Operators in the telecom industry are increasingly relying on analytics tools to manage their networks and make informed decisions. As the volume of data continues to grow, there is a need for more intelligent tools to optimize and troubleshoot networks, provide insights into subscribers and services, and support automated network planning and operations.
Market predictions for telecom network analytics indicate significant growth in the coming years. Mordor Intelligence projects a Compound Annual Growth Rate (CAGR) of over 20% until 2028, driven by the demand for autonomous and self-managing networks. The increasing global IP traffic, IoT and Industry 4.0 applications, and data from 5G networks necessitate network reliability improvements and disruptions elimination.
Cloud service providers are expected to adopt intelligent network analytics to maintain service level agreements, quality of service, and quality of experience parameters. Network security has become a higher priority, leading to broader deployment of network analytics across organizations.
According to Acumen Research and Consulting, the network analytics market was valued at $2.5 billion in the previous year and is projected to reach $15.3 billion by 2023, growing at a 20% CAGR. The market growth is driven by the complexity of networks, rising cyber threats, network optimization needs, cloud-based solutions, and the emergence of Artificial Intelligence (AI) and Machine Learning (ML).
The North American market, particularly the United States, leads in network analytics solutions, both in terms of suppliers and adopters. The market’s expansion in the US can be attributed to rapid infrastructure development, growth in AI, IoT, machine learning, and cloud computing. Market Research Future (MRFR) expects the North American network analytics market to reach $4.2 billion by 2030, with a CAGR of 16.3%. Digitalization and the shift to remote work during the COVID-19 pandemic have further fueled the demand for network analytics services.
Telecom companies, as well as other industries, are investing in network analytics to improve efficiency, customer experiences, and network security. Advanced traffic forecasting, device performance analysis, and data load forecasting are some capabilities of network analytics that drive growth. Additionally, network analytics helps combat Distributed Denial of Service (DDoS) attacks.
Grand View Research estimates that the overall telecom analytics market will grow at a CAGR of 14.5% until 2027. Telecom analytics can be subdivided into network analytics, customer analytics, subscriber analytics, location analytics, price analytics, and service analytics. These analytics solutions offer various benefits, including service optimization, increased customer satisfaction, enhanced resilience, and cost reduction.
While on-premise deployments of telecom analytics solutions currently dominate the market, cloud-based solutions are expected to have the highest CAGR (15%) through 2027.
These predictions indicate the increasing importance of network analytics in the telecom industry and its potential to transform network management and decision-making processes.