growth in the use of automation & AI by telecom companies for customer service & enhancing their networks will further boost the region's growth.
In addition, Asia Pacific is expected to experience the most rapid growth during the forecast period, driven by rapid technological progress in emerging economies like China & India. For instance, companies like Huawei Technologies & China Telecom are working in partnership to explore areas such as radio cell capacity prediction & spotting anomalies in wireless network cells using the Network AI Engine (NAIE), contributing to the region's growth.
By Region
North America
• The U.S.
• Canada
Europe
• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe
Asia-Pacific
• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific
Latin America
• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA
Competitive Landscape
The global artificial intelligence in the telecommunication market experiencing consolidation, where a few of the dominant players hold a significant share of the industry. These major players have established themselves as leaders in delivering AI solutions for telecommunications, benefiting from their large resources, established customer relationships, & advanced technologies. This consolidation builds a competitive landscape where these key players set industry trends & standards, making it challenging for smaller or new entrants to compete on a large scale. The competition primarily revolves around the innovation & strategies used by these players, shaping the direction of AI adoption in telecommunications.
In May 2023, NVIDIA and SoftBank Corp. made an announcement about their partnership to develop an innovative platform for generative AI & 5G/6G applications, which will be powered by the advanced NVIDIA GH200 Grace Hopper Superchips & will be installed across Japan through a network of new AI data centers. SoftBank's plan involves creating data centers that, in collaboration with NVIDIA, can host different generative AI and wireless applications on a shared server system, reducing costs & increasing energy efficiency as this partnership focuses on paving the way for the rapid global adoption of generative AI services and applications along with SoftBank aim to lead the world in developing a telecom network built to host generative AI services.
Some of the prominent players in the Global Artificial Intelligence in Telecommunication Market are
• Microsoft Corp
• Intel Corp
• IBM Corp
• AT&T
•
Cisco System • Nuance Communications
• Google LLC
• Salesforce
• NVIDIA Corp
• H2O.ai
• Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Artificial Intelligence in Telecommunication Market
The COVID-19 pandemic and the subsequent economic recession had a major impact on global artificial intelligence (AI) in the telecommunication market. As businesses witnessed disruptions & financial challenges, they became more concentrated on cost efficiency & enhancing customer experiences, which led to growth in interest in AI solutions to automate processes, improve network management, & optimize customer assistance. While the pandemic at the start slowed down some AI projects owing to budget constraints, it ultimately expanded the adoption of AI in the telecommunication industry as companies recognized its potential to drive operational efficiency & resilience in an evolving environment.
Report Characteristics |
Market Size (2023) |
USD 3.6 Bn |
Forecast Value (2032) |
USD 82.3 Bn |
CAGR (2023-2032) |
41.7% |
Historical Data |
2017 - 2022 |
Forecast Data |
2023 - 2032 |
Base Year |
2022 |
Estimate Year |
2023 |
Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
Segments Covered |
By Component (Solutions and Services), By
Deployment (Cloud and On-Premise), By Technology
(NPL (Natural Language Processing), Machine
Learning, and Data Analytics), By Applications
(Network Security, Network Optimization, Customer
Analytics, Virtual Assistance and Self Diagnostics) |
Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
Prominent Players |
Microsoft Corp, Intel Corp, IBM Corp, AT&T, Cisco
System, Nuance Communications, Google LLC,
Salesforce, NVIDIA Corp, H2O.ai and Other Key
Players |
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