What Are The Global AI In Telecommunication Market Size Predictions And Growth Rates?
The global AI in telecommunication market size has undergone significant growth in the recent years, soaring from $3.41 billion in 2024 to $4.74 billion in 2025 at a compound annual growth rate (CAGR) of 38.9%. This unprecedented upswing can largely be attributed to increased network complexity, risen customer expectations for service, escalating needs for data explosion and analysis, network security challenges, market competition and the demand for operational efficiency. It is anticipated that the global AI in telecommunication market will continue on this upward trajectory, shooting up to $19.42 billion in 2029 at a CAGR of 42.3%, driven by 5G network expansion, goals for enhanced customer experiences, edge computing integration, heightened cybersecurity concerns, and a greater demand for network automation.
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What Are The Key Drivers Of AI In Telecommunication Market Growth?
The surging over-the-top (OTT) services serve as major growth drivers for the AI in telecommunications market. The OTT services refer to applications and services delivered through the Internet, bypassing traditional distribution methods such as cable, satellite, and broadcast television. The demand for these services has been increasing, with consumers converting from traditional media consumption to online streaming. This change in trend ensures telecom providers to manage the increased traffic. For instance, according to WebFX in 2022, 85% of American millennials subscribe to at least one OTT video service, consuming more than three hours of mobile OTT video content daily. Moreover, by 2027, there are expected to be over 3.5 million active OTT AVOD users, and Netflix is projected to have 221 million active members worldwide, marking it as the largest OTT service.
What Are the Major Segments Within the Global AI In Telecommunication Market?
The AI in telecommunication market is segmented into the following categories:
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
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Who Are The Leading Players In The AI In Telecommunication Market?
Major companies at the forefront of the AI in telecommunication market include giants such as 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 New Trends Are Emerging In The AI In Telecommunication Market?
Numerous telecommunication companies are adopting technological advancements, like technical controls, to enhance data security, ensure regulatory compliance, improve operational efficiency, and facilitate responsible AI technology usage across networks. For instance, in September 2024, a UK-based trade association, the GSM Association (GSMA), launched the Responsible AI (RAI) Maturity Roadmap for the telecom industry. This roadmap provides a framework for telecom operators to assess and improve responsible AI use, essentially positioning the telecom sector as a leader in ethical AI integration.
Which Region Is Set To Grow The Fastest In The AI In Telecommunication Market?
North America held the most significant market share in the AI in telecommunication market in 2024. However, it is projected that Asia-Pacific will emerge as the fastest-growing region during the forecast period. The report analyzes the AI in telecommunication market in various regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The AI In Telecommunication Global Market Report 2025 Offer?
AI in telecommunication refers to the utilization of machine learning algorithms and other technologically forward measures to augment telecommunication services and processes. This technique is used to enhance and optimize the network infrastructure, establishing a stable network. The AI In Telecommunication Global Market Report 2025 research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
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