Generative Artificial Intelligence (AI) In Telecom Market Insights 2025-2034: Growth Forecast and Strategic Priorities

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Generative Artificial Intelligence (AI) In Telecom Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The market size of generative artificial intelligence (AI) in the telecom sector has seen an exponential rise in the past few years. The market which was valued at $0.48 billion in 2024 will escalate to $0.73 billion in 2025, marking a compound annual growth rate (CAGR) of 53.5%. This growth in the historic period is influenced by the rising demand for premium customer service, wider adoption of automation, increasing over-the-top services, along with the expansion in the number of telecom companies.

Generative Artificial Intelligence (AI) In Telecom Market Size Forecast: What's the Projected Valuation by 2029?
The market size for generative artificial intelligence (AI) in the telecom sector is predicted to experience a surge in the coming years, reaching a value of $4.03 billion by 2029 with a compound annual growth rate (CAGR) of 53.2%. The anticipated growth during the forecast period can be attributed to factors such as the rising implementation of AI-driven chatbots, the proliferation of smart city initiatives, increasing digital outreach, the growing number of internet of things (IoT) devices, and escalating network demands. The forecast period is also expected to see significant trends such as advancements in AI technologies, novel telecom solutions, integration of avant-garde technologies, progression in digital transformation and innovation, and the incorporation of IoT edge computing.

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What Are the Drivers Transforming the Generative Artificial Intelligence (AI) In Telecom Market?
The surge in Internet of Things (IoT) devices is anticipated to spur the expansion of generative artificial intelligence in telecom markets in the future. IoT devices are interconnected devices that leverage advanced connectivity to exchange and communicate data across networks. The swelling number of IoT devices is fueled by technological advancements, declining costs, and the growing requirement for automation and data-driven insights. AI in telecom can fortify IoT device connectivity by optimizing network management and forecasting maintenance requirements, resulting in enhanced efficiency and scalability. For example, a report released by Ericsson, a telecommunications firm based in Sweden, showed that global IoT connections had reached 15.7 billion in 2023. These connections are predicted to increase by 16% to 38.8 billion by 2029. Consequently, the rising number of IoT devices is bolstering the growth of generative artificial intelligence in the telecom market.

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What Long-Term Trends Will Define the Future of the Generative Artificial Intelligence (AI) In Telecom Market?
Firms which are significant players in the generative artificial intelligence sector within the telecom market are concentrating their efforts on the creation of highly advanced solutions like GenAI Telco platforms. These platforms have been specifically designed with the telecom industry in mind, with AI-driven systems meant to automate procedures, boost network management and enrich client experiences. For instance, in September 2023, the IT firm based in the US known as Netcracker Technology introduced the GenAI Telco solution with a view to hasten the incorporation of high-value use scenarios within the telecom business. This solution provides communication service providers (CSPs) the ability to use their valuable telecom data securely, hence providing significant benefits to customers, affiliates and their own firms. The GenAI Telco Platform possesses capabilities for management of knowledge for the creation, examination, and optimization of telecom-specific cases like customer care, business operations, sales, and network management. By integrating with widely used AI models, this solution enables CSPs to boost customer engagement, enhance operational efficacy, and accomplish substantial cost reduction while adhering to data protection rules.

Which Segments in the Generative Artificial Intelligence (AI) In Telecom Market Offer the Most Profit Potential?
The generative artificial intelligence (AI) in telecom market covered in this report is segmented -

1) By Type: Text-Based, Image-Based, Voice-Based
2) By Component: Software, Services
3) By Deployment: On-Premises, Cloud-Based, Edge, Hybrid
4) By Application: Network Optimization, Predictive Maintenance, Improve Call Center Operations And Customer Support, Personalized Product Or Service Recommendations, Security And Fraud Detection, marketing And Personalized Product Recommendations, Other Applications

Subsegments:
1) By Text-Based: Chatbots And Virtual Assistants, Automated Customer Support, Sentiment Analysis Tools, Text Summarization And Generation
2) By Image-Based: Visual Quality Inspection, Image Recognition Systems, Augmented Reality (AR) Applications, Facial Recognition Technologies
3) By Voice-Based: Voice Assistants, Speech Recognition Systems, Voice Biometrics For Security, Voice Analysis For Customer Insights

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Which Firms Dominate the Generative Artificial Intelligence (AI) In Telecom Market by Market Share and Revenue in 2025?
Major companies operating in the generative artificial intelligence (AI) in telecom market are Amazon Web Services, Microsoft Corporation, Verizon Communications Inc., AT&T Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., International Business Machines Corporation, Vodafone Group Public Limited Company, Telefónica S.A., Nvidia Corporation, Telefonaktiebolaget LM Ericsson, Capgemini SE, NTT DATA, Infosys Limited, Wipro Limited, Amdocs Limited, Ciena Corporation, Netcracker Technology Corporation, UiPath Inc., Gsma Advisory Services Ltd, C3.AI inc, LeewayHertz Technologies Pvt Ltd, Subex Ltd, Alepo Technologies Private Limited, Cresta Intelligence Inc, Xaltius Pte. Ltd., Binmile Technologies Private Limited's, Kanerika

Which Regions Offer the Highest Growth Potential in the Generative Artificial Intelligence (AI) In Telecom Market?
North America was the largest region in the generative AI in telecom market in 2024. The regions covered in the generative artificial intelligence (AI) in telecom market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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