AI in telecom market seen topping $27 billion by 2030

By AI, Created 2:36 PM UTC, May 21, 2026, /AGP/ – The Business Research Company says the AI in telecommunication market will exceed $27 billion by 2030, driven by network automation, customer experience tools and security use cases. North America is projected to lead the market, with the U.S. the biggest country and solutions the largest segment.

Why it matters: - AI is moving deeper into telecom operations, from network optimization to fraud detection. - The market’s projected scale suggests telecom operators will keep spending on automation, analytics and security tools. - The report puts the sector at more than $27 billion by 2030, a small but growing slice of the broader AI and IT markets.

What happened: - The Business Research Company released its Artificial Intelligence (AI) in Telecommunication Global Market Report 2026, covering market size, trends and forecasts through 2035. - The report says the AI in telecommunication market will surpass $27 billion in 2030. - The market is forecast to grow at a 42% CAGR leading up to 2030. - The report estimates the AI market will be about $920 billion by 2030, putting AI in telecommunication at around 3% of that total. - The broader information technology market is expected to reach $13,788 billion by 2030, with AI in telecommunication accounting for nearly 0.2%.

The details: - North America is projected to be the largest region in 2030, with a market value of $10 billion. - North America’s market is expected to grow from $2 billion in 2025 at a 43% CAGR. - The report ties that growth to telecom operators and AI providers, 5G infrastructure spending, automation, AI-based network optimization, predictive maintenance, cloud computing, big data analytics and government digital transformation initiatives in the U.S. and Canada. - The USA is expected to be the largest country in 2030, valued at $9 billion. - The U.S. market is forecast to grow from $1 billion in 2025 at a 43% CAGR. - The report links U.S. growth to telecom modernization, predictive maintenance, fault detection, cybersecurity, virtual assistants, chatbots and operator-led efficiency gains. - By component, solutions will be the largest segment in 2030, with 67% of the market or $18 billion. - The solutions segment is expected to benefit from demand for AI platforms, advanced analytics, AI-driven customer analytics and intelligent network security. - The market is also segmented by technology into machine learning, natural language processing, data analytics and other technologies. - The market is segmented by deployment into on-premise and cloud. - The market is segmented by application into customer analytics, network security, network optimization, self-diagnostics, virtual assistance and other applications. - The report says the main growth drivers in the forecast period are network optimization and automation, customer experience management, advanced network security and fraud detection, and AI-driven decision-making tools. - Rising demand for network optimization and automation is projected to contribute about 3.0% annual growth. - Growing adoption of customer experience management solutions is projected to contribute around 2.9% annual growth. - Increasing need for advanced network security and fraud detection is projected to contribute about 2.4% annual growth. - The solution and service markets are expected to generate more than $22 billion in combined market value by 2030. - The solution market is projected to grow by $15 billion from 2025 to 2030. - The service market is projected to grow by $7 billion over the same period. - The report says this growth is supported by AI-driven network optimization, predictive maintenance, real-time analytics, 5G investment, cloud-based AI platforms, machine learning advances and telecom operators integrating AI capabilities. - The Business Research Company says it has published more than 17,500 reports across 27 industries and 60+ geographies. - The company says its research uses 1,500,000 datasets, secondary research and interviews with industry leaders. - The company offers a free sample of the report here and the full report here. - The company also listed contact details and social links, including LinkedIn, Facebook and X.

Between the lines: - The forecast points to telecom AI spending being concentrated in a few high-value use cases: automation, analytics, service personalization and security. - North America and the U.S. lead the outlook, suggesting early enterprise adoption and heavier infrastructure investment than other regions. - The report’s segment breakdown also implies solutions will likely capture most near-term commercial value, while services remain a meaningful add-on.

What’s next: - The report expects the market to keep expanding through 2030 as telecom operators scale AI across network operations and customer service. - Continued 5G rollout, cloud adoption and cybersecurity demands could keep pushing the market beyond the current forecast period. - The solution segment and service segment will remain the key areas to watch for revenue growth.