AI in Telecommunication Market Research Report- Global Forecast till 2030

AI in Telecommunication Market Research Report Information By Component (Solution and Services), By Deployment (On-Premise, and Cloud), By Technology (ML&DL, and NLP), By Application (Traffic Classification, Predictive Maintenance, and Anomaly Detection), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) โ€“ Market Forecast Till 2030

ID: MRFR/ICT/5339-HCR | 100 Pages | Author: Aarti Dhapte | October 2023         

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Global AI in Telecommunication Market Overview


AI in Telecommunication Market Size was valued at USD 0.85 billion in 2022. The AI in the Telecommunications industry is projected to grow from USD 1.21 Billion in 2023 to USD 10.4 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 43.10% during the forecast period (2023 - 2030). Growing Over-The-Top (OTT) services, such as video streaming, have transformed the distribution and consumption of audio and video content and are the key market drivers enhancing market growth.
AI in Telecommunication Market Overview
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


AI in Telecommunication Market Trends




  • Growing adoption of AI solutions in various telecom applications to boost the market growth




AI in the telecom value chain consists of AI solution providers, system integrators, and end users. Each stage of the value chain is responsible for enhancing the product. AI models and frameworks require multiple infrastructures, technical tools, and data formats to train and implement machine learning and computer vision applications. Companies such as IBM, Microsoft, and Intel provide machine learning (neural network) tools for different aspects of training.


System integrators and infrastructure developers are vital in the AI value chain. OEMs select the right system integrator with the knowledge, experience, and resources to provide comprehensive customer support and predictive maintenance. A service contract with a manufacturer offers several benefits to the application industry regarding design, integration, and delivery. Factory-trained field technicians assist in installing and using these solutions in the telecommunications industry. Manufacturers also offer value-added support, such as remote monitoring and self-diagnostic applications.


Artificial intelligence enables the telecom industry to extract actionable business insights and enhance customer experience. AI can contribute to the telecom industry through predictive maintenance, network optimization, anomaly detection, robotic process automation (RPA), and fraud detection. For example, in May 2021, Nokia launched AVA Telco AI-as-a-Service, which provides cloud-based artificial intelligence solutions and allows communications service providers (CSPs) to automate capacity planning, network management, and service assurance. Similarly, in June 2019, Vodafone Group released "TOBi," a machine-learning chatbot that allows human agents to focus on challenging issues.


Governments worldwide have recognized the impact of 5G on digital transformation and are promoting the rollout of 5G to drive artificial intelligence and automation across the telecom industry. Fifth-generation technologies will likely drive digital transformation across wireless telecommunications, the Internet of Things (IoT) driven by edge computing, and artificial intelligence. Rising demand for higher quality services and seamless customer experience will likely drive the adoption of artificial intelligence in the telecom industry. Increased 5G deployment could create lucrative business opportunities for telecom operators to provide outsourced IT services and offer process automation services to enterprises powered by edge computing and artificial intelligence. Many established telecommunications service providers, including Charter Communications, AT&T, and Verizon, are expected to invest heavily in AI. These are essential factors driving the AI in Telecommunication market revenue growth.


AI in Telecommunication Market Segment Insights


AI in Telecommunication Component Insights


Based on Components, the AI in Telecommunication Market segmentation includes Solutions and Services. The services segment held the majority share in 2022, contributing most of the AI in Telecommunication Market revenue. The service segment is projected to grow fastest as telecom companies are increasingly aware of the advantages and features of AI technology in the telecom industry. Moreover, the growing adoption of artificial intelligence in various applications in the telecom industry is driving the growth of the services segment.


AI in Telecommunication Deployment Insights


The Deployment has bifurcated the AI in Telecommunication Market data into Cloud and On-Premises. On-Premises has a considerable market share and is expected to maintain its dominance during the forecast period. This is because it provides additional data security. However, the cloud segment is expected to register the highest CAGR of 43.8% from 2022 to 2031, as the cloud provides flexibility, scalability, complete visibility, and efficiency to all processes.


Figure 1: AI in Telecommunication Market by Application, 2022 & 2030 (USD billion)
AI in Telecommunication Market by Application, 2022 & 2030
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


AI in Telecommunication Technology Insights


The global AI in Telecommunication industry has been segmented based on ML&DL and NLP. NLP accounts for the largest share of the AI in Telecommunication market owing to the utilization of NLP technology to read information stored in digital format and used to understand human speech from various languages, A dataset for the growing telecom industry.


AI in Telecommunication Application Insights


Based on Application, the global AI in Telecommunication industry has been segmented into traffic classification, predictive maintenance, and anomaly detection. The traffic classification is expected to contribute to a higher market share. The customer analytics category will likely hold the largest market share due to the increasing demand for real-time behavioral insights. AI enables operators to collect and evaluate consumer data from the consumer's point of view. Subscriber Intelligence This information is used in various contexts, including serving advertisements and personalized offers to subscribers. Network operators can also use this information to optimize network consumption.


AI in Telecommunication Regional Insights


By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American AI in Telecommunication market, which accounted for USD 0.4 billion in 2022, is expected to exhibit a significant CAGR growth during the study period due to the presence of a large number of significant players offering AI-enabled solutions for the telecom industry, such as IBM Corporation, Microsoft Corporation, and Cisco Systems.


Further, the significant countries studied in the market report are The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2: AI IN TELECOMMUNICATION MARKET SHARE BY REGION 2022 (%)
AI IN TELECOMMUNICATION MARKET SHARE BY REGION 2022
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Europe's AI in Telecommunication market accounts for the second-largest market share. It has been observed that European telecom operators are prioritizing investments in artificial intelligence to make more data-based decisions. According to a report published by the European Telecommunications Network Operators Association (ETNO) in February 2022, European investment in 5G and fiber-to-the-home (FTTH) networks is at a record high, with capital expenditure of approximately 722.1 in 2020 One hundred million U.S. dollars. Significant investments will likely boost the adoption of artificial intelligence (AI) across the European telecommunications industry. On the contrary, the European telecommunications industry is highly regulated, likely leading to steady market growth across the Region. Further, German AI in Telecommunication held the largest market share, and the U.K. AI in Telecommunication market was the fastest-growing market in the European Region.


The Asia-Pacific AI in Telecommunication Market is expected to grow at the fastest CAGR from 2022 to 2030. This growth is attributed to rapid technological advancements in emerging economies such as China and India. For example, Huawei Technologies Co Ltd, a global supplier of telecommunications equipment and consumer electronics, has partnered with China Telecom, a provider of internet access and mobile telecommunications services. The collaboration will explore network artificial intelligence engine (NAIE)-based radio cell capacity prediction and wireless network cell anomaly detection. Moreover, China's AI in Telecommunication held the largest market share, and Indian AI in Telecommunication was the fastest-growing market in the Asia-Pacific region.


AI in Telecommunication Key Market Players & Competitive Insights


Major market players are spending a lot on R&D to increase their Component lines, which will help the AI in Telecommunication market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new Component launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the AI in Telecommunication industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.


Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the global AI in Telecommunication industry to benefit clients and expand the market sector. AI in the telecommunication industry has provided medicine with some of the most significant benefits in recent years. In the AI in telecommunications markets, major players such as Huawei Technologies Co. Ltd (China), IBM Corporation (US), Microsoft Corporation (US), Intel Corporation (US), and others are working on expanding the market demand by investing in research and development activities.


International Business Machines Corporation (IBM), nicknamed Big Blue, is an American multinational technology corporation headquartered in Armonk, New York, with operations in over 175 countries. It focuses on computer hardware, middleware, and software and provides hosting and consulting services in areas ranging from mainframe computing to nanotechnology. IBM is the world's largest industrial research institution, with 19 research institutions in more than a dozen countries, and has held the record for the most annual U.S. patents by an enterprise for 29 consecutive years from 1993 to 2021.


Also, Microsoft Corporation is an American multinational technology company headquartered in Redmond, Washington, USA. Microsoft is best known for its software products, the Windows family of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game console and the Microsoft Surface line of touchscreen personal computers. Microsoft ranks 21st in the 2020 Fortune 500 by total U.S. revenue; as of 2019, it is the world's largest software maker by revenue. It is among the five most significant information technology companies in the United States, along with Alphabet (Google), Amazon, Apple, and Meta.


Key Companies in the AI in Telecommunication market include



  • Huawei Technologies Co. Ltd (China)

  • IBM Corporation (US)

  • Microsoft Corporation (US)

  • Intel Corporation (US)

  • Cisco Systems (US)

  • Nuance Communication (US)

  • ZTE Corporation (China)

  • ai (US)

  • Salesforce (US)

  • Infosys Limited (India)

  • Google LLC (US)., among others


AI in Telecommunication Industry Developments


May 2021: Nokia launches AVA Telco Al as a Service, providing cloud-based AI solutions and allowing communications service providers (SPs) to automate capacity planning, network management, and service assurance.


March 2020: Google partners with AT&T Intellectual Property to help businesses use Google Cloud's technology over 5G network connectivity. Both companies are developing 5G solutions by combining AT&T's intellectual property 5G network capabilities with Google Cloud's analytics, artificial intelligence/machine learning, and networking capabilities.


AI in Telecommunication Market Segmentation


AI in Telecommunication Component Outlook



  • Solution

  • Services


AI in Telecommunication Deployment Outlook



  • On-Premise

  • Cloud


AI in Telecommunication Technology Outlook



  • ML&DL

  • NLP


AI in Telecommunication Application Outlook



  • Traffic Classification

  • Predictive Maintenance

  • Anomaly Detection


AI in Telecommunication Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America





Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 0.85 billion
Market Size 2023 USD 1.21 billion
Market Size 2030 USD 10.44 billion
Compound Annual Growth Rate (CAGR) 43.10% (2023-2030)
Base Year 2022
Market Forecast Period 2023-2030
Historical Data 2019 - 2021
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Component, Deployment, Technology, Application, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Huawei Technologies Co. Ltd (China), IBM Corporation (US), Microsoft Corporation (US), Intel Corporation (US), Cisco Systems (US), Nuance Communication (US), ZTE Corporation (China), H2O.ai (US), Salesforce (US), Infosys Limited (India), Google LLC (US).
Key Market Opportunities Utilization of AI-Enabled Smartphones.
Key Market Dynamics Increasing adoption of AI for various applications in the telecommunication Industry. AI can be the key to self-driving telecommunication networks.


Frequently Asked Questions (FAQ) :

The AI in Telecommunication Market size was valued at USD 0.85 Billion in 2022.

The global market is projected to grow at a CAGR of 43.10% from 2022-2030.

North America had the largest share of the global market.

The key players in the market are Huawei Technologies Co. Ltd (China), IBM Corporation (US), Microsoft Corporation (US), and Intel Corporation (US)

The services category dominated the market in 2022.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major playersโ€™ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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