The AI in networking market consists of software and hardware solutions that leverage machine learning and artificial intelligence technologies to automate various network functions. AI technologies enable network automation by gathering insights from big data, identifying patterns, and applying predictive analysis. They help optimize network performance by managing workloads, ensuring continuity, and enhancing security. The growing need to automate complex network operations and improve performance across various industry verticals is fueling demand for AI in networking solutions.
The Global AI In Networks Market is estimated to be valued at USD 11.5 Bn in 2024 and is expected to reach USD 24.3 Bn by 2031, growing at a compound annual growth rate (CAGR) of 15.7% from 2024 to 2031.
Key Takeaways
Key players operating in the AI in networking market are Cisco, IBM, Huawei, Juniper Networks, Micronet, Nokia, VMware, Ericsson, Netcracker, Samsung and Nvidia among others.
Growing deployment of 5G networks and increasing penetration of cloud-based services present significant growth opportunities for players in the AI In Networks Market. Major networking giants are expanding their geographical footprints to capitalize on the demand for AI-driven networking solutions across Asia Pacific and Middle Eastern countries. For instance, Huawei has established R&D centers in India and expanded its partner network across Southeast Asia.
Market Drivers
Rising network complexity: The increasing adoption of modern technologies such as IoT, cloud and mobility solutions has led to rising network complexity. AI offers effective solutions to automate and optimize complex networking environments.
Enhanced customer experience: Networking companies are leveraging AI capabilities for advanced functionalities such as proactive issue resolution, predictive maintenance and customized service offerings to enhance customer experience.
Market Restraints
Lack of skilled workforce: Advanced AI skills such as deep learning, neural networks and natural language processing required for networking functions are lacking. This acts as a challenge for networking organizations to leverage the full potential of AI.
Data privacy and security concerns: Collection and processing of large networking data using AI tools raises privacy and security risks. Stringent regulations around data usage further impede the adoption of AI in networking.
Segment Analysis
The AI in Networks market is segmented into hardware, software and services. The hardware segment holds the largest share as AI drives the need for high computation hardware like GPUs and dedicated AI chips. Within hardware, servers dominate as AI model training requires high compute power available only with server infrastructure. Moreover networks are increasingly virtualizing and moving to the cloud requiring hardware installations in data centers.
The software segment is further divided into platform and solutions. Platforms that provide AI capabilities like machine learning and deep learning hold major share. These platforms are used by enterprises to build their own AI-based solutions. Network analytics and automation solutions also have significant demand. The services segment comprises consulting, integration, and support services. Integration services have seen increased demand as networks get more software-defined and programmable requiring domain expertise to integrate AI software. Managed services are also growing with network operators outsourcing network management functions to specialists.
Global Analysis
The North America region dominates the global AI in Networks market led by heavy investments in 5G and fiber infrastructure by communication service providers in the US. 5G networks offer high speed and low latency essential for advanced AI applications. Moreover presence of leading AI technology companies and network equipment vendors in the US and Canada boosts regional market growth. The Asia Pacific region is expected to witness the highest growth led by China and India. Governments in these countries are focused on developing domestic networking and telecom equipment industry through investments and policies. Moreover growing penetration of internet and connectivity in Asia Pacific provides a potential market for AI network applications.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
