Global Artificial Intelligence Market By Solution (Hardware, Software, and Services), By Technology (Deep Learning, Machine Learning, NLP), By End-Use (Manufacturing, Healthcare, Law, BFSI, Advertising & Media, Retail, Agriculture, Automotive & Transportation, Other End-Uses), By Region and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032
- Published date: March 2024
- Report ID: 59640
- Number of Pages: 225
- Format:
- keyboard_arrow_up
Quick Navigation
Report Overview
The Global Artificial Intelligence Market size is expected to be worth around USD 2,745 billion by 2032, from USD 177 Billion in 2023, growing at a CAGR of 36.8% during the forecast period from 2024 to 2033.
The Artificial Intelligence (AI) sector represents a rapidly evolving domain characterized by significant advancements and innovations. AI encompasses a range of technologies and applications, including machine learning, natural language processing, robotics, and computer vision, among others. These technologies are fundamentally transforming numerous industries by enabling enhanced automation, predictive analytics, and more efficient data management.
The AI market has experienced significant growth in recent years, driven by various factors. The increasing availability of data, advancements in machine learning algorithms, and the adoption of AI by enterprises have contributed to the expansion of the AI market. Additionally, investments and research in AI technologies have fueled innovation and pushed the boundaries of what AI can achieve.
The AI market is highly competitive, with both established technology companies and startups vying for market share. Companies such as Google, Microsoft, IBM, and Amazon have made significant investments in AI research and development. At the same time, numerous startups have emerged, focusing on niche AI applications or developing innovative AI technologies.
Analyst Viewpoint
The Artificial Intelligence (AI) market is currently experiencing a significant growth trajectory, driven by a confluence of technological advancements, increasing investment, and widespread application across various industries. The driving factors propelling this market forward include advancements in machine learning algorithms, enhanced computing power, and an exponential increase in data generation. These technological innovations have enabled AI to evolve from theoretical computer science to practical applications, thus broadening its market reach.
In the realm of opportunities, the AI market is witnessing a substantial expansion in sectors such as healthcare, automotive, finance, and customer service. The healthcare sector, in particular, is experiencing revolutionary changes with AI-driven diagnostics, personalized medicine, and robotic surgeries, which are poised to enhance patient outcomes and operational efficiencies.
In the automotive industry, AI is integral to the development of autonomous vehicles, with implications for safety, efficiency, and environmental sustainability. Financial services are leveraging AI for fraud detection, algorithmic trading, and personalized financial planning, thereby enhancing customer experience and operational robustness. For instance, The launch of ‘Gemini’ by Google LLC in December 2023 introduced a substantial language AI model with three distinct versions: Gemini Nano, Gemini Pro, and Gemini Ultra. Notably, Gemini’s native multimodal feature sets it apart from competitors.
Key Takeaways
- The global Artificial Intelligence (AI) market is projected to reach a significant milestone, estimated to be worth approximately USD 2,745 billion by the year 2032.
- In 2022, the software segment held a dominant position in the AI market, accounting for over 39.3% of the market share. AI software is crucial for various applications, such as natural language processing, machine learning, and neural networks, making it integral to AI systems.
- Deep learning, a subset of machine learning, captured more than 35.0% of the AI market share in 2022. Its advanced capabilities in handling large and complex datasets make it indispensable in applications like image recognition, speech processing, and natural language understanding.
- In 2022, the Advertising & Media segment held a dominant position, contributing to more than 21% of the AI market share. AI has revolutionized these industries by enabling personalized marketing strategies, content optimization, and improved customer engagement.
- AI is expected to cause a ~21% net increase in the United States GDP by 2030.
- Globally, AI will contribute about ~$15.7 trillion to the economy by 2030.
- AI’s development might result in the loss of ~85 million jobs but will also create ~97 million new ones, netting a gain of ~12 million jobs worldwide.
- Over ~75% of consumers express concerns about AI spreading misinformation.
- Approximately ~28% of individuals fully trust AI, while ~42% generally accept its presence and use.
- ChatGPT achieved 1 million users within its initial five days of release, showcasing rapid public interest.
- The AI sector is projected to generate over ~85 million jobs by 2025.
- Nearly ~48% of businesses employ AI for big data management and utilization.
- About ~35% of companies now integrate AI into their daily operations.
- By 2025, it’s expected that ~97 million people will work within the AI industry.
- ~80% of marketing professionals incorporate chatbots into their customer service strategies.
- Seven out of ten business leaders find AI makes their jobs easier.
- Roughly ~64% of B2B marketers find AI invaluable for their marketing strategies.
- AI algorithms can boost lead generation by up to ~50%.
- Over ~80% of workers believe AI enhances their productivity.
- Around ~62% of consumers are open to sharing data with AI to better their experiences.
- Half of the U.S. mobile users engage with voice search daily, indicating the widespread adoption of AI-powered voice assistants.
- North America leads in the AI market, capturing over 51.1% of the global market share. The region’s advanced technological infrastructure and high adoption rates across sectors like healthcare, automotive, finance, retail, and manufacturing contribute to its dominance.
By Solution Type Analysis
In 2022, the Software segment held a dominant market position in the Artificial Intelligence (AI) market, capturing more than a 39.3% share. This dominance can be primarily attributed to the integral role software plays in the functionality and advancement of AI technologies. Software solutions are the backbone of AI systems, providing the algorithms, data processing capabilities, and decision-making protocols that drive AI applications. The demand for AI software has surged due to its wide-ranging applications, from natural language processing and machine learning to more complex neural networks.
The software segment’s growth is also bolstered by its scalability and adaptability in various industry verticals. For instance, in healthcare, AI software is used for diagnostic procedures and patient management systems, while in the automotive sector, it powers autonomous driving technologies. Additionally, AI software is instrumental in the finance sector for fraud detection and algorithmic trading. The continuous evolution and improvement in AI software have enabled enhanced efficiency, accuracy, and cost-effectiveness, which in turn fuels its market demand.
Furthermore, the increasing availability of cloud-based AI solutions has made AI software more accessible to a broader range of businesses, including small and medium enterprises (SMEs). This has expanded the market reach of AI software beyond large corporations. The trend towards AI as a Service (AIaaS) also contributes significantly to the software segment’s growth, offering businesses tailored AI solutions without the need for extensive in-house infrastructure.
By Technology Analysis
In 2022, the Deep Learning segment held a dominant market position, capturing more than a 35.0% share in the Artificial Intelligence (AI) market. This significant market share can be attributed to deep learning’s advanced capabilities in handling large and complex datasets, which are increasingly prevalent in today’s digital landscape.
Deep Learning, a subset of machine learning, excels in interpreting and processing unstructured data, making it indispensable in applications ranging from image and speech recognition to natural language processing (NLP). Its ability to learn and improve from experience without explicit programming has revolutionized sectors such as healthcare, automotive, and finance.
The robust growth of this segment is further bolstered by ongoing advancements in neural networks, a key technology underpinning deep learning. These advancements have enabled more accurate predictive analytics, enhancing decision-making processes in businesses. Moreover, the integration of deep learning in consumer electronics, for applications such as personalized recommendations and virtual assistants, has expanded its market reach.
By End-Use Analysis
In 2022, the Advertising & Media segment held a dominant market position in the Artificial Intelligence (AI) market, capturing more than a 21% share. This substantial market share is primarily due to the transformative impact AI has had on advertising and media industries. AI technologies in these sectors have revolutionized how content is created, optimized, and delivered to target audiences.
By leveraging data analytics and machine learning algorithms, companies in advertising and media can predict consumer behavior with greater accuracy, enabling more personalized and effective marketing strategies. In January 2022, Cadbury launched an initiative enabling small business owners to craft their advertisements at no cost. This innovative approach involved leveraging the face and voice of a celebrity through the assistance of an AI tool.
AI’s role in enhancing customer engagement through sophisticated recommendation engines and predictive analytics has been a key driver for its adoption in this segment. For instance, AI-driven tools can analyze vast amounts of data from various digital platforms to tailor advertising content to specific user preferences, thereby increasing the effectiveness of advertising campaigns. In addition, AI in media has streamlined content creation processes, using natural language generation and other advanced techniques to produce content that resonates with diverse audiences.
Key Market Segments
By Solution Type
- Hardware
- Services
- Software
By Technology
- Deep Learning
- Natural Language Processing (NLP)
- Machine Learning
- Machine Vision
By End-Use
- Manufacturing
- Healthcare
- Law
- BFSI
- Advertising & Media
- Retail
- Agriculture
- Automotive & Transportation
- Other End-Uses
Driver
Growth in the adoption of autonomous artificial intelligence
One of the key drivers propelling the Artificial Intelligence (AI) market is the increasing adoption of autonomous AI systems. Autonomous AI refers to intelligent systems that can perform tasks and make decisions without human intervention. This trend is driven by the need for efficiency, scalability, and cost-effectiveness in various industries.
Autonomous AI systems can automate complex processes, analyze vast amounts of data, and make real-time decisions, leading to increased productivity and improved outcomes. Industries such as manufacturing, logistics, healthcare, and finance are embracing autonomous AI to optimize operations, reduce errors, and enhance overall performance. The growth in autonomous AI adoption is expected to drive the demand for AI technologies and solutions in the market.
Restraint
Issues related to data availability and quality
While the AI market is experiencing significant growth, one of the key restraints is the availability and quality of data. AI systems heavily rely on large volumes of high-quality data for training and learning. However, organizations often face challenges in accessing relevant and clean data required for effective AI implementation. Issues such as data silos, data privacy concerns, and data biases can impact the quality and diversity of data available for AI projects.
Insufficient or biased data can lead to inaccurate results and biased outputs, limiting the effectiveness and reliability of AI systems. Addressing data availability and quality issues through data governance, data partnerships, and data preprocessing techniques is crucial for the successful adoption and deployment of AI solutions.
Opportunity
Rapid growth in digital data from various sources
The rapid growth in digital data from various sources presents a significant opportunity for the AI market. With the proliferation of connected devices, social media platforms, e-commerce transactions, and IoT devices, there is an unprecedented amount of data being generated every day. This vast pool of data provides an opportunity for organizations to extract insights, drive innovation, and create value through AI technologies. By leveraging advanced analytics and machine learning algorithms, businesses can analyze this data to gain valuable insights about customer behavior, market trends, operational efficiencies, and more.
The availability of diverse and massive datasets fuels the development and training of AI models, enabling organizations to build more accurate and robust AI systems. The ability to harness the power of digital data is a key opportunity for businesses to gain a competitive advantage and unlock new possibilities in the AI market.
Challenge
Concerns related to inaccurately and bias-generated output
One of the critical challenges in the AI market is the potential for inaccurately and bias-generated output from AI systems. AI algorithms learn from historical data, and if that data contains biases or inaccuracies, the AI system can perpetuate those biases or generate inaccurate results. This poses ethical concerns and risks in various applications of AI, such as hiring, loan approvals, criminal justice, and healthcare diagnostics.
Addressing the challenge of bias and inaccuracies in AI output requires careful data curation, algorithm transparency, and ongoing monitoring and evaluation of AI systems. Organizations need to implement robust practices for data collection and preprocessing, algorithm training, and model validation to minimize biases and ensure the accuracy and fairness of AI-generated outputs. Overcoming this challenge is crucial to building trust in AI systems and ensuring their responsible and ethical use in the market.
Regional Analysis
North America maintains its leading position in the Artificial Intelligence (AI) market due to several key factors. The region’s dominance, capturing over 51.1% of the global market share, is primarily driven by its advanced technological infrastructure, which facilitates rapid adoption and integration of AI technologies across various sectors. This infrastructure is supported by substantial investments in research and development, ensuring continuous innovation and the evolution of AI applications.
The demand for Artificial Intelligence in North America was valued at US$ 51.1 billion in 2023 and is anticipated to grow significantly in the forecast period. Additionally, the region exhibits a high adoption rate of AI in key sectors such as healthcare, automotive, finance, retail, and manufacturing. This widespread adoption is fueled by the recognition of AI’s potential to drive efficiency, innovation, and competitive advantage. In healthcare, for instance, AI is used for personalized medicine, early diagnostics, and patient care management, while in the automotive sector, it plays a critical role in the development of autonomous vehicles and advanced driver-assistance systems.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Russia
- Netherland
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia
- New Zealand
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Key Players Analysis
Companies that fail to capitalize on the growing demand for AI-driven solutions across industries could find themselves left behind in their pursuit of market share. To meet this challenge, AI vendors are employing various strategies to expand their customer base. One key approach involves crafting AI solutions tailored specifically for specific industries or use cases.
Another strategy used is expanding into new markets and geographies. With AI adoption on the rise in emerging markets, vendors are increasingly targeting regions like Asia, Africa, and Latin America to access new sources of demand and establish a presence in regions expected to experience rapid growth. By entering these emerging markets, vendors gain access to lucrative new supply sources.
Top Key Players in AI Market
- Advanced Micro Devices
- AiCure
- IBM
- Oracle Corporation
- Amazon Web Services
- Cisco Systems Inc.
- Arm Limited
- Atomwise, Inc.
- Ayasdi AI LLC
- Baidu, Inc.
- Clarifai, Inc
- HyperVerge, Inc.
- Intel Corporation
- Microsoft
- NVIDIA Corporation
- Other Key Players
Recent Developments
- In 2023, Oracle Corporation: Launched Oracle Autonomous Database Cloud – a self-driving database with built-in AI capabilities for enhanced security, performance, and cost optimization.
- In 2023, Arm Limited: Released the Neoverse N2 platform with AI-specific enhancements for improved machine learning performance in data centers.
- In 2023, Cisco Systems Inc.: Introduced Cisco Cognitive Analytics for Network Insights, leveraging AI to predict and prevent network issues in real-time.
- In 2023, Google: Launched Cloud TPU v4 pods, offering the fastest AI training infrastructure for researchers and developers.
- In 2023, Intel Corporation: Launched the Intel oneAPI toolkit to simplify development for diverse hardware architectures, including CPUs, GPUs, and FPGAs.
- In 2023, Microsoft: Announced the Azure AI platform as a new unified destination for all AI services and tools on Azure.
- In 2023, NVIDIA: Released the NVIDIA A100 Tensor Core GPU, offering significant performance gains for AI training and inference tasks.
Report Scope
Report Features Description Market Value (2023) USD 177 Bn Forecast Revenue (2032) USD 2,745 Bn CAGR (2023-2032) 36.8% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Solution Type Analysis – Hardware, Services, Software; By Technology Analysis – Deep Learning, Natural Language Processing (NLP), Machine Learning, Machine Vision; By End-Use Analysis – Manufacturing, Healthcare, Law, BFSI, Advertising & Media, Retail, Agriculture, Automotive & Transportation, Other End-Uses Regional Analysis North America – The U.S. and Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands & Rest of Europe; APAC- China, Japan, South Korea, India, Australia, New Zealand, Singapore, Thailand, Vietnam & Rest of APAC; Latin America- Brazil, Mexico & Rest of Latin America; Middle East & Africa- South Africa, Saudi Arabia, UAE & Rest of MEA Competitive Landscape Advanced Micro Devices, AiCure, IBM, Oracle Corporation, Amazon Web Services, Cisco Systems Inc., Arm Limited, Atomwise, Inc., Ayasdi AI LLC, Baidu, Inc., Clarifai, Inc, HyperVerge, Inc., Intel Corporation, Microsoft, Google, Baidu, Inc., NVIDIA Corporation, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three license to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
Q: What is the size of the Artificial Intelligence market in 2022?The Artificial Intelligence market size was estimated to be USD 129.28 billion in 2022.
Q: What is the projected CAGR at which the Artificial Intelligence market is expected to grow at?The Artificial Intelligence market is expected to grow at a CAGR of 36.8% (2023-2032).
Q: List the segments encompassed in this report on the Artificial Intelligence market?Market.US has segmented the Artificial Intelligence market by geographic (North America, Europe, APAC, South America, and Middle East and Africa). By Solution, market has been segmented into Hardware, Software, and Services. By Technology, the market has been further divided into Deep Learning, Machine Learning, Natural Language Processing (NLP), Machine Vision. By End-Use, market has been segmented into Healthcare, BFSI, Law, Retail, Advertising & Media, Automotive & Transportation, Agriculture, Manufacturing, Other End-Uses.
Q: List the key industry players of the Artificial Intelligence market?Advanced Micro Devices, AiCure, Arm Limited, Atomwise, Inc., Ayasdi AI LLC, Baidu, Inc., Clarifai, Inc, and Other Key Players engaged in the Artificial Intelligence market.
Q: Which region is more appealing for vendors employed in the Artificial Intelligence market?North America is expected to account for the highest revenue share of 39.6%. Therefore, the Artificial Intelligence Technology industry in North America is expected to garner significant business opportunities over the forecast period.
Q: Name the key areas of business for Pigment Dispersion?Canada, Mexico, Germany, U.K., China, Japan, India; Brazil & The US, are key areas of operation for Artificial Intelligence Market.
Q: Which segment accounts for the greatest market share in the Artificial Intelligence Market?With respect to the Artificial Intelligence Market, vendors can expect to leverage greater prospective business opportunities through the Software solutions segment, as this area of interest accounts for the largest market share.
Artificial Intelligence MarketPublished date: March 2024add_shopping_cartBuy Now get_appDownload Sample - Advanced Micro Devices
- AiCure
- International Business Machines Corporation Company Profile
- Oracle Corporation
- Amazon Web Services
- Cisco Systems Inc.
- Arm Limited
- Atomwise, Inc.
- Ayasdi AI LLC
- Baidu, Inc.
- Clarifai, Inc
- HyperVerge, Inc.
- Intel Corporation
- Microsoft Corporation Company Profile
- NVIDIA Corporation
- settingsSettings
Our Clients
Single User $4,599 $3,499 USD / per unit save 24% | Multi User $5,999 $4,299 USD / per unit save 28% | Corporate User $7,299 $4,999 USD / per unit save 32% | |
---|---|---|---|
e-Access | |||
Report Library Access | |||
Data Set (Excel) | |||
Company Profile Library Access | |||
Interactive Dashboard | |||
Free Custumization | No | up to 10 hrs work | up to 30 hrs work |
Accessibility | 1 User | 2-5 User | Unlimited |
Analyst Support | up to 20 hrs | up to 40 hrs | up to 50 hrs |
Benefit | Up to 20% off on next purchase | Up to 25% off on next purchase | Up to 30% off on next purchase |
Buy Now ($ 3,499) | Buy Now ($ 4,299) | Buy Now ($ 4,999) |