Global AI in Telecommunication Market 2025-2035
Description
Global AI in Telecommunication Market Size, Share & Trends Analysis Report by Component (Solution, and Service), by Application (Network Security, Network Optimization, Customer Analytics, Virtual Assistance, Self-Diagnostics, and Others) by Vertical (Machine Learning (ML), Natural Language Processing (NLP), Deep Learning (DL), and Others), Forecast Period (2025-2035)
Industry Outlook
Artificial Intelligence in telecommunications market was valued at $2.7 billion in 2024 and is anticipated to grow at a CAGR of 14.7% during the forecast period (2025-2035). The expansion of the market is attributed to increasing automation, real-time data analytics, and future-deciding decisions that increase operational efficiency and cost-effectiveness. The demand for AI-operated solutions such as automated network optimization, smart customer service, and predictive maintenance aims to enhance telecommunications operations by reducing human intervention and errors. Similarly, machine learning-based fraud detection, AI-driven network security, and blockchain-enabled data management are reshaping the industry. This enables solving major challenges, including network congestion, fluctuating data demands, and the need for permanent connectivity solutions.
Segmental Outlook
The global AI in telecommunications market is segmented based on components and applications. Based on components, the market is sub-segmented into solutions and services. Based on applications, the market is sub-segmented into network security, network optimization, customer analytics, virtual assistance, self-diagnostics, and others, including Quality of Service (QoS) enhancement and network planning and optimization. Among applications, the network security sub-segment is estimated to hold a significant share of the market owing to the increasing need for AI-driven cybersecurity measures that enhance threat detection, prevent fraud, and ensure secure communication networks.
Customer Analytics is Anticipated to Hold a Considerable Share of the Global AI in Telecommunications Market
In the sub-section on applications, the AI-driven telecommunications industry estimates that global artificial intelligence technologies play an important part in the growth of the market for the forecast period. AI-powered solutions such as predictive customer behavior analytics, personalized service recommendations, and real-time sentiment analysis play an important role in enhancing customer experience by enabling data-driven decisions. These advancements in AI technology help to monitor changing user preferences and network demands, improving overall service quality and operational efficiency. The increasing integration of automation and IoT-based solutions in telecommunications has further increased the demand for AI-driven customer analytics. For instance, in January 2025, AI Touch LLP received a grant under the Department of Telecommunications Telecom Technology Development Fund (TTDF) scheme to develop an AI-driven 5G RAN platform. This platform integrates components such as the RAN Intelligent Controller (RIC), Service Management and Orchestration (SMO), and Network Data Analytics Function (NWDAF), aiming to enhance network automation and performance. This initiative highlights the increasing adoption of AI in telecommunications to improve operational efficiency and customer experience.
Regional Outlook
The global AI in telecommunication market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, ASEAN Countries, Australia and New Zealand and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). In the regional outlook, North America is expected to dominate the market for AI in the telecommunications market, owing to the widespread adoption of advanced solutions such as AI-powered network optimization, predictive analytics, and automated customer support systems. These technologies enable telecom providers to enhance service quality, improve network efficiency, and deliver personalized customer experiences, driving overall market growth in the region.
The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global AI Telecommunications Market
The Asia-Pacific region is expected to see sufficient growth with the highest CAGR among other regional segments for the forecast period. The regional expansion is driven by increasing supply chain automation and efficiency and the growing adoption of AI-powered logistics, smart warehousing, and predictive analytics solutions. The rising focus on digital transformation and intelligent inventory management in emerging economies such as China, India, and Japan is further enhancing the demand for advanced AI in supply chain technologies. Additionally, supportive government policies and increasing investments in AI-driven supply chain innovations are accelerating market growth. For instance, in June 2023, the Telecom Regulatory Authority of India (TRAI) mandated that all access providers implement Unsolicited Commercial Communication (UCC) detection systems utilizing artificial intelligence (AI) and machine learning (ML). This initiative aims to identify and take action against unregistered telemarketers sending unsolicited communications, thereby enhancing telecom security and improving customer experience.
Market Players Outlook
The major companies serving the telecommunications market include AT&T Inc., Ericsson AB, Huawei Technologies Co. Ltd., IBM Corp., Nokia Corp., and others. These market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in October 2023, Bharti Airtel collaborated with Amdocs to accelerate digital transformation. This partnership aims to enhance customer experience by automating and digitizing Airtel's business operations, facilitating the creation of unified plans across multiple services such as mobile, broadband, and direct-to-home offerings.
The Report Covers
Industry Outlook
Artificial Intelligence in telecommunications market was valued at $2.7 billion in 2024 and is anticipated to grow at a CAGR of 14.7% during the forecast period (2025-2035). The expansion of the market is attributed to increasing automation, real-time data analytics, and future-deciding decisions that increase operational efficiency and cost-effectiveness. The demand for AI-operated solutions such as automated network optimization, smart customer service, and predictive maintenance aims to enhance telecommunications operations by reducing human intervention and errors. Similarly, machine learning-based fraud detection, AI-driven network security, and blockchain-enabled data management are reshaping the industry. This enables solving major challenges, including network congestion, fluctuating data demands, and the need for permanent connectivity solutions.
Segmental Outlook
The global AI in telecommunications market is segmented based on components and applications. Based on components, the market is sub-segmented into solutions and services. Based on applications, the market is sub-segmented into network security, network optimization, customer analytics, virtual assistance, self-diagnostics, and others, including Quality of Service (QoS) enhancement and network planning and optimization. Among applications, the network security sub-segment is estimated to hold a significant share of the market owing to the increasing need for AI-driven cybersecurity measures that enhance threat detection, prevent fraud, and ensure secure communication networks.
Customer Analytics is Anticipated to Hold a Considerable Share of the Global AI in Telecommunications Market
In the sub-section on applications, the AI-driven telecommunications industry estimates that global artificial intelligence technologies play an important part in the growth of the market for the forecast period. AI-powered solutions such as predictive customer behavior analytics, personalized service recommendations, and real-time sentiment analysis play an important role in enhancing customer experience by enabling data-driven decisions. These advancements in AI technology help to monitor changing user preferences and network demands, improving overall service quality and operational efficiency. The increasing integration of automation and IoT-based solutions in telecommunications has further increased the demand for AI-driven customer analytics. For instance, in January 2025, AI Touch LLP received a grant under the Department of Telecommunications Telecom Technology Development Fund (TTDF) scheme to develop an AI-driven 5G RAN platform. This platform integrates components such as the RAN Intelligent Controller (RIC), Service Management and Orchestration (SMO), and Network Data Analytics Function (NWDAF), aiming to enhance network automation and performance. This initiative highlights the increasing adoption of AI in telecommunications to improve operational efficiency and customer experience.
Regional Outlook
The global AI in telecommunication market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, ASEAN Countries, Australia and New Zealand and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). In the regional outlook, North America is expected to dominate the market for AI in the telecommunications market, owing to the widespread adoption of advanced solutions such as AI-powered network optimization, predictive analytics, and automated customer support systems. These technologies enable telecom providers to enhance service quality, improve network efficiency, and deliver personalized customer experiences, driving overall market growth in the region.
The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global AI Telecommunications Market
The Asia-Pacific region is expected to see sufficient growth with the highest CAGR among other regional segments for the forecast period. The regional expansion is driven by increasing supply chain automation and efficiency and the growing adoption of AI-powered logistics, smart warehousing, and predictive analytics solutions. The rising focus on digital transformation and intelligent inventory management in emerging economies such as China, India, and Japan is further enhancing the demand for advanced AI in supply chain technologies. Additionally, supportive government policies and increasing investments in AI-driven supply chain innovations are accelerating market growth. For instance, in June 2023, the Telecom Regulatory Authority of India (TRAI) mandated that all access providers implement Unsolicited Commercial Communication (UCC) detection systems utilizing artificial intelligence (AI) and machine learning (ML). This initiative aims to identify and take action against unregistered telemarketers sending unsolicited communications, thereby enhancing telecom security and improving customer experience.
Market Players Outlook
The major companies serving the telecommunications market include AT&T Inc., Ericsson AB, Huawei Technologies Co. Ltd., IBM Corp., Nokia Corp., and others. These market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in October 2023, Bharti Airtel collaborated with Amdocs to accelerate digital transformation. This partnership aims to enhance customer experience by automating and digitizing Airtel's business operations, facilitating the creation of unified plans across multiple services such as mobile, broadband, and direct-to-home offerings.
The Report Covers
- Market value data analysis of 2025 and forecast to 2035.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global AI in telecommunication market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where’ in the market.
Table of Contents
175 Pages
- 1 Report Summary
- Current Industry Analysis and Growth Potential Outlook
- Global AI in Telecommunication Market Sales Analysis – Component | Application | Vertical ($ Million)
- 1.1. Research Methods and Tools
- 1.2. Market Breakdown
- 1.2.1. By Segments
- 1.2.2. By Region
- 2. Market Overview and Insights
- 2.1. Scope of the Study
- 2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Global AI in Telecommunication Market Industry Trends
- 2.2.2. Market Recommendations
- 2.2.3. Conclusion
- 3. Market Determinants
- 3.1. Market Drivers
- 3.1.1. Drivers For Global AI in Telecommunication Market: Impact Analysis
- 3.2. Market Pain Points and Challenges
- 3.2.1. Restraints For Global AI in Telecommunication Market: Impact Analysis
- 3.3. Market Opportunities
- 4. Competitive Landscape
- 4.1. Key Company Analysis
- 4.2. AT&T Inc.
- 4.2.1. Overview
- 4.2.2. Financial Analysis
- 4.2.3. SWOT Analysis
- 4.2.4. Recent Developments
- 4.3. Telefonaktiebolaget LM Ericsson
- 4.3.1. Overview
- 4.3.2. Financial Analysis
- 4.3.3. SWOT Analysis
- 4.3.4. Recent Developments
- 4.4. Huawei Technologies Co. Ltd.
- 4.4.1. Overview
- 4.4.2. Financial Analysis
- 4.4.3. SWOT Analysis
- 4.4.4. Recent Developments
- 4.5. Key Strategy Analysis
- 5. Market Segmentation
- 5.1. Global AI in Telecommunication Market by Component ($ Million)
- 5.1.1. Solution
- 5.1.2. Service
- 5.2. Global AI in Telecommunication Market by Application ($ Million)
- 5.2.1. Network Security
- 5.2.2. Network Optimization
- 5.2.3. Customer Analytics
- 5.2.4. Virtual Assistance
- 5.2.5. Self-Diagnostics
- 5.2.6. Others (Quality of Service (QOS) Enhancement, and Network Planning and Optimization)
- 5.3. Global AI in Telecommunication Market by Vertical ($ Million)
- 5.3.1. Machine Learning (ML)
- 5.3.2. Natural Language Processing (NLP)
- 5.3.3. Deep Learning (DL)
- 5.3.4. Others
- 6. Regional Analysis
- 6.1. North America AI in Telecommunication Market Sales Analysis – Component | Application | Vertical | Country ($ Million)
- 6.1.1. United States
- 6.1.2. Canada
- 6.2. Europe AI in Telecommunication Market Sales Analysis – Component | Application | Vertical | Country ($ Million)
- 6.2.1. UK
- 6.2.2. Germany
- 6.2.3. Italy
- 6.2.4. Spain
- 6.2.5. France
- 6.2.6. Rest of Europe
- 6.3. Asia-Pacific AI in Telecommunication Market Sales Analysis – Component | Application | Vertical | Country ($ Million)
- 6.3.1. China
- 6.3.2. India
- 6.3.3. Japan
- 6.3.4. South Korea
- 6.3.5. Australia & New Zealand
- 6.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And others)
- 6.3.7. Rest of Asia-Pacific
- 6.4. Rest of the World AI in Telecommunication Market Sales Analysis – Component |Application | Vertical | Country ($ Million)
- 6.4.1. Latin America
- 6.4.2. Middle East and Africa
- 6 Company Profiles
- 6.1 6D Technologies
- 6.2 China Mobile Ltd.
- 6.3 Cisco Systems, Inc.
- 6.4 Google LLC
- 6.5 H2O.ai, Inc.
- 6.6 IBM Corp.
- 6.7 Infosys Ltd.
- 6.8 Intel Corp.
- 6.9 KT Corp.
- 6.10 Microsoft Corp.
- 6.11 Nokia Corp.
- 6.12 NTT Communications Corp.
- 6.13 Nuance Communications, Inc.
- 6.14 NVIDIA Corp.
- 6.15 Orange SA
- 6.16 Salesforce, Inc.
- 6.17 SK Telecom Co., Ltd.
- 6.18 Telefonaktiebolaget LM Ericsson
- 6.19 Telstra Group Ltd.
- 6.20 Vodafone Group Plc
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