AI Investment in Network Orchestration to Hit $20B by 2028

March 7, 2024
As cellular networks rapidly expand, Juniper Research foresees a significant surge in AI investment for network management. By 2028, AI spending by global network operators is expected to reach $20 billion, up from $6 billion in 2024. This represents a massive 240% increase within four years. The proliferation of smart manufacturing and the burgeoning autonomous vehicle industry are key drivers of this growth. Both sectors rely heavily on networks that can deliver high throughput, low latency, and extensive coverage. To meet these evolving demands and maintain a competitive advantage, network operators are increasingly turning to AI-based solutions. These technologies are pivotal in handling the escalating complexity of modern networks and ensuring that they can support a wide array of cutting-edge applications. This bold investment trajectory marks a significant transformation in how networks are maintained and optimized, heralding a new era of AI-driven network orchestration.

Optimizing Network Performance

A substantial portion of this investment is earmarked for optimizing network efficiency. AI shines as a beacon of hope for operators grappling with the intricacies of network management. The technology offers the promise of slicing operational costs, notably by automating intricate, real-time network analyses and adjustments. Deploying AI for load balancing, traffic routing, and predictive maintenance could revolutionize network management, making it a critical focal point for industry expenditures. As AI integration deepens, operational agility and service reliability are expected to make significant strides, directly impacting user experience.

Security and User Experience

Remarkably, enhancing security protocols and user experiences account for more than fifty percent of this prognosticated spend. With 5G’s rollout and the horizon of 6G twinkling, the pressure is mounting for network operators to maintain top-tier network quality. Security is a non-negotiable aspect of networks, especially when considering the ramifications of breaches in user trust and legal compliance. The deployment of AI in network orchestration not only fortifies defenses but also customizes user experiences, ensuring high-quality service delivery. According to Frederick Savage, the principal author of the research, the superior performance of cellular networks will be a decisive factor in consumer preference, especially within high-spend segments, placing AI integration at the heart of future network strategies.

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