Global Artificial Intelligence (AI) in Telecommunication Market 2023-2030

Global Artificial Intelligence (AI) in Telecommunication Market 2023-2030

Global Artificial Intelligence (AI) in TelecommunicationMarket Size, Share & Trends Analysis Report by Component (Solution and Service), by Deployment Model (On-Premise and Cloud), by Technology (Machine Learning (ML), Natural Language Processing (NLP), Data Analytics, and Others), and by Application (Customer Analytics, Network Security, Network Optimization, Self-, Diagnostics, Virtual Assistance, and Others) Forecast Period (2023-2030)

The global Artificial Intelligence (AI) in Telecommunication market is anticipated to grow at a CAGR of 40.6 % during the forecast period (2023-2030). The market’s growth is attributed to customer support and service across the globe. Virtual assistants and chatbots powered by AI are utilized to answer common customer questions, solve problems, and offer information. Through faster response times and higher customer satisfaction, automation improves customer service and support. For instance, in September 2023, Nokia launched an ‘Enterprise Edge Charging’ software solution for driving monetization capabilities for smart cities, utilities, and railway verticals, as the business seeks to strategically increase its market dominance in the enterprise sector.

Segmental Outlook

The global artificial intelligence (AI) in telecommunication market is segmented on the component, deployment model, technology, and application. Based on the component, the market is sub-segmented into solution, and service. Based on the deployment model, the market is sub-segmented into on-premise, and cloud. Based on the technology, the market is sub-segmented into machine learning, natural language processing, data analytics, and others. Further, on the basis of application, the market is sub-segmented into customer analytics, network security, network optimization, self-diagnostics, virtual assistance, and others. The natural language processing (NLP) subcategory is expected to capture a significant portion of the market share within the component segment. This is attributed to the use of natural language processing (NLP) technology to read data stored in digital format and utilized to comprehend human speech in a variety of languages, a database for the expanding telecom sector.

The Solution Sub-Segment is Anticipated to Hold a Considerable Share of the Global Artificial Intelligence (AI) in Telecommunication Market

Among the component, the Solution sub-segment is expected to hold a considerable share of the global artificial intelligence (AI) in telecommunication market. The segmental growth is attributed to the network effectiveness and cost minimization. An increase in operational efficiency is facilitated by the utilization of the Digital Operations Technician application, that additionally manages network performance and minimizes operational costs. For instance, in September 2023, Netcracker Technology launched new GenAI Telco Solution, which brings value of generative artificial intelligence (GenAI) technology to the telecom industry. Communications service providers (CSPs) can utilize its telecom data and knowledge in a secure and controlled manner with the new solution to benefit their clients, business partners, and their own operations. It includes assistance with telco-centric applications including care assistant, agent partner, sales assistant, catalogue assistant, and digital operations technician.

Regional Outlook

The global artificial intelligence (AI) in telecommunication market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, North America is anticipated to hold a prominent share of the market across the globe, owing to the additional amount has been invested in the sector, and a variety of vendors have emerged to serve the fast expanding demand.

The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global Artificial Intelligence (AI) in Telecommunication Market

Among all regions, the Asia-Pacific regions is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to the increase in India's telecom sector in the region. India's telecommunication sector, driven by 5G technology, is a region of potential growth and investment opportunity for domestic and international investors. Infrastructure, technology development, and digital services are expected to be areas of increased investment. According to the Invest India, in September 2022, the telecommunication sector in India has seen tremendous growth over the past seven years. The introduction of 5G technology is expected to have a large impact on the Indian economy, with an estimated increase of $450 billion over the next two decades. Smartphone penetration is forecasted to reach one billion in 2025, and this will create many new business opportunities. There will also be a need for 22 million skilled workers to operate hardware and software related to 5G technology such as the Internet of Things (IoT), Artificial Intelligence (AI), robotics and cloud computing. This sector offers a range of attractive investment opportunities.

Furthermore, Telecom companies are employing AI to improve customer service, such as through the use of chatbots and virtual assistants. This can help to provide more timely responses, improve user experience, and potentially increase customer loyalty. in July 2023, The Telecom Regulatory Authority of India (TRAI) released recommendations on the use of artificial intelligence and big data in the telecom sector. The establishment of an AI regulator and a broader range of TRAI's role in preventing spam.

Market Players Outlook

The major companies serving the global artificial intelligence (AI) in telecommunication market include Google, H2O.ai, Inc., IBM Corp., Infosys Ltd., Intel, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in February 2023, Bharti Airtel launched it has built an AI-based solution, collaborated with NVIDIA that improves the overall customer experience for all in-bound calls to its contact center.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global artificial intelligence (AI) in telecommunication market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.