Introduction
As we look ahead to the 2023 intelligent network market, there are several macro-economic factors that will significantly influence its development. Artificial intelligence and machine learning will be the most important development drivers, driving the development of more efficient and intelligent network solutions. Regulation is also a major trend, with governments around the world stepping up their efforts to ensure network security and data privacy. Besides, the emergence of new business models such as the “Internet of Things” and the increasing demand for seamless and individualized services will drive innovation and demand. The network industry is facing a complex and changing environment, and it is imperative that the industry players have a clear understanding of these trends in order to be able to cope with the competition and remain competitive.
Top Trends
- Increased Adoption of AI and Machine Learning
AI and machine learning are becoming an integral part of intelligent networks, enabling the exploitation of big data and the automation of decision-making. For example, Cisco has introduced AI-based network management tools that have reduced downtime by up to 30 per cent. This is expected to have a major impact on efficiency and costs, as organizations increasingly rely on AI for real-time data analysis and network optimization.
- 5G Network Expansion
The installation of the fifth-generation network is accelerating. Ericsson projects that by 2025 there will be a billion subscribers. The demand for a more intelligent network that can cope with increased traffic and increased interconnection is rising. The new 5G technology will mean better mobile broadband, new possibilities for applications in the Internet of Things and smart cities, and a fundamental transformation of the communications system.
- Enhanced Cybersecurity Measures
IT networks are becoming more complex. A study from 2022 showed that some 70 per cent of organisations had suffered a cyber-attack. And so the need for an advanced security architecture, which is a component of the network architecture, is becoming more and more pressing. The trend towards security architectures based on zero trust and automatic threat detection is a must for the protection of sensitive data and the establishment of trust.
- Network Slicing for Customization
Slicing a network means enabling the creation of several virtual networks over the same physical network, thus meeting the diverse needs of different customers. Nokia has successfully implemented this technology for a number of industries, including automotive and health. In the future, this trend will continue, enabling a variety of specialized services and more efficient use of resources.
- Sustainability Initiatives in Networking
A growing trend is the growing emphasis on green issues, with companies like Huawei pledging to reduce carbon emissions from their operations. A recent study shows that energy-efficient networks can reduce operating costs by up to 20 per cent. This is leading to new developments in energy-efficient equipment and procedures, including the integration of renewable energy sources.
- Integration of Edge Computing
It is becoming increasingly important to integrate edge computing into the smart network to process data closer to the source, reducing latency. Tech Mahindra has reported a significant increase in application performance through its edge solutions. This trend will help in real-time data processing. It is of particular importance for industries like manufacturing and health care, where access to data is critical.
- Rise of Open Networking Standards
Open standards are gaining ground, facilitating interoperability and reducing vendor lock-in. And companies like Netcracker are promoting open-source solutions that enhance flexibility and innovation. This trend will lead to a more competitive market, encouraging collaboration and the development of specialized solutions to meet specific business needs.
- Increased Focus on Customer Experience
The operators have made customer experience their priority, and they are now using intelligent networks to provide seamless connections. In France, for example, the strategy of focusing on the customer has led to a 15% increase in customer satisfaction. In the future, this trend towards the customer experience will probably lead to the development of a plethora of bespoke services and the provision of pro-active customer support.
- Automation and Orchestration in Network Management
In the automation of the administration of telecommunications networks, tools have been developed which facilitate the operation and reduce the manual intervention. In the case of Colt Technology Services, these tools are orchestration platforms. This evolution has the advantage of reducing the time for deploying services and reducing the operating costs. In the future, it should also lead to greater scalability of the services and increased reliability.
- Collaboration with Telecom Operators
The collaboration between technology suppliers and operators is growing, thereby driving innovation in the area of intelligent networks. For example, in the case of Nokia and various operators, 5G solutions have been developed. This trend is characterized by a more diversified and closer collaboration, which will also accelerate the uptake of new technology in the future and enable the rapid deployment of new network services.
Conclusion: Navigating the Intelligent Network Landscape
The iNet market in 2023 is characterized by intense competition and a high degree of fragmentation. Both traditional and new players are competing for market share. Especially in North America and Europe, where efficiency is the key driver, artificial intelligence and automation will play an increasingly important role. Strategically, vendors need to position themselves by focusing on capabilities such as flexibility and scalability to meet the changing customer needs. Adapting to the digital transformation, the established players are focusing on innovation and agility. In the long run, the ability to integrate AI and automation into the solution, to offer sustainable solutions, will be decisive for market leadership and success in this rapidly evolving market.