InterviewUC&C18 Jan 2023 · 3 min read

AI in Telecommunications Market Just under $40 Billion by 2031 - Global Research

New global market research shows that AI in telecommunications is forecast to grow to under $40 billion at $38.8 billion by 2031.

Jonny Wills

AI in telecommunications market forecast 2031

New global market research shows that AI in telecommunications is forecast to grow to under $40 billion at $38.8 billion by 2031.

The report by Portland-based Allied Research Group called AI in Telecommunication Market... Global Opportunity Analysis and Industry Forecast, 2021-2031, laid out some interesting figures for business leaders looking to invest in artificial intelligence, machine learning (ML), natural process learning (NLP) and data analytics.

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The findings showed that global AI in the telecommunications industry produced $1.2 billion in 2021.

The estimation of $38.8 by 2031 translates to a compound annual growth rate (CAGR) of 41.4% from 2022 to 2031.

Reasons for the Expansion of AI

The research provides an analysis of the industry's shifting trends, leading market segments, important investment areas, value chains, regional environment, and competitive environment.

The report says that the reason global AI in the telecommunications market is expanding due to the increasing use of AI solutions in a variety of telecom applications, including:

the ability of AI to provide a more straightforward and more accessible interface in telecommunications
reducing the need for human intervention in network configuration and maintenance
rising demand for high bandwidth as more consumers switch to OTT services

Incompatibilities between telecommunications systems and AI technology may hamper the growth of the global market. On the other hand, the emergence of 5G technology and the growing use of AI-enabled smartphones in the telecommunications sector is projected to present chances for a more robust global market in subsequent years.

UC Market in 2022

According to San Francisco-based market research and consulting firm Grand View Research, the market for unified communications worldwide, estimated to be worth USD 113.48 billion in 2022, is anticipated to increase at a CAGR of 17.4% from 2023 to 2030.

Findings from its report Unified Communications Market Size, Share & Trends Analysis... 2023 - 2030 showed that to boost sales, cut operating costs, and preserve client relationships, businesses have started switching to unified communications (UC) systems. By combining various communication tools, like multimodal communication, onto a single platform, UC is enhancing decision-making. Cooperative communications systems encourage cross-functional communication and provide beneficial effects.

During the anticipated period, it is expected that the following will have a significant impact on market growth:

growing Bring Your Own Device (BYOD) trends
an increase in the mobile workforce and;
the availability of a hybrid workplace model

The Grand View report also claims that the traditional workplace culture that relied on desktops, PCs, and computers as the key means of business communications is being replaced by intelligent appliances. Employees can stay connected at all times and from any location thanks to mobile devices that support UC and therefore go beyond a specific task.

UC Market in 2030

UC Today reported last year that the unified communications market will rise beyond $360 billion by 2030. According to Market Research Future's (MRFR) survey, the global market for UC will be worth $365.2 billion by 2030.

The analysis predicted that the compound annual growth rate (CAGR) will be 21.25% for the projected period (2021-2030). The growing use of the Internet of Things (IoT) in unified communications is the primary growth factor.

With several key players already in the industry and increasing adoption of BYOD solutions, North America is expected to lead and strengthen the UC market. The report projected that the APAC region would exhibit the most significant CAGR during the forecast period.