Artificial Intelligence Market Outlook 2031:
The global artificial intelligence market size was valued at USD 124.40 Billion in 2022 and is projected to reach USD 2.8 Trillion by 2031, expanding at a CAGR of 37.5% during the forecast period 2023 - 2031. The growth of the market is attributed to the ongoing R&D activities conducted by leading tech companies across the globe along with the favorable government initiatives to implement artificial intelligence in various business verticals.
Artificial intelligence (AI) is the application of science and technology that enables computer systems to learn and develop problem-solving abilities similar to humans. Human intelligence is a blend of current awareness and emotionality while AI attempts to imitate the latter through complicated mathematical calculations.
Furthermore, AI is concerned with the development of intelligent machines that are capable of performing tasks such as learning, speech recognition, and problem-solving. Schools and colleges present in the US education system are integrating artificial intelligence in education to improve student learning, intelligent interactive programs utilizing diverse technology such as machine learning, natural language processing, and deep learning to assist students in their overall learning.
Moreover, access to historical datasets is a critical factor in progressing AI development. Furthermore, Healthcare institutions and government agencies are creating unstructured data that is available to the research domain since data storage and recovery has become more cost-effective.
In addition, researchers have access to a wealth of data, ranging from historic rainfall patterns to clinical imaging. On the other hand, next-generation computing architectures are driving information scientists and researchers to develop quickly with access to large datasets.
Additionally, traditional machine learning methods are being replaced by Artificial Neural Networks (ANN) to develop accurate versions. Digital image processing approaches have resulted from recent advancements in computer vision technology, such as Single Shot Multi Box Detector (SSD) and Generative Adversarial Networks (GAN). Furthermore, images and movies captured in low light can be turned into HD-quality pictures using these techniques.
The COVID-19 outbreak has encouraged new technological advancements in the field of artificial intelligence. It has expedited AI adoption in industries such as healthcare, AI-based tools, and solutions are being deployed in large numbers in order to respond to the crisis.
Furthermore, tech giants including Microsoft, Amazon, Google, Facebook, and Apple are pursuing projects in drug research, contact tracing, and remote patient-clinician communication. The pandemic has highlighted the necessity to change traditional education into a technology-driven system.
Aside from modifying the learning process, AI-powered computers helped instructors in several ways, such as finding gaps in teaching strategies assessing student progress, and automating everyday administrative work.
Artificial Intelligence Market Trends, Drivers, Restraints, and Opportunities
- Growing investment in artificial technology (AI) along with the availability of cost-effective AI technology is one of the key factors fueling the artificial intelligence market expansion during the forecast period.
- Increasing need for analyzing and interpreting large volumes of data across industries for decision-making is expected to upsurge the artificial intelligence market growth in the coming years.
- Lack of trained personnel to handle complex algorithms and automated systems is projected to hamper the artificial intelligence market expansion during the forecast period.
- Rising deployment of 5G infrastructure and the expanding demand for intelligent virtual assistants are anticipated to provide a tremendous opportunity for the market in the coming years.
Scope of Artificial Intelligence Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Artificial Intelligence Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 – 2021
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Forecast Period
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2023 – 2031
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Segmentation
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Technology (Machine Vision, Natural Language Processing, Deep Learning, and Machine Learning), Solutions (Services, Software, and Hardware), and End-users (Manufacturing, Healthcare, Agriculture, Automotive & Transportation, BFSI, Advertising & Media, Retail, Law, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Zebra Medical Vision, Inc.; AiCure; NVIDIA Corp.; Sensely, Inc.; Arm Ltd.; Atomwise, Inc.; Microsoft; Ayasdi AI LLC; Lifegraph; Baidu, Inc.; Iris.ai AS.; Clarifai, Inc.; Intel Corp.; Cyrcadia Health; IBM Watson Health; Enlitic, Inc.; International Business Machines Corp.; HyperVerge, Inc.; H2O.ai.; and Google LLC.
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Artificial Intelligence Market Segment Insights
Based on technology, the global artificial intelligence market is segregated into machine vision, natural language processing, deep learning, and machine learning. The deep learning segment is estimated to grow at a rapid pace during the forecast period, due to the increasing importance of complex data-driven applications, such as text/content or speech recognition.
Furthermore, deep learning offers lucrative investment opportunities by assisting in the resolution of problems involving large amounts of data.
The machine learning segment is expected to gain a substantial market share in the coming years, owing to the rising deployment of cloud-based computing platforms and on-premises hardware equipment for the safe & secure restoration of large volumes of data and the increasing investments in R&D activities by leading players in artificial intelligence technology.
On the basis of solution, the market is segmented into services, software, and hardware. The software segment is projected to expand at a considerable CAGR during the forecast period, owing to the high computing power, increasing development in information storage capacity, and parallel processing abilities to provide high-end AI software in dynamic end-use industries.
Furthermore, artificial intelligence software solutions include primitives, linear algebra, inference, video analytics, sparse matrices, and numerous hardware connection capabilities along with the libraries for creating and deploying artificial intelligence systems. In addition, the necessity for businesses to understand and analyze visual content in order to generate relevant insights is propelling segment growth.
Based on end-user, the global artificial intelligence market is divided into manufacturing, healthcare, agriculture, automotive & transportation, banking financial services and insurance (BFSI), advertising & media, retail, law, and others.
The advertising & media segment is expected to gain a large revenue share during the forecast period due to the increasing implementation of artificial intelligence in sales and marketing. Furthermore, companies can sustain large revenue share by using AI as programmatic advertising to increase customer conversions by expanding audience pools and reaching the target audience with a fine-tuned message.
In terms of region, the artificial intelligence market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key market share during the forecast period, owing to the encouraging government measures to promote artificial intelligence usage in several industries.
For example, in February 2019, former US President Donald J. Trump announced the American AI Initiative as the country's strategy for advancing artificial intelligence leadership. As part of this project, federal agencies have established rules for AI development and real-life deployment across a variety of industrial sectors, fostering public trust in AI-based systems. Thus all these factors are estimated to propel the market growth in the region.
The market in Asia Pacific is expected to expand at a rapid pace in the coming years, due to the growing investments in artificial intelligence by public & private institutions. For example, Baidu, Inc., a China-based tech company stated that it had reached definitive agreements with investors to sell its financial services division (FSG) in April 2018, which provides consumer lending, wealth management, and other commercial services.
Carlyle Investment Management L.L.C. and Tarrant Capital IP, LLC lead the group of investors that includes ABC International and Taikang Life. In addition, a growing number of AI start-ups in the region are promoting AI adoption to increase operational efficiency and automate processes.
Segments
The global artificial intelligence market has been segmented on the basis of
Technology
- Machine Vision
- Natural Language Processing
- Deep Learning
- Machine Learning
Solution
- Services
- Software
- Hardware
End-user
- Manufacturing
- Healthcare
- Agriculture
- Automotive & Transportation
- BFSI
- Advertising & Media
- Retail
- Law
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Zebra Medical Vision, Inc.
- AiCure
- NVIDIA Corp.
- Sensely, Inc.
- Arm Ltd.
- Atomwise, Inc.
- Microsoft
- Ayasdi AI LLC
- Lifegraph
- Baidu, Inc.
- Iris.ai AS.
- Clarifai, Inc.
- Intel Corp.
- Cyrcadia Health
- IBM Watson Health
- Enlitic, Inc.
- International Business Machines Corp.
- HyperVerge, Inc.
- H2O.ai.
- Google LLC
Competitive Landscape
Some of the key players competing in the global artificial intelligence market are Zebra Medical Vision, Inc.; AiCure; NVIDIA Corp.; Sensely, Inc.; Arm Ltd.; Atomwise, Inc.; Microsoft; Ayasdi AI LLC; Lifegraph; Baidu, Inc.; Iris.ai AS.; Clarifai, Inc; Intel Corp.; Cyrcadia Health; IBM Watson Health; Enlitic, Inc.; International Business Machines Corp.; HyperVerge, Inc.; H2O.ai.; and Google LLC.
These key players are adopting several marketing strategies such as, partnerships, new product launch, merger & Acquisition in order to gain competitive advantage in the industry.
In March 2021, Intel and Microsoft Cloud (Azure) has partnered for the Defense Advanced Research Projects Agency's (DARPA) Data Protection in Virtual Environments (DPRIVE) program. The program's goal is to create a fully homomorphic encryption accelerator.
In February 2021, Palantir Technologies and IBM started a new alliance. The objective of this alliance is to combine IBM's hybrid cloud data platform to provide Artificial Intelligence for business with Palantir's next-generation operations platform for improving applications.
Finn AI has teamed up with ASI Group, a conversational banking solution provider powered by AI. Customers of ASI Group's banks and credit unions in the United States and Latin America should be able to rapidly and simply integrate the Finn AI banking chat-bot into their online and mobile banking channels to automate and scale self-service.
For example, Zebra Medical Vision partnered with TELUS Ventures in July 2020 to expand the availability of the latter's deep learning technology to bring AI to clinical care settings and new modalities.
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