Market Size of Artificial Intelligence Industry
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 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*** | ||||||
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Australia and New Zealand | ||||||
Latin America | ||||||
Middle East and Africa |
Artificial Intelligence Market Size Summary
The artificial intelligence market is experiencing significant growth, driven by advancements in computer vision and machine learning, which are reshaping various industries. The global expansion of AI is fueled by breakthroughs in deep learning and the increasing need for robotic autonomy to remain competitive. The proliferation of digital technologies and the Internet has further accelerated this growth, with substantial investments in research and development by tech giants propelling technological advancements. AI's integration with the Internet of Things, Industry 4.0, and 5G is generating vast amounts of data, which in turn is enhancing the adoption of AI solutions across sectors. The public sector, for instance, has leveraged AI to streamline processes and improve public health responses, demonstrating its transformative potential.
Cloud-based solutions are becoming integral to the digital landscape, with the demand for AI-driven cloud intelligence services on the rise. The trend towards multi-cloud operations is supported by AI technologies that add value to cloud computing, enhancing process viability and facilitating the adoption of new technologies. This shift is evident in various industries, including financial services and e-commerce, where the cloud method is favored for its scalability and cost-effectiveness. The United States and Canada are at the forefront of AI innovation, supported by government initiatives and strategic investments. Major players like IBM, Intel, Microsoft, Google, and Amazon Web Services are actively enhancing their offerings through partnerships and technological advancements, ensuring a competitive edge in the rapidly evolving AI market.
Artificial Intelligence Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Technology Snapshot
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1.3.1 Machine Learning
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1.3.2 Computer Vision
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1.3.3 Natural Language Processing (NLP)
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1.3.4 Context-aware Computing and Other Technologies
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2. MARKET SEGMENTATION
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2.1 By Components
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2.1.1 Hardware
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2.1.2 Software and Services
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2.2 By End-user Industry
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2.2.1 BFSI
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2.2.2 Fashion and Retail
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2.2.3 Healthcare and Lifesciences
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2.2.4 Manufacturing
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2.2.5 Automotive
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2.2.6 Aerospace and Defense
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2.2.7 Construction
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2.2.8 Other End-user Industries
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2.3 By Geography***
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 France
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2.3.3 Asia
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2.3.3.1 China
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2.3.3.2 India
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2.3.3.3 Japan
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2.3.3.4 South Korea
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2.3.4 Australia and New Zealand
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2.3.5 Latin America
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2.3.6 Middle East and Africa
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Artificial Intelligence Market Size 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.