Markets and Markets: Global AI in Networks market worth $10.9 billion in 2024; projected to reach $46.8 billion by 2029
According to research firm Markets and Markets, the global AI in Networks market is expected to be valued at USD 10.9 billion in 2024 and is projected to reach USD 46.8 billion by 2029 and grow at a CAGR of 33.8% from 2024 to 2029. AI in networks market is experiencing high growth driven by increasing adoption of 5G technology, edge computing, IoT connected devices, and expansion of smart cities. Increasing deployment of 5G networks has led to the vast amount of network data, generated by high bandwidth application such as video streaming and online gaming, driving network operators to integrate AI driven solutions to manage network data and allocate resources to reduce network congestion. Network operators are also integrating AI driven solutions to automate network operations and predictive maintenance, to reduce human dependency and errors, leading to efficient network management.
Network operators invest heavily in developing AI-driven solutions to manage and optimize network traffic. AI in networks allows operators to efficiently perform network management tasks such as traffic routing, resource allocation, and network security. As the 5G technology advances, the demand for cybersecurity solutions will also rise, driving the AI in networks market.
Constraint: Data privacy and security concerns in AI in networks
Integration of artificial intelligence technology in the networking leads to various risks affiliated with collecting, storing, and transmitting network traffic data. AI driven network collect users and network operations data information, creating a high risk environment of privacy breaches, due to the rising cyberthreats. These cyberattacks may lead to unauthorized access to network and user data, disrupting network operations. Additionally, data generated by connected and Iot devices such as smartphones, smart home systems, surveillance system is collected by network, leads to concerns regarding unauthorized surveillance and cyberattacks.
Opportunity: Increasing prevalence of smart city initiatives
Rapid urbanization has led to the exapsnion of smart cities globally. Countries around the world are investing heavily towards smart infrastructure by integrating advanced technologies such as artificial intelligence (AI). For instance, smart city ecosystem consist of various sensors and connected and IoT devices, and to ensure efficient transmission and processing of data generated by these sensor and devices. AI driven network solutions play a vital role in collecting and processing of data, identifying anomalies and equipment failure based on present and historical data, helping network operator to schedule maintenance in advance and reduce downtime.
Challenge: Rapid change in the technology landscape
As the technology landscape evolves rapidly, AI presents a major challenge in the network market. As new technologies appear and current technology evolves, companies in the ecosystem must continuously invest in the research and development of changing market demand and advancements. Additionally, intense competition in the market and pressure to offer innovative solutions further restrict companies from maintaining market leadership. Companies’ negligence in identifying the technological shift can result in a decline in market share and revenue.
AI in networks market in North America will hold the highest market share during the forecast period.
The AI in networks market for North America is expected to hold the highest market share during the forecast period. This growth is attributed to the presence of leading AI and network technology companies in the region. These companies are investing heavily towards the advancement of technologies such as AI, 5G, edge computing, due to the high internet penetration rate in the region. The demand for high bandwidth network application such as video streaming and online gaming also on the rise, driving the investments and innovations towards AI driven solutions in network management.
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References:
https://www.marketsandmarkets.com/Market-Reports/ai-in-networks-market-131514910.html