Tuesday, June 25, 2024

    MNO spend on AI network orchestration to top $20bn by 2028, in drive to cut costs

    Global network operator spend on AI for network orchestration is set to generate $20bn by 2028; rising 240% from $6bn in 2024, according to data from Juniper Research.

    The report predicts that enterprises’ increasing use of cellular networks, including for smart manufacturing and autonomous vehicles, will necessitate further investment into AI that automates key network processes.

    These use cases require various degrees of high throughput, low latency and geographical coverage. Therefore, to maximise networks’ efficiency and reduce operational expenditure, the report urged operators to accelerate the incorporation of AI into core networks.

    Find out more about the new report: Global AI in Network Orchestration Market 2024-2028, or download a free sample.

    AI investment critical for network performance & security

    The report finds that, as operators expand established 5G networks and build future 6G networks, AI must play an essential role. It identifies performance optimisation and network security as the most important use cases; accounting for more than 50% of global operator spend on AI by 2028.

    Additionally, ever-increasing virtualisation of network functions and demand for cellular data will drive operators to implement AI to decrease operational costs. It predicted that the ability to automate real-time network analysis and adjust network conditions accordingly will be crucial to minimising the costs associated with network management and service provision.

    Research author Frederick Savage comments: “As operators compete on the quality of their networks, AI will be essential to maximising the value of using a cellular network for connectivity. High-spending users will gravitate to those networks that can provide the best service conditions.”

    Find out more about how AI can help MNOs orchestrate networks – and add many other efficiencies – here

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