Updated On: March, The artificial intelligence market dimension was valued at USD 328.34 billion in 2021 and is projected to grow from USD 387.45 billion in 2022 to USD 1,394.30 billion by 2029, exhibiting a CAGR of 20.1% in the course of the forecast interval. Based on our analysis, the global market had exhibited a rise of a hundred and fifty.0% in 2020 compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with this technology experiencing higher-than-anticipated demand across all regions in comparability with pre-pandemic levels.
The report covers AI-based solutions similar to Qualcomm AI Model Efficiency Toolkit, Facebook’s ParlAI, AWS Chatbots, OpenAI Codex, and Azure AI, amongst others. Artificial intelligence is being rapidly built-in into corporate processes around the world to enhance enterprise operations and consumer expertise. Small and medium businesses are additionally investing in technology to enhance the functionality and performance of their operations at a low price. A significant development in 5G deployment, automation, cloud computing, and large databases, amongst others, are more doubtless to drive technology demand.
Similarly, its ability to detect threats in real-time is anticipated to push its integration with cybersecurity solutions. For instance, in August 2021, Stellar Cyber, a U.S based mostly security operations platform supplier, introduced a partnership with BlackBerry Limited. The partnership’s objective is to advertise the deployment of AI-powered safety options for organizations and managed safety service providers (MSSPs).
COVID-19 IMPACT
Increasing Demand for AI Technology in Healthcare Industry amid COVID-19 to Boost Market Growth
To meet the problems of the pandemic disaster, the demand for artificial intelligence in the healthcare sector increased considerably. The technology offers several tools and models that enhance traditional analytics and decision-making capabilities. This improves the accuracy and efficiency of analysis, therapies, and forecasting. For occasion, according to the January 2022 research report, researchers on the Regenstrief Institute and Indiana University discovered that Machine Learning (ML) fashions could help public health decision-making through the pandemic.
Similarly, in accordance with December 2021 research by the University of Waterloo and DarwinAI, artificial intelligence may help doctors in assigning assets by recognizing sufferers who require Intensive Care Unit (ICU) therapy through the COVID-19 pandemic.
Also, the technology and its insights can be very helpful in drug discovery. For instance, the Tata Consultancy Services Innovation lab and Facebook AI are using AI capabilities to understand the unfold of viruses and establish potential molecules to target towards the COVID-19 strain.
Further, in the course of the pandemic, industries similar to retail and e-commerce, manufacturing, transportation and logistics, among others, made important investments in technology to steadiness the demand and supply ratio. As a end result, the Artificial Intelligence Market had super progress through the pandemic, and this development is predicted to occur post-pandemic disaster.
LATEST TRENDS
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Growing Innovation in Artificial Internet of Things (AIoT) to Boost Market Opportunities
The adoption of linked gadgets is rising exponentially throughout numerous purposes. However, internet of things (IoT) gadgets have comparatively minimal reminiscence. Thus, it turns into a posh process to gather and analyze knowledge immediately. This has fueled the integration of artificial intelligence with IoT technology. AIoT supports boosting operational effectivity, improvising solutions, and companies, enhances IoT scalability, assists in advanced risk management, and reduces cost and unplanned downtime.
The enterprise can enhance person expertise through the use of AI-powered IoT options throughout retail analytics, manufacturing robots, self-driving cars, and extra. This is anticipated to drive the demand for artificial technology. For instance, in August 2020, Aspen Technology, Inc., a software enterprise specializing in asset optimization, has launched a new AIoT Hub. It enables flexible and easy data integration and mobility from sensors to the sting and cloud, accelerating the circulate of visualizations and insights in capital-intensive industries.
Further, in May 2021, Bosch introduced a new AIoT platform, particularly The Phantom Edge, that offers real-time data on vitality use at manufacturing services. It is meant to improve industrial productivity by offering real-time warnings and notifications that provide timely actionable info. It also automates data collecting and accurately tracks downtimes by providing bias-free, timely, and precise information that managers can use to establish targets, evaluate performance, analyze, and enhance continuously.
DRIVING FACTORS
Higher Adoption of Hyper-Personalized Service to Drive the Market Growth
Increasing buyer engagement is a crucial influencing factor for a successful enterprise in today’s competitive and dynamic enterprise setting. As a result, organizations are quickly adopting artificial intelligence technology to provide tailored and devoted providers in real-time. Enterprises can use the technology to construct hyper-personalized advertising methods based on industry-specific consumer insights. This hyper-personalization increases profitability supplies real-time data-driven selections, lowers expenses, and improves buyer pleasure.
In industries similar to retail, e-commerce, monetary establishments, healthcare, and other consumer-centric businesses, intelligent technology is being used to personally collaborate with consumers. According to a June 2020 report by IDC, greater than half of the 2,056 IT and Line of Business (LoB) decision-makers responded customer expertise is the main motivator for AI adoption.
Further, in June 2020, Salesforce launched its Einstein suggestions for Trailhead. The company added AI capabilities to its online learning platform by introducing Einstein recommendations. In the new answer, learners could be guided to create a customized, intelligent learning experience. It would also make suggestions based mostly on the preferences of other learners. Therefore, the rising importance of personalised buyer providers throughout industries is prone to drive the synthetic intelligence market development.
RESTRAINING FACTORS
Limitations in Protecting Privacy to Restrict Market Growth
The market is more likely to have problem with data privacy and various algorithms. The technology employs machine studying and deep studying capabilities to supply users with related results. These tools, together with search algorithms, recommendation engines, and adtech networks, may exploit the user’s sensitive information.
Further, artificial intelligence algorithms create a new bit of information based mostly on the historic knowledge with out the user’s consent. According to March 2021 report by European Parliament, the amount of knowledge produced throughout the globe is anticipated to succeed in 175 zettabytes in 2025 from 33 zettabytes in 2018. Owing to this, Europe launched General Data Protection Regulation to regulate the misuse of non-public data. This is prone to hamper the demand for the technology.
SEGMENTATION
By Component Analysis
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Capability to Offer Real-time Insights to Boost AI Software Demand
The Artificial Intelligence Market is segmented into hardware, software, and providers based on parts.
The software is anticipated to hold the highest market share through the furcate interval due to its capability to extract data, offer real-time insights, and support decision-making. Some of the business software options supplied by the gamers are Cortana virtual assistance, Google Cloud Machine Language, IBM Watson, Tensorflow, and extra.
The companies phase is likely to develop with the fastest CAGR during the forecast period. The rising implementation of good solutions is expected to drive the demand for AI services. These services harness the capabilities of the options that speed up business operations.
In addition, AI hardware is estimated to realize regular progress owing to its support in enhancing process efficiency. The hardware contains artificial intelligence storage and servers similar to OVHcloud servers, Broadberry servers, IBM Enterprise AI server, Intel Optane storage, DDN’s A3I storage, and more.
By Function Analysis
Increasing Demand for Risk Management in BFSI Sector to Propel the Market
Based on technology, the market is categorized into human resources, advertising & sales, product/service deployment, service operation, risk, supply-chain administration and others.
Risk is predicted to grow with the fastest CAGR during the forecast period owing the fast digital transformation within the BFSI industry. The industry is prone to implement artificial intelligence for varied threat administration applications similar to credit score risk, Asset and Liability Management (ALM), liquidity danger, and market threat evaluation. For occasion, in December 2021, First National Bank of Omaha (FNBO) announced a partnership with a U.S based mostly AI lending platform provider, Upstart, to scale its personal loan program throughout the nation.
Service operation and product & service deployment are expected to dominate the market by holding significant market share through the projection period. Business organizations are anticipated to adopt this technology because it allows them to develop higher merchandise and deliver enhanced buyer experiences. For instance, in March 2019, a survey report PWC estimated that digital product development would improve efficiency by almost 20% and scale back product launch time by 17%. In addition, the research additionally discovered 41% of the surveyed companies are already utilizing artificial intelligence within their product development.
By Deployment Analysis
Cloud Segment to Grow Rapidly Stocked by Presence of Renowned Companies
Based on deployment, the market is bifurcated into the cloud and on-premises.
Cloud is expected to grow with the best CAGR in the course of the forecast period. The growing need for cloud-based tools, optimized infrastructure, and growing demand for virtualization and cloud storage are expected to drive cloud deployment. According to February 2022 report by Canalys in 2021, total cloud infrastructure providers spending reached USD 191.7 billion, which was 35% up from USD 142.0 billion in 2020. During the yr, the global economy reopened after lockdowns and buyer confidence grew, resulting in expanded contracts with cloud service providers.
With the growing awareness of the benefits of cloud-based options, the deployment of Natural Language Processing (NLP) and Machine Learning Tools (ML) tools in artificial intelligence are more doubtless to develop in the cloud. Some of the necessary thing cloud-based AI providers offered by the business gamers are IBM Cloud, Azure Cognitive Services, and Einstein AI platform.
The on-premises are additionally anticipated to hold important market share due to its in-house and more secured data storage choices.
By Industry Analysis
IT & Telecom Segment to Dominate Backed by Need to Extract Insights
The market is categorized into healthcare, retail, IT & telecom, BFSI, automotive, advertising & media, manufacturing, and others based mostly on the business verticals.
Healthcare is more probably to grow with the highest CAGR owing to the fast implementation of artificial intelligence-powered options to boost affected person care. Also, the pandemic has propelled the adoption of this technology within the healthcare sector. For instance, in March 2020, two Netherlands-based organizations Delft Imaging and Thirona collaborated to launch an AI-based COVID-19 diagnosis tool, namely CAD4COVID. The tool’s objective was to supply chest X-rays evaluation using deep studying.
The BFSI sector is likely to maintain a big market share during the forecasted interval. The rising implementation of this technology within the BFSI trade to detect fraudulent activities, trading decisions, credit score scoring functions, examine financial market impression analysis, and threat management, among others, is more likely to enhance development of the Artificial Intelligence Market.
The IT and telecom industry is implementing solutions to extract insights from the large quantity of massive data to supply better buyer companies. For occasion, according to December 2021 report by SwissCognitive, after presenting its chatbot, TOBi, for answering client questions, Vodafone Ltd. skilled a 68% enchancment in shopper experience. Some of the IT and telecom sector solutions are ZeroStack, SAS Regulatory Risk Management, XenonStack, and Aria Networks.
Further, AI technology is quickly being carried out in the automotive industry for varied purposes, together with automotive design, provide chain administration, manufacturing, and production. Similarly, the power to boost product high quality, scale back downtime, real-time demand forecasting, inventory management, and more AI-enabled solutions is anticipated to gasoline its utility within the manufacturing and automotive industry.
REGIONAL INSIGHTS
North America Artificial Intelligence (AI) Market Size, 2021 (USD Billion)
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Geographically, the market is fragmented into five major areas corresponding to North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
North America held a big chunk of the synthetic intelligence market share in 2021, with the us being a serious contributor owing to rising government initiatives and investments out there. The presence of various market gamers in the U.S. is anticipated to spice up market progress. According to the RELX Emerging Tech Executive Report 2021, the adoption of this technology within the U.S has grown around 33% since 2018 and reached 81%.
The key industries in the country, corresponding to retail, BFSI, manufacturing, healthcare, and others, are significantly investing in this technology.
Asia Pacific is predicted to realize speedy development of the Artificial Intelligence Market in the course of the forecast period. The growing 5G technology implementation in nations such as China, South Korea, Japan, Singapore, and India is prone to escalate the AI use circumstances within the region. Various nations have fashioned dedicated methods to boost technology adoption across industries. For instance, The National AI Strategy of Singapore, Society 5.0 imaginative and prescient of Japan, Next Generation Artificial Intelligence Development Plan of China, and India’s AI for All vision, amongst others, is driving the market progress. Similarly, the nations similar to Malaysia, Indonesia, Vietnam, the Philippines, Thailand, and more are significantly implementing the technology across various purposes.
Europe is to hold a big market share. Countries of the European Union are strategically investing in technology. For instance, based on December 2020 report by European Commission, the European Investment Fund allotted ~USD 171 million funds for the businesses across Europe.
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The Latin America and Middle East & Africa market is prone to grow significantly through the forecast interval. Government officials are actively involved in growing AI methods across both regions. For occasion, the Saudi Arabian authorities has established Saudi Data and AI Authority (SDAIA) to spice up the market. In addition, in September 2021, SDAIA announced its plan to position Saudi Arabia as one of the prime 10 international locations in artificial intelligence and data.
Similarly, in April 2021, Brazil launched a nationwide AI strategy to drive innovative utility and analysis in its utility.
KEY INDUSTRY PLAYERS
Increasing Strategic Acquisitions by Key gamers to Expand Their Product Offerings
The market is witnessing huge start-up enrollment. These gamers are collaborating with the industries similar to manufacturing, healthcare, and retail, to offer personalized artificial intelligence solutions. Whereas the distinguished market gamers are centered on analysis and development, catering to the rising needs of the varied industrial functions. To broaden the presence and enhance its solution offerings, these players are acquiring key start-ups across the globe. For occasion, Apple Inc. boosted its intelligent choices by acquiring prominent startups in the market. Additionally, the expertise of these start-ups’ engineers and technicians helps develop progressive options.
July 2021 – Qualcomm Technologies acquired assets from Twenty Billion Neurons GmbH, including an AI analysis team and video datasets used by the AI community.
August 2021 – The OpenAI, LLC updated OpenAI Codex and launched a private beta program through API, which interprets customers’ natural language instructions and executes them on their behalf.
List of the Key Companies Profiled:
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* Amazon, Inc. (Washington, U.S.)
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* IBM Corporation (New York, U.S.)
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* Microsoft Corporation (Washington, U.S.)
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* Salesforce.com Inc. (California, U.S.)
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* Alphabet Inc. (Google LLC) (California, U.S.)
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* NVIDIA Corporation (California, U.S.)
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* Baidu, Inc. (Beijing, China)
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* SAP SE (Walldorf, Germany)
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* Oracle Corporation (Texas, U.S.)
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* Hewlett Packard Enterprise Company (Texas, U.S.)
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* SAS Institute Inc. (North Carolina, U.S.)
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KEY INDUSTRY DEVELOPMENTS:
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* July 2021 – Qualcomm Technologies, Inc. partnered with Foxconn Industrial Internet to create the Gloria AI Edge Box. It aims to increase the deployment of sensible edge applications. The new system has a processing speed of 70 trillion operations per second.
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* July 2021 – Microsoft Corporation collaborated with a U.K.-based cyber security AI provider, Darktrace Holdings Limited, to supply self-learning AI to detect threats at maximum machine speed. The firms are offering excessive safety in opposition to novel cyber threats by way of the partnership.
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REPORT COVERAGE
An Infographic Representation of Artificial Intelligence Market
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This Artificial Intelligence Market report examines key areas worldwide to assist customers have a greater information of the technology. Additionally, the analysis provides insights into the latest business and key market trends and an analysis of technologies which might be being deployed at a quick fee on a world scale. It additionally highlights a variety of the market’s growth-stimulating elements and restrictions, allowing the reader to know the market totally.
REPORT SCOPE & SEGMENTATION
ATTRIBUTE
DETAILS
Study Period Base Year Estimated Year Forecast Period Historical Period Unit
Value (USD billion)
Segmentation
Component; Function; Deployment; Industry; and Region
By Component
By Function
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* Human Resources
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* Marketing & Sales
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* Product/Service Deployment
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* Service Operation
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* Risk
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* Others (Strategy and Corporate Finance)
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By Deployment
By Industry
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* Healthcare
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* Retail
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* IT & Telecom
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* BFSI
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* Automotive
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* Advertising & Media
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* Manufacturing
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By Region
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* North America (By Component, By Function, By Deployment, By Industry, and By Country)
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* U.S. (By Component)
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* Canada (By Component)
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* Europe (By Component, By Function, By Deployment, By Industry, and By Country)
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* U.K. (By Component)
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* Germany (By Component)
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* France (By Component)
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* Scandinavia (By Component)
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* Rest of Europe
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* Asia Pacific (By Component, By Function, By Deployment, By Industry, and By Country)
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* China (By Component)
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* Japan (By Component)
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* India (By Component)
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* Southeast Asia (By Component)
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* Rest of Asia Pacific
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* The Middle East & Africa (By Component, By Function, By Deployment, By Industry, and By Country)
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* GCC (By Component)
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* South Africa (By Component)
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* Rest of the Middle East & Africa
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* Latin America (By Component, By Function, By Deployment, By Industry, and By Country)
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* Brazil (By Component)
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* Mexico (By Component)
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* Rest of Latin America
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