Artificial Intelligence Market

Global Artificial Intelligence Market Size (2022 - 2027)

The Global Artificial Intelligence Market was worth US$ 52.6 billion in 2021, and it is estimated to reach a valuation of US$ 236.8 billion by the end of 2027, expanding at an annual growth rate of 28.5% between 2022 and 2027.

Artificial Intelligence is a wide ranging branch of computer science that is concerned with smart machines capable of performing tasks that usually require human intelligence.

Artificial Intelligence has made with a focus on building and managing technology that can learn to take autonomous decisions and actions on the behalf of the human.AI includes any type of hardware or software components that supports machine-learning, natural language understanding, computer vision, and natural language processing. There are four types of AI i.e. Reactive Machines, Limited Memory, Theory of Minds and Self-Awareness etc. Artificial Intelligence offers wide range of applications in industries such as BFSI, Retail & e-Commerce, Telecommunication & IT, Healthcare & Life Sciences, Automotive, Government & Defense, Manufacturing, and Energy & Utilities etc. AI increases efficiency of the worker, improved workflow, lower human error rates, deeper data analysis, more informed decision making and best of it, it is available 24*7. For instance, digital assistance solutions such as chat bots are available to take customer inquiries no matter the time of the day. The benefits of AI in industries and increasing industrial automation is fueling the demand of AI which further fuels the growth of AI in forecast period between 2022 and 2027.

Market Drivers:

The driving force of the Artificial Intelligence Market is the competitive and dynamic business environment and customer engagement.

The persistent research and development and innovations by major tech players are driving the growth of adoption of advanced technologies in various industries such as automotive, retail, healthcare, banking & finance, aerospace & defense etc. However, the technology has been always a vital element for these industries but AI has brought technology to new edge. Technology giants such as Microsoft, Amazon.com, Google LLC, Apple Inc., Facebook, IBM Corporation etc. are investing on significantly on Research & Development of Artificial Intelligence and making it more accessible for enterprises is fueling the growth of Artificial Intelligence Market. Additionally, the progress in profound learning and artificial neutral networks has also boosts the adoption of AI in various industries which further fuels the market growth. Also, rising trend of multi-cloud functioning and growing need of cloud-based intelligence services are also boosts the demand of AI. Moreover, bots and digital assistants, machine learning frameworks, cognitive computing APIs and fully managed machine learning services are some of the major opportunities for the growth of AI market in near future. The implementation of 5G technologies in countries like China, India, and Japan etc. is increasing the demand of AI which further fuels the growth of the market. Artificial Intelligence has played very crucial role during the time of pandemic by tacking COVID symptoms in citizens, supporting health workers in providing telemedicine services etc. are gaining traction to AI in healthcare sector. Owing to above factors, the demand of AI is increasing in industries which is propelling the growth of AI in forecast period.

Market Restraints:

Artificial Intelligence is a complex system, and for developing, managing, and implementing AI systems, for that companies require workforce with certain skill sets. As AI technology is still in its early stage of its life cycle due to which workforce in depth knowledge of this technology is limited. Therefore, lack professional scientists is restricting the growth of AI into the market.

GLOBAL ARTIFICIAL INTELLIGENCE MARKET REPORT COVERAGE:

Market Segmentation:

Global Artificial Intelligence Market - By Offering:

• Hardware
• Software
• Services
•  

Based on Offerings, the Global Artificial Intelligence Market is segmented into Hardware, Software, and Services. Software segment is expected to occupy largest share of AI market due to its ability to extract data, offer real-time insights, and support decision making. The service segment is also gain rapid growth during the forecast period due to increasing implementation of AI which requires services in order to harness capabilities of the solutions to accelerate business operations.

Global Artificial Intelligence Market - By Technology:

• Machine Learning

• Natural Language Processing

Based on Technology, the Global Artificial Intelligence Market is segmented into Machine Learning, Natural Language Processing. Machine learning is dominating the market due to its capabilities in spotting patterns, trends, and extracting data. The machine learning solutions such as Microsoft Azure Machine Learning Studio, AWS Sage Maker, SAP Leonardo Machine Learning etc. helps in enhancing the capabilities of business monitoring. Natural Language Processing (NPL) is going to boost the market growth as adoption of NPL is increasing across industries to understand customer preferences, changing trends, buying behavior, decision making process etc.

Global Artificial Intelligence Market- By Deployment Mode:

• Cloud
• On-Premises   

Based on Deployment Mode, the Global Artificial Intelligence Market is segmented into Cloud, On-Premises. Cloud segment is expected to have significant growth rate in forecast period as it offers various benefits, such as reduced operational cost, hassle-free deployment, and high scalability. Cloud deployment for NPL and ML tools in Artificial Intelligence  and the increasing awareness about AI benefits with cloud deployment mode is expected to boosts Artificial Intelligence Market growth in coming years.

Global Artificial Intelligence Market - By Organization Size:

• Small-Medium-sized Enterprises
• Large Enterprises

Based on Organizational Size, the Global Artificial Intelligence Market is segmented into Large Enterprises, Small and Medium-sized Enterprises. Large Enterprises is estimated to hold largest market share as these enterprise are highly required AI to make strategic decisions related to business growth.

Global Artificial Intelligence Market - By Business Function:

• Marketing and Sales

• Security
• Finance
• Law
• Human Resource
• Other Business Function 

Based on Business Function, the Global Artificial Intelligence Market is segmented into Marketing and Sales, Security, Finance, Law, Human Resource and other Business Function. Marketing & Sales segment is expected to dominate the market during the forecast period due to AI offers wide applications n field of marketing. It provides incredible profit opportunities for companies as programmatic advertising that may lead company to have high opportunities by extending audience pools and reaching accurate targets with the fine-tuned messaging that boosts its adoption for mattering and sales function.

Global Artificial Intelligence Market - By End-users:

• BFSI
• Government & Defense
• Healthcare and Life Sciences
• Retail & e-commerce
• Manufacturing
• Energy & Utilities
• Telecommunications and IT
• Other Verticals

• Education
• Media and Entertainment
•  Travel and Hospitality

Based on End-users, the Global Artificial Intelligence Market is segmented into BFSI, Government & Defense, Healthcare and Life Sciences, Retail & e-commerce, Manufacturing, Energy & Utilities, Automotive and other (Education, Media and Entertainment, Travel and Hospitality). Telecommunication & IT sector segment is dominating the market. The IT and Telecom sector is implementing solutions to extract insights from the huge volume of big data to offer better customer services. However, the implementation of AI in the BFSI industry for trading decisions, detecting fraudulent activities, credit scoring applications, studying financial market analysis etc are likely to propel the growth of artificial intelligence market in near future.

Regional Analysis:

The Global Artificial Intelligence Market has been categorized in four regions: North America, Europe, Asia-Pacific, and RoW (Rest of the World). 

North America holds the largest share of Global Artificial Intelligence Market. In this region, U.S. is the major contributor due to rising demand government initiatives and investments in this market. Also, the presence of major player in United States is fueling the growth of AI market.   

Asia-Pacific is expected to grow with highest rate during the forecast period due to increasing adoption of AI services in end-user industries such as manufacturing, healthcare, and automotive various countries of APAC region including Japan, China, South Korea and Australia. Also the increasing implementation of 5G technologies in countries like China, South Korea, Japan, India and Singapore is likely to propel the growth of AI market in this region. Various nations in Asia-Pacific have formed committed strategies in order to increase the adoption of technologies such as AI across the industries which further fuels the growth of the market in coming years.

Europe is showing healthy growth rate during this period as European countries are strategically investing on adoption of technologies which further boosts the growth of Artificial Intelligence Market.

Leading Company:

IBM had the largest share of the world’s Artificial Intelligence in terms of sales revenue in 2020.

Covid-19 Impact on Global Artificial Intelligence Market: 

COVID-19 has shown positive growth on the Global Artificial Intelligence Market. Pandemic has accelerated the adoption of AI in sectors such as healthcare as it offers various tools and models to improvise traditional analytics and decision making capabilities. It helps in enhancing the accuracy and efficiency of the diagnostics, treatments and predictions. Thus AI plays vital role in healthcare during pandemic in order to track COVID symptoms in citizen. At this time, health care organizations have collaborated with AI service provider companies to offer AI powered systems in order to support healthcare workers in telemedicine. Moreover, AI technology and insights also emerge as a blessing for drug discovery during the outbreak. Furthermore, pandemic has caused disruption in supply chain and production due to fewer workforces at that time industries such as retail, manufacturing, automotive, transportation and logistics have invested on this technology to balance demand and supply ratio. Therefore, during pandemic, the demand of AI has increased and it is expected that AI market with grow during the forecast period between 2022 and 2027.

Key Players:

Some of the leading companies operating in the Global Artificial Intelligence Market are 

1. Google (US)
2. Microsoft (US)
3. IBM (US)
4. Oracle (US)
5. AWS (US)
6. SAS Institute (US)
7. Facebook (US)
8. SAP SE (Germany)
9. Salesforce (US)
10. Intel (US)

Recent Developments:

In February 2022, Qualcomm Technologies has collaborated with Microsoft to deliver a unique, industry first-chip to cloud solution for private enterprises networking which is designed to solve technology adoption problem for enterprise to implement private 5G network globally.

In February 2022, “Qualcomm Technologies” has announced the launch of “Snapdragon X70 5G Modem-RF Systems”, which is a 5^th generation modem-to-antenna 5G solution. Snapdragon X70 5G Modem-RF Systems uses the power of AI to enable breakthrough 5G speeds, coverage, low latency and power efficiency.