The Global AI in Telecom Market was valued at US$ 971.2 Mn in 2020 and is expected to reach US$ 9365.5 Mn by 2027, with a growing CAGR of 39.8% during the forecast period (2021-2027).
The Global AI in Telecom Market Definition:
AI technology can change the operations and functions of various industries because it has potential to achieve innovation of various ideas. In particular, it has a wide range of applications of artificial intelligence, such as telecommunication front-end customer service, network performance, etc.
The Global AI in Telecom Market Snapshot:
The Global AI in Telecom Market Dynamics:
AI in the telecom market is growing at a significant growth rate during the forecast period. The growth is attributed to the focus on the advancements in technology and improving customer experience. Telecommunications is one of the fastest-growing industries that are using AI in many aspects of their business, including improving the customer experience and the reliability of networks. Telecom companies are primarily using AI for customer service applications. For example, it uses chatbots and virtual assistants to respond to numerous support requests for installation, maintenance, and troubleshooting.
Moreover, virtual assistants also deploy and automate responses to support requests to improve customer convenience and reduce business costs. For instance, Vodafone Ltd. has improved its customer experience by 68% after introducing a Chatbot called TOBi to handle customer inquiries.
Additionally, growing Over-The-Top (OTT) services such as video streaming have transformed the dissemination and consumption of audio and video content. As more consumers use OTT services, consumer demand for bandwidth has increased significantly. There is upsurge traffic on OTT services are linked to high operating costs (OpEx) in the telecom industry. AI helps the telecommunications industry reduce operating costs by minimizing the human intervention required to configure and maintain networks. Automation also allows telecom companies to onboard customers faster while introducing new services faster.
Company Profiles and Competitive Intelligence
The key players operating in the AI in telecom market are:
Based on the applications, the customer analytics segment is accounted for the largest market share in the overall AI in telecom market size owing to increasing need of real-time behavioural insights
The customer analytics segment is expected to witness the highest market growth rate owing to the growing need for real-time behavioral insights. Artificial intelligence allows operators to collect and analyze customer data in terms of subscriber intelligence. This information can be further used in several scenarios, including advertising and personalized offers for subscribers. Operators can also use this information to realize optimization of the network by using network resources more efficiently.
There is a need to study the customers and users of the product and services as an individual to analyze and customize the product and service to provide an enhanced customer experience. Customer analytics helps organizations to collect, analyze and track the users and their buying behaviors thoroughly. Several companies incorporate customer analytics technology to study their customers. For instance, according to an article published by Bit.AI, a customer analytics tool named ‘Mixpanel’ is utilized by approximately 26,000 companies worldwide making it a leading analytics tool.
Based on regions, the AI in telecom market in North America accounted for the largest share in 2020 owing to the increasing number of telecom companies in the region, followed by Asia Pacific and Europe
Geographically, the North American region held the largest market share for AI in the telecom market in the year 2020. The dominance is accounted to continue throughout the forecast period. The region is one of the earliest adopters of advanced technology and the growth of the region is also supported by a growing number of telecom companies using automation and AI for customer service and network optimization. For instance, in 2018 AT&T Intellectual Property launched mobile 5G powered by edge AI computing in the US. According to the 'Aithority', AI technology insights, the AT&T Company is using artificial intelligence and machine learning to transform customer experience and the company also observed a 7% decrease in the distance travelled per dispatch with a 5% rise in productivity.
Asia Pacific region is anticipated to witness the fastest growth rate during the forecast period owing to the technological advancements in developing countries such as India, Japan, and China. For instance, in 2019, Huawei Technologies Co., Ltd., telecommunications equipment and consumer electronics provider, and China Telecom Corporation Ltd., provider of internet access and mobile telecommunications services announced a collaboration to explore more on wireless network cell anomaly detection, and radio cell capacity prediction based on Network AI Engine (NAIE).
The report also provides an in-depth analysis of AI in telecom market dynamics such as drivers, restraints opportunities and challenges
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report.
COVID-19 Impact on the AI in Telecom Market Analysis
The impact of COVID-19 has greatly affected the AI in telecom market. The outbreak of covid-19 has led to a massive rise in telecommunication industry. All the industries were forced to shift towards work from home trend and thus the telecommunication network industry has grown at a rapid pace. Varied technological advancements in telecommunication industry such as incorporation of 5G network, Artificial Intelligence (AI), Internet of Things (IoT), Big Data, and Distributed Ledger Technology (DLT) are thus growing at a significant speed During the pandemic period, all the companies and organizations were connected through telecommunication and thus there is an rapid increase observed in the telecommunication industry.
The report also provides an in-depth analysis of key trends in AI in telecom market
|1||The trend of shifting to 5G network for the advantages such as higher capacity, increased bandwidth compared to 4G, and lower latency is driving the AI in telecom market growth||Positive|
|2||The increasing number of AI-enabled smartphones demand is propelling the AI in telecom market growth during the forecast period||Positive|
The report also provides an in-depth analysis of recent news developments and investments
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