The telecom industry is the backbone of global connectivity in this digital world. It is constantly evolving, growing from the early days of simple voice communication to sophisticated digital networks.
Telecom players need to stay updated and adapt to the changing industry trends to remain competitive and innovative. While 2023 was dominated by the dramatic entrance of generative AI (Gen AI), 2024 is expected to introduce a wave of key trends that will shape the telecom industry.
Did you know, a report by Fortune Business Insights states that the global Gen AI market size reached $43.87 billion in 2023? It further reports that the global Gen AI market is expected to reach $967.65 billion by 2032 from $67.18 billion in 2024, showing a CAGR of 39.6% from 2024 to 2032.
From the rise of 5G technology to the expansion of edge computing, we’ll discuss the key trends to look out for in 2024 that are expected to shape the telecom industry.
While 5G networks are still being rolled out across the world, it is the frontrunner among the 2024 telecom trends. 5G makes connectivity more fluid and flexible through:
By the end of the third quarter of 2023, 121 mobile network operators across the globe had already invested in 5G standalone (5G SA) infrastructure across various markets. In addition, according to GSMA, 5G networks are expected to be deployed in about one-third of the world by 2025. These reports highlight the growth of 5G, which is set to revolutionize telecom services and infrastructure.
This shift towards faster and more reliable networks also opens doors for businesses to enhance their communication platforms. Softphone solutions, for instance, stand to benefit immensely from 5G technology by providing seamless voice and video communication over enhanced networks. As businesses transition into remote and hybrid models, custom softphone apps are becoming a cornerstone for efficient communication. Leveraging the capabilities of 5G, these apps can ensure low-latency, high-quality voice calls, even in data-heavy environments, making them indispensable for organizations.
Alongside this, companies are increasingly looking to hire VoIP developers who specialize in developing and maintaining these advanced communication tools. With the rise of platforms such as WebRTC and SIP, the demand for skilled professionals to craft scalable, secure, and efficient softphone solutions is at an all-time high. This trend is expected to continue growing, especially as businesses look to integrate their communication platforms with other digital services to optimize workflow and customer interactions.
Unlike its predecessors, the 5th generation of mobile networks provides greater capacity. By offering a more reliable connection and reducing lag, 5G is a catalyst for the growth of advanced communication systems. As businesses upgrade their infrastructure, investing in custom softphones and VoIP experts can be pivotal for keeping pace with the evolving telecom landscape.
An IHS Markit report also suggested that the 5G value chain worldwide is expected to generate $3.6 trillion by 2035 while also supporting 22.3 million jobs.
The Internet of Things (IoT) is the interconnected network of devices that communicate and share data. In the telecom industry, IoT drives demand for connectivity and data management, highlighting its significance.
There’s an increasing need for smart solutions in various sectors, ranging from smart homes and cities to industrial automation. For example:
Reports have suggested that the IoT Telecom Service market size is expected to grow at a CAGR of 34.28% from $24.1 billion in 2023 to $191.3 billion in 2030. This increasing prevalence of IoT underscores its transformative impact and critical role in the future of telecom.
Artificial Intelligence (AI) continues to have an impact on various industries worldwide, including telecom. Both AI and machine learning are becoming integral parts of telecom operations. They are enhancing network management, customer service, and predictive maintenance.
Here’s how AI and machine learning are creating an impact on the telecom industry:
Over the years, the market size of AI in telecommunication has grown exponentially with reports suggesting a growth at a CAGR of 40.4% from $3.47 billion in 2024 to $13.5 billion in 2028. This growth can also be attributed to the rise of 5G networks and enhanced customer experience.
In 2024, edge computing is gaining traction in the telecom industry, thanks to its ability to process data closer to its source. This leads to reduced latency and improved real-time data handling.
According to a report covering global edge computing market analysis, the edge computing market size has grown a lot in recent years. Here’s what the report highlights:
With cloud services, edge computing further enhances telecom operations and customer experiences. By offering scalable resources and storage, cloud computing stands at the forefront of telecom trends of 2024. In fact, according to Fortune Business Insights, the telecom cloud market can reach $97.07 billion by 2030 at 26.4% CAGR during the forecast period, 2023-2030.
From the rise of 5G technology, IoT, and AI to edge computing, the telecom industry is set to witness significant transformations in 2024. These technologies will collectively transform the way telecom services are delivered and consumed by creating efficient and reliable networks. By embracing and staying ahead of these trends, you can harness new opportunities to deliver superior services to your customers. It also allows you to meet the ever-evolving needs of consumers and businesses.