The global artificial intelligence in the telecommunication market size was valued at USD 679.1 million in 2020 and is estimated to expand at a CAGR of 38.5% during the forecast period, 2021–2028. The growth of the market is attributed to the use of artificial intelligence (AI) to improve customer experience and network dependability, among other things.
Artificial intelligence (AI) is an advanced technology that focuses on developing intelligent machines to perform several tasks without the interference of human intelligence. AI in telecommunications implies the adoption of intelligent solutions to improve the electrical transmission of data over great distances, which include speech, data, and video transmissions of various kinds. AI is most widely used by telecommunications corporations for various customer service applications. Chatbots and virtual assistants are being used to help with a vast number of installations, maintenance, and troubleshooting questions. Virtual assistants also scale and automate responses to support claims, enhancing the customer experience while saving expenses. Vodafone Ltd., for example, saw a 68% improvement in customer experience after introducing its chatbot, TOBi, to manage customer problems. Mobile communications are increasingly shifting from fourth-generation (4G) to fifth-generation (5G) in the telecommunications industry that would allow to offer various key services such as higher data transfer speeds and ultra-low latency of communication networks. Furthermore, the growth of over-the-top (OTT) services such as video streaming, has altered the distribution and consumption of audio and video content.
The COVID-19 pandemic has resulted in significant and severe changes in our daily life and corporate practices. Many businesses have put on hold their offices as employees were given opportunity to work from home and schools were shut vastly. As several businesses are turning their eyes on to online learning and conferences, the demand for advanced technology on telecom services are rising substantially. As a result, telecom businesses are increasingly offering automation and AI to improve customer care and network efficiency.
Market Trends, Drivers, Restraints, and Opportunities
- AI in telecommunication assists network operations in detecting and diagnosing issues such as Service-Level Agreement breaches. This factor is driving the market growth.
- Minimizing the amount of human interaction required for network configuration and maintenance, AI offer cost-effective services that can help the telecom industry save money. Henceforth, low maintenance of solutions is estimated to fuel the market.
- Lack of expertise handling the system and scarcity of data analytics tools are major challenges that can hinder the market growth.
- Increasing customer service automation allows telecom businesses to save money and expansion of virtual help ensures smooth networking. These are key factors creating significant growth opportunities for the market during the forecast period.
Scope of the Report
The report on the global artificial intelligence in telecommunication market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Artificial Intelligence in Telecommunication Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Applications (Virtual Assistance, Self-diagnostics, Customer Analytics, Network Security, Network Optimization, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Evolv Technology Solutions, Inc.; H2O.ai; Infosys Limited; Salesforce.com, Inc.; NVIDIA Corporation; IBM Corporation; Microsoft; Intel Corporation; Google; AT&T Intellectual Property; Cisco Systems; and Nuance Communications, Inc.
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Artificial Intelligence in Telecommunication Market Segment Insights
Virtual assistance segment is expected to grow at a rapid pace
Based on applications, the artificial intelligence in telecommunication market is divided into virtual assistance, self-diagnostics, customer analytics, network security, network optimization, and others. The virtual assistance segment is expected to grow at a rapid pace during the forecast period due to the fact that customer service automation saves telecom firms a lot of money. AI allows operators to collect and evaluate client data from perspective of a subscriber intelligencer. This information can be used in a variety of ways including adverts and personalized offers for subscribers. However, the customer analytics segment is anticipated to hold a key share of the market in the coming years due to the increased demand for real-time behavioral insights. In the communication business, customer service chatbots estimated to be properly educated, since machine learning algorithms are able to automate enquires and send clients to the most appropriate representative.
Asia Pacific is anticipated to constitute a key market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of the Asia Pacific is expected to constitute a key share of the market during the projected period due to rapid introduction of technological advancement in the telecom industry in the emerging economies such as China and India. However, the market of North America is anticipated to expand at a rapid pace during the forecast period owing to the growing number of telecom businesses that use automation and AI for customer care, engagement, and corporate efficiency in the region.
Segments
Segments Covered in the Report
The global artificial intelligence in telecommunication market has been segmented on the basis of
Applications
- Virtual Assistance
- Self-diagnostics
- Customer Analytics
- Network Security
- Network Optimization
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Evolv Technology Solutions Inc.
- H2O.ai
- Infosys Limited
- Salesforce.com, Inc.
- NVIDIA Corporation
- IBM Corporation
- Microsoft
- Intel Corporation
- Google
- AT&T Intellectual Property
- Cisco Systems
- Nuance Communications, Inc.
Competitive Landscape
Key players competing in the global artificial intelligence in telecommunication market are Evolv Technology Solutions, Inc.; H2O.ai; Infosys Limited; Salesforce.com, Inc.; and NVIDIA Corporation; IBM Corporation; Microsoft; Intel Corporation; Google; AT&T Intellectual Property; Cisco Systems; and Nuance Communications, Inc.
Vendors in the industry are concentrating their efforts on expanding their client base through strategic initiatives such as partnerships, mergers and acquisitions, and collaborations. In May 2019, Vodafone Ltd. had made an agreement with IBM Corp to give the former company with a hybrid cloud-based digital platform. Huawei Technologies Co., Ltd., a global telecommunications equipment and consumer electronics manufacturer, had entered into a collaboration with China Telecom Corporation Ltd., a provider of internet access and mobile telecommunications services. Based on the network AI Engine, this partnership was expected to investigate radio cell capacity prediction and wireless network cell anomaly detection.
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