Rising Demand For Over-The-Top (OTT) Services Fueling Growth In The AI In Telecommunications Market: Strengthening the Growth Trajectory of the AI In Telecommunication Market

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What Is the Expected CAGR for the AI In Telecommunication Market Through 2025?
In recent times, the market size for AI in telecommunications has seen significant growth. The market, which is predicted to expand from $3.41 billion in 2024 to $4.74 billion in 2025, is expected to exhibit a compound annual growth rate (CAGR) of 38.9%. Factors contributing to the growth during the historic period include escalated network complexity, heightened customer service expectations, the surge in data production and its analysis requirements, challenges in network security, competition, and the necessity for operational efficiency.

What's the Projected Size of the Global AI In Telecommunication Market by 2029?
In the near future, we can anticipate an exponential surge in the size of the AI in telecommunication market. With a predicted compound annual growth rate (CAGR) of 42.3%, the market is predicted to expand to "$19.42 billion by 2029. Factors fueling this growth during the forecast period include the expansion of the 5g network, a rise in cybersecurity concerns, the increased need for network automation and the integration of edge computing. The forecast period will also witness trends such as the use of AI in revenue assurance, optimizing spectrum management through AI, the incorporation of AI in virtualized network functions, low-latency services backed by AI in edge computing, and greener telecommunications facilitated by AI.

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Top Growth Drivers in the AI In Telecommunication Industry: What's Accelerating the Market?
Anticipated expansion in over-the-top (OTT) services is predicted to prompt a surge in the AI in telecommunications market. OTT services - applications and amenities accessible via the internet that circumvent traditional distribution outlets like television, satellite, and cable - have seen a dramatic increase in demand. This surge is attributed to consumers favoring the ease and adaptability of online-based content rather than conventional media consumption methods. To accommodate this increased OTT demand, telecom suppliers are adapting their networks accordingly. For instance, WebFX, a US digital marketing company utilizing technology, highlighted in August 2022 that 85% of American millennials are subscribed to minimally one OTT video service, while 70% of users spend more than three hours daily watching mobile OTT video material. Moreover, predictions for 2027 suggest over 3.5 million active OTT AVOD participants around the globe and Netflix is anticipated to possess the largest OTT service at about 221 million active worldwide members. Hence, the escalation in OTT services is paving the way toward the augmentation of the AI in telecommunications market.

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What Trends Will Shape the AI In Telecommunication Market Through 2029 and Beyond?
The significant players in the AI in telecommunications market are making strides in technological advancements like technical controls. These developments aim to bolster data security, assure regulatory compliance, boost operational efficiency, and foster responsible usage of AI technology across their networks. Technical controls are security precautions grounded in technology aiming to protect data and information systems from threats, encompassing tools like encryption, firewalls, and access restrictions. In an instance, the UK-based trade association, the GSM Association (GSMA), in September 2024, introduced the Responsible AI (RAI) Maturity Roadmap for the telecom industry. This blueprint offers telecom operators a structure to appraise and improve their responsible application of AI, including tools for assessing current maturity vis-à-vis strategic objectives and guidelines for deploying best practices. It highlights five critical points: organizational vision, AI governance, regulatory compliance via technical controls, cooperation with third parties, and efficient change management. By underscoring principles such as fairness, privacy, human oversight, transparency, and sustainability, the roadmap positions the telecom sector as a frontrunner in the ethical implementation of AI.

What Are the Main Segments in the AI In Telecommunication Market?
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 Top Companies are Driving Growth in the AI In Telecommunication Market?
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

Which Regions Will Dominate the AI In Telecommunication Market Through 2029?
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

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