Operators rely on analytics tools to help them sift through the (virtual) mountains of data that comes from their networks. As the amount of data grows, so does the need for increasingly intelligent analytical tools to optimize and troubleshoot the network, to provide subscriber and service insights and to support a more sophisticated and automated approach to network planning, turn-up and operations. Estimates on the market for telecom analytics, and the expected growth, gives some perspective on how much (and how much more) that telecom providers will be relying on such tools to help them manage their networks and subscribers.
Here are four market predictions for telecom network analytics.
-Mordor Intelligence expects that the market for network analytics will register a CAGR of a bit more than 20% through 2028, “mainly due to the increasing need for autonomous and self-managing networks.”
Amid growth in global IP traffic, increases in IoT and Industry 4.0 applications, as well as data increases from 5G, the amount of network data is increasingly; meanwhile, Mordor says, it is “necessary to improve network reliability and eliminate disruptions.” Telecom companies are ahead in adoption and already seeing benefits, the company concluded cloud service providers will increasingly adopt more intelligence network analytics in order to maintain service level agreements, quality of service and quality of experience parameters; network analytics will also become “more important and broadly deployed” because network security has become a higher priority across organizations. “For telcos, next-generation data analytics are already providing measurable advantages,” the analysis firm said. “Primary operators are utilizing the geographic capabilities of contemporary analytics to locate the best sites for 5G small cells, decide which field technician approach will best meet capacity expansion at each cell site, and optimize network coverage across shifting maps. In the future, it is expected that these operators may utilize next-generation analytics to automate network deployments, provide end-to-end network visibility, and enable network self-corrections, augmenting the market’s growth possibilities extensively.”
-A report from Acumen Research and Consulting says that the network analytics market was at about $2.5 billion last year, and expects it to achieve $15.3 billion by 2023, with a 20% CAGR through that time period. The market, the firm said, is driven by the “increasing complexity of networks, the rise in cyber threats, the need for network optimization and the growing adoption of cloud-based solutions” as well as the emergency of AI and ML.
-North America (particularly the United States) is the leading market for network analytics solutions, both in terms of suppliers and adopters, several reports concluded. “The fast expansion of the network analytics market in the US can be ascribed to the fast speed of infrastructure development in the U.S.,” concluded Market Research Future (MRFR), adding that additional drivers in the U.S. market include fast growth of artificial intelligence, the internet of things, machine learning and cloud computing. MRFR expets the network analytics market to growth at a 16.3% CAGR through 2030, reaching a market size of $4.2 billion by that point. Digitalization is playing a role in driving that growth, and since 2020 and the Covid-19 pandemic, there has also been “growing demand for network analytics services from various remote locations” because both services and data have to be more widely distributed in the hybrid work era, the firm said.
There are particularly broad opportunities for network analytics in telecom, the company said, specifically in “extensive use of network analytic solutions in the telecom industry for the large-scaled analytical models. He also pointed out that U.S. companies beyond telecom are are “substantially investing in network analytics to increase network efficiency and create better customer experiences by gathering insights from network traffic.” Analytics’ ability to “perform advanced levels of traffic forecasting … inclusive of device performance, and data load forecasting” as well as the “growing need for autonomous networks, as well as [self-managed networks” will help to drive the growth, as well as the use of network analytics to combat rising distributed denial of service (DDoS) attacks, according to the report summary.
-Grand View Research estimates that the telecom analytics market overall will grow at a CAGR of 14.5% through 2027. The company further subdivides telecom analytics into network analytics, customer analytics, subscriber analytics, location analytics, price analytics and service analytics–which can serve telcos in a variety of ways, from optimizing services and increasing customer satisfaction and revenues, to enhanced resilience and reduced costs.
Grand View noted that while on-premise deployment of telecom analytics solutions accounted for a slight majority of the market as of 2019 (due to in-house software deployments), cloud-based telecom analytics solutions are expected to see the highest CAGR (15%) through 2027.
Looking for more insights on telcos’ use of network analytics? Check out the on-demand RCR webinar “Test, Measure, Monitor, Learn: How operators can make sense of data in a new era of observability”, featuring Verizon and Viavi Solutions. An accompanying editorial report is coming soon!
