Artificial Intelligence Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 31.22 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Artificial Intelligence Market Analysis
The Artificial Intelligence Market is expected to register a CAGR of 31.22% during the forecast period.
Artificial intelligence (AI), particularly computer vision and machine learning (ML), is transforming the landscape of industries. The artificial intelligence market is expanding globally due to breakthroughs in deep learning and data-driven AI, and the necessity to acquire robotic autonomy to compete in a global market is projected to promote the adoption of AI products and services.
- In recent years, the growing use of digital technologies and the Internet considerably aided the expansion of the worldwide AI industry. Technology breakthroughs in various industries are constantly fueled by the extensive research and development investments made by tech giants.
- Expanding predictive analytics solutions based on AI-based ML technology will boost the artificial intelligence market over the forecast period. Many end-user firms are using predictive modeling worldwide for industry planning and growth.
- With increased Internet penetration and new technology, there is a tremendous increase in the amount of data created globally. AI is being encouraged by technologies such as the Internet of Things, Industry 4.0, 5G, and others—significant data results from a massive increase in data created due to technological breakthroughs.
- For example, AI enables the public sector to bring processes, people, and services online and encourages local, regional, and national governments to adopt AI. In only a few months, governments throughout the globe have learned to employ artificial intelligence as a weapon in combating the virus. This includes educating the public and screening patients to track and trace contacts.
- Employees need rapid assistance to be productive with the move to "work from anywhere," whether they have an IT problem, an HR request, or a question regarding the company's expenditure policy. Due to a lack of size or speed, traditional service desks can no longer provide round-the-clock real-time assistance to a hybrid workforce.
Artificial Intelligence Market Trends
Growth in Adoption of Cloud-based Applications and Services is Expected to Drives the Market Growth
- Cloud-based solutions are an essential component of today's digital environment. The expanding trend of multi-cloud operation and the growing need for cloud-based intelligence services drive the demand in the market under study. The latest artificial intelligence (AI) technologies add unique and increased value to cloud computing. This aspect improves overall process viability and is necessary for incorporating new technology.
- AI software can also help bridge the gap between cloud computing and modern breakthroughs. It also assists in satisfying the needs of new enterprises and startups. According to IBM, In 2022, 25 percent of respondents said they were using multi-cloud to leverage different application services like AI/ML, big data analytics, business intelligence, IoT, etc.
- The continuous operations and infrastructure requirement raises the demand for hybrid computing models to reduce long-term costs, security, and scalability. To extend and manage IT, investment in hybrid public cloud deployment models that span private, public, and edge environments has flourished. For example, in February 2023, Oracle announced it would establish a third public cloud in Saudi Arabia to address the fast-expanding demand for its cloud services. The new cloud region, located in Riyadh, is part of Oracle's projected USD 1.5 billion investment to increase cloud infrastructure capabilities in the country.
- SAS, a pioneer in analytics, entered into an arrangement with Moro Hub to leverage Moro Hub's superior cloud services to strengthen its AI-based solutions for businesses in Dubai and accelerate its journey toward digital transformation. SAS announced cooperation with Moro Hub, a branch of Dubai Electricity and Water Authority's digital arm, Digital Dewa, in July 2022 to accomplish this. As part of the new arrangement, SAS will employ Moro Hub's multiple cloud services on a single platform to increase its data management products' agility, scalability, and security.
- Furthermore, due to its benefits, such as scalability, increased productivity, and cost reduction, the cloud method is gaining popularity in various industries, such as financial services, e-commerce, industrial, and others.
- The use of cloud computing to power applications, such as 3D printing for outsourcing 3D prototypes, components, and products, is rapidly expanding. New platforms from 3D printing makers are also assisting cloud expansion. Markforged, a metal and carbon fiber 3D printer maker, recently introduced Digital Forge, an industrial 3D printing software platform. The platform is intended to connect all of the Markforged systems now in operation worldwide, which number in the thousands.
North America is Expected to Hold Significant Market Share
- The United States has a robust innovation ecosystem supported by strategic federal investments in cutting-edge technology, in addition to the presence of forward-thinking scientists and entrepreneurs who come together from around the world and renowned research centers that have accelerated the development of artificial intelligence in the North American region.
- The industry is anticipated to benefit from many US government initiatives related to AI. For instance, the Expanding AI Innovation through Capacity Building and Part II program was launched by the US National Science Foundation in December 2022 in coordination with the US Department of Agriculture, the US Department of Homeland Security, the Science and Technology Directorate, the National Institute Institute of Standards and Technology, National Institute of Food and Agriculture, and the US Department of Defense, Office of the Under Secretary of Defense for Research and Engineering.
- ExpandAI seeks to significantly increase the participation of institutions that serve underrepresented groups in artificial intelligence education, research, and workforce development through capacity-building projects and collaboration within the NSF-led National AI Research Institutes ecosystem.
- Moreover, the United States has been working to formalize the National Artificial Intelligence (AI) Initiative, which concentrates on six strategic pillars: advancing trustworthy AI, enhancing AI innovation, enhancing current infrastructure through new technologies, developing new opportunities for education and training through AI, facilitating private and federal sector utilization of AI to improve existing systems, and fostering an international environment that supports further advancements in AI.
- Major corporations like Google, Facebook, and Uber have established core research laboratories that work with numerous institutions all over Canada thanks to the country's top researchers, vibrant start-ups, open immigration rules, considerable tax subsidies for R&D, and access to international markets. The Canadian government finances several initiatives to demonstrate Canada's leadership in AI through the Canadian Institute for Advanced Research (CIFAR).
- Moreover, in November 2022, artificial intelligence (AI) was one of the most revolutionary technological fields. Canada, a worldwide innovator leader, is creating and utilizing technology like AI to help all Canadians have a better future. A USD 30 million investment has been made in Vancouver-based Sanctuary Cognitive Systems Corporation, an advanced AI and robotics business, according to the Minister of Innovation, science, and Industry. The Strategic Innovation Fund will use this funding to finance a USD 120.8 million initiative to build the first general-purpose robots with human-like intelligence that function. The Canadian government continues to support businesses with a wealth of intellectual property because it is dedicated to ensuring that Canadians can capitalize on their ideas.
Artificial Intelligence Industry Overview
The artificial intelligence market is highly fragmented, with the presence of major players like IBM Corporation, Intel Corporation, Microsoft Corporation, Google LLC (Alphabet Inc.), and Amazon Web Services Inc. Players in the market are adopting strategies such as partnerships, innovations, mergers, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- March 2024 - IBM has announced an expansion of its technical expert laboratory capacity in India, emphasizing its commitment to bolstering businesses in a fiercely competitive landscape. The focus is on enabling clients to harness the full potential of artificial intelligence, hybrid cloud, and cybersecurity technologies.
- January 2024 - Oracle unveiled the widespread availability of its Oracle Cloud Infrastructure (OCI) Generative AI service. This service comes with new features designed to simplify how businesses harness the cutting-edge capabilities of generative AI. The OCI Generative AI service, a fully managed offering, smoothly incorporates large language models (LLMs) sourced from Cohere and Meta Llama 2, catering to a spectrum of business needs.
Artificial Intelligence Market Leaders
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IBM Corporation
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Intel Corporation
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Microsoft Corporation
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Google LLC. (Alphabet Inc.)
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Amazon Web Services Inc. (amazon.com Inc.)
*Disclaimer: Major Players sorted in no particular order
Artificial Intelligence Market News
- May 2024 - IBM and Salesforce have unveiled an enhanced strategic partnership with a primary goal of advancing the utilization of artificial intelligence (AI) and data integration. This is to be achieved through the synergies of IBM's Watsonx AI and Data Platform and Salesforce's Einstein 1 Platform. The collaboration is designed to provide customers with increased flexibility in deploying AI and data solutions, empowering teams to integrate data-driven decisions into their workflows seamlessly.
- April 2024 - Microsoft Corp. and The Coca-Cola Company have announced a strategic partnership spanning five years. The primary goal of this collaboration is to align Coca-Cola's technology strategy throughout its operations, integrate cutting-edge technologies, and foster innovation and efficiency on a worldwide level. Notably, Coca-Cola has committed USD 1.1 billion to harness Microsoft Cloud's advanced AI features. This move underscores Coca-Cola's dedication to a technology-driven strategy, with Microsoft Cloud positioned as its central global hub for cloud services and AI.
Artificial Intelligence Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
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4.3 Technology Snapshot
- 4.3.1 Machine Learning
- 4.3.2 Computer Vision
- 4.3.3 Natural Language Processing (NLP)
- 4.3.4 Context-aware Computing and Other Technologies
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Demand for Predictive Analytics Solutions
- 5.1.2 Massive Growth in Data Generation due to Technological Advancements
- 5.1.3 Growth in Adoption of Cloud-based Applications and Services
- 5.1.4 Rising Demand for Enhanced Consumer Experience
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5.2 Market Challenges
- 5.2.1 High Initial Costs and Concerns over Replacement of Human Workforce
- 5.2.2 Lack of Skilled and Expert AI Technicians
- 5.2.3 Concerns Regarding Data Privacy
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5.3 Key Use-cases/Applications
- 5.3.1 Sales and Marketing
- 5.3.2 Logistics Management
- 5.3.3 Automated Customer Service
- 5.3.4 Automated Threat Intelligence
- 5.3.5 IT Automation, Among Others
- 5.4 Impact of COVID-19 on the Market
6. MARKET SEGMENTATION
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6.1 By Components
- 6.1.1 Hardware
- 6.1.2 Software and Services
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6.2 By End-user Industry
- 6.2.1 BFSI
- 6.2.2 Fashion and Retail
- 6.2.3 Healthcare and Lifesciences
- 6.2.4 Manufacturing
- 6.2.5 Automotive
- 6.2.6 Aerospace and Defense
- 6.2.7 Construction
- 6.2.8 Other End-user Industries
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6.3 By Geography***
- 6.3.1 North America
- 6.3.1.1 United States
- 6.3.1.2 Canada
- 6.3.2 Europe
- 6.3.2.1 United Kingdom
- 6.3.2.2 Germany
- 6.3.2.3 France
- 6.3.3 Asia
- 6.3.3.1 China
- 6.3.3.2 India
- 6.3.3.3 Japan
- 6.3.3.4 South Korea
- 6.3.4 Australia and New Zealand
- 6.3.5 Latin America
- 6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 IBM Corporation
- 7.1.2 Intel Corporation
- 7.1.3 Microsoft Corporation
- 7.1.4 Google LLC (Alphabet Inc.)
- 7.1.5 Amazon Web Services Inc. (amazon.com Inc.)
- 7.1.6 Oracle Corporation
- 7.1.7 Salesforce Inc.
- 7.1.8 SAP SE
- 7.1.9 SAS Institute Inc.
- 7.1.10 Cisco Systems Inc.
- 7.1.11 Siemens AG
- 7.1.12 Nvidia Corporation
- 7.1.13 Hewlett Packard Enterprise
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Artificial Intelligence Industry Segmentation
Artificial intelligence (AI) is a simulation of human intelligence by machines through algorithms to automate and perform tasks commonly done by humans. AI is an interdisciplinary science with multiple approaches, but advancements in machine learning and deep learning create a paradigm shift in virtually every tech industry sector.
The artificial intelligence market is segmented by components (hardware and software and services), by end-user industry (BFSI, fashion and retail, healthcare and life sciences, manufacturing, automotive, aerospace and defense, construction, and other end users), by geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Rest of Asia Pacific), Latin America, and Middle East and Africa).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Components | Hardware | |
| Software and Services | ||
| By End-user Industry | BFSI | |
| Fashion and Retail | ||
| Healthcare and Lifesciences | ||
| Manufacturing | ||
| Automotive | ||
| Aerospace and Defense | ||
| Construction | ||
| Other End-user Industries | ||
| By Geography*** | North America | United States |
| Canada | ||
| By Geography*** | Europe | United Kingdom |
| Germany | ||
| France | ||
| By Geography*** | Asia | China |
| India | ||
| Japan | ||
| South Korea | ||
| By Geography*** | Australia and New Zealand | |
| Latin America | ||
| Middle East and Africa |
Artificial Intelligence Market Research Faqs
What is the current Artificial Intelligence Market size?
The Artificial Intelligence Market is projected to register a CAGR of 31.22% during the forecast period (2024-2029)
Who are the key players in Artificial Intelligence Market?
IBM Corporation, Intel Corporation, Microsoft Corporation, Google LLC. (Alphabet Inc.) and Amazon Web Services Inc. (amazon.com Inc.) are the major companies operating in the Artificial Intelligence Market.
Which is the fastest growing region in Artificial Intelligence Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Artificial Intelligence Market?
In 2024, the North America accounts for the largest market share in Artificial Intelligence Market.
What years does this Artificial Intelligence Market cover?
The report covers the Artificial Intelligence Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Artificial Intelligence Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key sectors driving the Artificial Intelligence (AI) growth?
Key industries driving the Artificial Intelligence (AI) market growth are healthcare, automotive, finance, and retail, where AI is used for automation, data analysis, and customer service enhancements.
Artificial Intelligence Industry Report
The artificial intelligence (AI) market is experiencing rapid growth, driven by advancements in sectors like healthcare, automotive, finance, and retail. Segmented by technology, key focus areas include machine learning, natural language processing, and computer vision, with the latter expected to see the highest growth due to its role in enhancing consumer experiences and security. The market also benefits from models like AI as a Service (AIaaS), enabling companies to utilize AI without deep technical expertise. North America leads in market size, due to technological advancements and government support. Growth is further boosted by the adoption of cloud-based AI solutions, offering scalability and cost-efficiency. Despite challenges like data privacy concerns and high initial investments, the "artificial intelligence market size" continues to expand, transforming industries with improved data analytics and innovative solutions. For detailed statistics, market share, size, revenue growth rate, and a forecast outlook of the AI market, access a free report PDF download from Mordor Intelligence™ Industry Reports.
