Artificial Intelligence (AI) Market Trend, Share, Growth, Size, Analysis and Forecast 2030

Global Artificial Intelligence (AI) Market: Industry Prospective

The global artificial intelligence (AI) market is valued at nearly USD 59.67 billion in 2021 and is estimated to expand at a compound annual growth rate (CAGR) of 39.4 percent to reach USD 422.37 billion by 2028. The report examines key drivers, opportunities, restraints, and challenges along with their impacts on the overall adoption of artificial intelligence (AI). Key market players along with a detailed geographical market scenario are covered in the report.

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Artificial Intelligence (AI) Market: Overview

Artificial intelligence (AI), generally termed machine intelligence, is a branch of computer science dealing with the creation and management of technology that can learn to make decisions and conduct transactions on behalf of users. Artificial intelligence programs are currently being put to the test against intelligence criteria that are outside of human perception, including AI applications in quantum and supercomputers. Artificial intelligence technology advances like these are likely to contribute to the artificial intelligence market's growth in the future years.

COVID-19 Impact:

The pandemic of COVID-19 has prompted new uses and technical advancements in the field. It has expedited AI adoption in industries like healthcare. For reacting to the crisis, AI-based tools and solutions are being implemented at a mass scale. Google, Microsoft, Apple, Facebook, and Amazon are all working on remote interactions between clients & users and contact tracing. Various organizations saw considerable increases in consumer demand during the pandemic, but their number of available personnel reduced. Various contact centers were unable to meet demand or were forced to close due to lockdown limitations, resulting in lengthy delays in customer support requests and a negative impact on the customer experience. As a result, the need for conversational AI is growing.

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Artificial Intelligence (AI) Market: Growth Drivers

Increasing need to automate processes driving the growth of the market.

AI, particularly computer vision and machine learning, is transforming the robotics business today. Businesses are exploring completely autonomous robots that can sense, interact, and conceive the environment around them in order to stay ahead in a global market. Industries are searching for reliable and experienced technology associates as they initiate to direct this current technological transformation. Deep learning models handle enormous amounts of data, such as photos, texts, and sounds, using artificial neural networks to provide correct results. Artificial intelligence-driven automation has proven effective in a variety of areas, including healthcare, aviation, agricultural, energy, and material handling. AI is being largely used to diagnose equipment failures and detect product irregularities, in addition to automating operations. All these factors assure global artificial intelligence (AI) market expansion over the forecast period.

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Artificial Intelligence (AI) Market: Restraints

The dearth of AI experts in the industry may hamper the market growth.

AI is a complicated system, and firms need employees with certain skill sets to create, manage, and deploy AI systems. Workers working with AI systems, for example, should be familiar with technologies like deep learning, cognitive computing, machine learning, and image recognition. Further, integrating AI solutions with current systems is a complex endeavor that necessitates considerable data processing to emulate human brain activity. Even slight faults can cause a system to fail or a solution to malfunction, which can have a significant impact on outcomes and intended results. Such factors can affect the market growth during the forecast period.

Artificial Intelligence (AI) Market: Opportunities

Increasing investments by the public as well as private sectors to support AI technology is likely to offer better growth opportunities to the market.

Expanding applications and simple deployment techniques have drawn governments’ and private organizations’ attention to AI technology, resulting in increased government expenditures on AI and related technologies. Government agencies, public sector organizations, and non-governmental organizations have begun allocating funds for AI-based pilot initiatives in a variety of areas, including traffic management, road & public safety, and government document digitalization. The US government committed more than USD 1 billion in funding for AI and quantum information science research laboratories in August 2020. Moreover, the Canadian government pledged USD 518 million in March 2021 to expand advanced technology research infrastructure, while the UK government has financed USD 27.5 million in 15 innovative AI research initiatives in the healthcare industry.

Artificial Intelligence (AI) Market: Challenges.

Concerns about privacy and data security are the major challenges for the market expansion.

In the future, security risks will become even more prevalent. The financial effect of cybercrime has climbed by approximately 78 percent in the last five years, and the time it takes to handle intrusions has doubled. Several IT teams are finding it difficult to keep up with the growing amount of data from diverse sources. Security breaches and data losses have escalated as a result of the inefficiencies of managing exabytes and petabytes of data. To provide an amazing client experience in today's competitive industry, marketing teams demand real-time and secure data. Organizations are collecting data from a variety of sources and measuring it online. Such data, which is utilized for assistance and communication, might be of several sorts. Public data, large data, and tiny data obtained from clients are examples of these data kinds. To preserve consumer confidence, companies must provide high-level data security as cyberattacks have substantially risen in number and sophistication. All such factors pose a major challenge to the global artificial intelligence (AI) market growth.

Artificial Intelligence (AI) Market: Segmentation

The global artificial intelligence (AI) market is categorized into components, technology, industry vertical, and region. Based on components, the market is split into services and solutions. By technology, the market is bifurcated into natural language processing, machine learning, computer vision, and others. The industry vertical segment of the market includes healthcare, IT & telecommunication, manufacturing, retail & e-commerce, automotive, BFSI, and others.

Recent Developments

• January 2021, for the retail business, Google has created Product Discovery Solutions. This suite would assist the store to improve its eCommerce capabilities and give a better consumer experience. Product Discovery Solutions for Retail combines AI algorithms with Cloud Search for Retail, a search service that uses Google Search to power merchants' product-finding capabilities.
• In November 2020, Microsoft has made the Dynamic 365 Project Operations solution available in India. From prospects to payments to profit, the solution focuses on assisting organizations in integrating operational procedures to enable visibility, collaboration, and analytics to promote performance across teams. Built on the Microsoft Power Platform, the solution employs real-time analytics to link and motivate sales, leadership, project management, and resources with the visibility they need to provide services to clients on time and on budget.

Artificial Intelligence (AI) Market: Regional Landscape

North America to lead the global market during the forecast period.

North America led the global artificial intelligence (AI) market in 2021, accounting for about 43 percent of overall revenue. This significant proportion is attributed to government programs that stimulate AI to use across several industries. For example, in February 2019, President Donald J. Trump announced the American AI Initiative as the country's plan for advancing artificial intelligence leadership. Federal authorities have established standards for the development and real-world application of AI-based systems across several industrial sectors as part of this project. During the projected period, the market in the Asia Pacific is projected to develop at the fastest CAGR. The use of AI services in major end-user sectors including healthcare, manufacturing, and automotive in nations like China, Japan, South Korea, and Australia has fueled this expansion.

Artificial Intelligence (AI) Market: Competitive Landscape

Major players operating in the global artificial intelligence (AI) market include Alphabet Inc., Microsoft Corporation, IBM Corporation, SAP SE, Baidu, Inc., Intel Corporation, Amazon Web Services, Inc., Samsung Electronics Co., Ltd., SAS Institute Inc., Facebook, Inc., Salesforce.com, Inc., Oracle, Cisco, Alibaba Cloud, Siemens, NVIDIA Corporation, and Huawei.

The global artificial intelligence (AI) market is segmented as follows:

By Component

• Solution
• Services

By Technology

• Machine Learning
• Natural Language Processing
• Computer Vision
• Others

By Industry Vertical

• IT and Telecommunication
• Retail and E-Commerce
• BFSI
• Healthcare
• Manufacturing
• Automotive
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa