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Rising Demand For Over-The-Top (OTT) Services Fueling Growth In The AI In Telecommunications Market Driver: A Major Catalyst in the Evolution of the AI In Telecommunication Market in 2025
AI In Telecommunication Market
The surge in over-the-top (OTT) services, which are applications and services delivered via the internet bypassing conventional distribution channels like cable, is anticipated to stimulate the AI in telecommunications market's expansion moving forward. The market for OTT services has experienced dramatic growth in the past few years as consumers increasingly transition from traditional media consumption methods to online streaming, which offers more convenience and flexibility. Consequently, telecommunications providers are stepping up to ensure their networks can accommodate the rising traffic. WebFX, a US-based provider of tech-enabled digital marketing solutions, reported in August 2022 that 85% of American millennials subscribe to at least one OTT video service, while 70% consume more than three hours of mobile OTT video content daily. It's also projected that by 2027, there will be over 3.5 million active OTT AVOD users and Netflix, the largest OTT service, will have 221 million active members globally. With these figures, the boom in over-the-top services is undoubtedly fueling the growth of AI in the telecommunication market.
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How will the growth rate of the ai in telecommunication market shape industry trends by 2034?
The market size of AI in telecommunication has seen a remarkable surge recently. It is projected to rise from $3.41 billion in 2024 up to $4.74 billion in 2025, achieving a compound annual growth rate (CAGR) of 38.9%. The significant growth during the historical period is due to factors such as enhanced network complexity, elevated expectations for customer service, an eruption of data and subsequent analytical requirements, network security issues, competition, and demands for operational efficiency.
The market size of AI in the telecommunications sector is predicted to experience a significant surge in the coming years. The growth rate is projected to reach a staggering "$19.42 billion in 2029, with an impressive compound annual growth rate (CAGR) of 42.3%. The factors contributing to this projected growth during the forecast period include the expansion of the 5g network, striving to improve customer experience, integrating edge computing, escalating concerns over cybersecurity, and the escalating demand for network automation. Noteworthy trends during the projected period will be the utilization of AI in ensuring revenue, the employment of AI in spectrum management optimization, the implementation of AI in edge computing for services requiring low latency, the usage of AI in virtualized network functions, and green telecommunications with AI.
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What trends are poised to drive the future success of the ai in telecommunication market?
In the AI in telecommunications market, leading corporations are advancing their technologies, including technical controls, to enhance data protection, guarantee compliance with regulations, improve operational effectiveness, and promote the ethical use of AI technologies throughout their networks. Technical controls are security measures built on technology designed to shield information systems and data from threats, which include tools such as firewalls, encryption, and restrictions on access. For example, the Responsible AI (RAI) Maturity Roadmap for the telecommunications industry was launched in September 2024 by the GSM Association (GSMA), a trade group based in the UK. This roadmap gives telecommunications operators a framework to evaluate and enhance their responsible use of AI, offering assessment tools to gauge the current maturity against strategic targets and guidelines for implementing best practices. It focusses on five principal dimensions, namely organizational vision, AI governance, regulatory compliance through technical controls, collaborating with third parties, and efficient change management. Emphasizing fairness, human supervision, privacy, transparency, and sustainability, the roadmap puts the telecommunications sector in the forefront of ethical AI incorporation.
Which primary segments of the ai in telecommunication market are driving growth and industry transformations?
The AI in telecommunication market covered in this report is segmented -
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
Subsegments:
1) By Solutions: Network Optimization, Network Security, Customer Analytics, Virtual Assistants, Predictive Maintenance
2) By Services: Professional Services, Managed Services
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Which geographical regions are pioneering growth in the ai in telecommunication market?
North America was the largest region in the AI in telecommunication market in 2024.Asia-Pacific is expected to be the fastest-growing region in the global AI in telecommunication market report during the forecast period. The regions covered in the AI in telecommunication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Who are the influential players reshaping the ai in telecommunication market landscape?
Major companies operating in the AI in telecommunication market include 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
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What Is Covered In The AI In Telecommunication Global Market Report?
• Market Size Forecast: Examine the ai in telecommunication market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the ai in telecommunication market for a structured understanding.
• Key Players Overview: Analyze major players in the ai in telecommunication market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the ai in telecommunication market.
• Segment Contributions: Evaluate how different segments drive overall growth in the ai in telecommunication market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the ai in telecommunication market.
• Industry Challenges: Identify potential risks and obstacles affecting the ai in telecommunication market.
• Competitive Landscape: Review strategic developments in the ai in telecommunication market, including expansions, agreements, and new product launches.
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