AI in Networks Market Size Share & Trends

AI in Networks Market Size Share Industry Growth and Trends

[235 Pages Report] 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. The AI in networks market is experiencing high growth driven by increasing adoption of 5G technology, edge computing, IoT and 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. Additionally, as the demand for cloud services is on the rise, there is demand for AI driven network solutions in data centers to optimize network operations. Data center providers are investing heavily towards AI networking solutions to automate and manage network operations, to monitor performance and reduce latency.

AI Impact on the Networks Market

Integrating AI algorithms such as machine learning, Gen AI, and deep learning in networks is becoming increasingly evident as networks become more complex. With the increasing deployment of 5G networks and IoT devices, the demand for advanced networking solutions to manage and automate network operations has grown significantly. AI algorithms help network operators in automation and optimization, network security, predictive maintenance, troubleshooting, performance monitoring, and operational cost reduction.

 For instance, machine learning algorithms help identify patterns of cyber threats by analyzing a vast amount of network traffic data to mitigate threats in real-time. These AI-driven security solutions are used for network security, fraud detection, and prevention in areas like billing and subscriber management, helping telecom service providers (TSPs) reduce losses and improve their financial performance.

Attractive opportunities in the AI in networks market

AI in Networks Market Forecast to 2029

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AI in Networks Market Trends & Dynamics

Driver: Rising adoption of 5G technology

The rise in internet and mobile penetration around the globe is driving the demand for 5G technology for high bandwidth applications such as streaming and online gaming services to rise significantly. 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.

Restraint: 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 Ecosystem

The AI in networks market is dominated by established and financially sound manufacturers with extensive experience in the industry. These companies have diversified product portfolios, cutting-edge technologies, and strong global sales and marketing networks. Leading players in the market include NVIDIA Corporation, Cisco Systems, Inc. (US), Telefonaktiebolaget LM Ericsson (Sweden), Hewlett Packard Enterprise Development LP (US), and Arista Networks, Inc. (US).

Based on the offering, the software in the AI in networks market holds the highest market share during the forecast period.

Software offering is expected to hold the highest share in the AI in networks market during the forecast period. Software solutions in the AI in networks market are highly customized, catering to different requirements of organizations. This includes tailored features, functionalities, and enhanced user interface. Additionally, there is a rise in the demand for cloud-based AI solutions enabling network operators to perform network management tasks from virtually anywhere. This shift towards cloud-based software solutions, reducing physical infrastructure requirements, drives the growth of software offerings.

Based on the technology, AI in the network market for machine learning holds the highest market share during the forecast period.

Machine learning technology in AI in networks market is expected to hold the highest market share during the forecast period. This growth is attributed to its ability in identifying network performance issues and anomalies. Machine learning algorithms help network operators in system monitoring, and identify network anomalies during predictive maintenance, leading to reduced network congestion and efficient resource allocation for high bandwidth networks. The ability to reallocate resources based on network congestion also helps network operators in reducing energy consumption.

Based on the end-use industry, AI in networks for telecom service providers holds the highest market share during the forecast period.

The AI in Networks market for telecom service providers (TSPs) is projected to hold the highest market share during the forecast period. This growth is attributed to the increasing integration of advanced technologies such as AI/ML by network operator to automate and optimize network operations. Telecom operators are integrating AI powered virtual network assistants which helps in quickly identifying network performance issues and suggest actions for network improvement. These virtual assistants reduce the operationsal costs by reducing the human intervention for the network maintenance.

AI in networks market in North America will hold the highest market share during the forecast period.

The AI in networks market for North Ameirca 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. 

AI in Networks Market by Region

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Top Companies AI in Networks Market - Key Market Players

The AI in networks companies is dominated by players such as

• NVIDIA Corporation (US),
• Cisco Systems, Inc. (US),
• Telefonaktiebolaget LM Ericsson (Sweden),
• Hewlett Packard Enterprise Development LP (US),
• Arista Networks, Inc. (US) and others.

Scope of the AI in Networks Market Report

AI in Networks Market Highlights

The study categorizes the AI in networks  market based on the following segments:

Recent Developments

• In June 2024, Arista Networks announced the Arista Etherlink AI platforms, designed to deliver optimal network performance for the most demanding AI workloads, including training and inferencing.
• In April 2024, Cisco launched Catalyst 9300 Series Switches. These are Cisco’s lead stackable access platforms for the next-generation enterprise and have been purpose-built to address emerging trends in Security, IoT, Mobility, and Cloud.
• In March 2024, NVIDIA announced a new wave of networking switches, the X800 series, designed for massive-scale AI. NVIDIA X800 switches are end-to-end networking platforms that enable trillion-parameter-scale generative AI essential for new AI infrastructures.
• In January 2024, Juniper Networks announced the industry's first AI-Native Networking Platform, purpose-built to leverage AI to assure the best end-to-end operator and end-user experiences. Juniper’s AI-Native Networking Platform unifies all campus, branch, and data center networking solutions with a common AI engine and Marvis Virtual Network Assistant (VNA).
• In January 2024, Extreme Networks, Inc. announced 4000 Series cloud-managed switches. The new 4000 Series includes the 4120 and 4220 families and extends Extreme’s innovative Universal Switching portfolio. By leveraging ExtremeCloud solutions, the 4000 Series dramatically reduces the time it takes to deploy and manage new switches.
• In June 2023, Cisco launched the Networking Cloud Platform to simplify the management of networking gear through a single, common interface.
• In May 2023, Juniper Networks announced the latest innovation to its award-winning AI-driven enterprise portfolio, the Juniper Mist Access Assurance service. This new service leverages Mist AI and a modern microservices cloud to provide a full suite of network access control (NAC) and policy management functions via the same flexible and simple framework already included in Juniper’s wired access, wireless access, indoor location, SD-WAN, and secure client-to-cloud portfolio.

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