AI In Networks Market Impacted Positively as of Transforming Telecommunications and Connectivity

The global AI in networks market size was estimated at USD 8.67 billion in 2023 and is projected to reach USD 60.60 billion by 2030, growing at a CAGR of 32.5% from 2024 to 2030. The exponential data growth generated by IoT devices, cloud computing, and digital services has created a pressing need for advanced network management solutions.

AI technologies help optimize bandwidth, reduce latency, and enhance overall network performance to manage this growing traffic. Furthermore, organizations are increasingly seeking automation to cut operational costs and improve efficiency. AI-driven solutions can automate routine network management tasks, such as monitoring, troubleshooting, and configuration, allowing IT teams to concentrate on more strategic initiatives.

The rise in cyber threats has made network security a top business priority. AI can enhance cybersecurity by providing real-time threat detection, anomaly identification, and automated responses to security incidents, making networks more resilient against attacks. Businesses require real-time insights from their network data to make informed decisions. AI technologies enable predictive analytics, allowing organizations to anticipate issues before they arise and optimize network performance accordingly.

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Key Market Trends & Insights

• North America dominated the market with a revenue share of over 40.0% in 2023. Its well-established technological ecosystem with advanced IT infrastructure enables rapid adoption of AI solutions for network management. Moreover, with an increasing number of cyber threats, organizations in North America prioritize advanced security measures.
• The AI in networks market in the U.S. is anticipated to exhibit a significant CAGR over the forecast period.
• Based on component, the software segment led the market in 2023, accounting for over 43.0% share of the global revenue. Increased adoption of AI technologies, growing need for real-time data processing, automation of network management, and cloud migration are primarily contributing to the segment’s growth.
• Based on deployment, the cloud segment accounted for the largest market revenue share in 2023. Cloud-based solutions offer scalability, allowing organizations to adjust their resources based on demand easily. This flexibility is crucial for handling varying workloads and accommodating future growth.
• Based on technology, Machine Learning (ML) accounted for the largest market revenue share in 2023. As networks become more complex due to the integration of IoT devices, cloud services, and 5G technologies, ML algorithms can analyze vast amounts of data to optimize performance and manage network operations effectively.

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Market Size & Forecast

• 2023 Market Size: USD 8.67 Billion
• 2030 Projected Market Size: USD 60.60 billion
• CAGR (2024 to 2030): 32.5%
• North America: Largest market in 2023

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Key Companies & Market Share Insights

Key AI in networks companies include Nokia, Cisco Systems, Inc., and Huawei Technologies Co., Ltd. Companies active in the market are focusing aggressively on expanding their customer base and gaining a competitive edge over their rivals. Therefore, they pursue various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product/technology development. For example, in June 2024, Huawei Technologies Co., Ltd., an ICT infrastructure and smart devices provider, announced an initiative to integrate AI into networks; this strategy aims to create a RAN Intelligent Agent ecosystem in partnership with network operators to boost network efficiency. The initial phase targets engaging 1,000 site engineers and expanding to 10,000 locations in cities such as Guangzhou, Hangzhou, Shenzhen, Jinan, and Bangkok over six months.

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Key Players

• Arista Networks, Inc.
• Broadcom
• Cisco Systems, Inc.
• Extreme Networks
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Juniper Networks, Inc.
• Nokia
• Telefonaktiebolaget LM Ericsson
• ZTE Corporation

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Conclusion

The AI in networks market is poised for substantial growth, driven by the increasing demand for advanced network management solutions, automation, and enhanced cybersecurity measures. With significant contributions from North America and the software and cloud segments, the market is set to evolve rapidly. Companies are strategically investing in AI technologies to secure their competitive position as they adapt to the complexities of modern network demands.