Artificial Intelligence Market

Market Overview:

The global artificial intelligence market size reached US$ 70.9 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 350.4 Billion by 2028, exhibiting a growth rate (CAGR) of 29.9% during 2023-2028. The increasing adoption of cloud-based solutions, rising sales of autonomous vehicles (AVs), and the growing prevalence of chronic diseases represent some of the key factors driving the market.

Increasing Need for Greater Efficiency, Productivity, and Competitiveness in Different Industry Verticals Augmenting Market Growth

The artificial intelligence market has been experiencing high market growth. Rapid digitization and automation in different industry verticals represent one of the major factors driving the demand for artificial intelligence (AI) around the world. These industry verticals are adopting AI powered automation tools to streamline their processes, improve accuracy and reduce costs. AI also assists in providing personalized experiences to their customers and help business predict future trends and identify potential risks.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market structure is highly fragmented with the increasing number of players on account of the growing number of mergers and acquisitions (M&A). The volume of new entrants is moderate in the artificial intelligence industry as there are significant opportunities for various new players to enter the market. As these new players in the market are offering artificial intelligence solutions, there is an increase in the demand for intelligent virtual assistants in the global marketplace.

What is Artificial Intelligence?

Artificial intelligence (AI) is a technological solution for building smart machines capable of performing several tasks, including visual perception, speech recognition, decision making, and language translation that require human intelligence. It comprises hardware components like a graphics processing unit (GPU), central processing unit (CPU), application-specific integrated circuits (ASIC), and field-programmable gate array (FPGA). It also involves software components, such as natural language processing (NLP), deep learning, machine learning (ML), augmented reality (AR), and virtual reality (VR). It assists in automating repetitive and time-consuming tasks, improving accuracy, reducing the risk of errors, enhancing the quality of decision making, and providing personalized recommendations and tailored experiences.

COVID-19 Impact:

The COVID-19 pandemic outbreak offered lucrative growth opportunities in the artificial intelligence industry and imposed unprecedented challenges on numerous countries. This is due to the shifting preferences toward online shopping. Moreover, the rising adoption of remote working solutions presented challenges to organizations as they struggled in bringing employees back to the office. These organizations focused on adopting AI-based process automation software to handle mundane tasks like data entry and updating databases without human intervention to improve office work accuracy. In addition, the healthcare sector was boosted during this period on account of the growing awareness among healthcare professionals and patients about the benefits of new medical technologies like AI. it also plays a vital role in understanding and suggesting the development of a vaccine for COVID-19. As a result, AI helped in improving the planning, treatment, and reported outcomes of the COVID-19 patient. Apart from this, due to lockdown and labor shortages, companies adopted AI for warehouse management, which supported warehouse process management. Therefore, the pandemic has positively impacted the global artificial intelligence market.

Artificial Intelligence Market Trends:

Rapid digitization, increasing adoption of cloud-based solutions for analyzing large amounts of data, and significant growth in the information technology (IT) industry represent one of the major factors driving the demand for AI around the world. Moreover, the rising need for remote patient monitoring (RPM) solutions among the masses on account of the surging prevalence of severe medical diseases are catalyzing the demand for AI in the healthcare industry. In addition, there is an increase in the media and entertainment industry to optimize content distribution by analyzing user behavior and determining the most effective distribution channels. It is also used to deliver personalized content and enhance the experiences of streaming services. This, coupled with the growing number of over-the-top (OTT) platforms, is influencing the market positively. Besides this, the increasing deployment of fifth generation (5G) technology and the rising traction of Industry 4.0 are creating a positive outlook for the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global artificial intelligence market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on type, offering, technology, system and end-use industry.

Type Insights:

• Narrow/Weak Artificial Intelligence
• General/Strong Artificial Intelligence
   

The report has provided a detailed breakup and analysis of the artificial intelligence market based on the type. This includes narrow/weak artificial intelligence and general/strong artificial intelligence. According to the report, narrow/weak artificial intelligence represented the largest segment as it is used for automating time-consuming and repetitive tasks and analyzing data in an extremely precise manner. Moreover, rapid digitization in numerous industry verticals and the increasing awareness about the benefits offered by the deployment of big data solutions are influencing the market positively.

Offering Insights:

• Hardware
• Software
• Services
   

A detailed breakup and analysis of the artificial intelligence market based on the offering has also been provided in the report. This includes hardware, software, and services. According to the report, software accounted for the largest market share as it helps in automating tasks, analyzing a vast amount of data, and identifying patterns that are difficult for humans to detect.

Technology Insights:

• Machine Learning
• Natural Language Processing 
• Context-Aware Computing
• Computer Vision
• Others
   

A detailed breakup and analysis of the artificial intelligence market based on the technology has also been provided in the report. This includes machine learning, computer vision, context-aware computing, and natural language processing. According to the report, machine learning accounted for the largest market share as it relies on complex algorithms that automatically improve computer programs.

System Insights:

• Intelligence Systems
• Decision Support Processing
• Hybrid Systems
• Fuzzy Systems
   

A detailed breakup and analysis of the artificial intelligence market based on the system has also been provided in the report. This includes intelligence systems, decision support processing, hybrid systems, and fuzzy systems. According to the report, intelligence systems for the largest market share as they are used to perform complex automated tasks that are not possible by conventional computing paradigm. These systems also have the potential of gathering and analyzing data and communicating with other systems.

End-Use Industry Insights:

• Healthcare
• Manufacturing
• Automotive
• Agriculture
• Retail
• Security
• Human Resources
• Marketing
• Financial Services
• Transportation and Logistics
• Others
   

A detailed breakup and analysis of the artificial intelligence market based on the end-use industry has also been provided in the report. This includes manufacturing, marketing, healthcare, financial services, transportation and logistics, automotive, retail, security, agriculture, human resources, and others. According to the report, manufacturing accounted for the largest market share on account of the increasing utilization of the industrial internet of things (IIoT). Moreover, it is used to improve the efficiency, productivity and overall output of the manufacturing units.

Regional Insights:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for artificial intelligence. The increasing use of AI-based algorithms and tools by numerous online platforms to analyze large amounts of data for extracting specific insights that are further used to enhance customer engagement represents one of the major factors strengthening the market growth in the North American region. Moreover, the rising number of over-the-top (OTT) platforms for streaming content is favoring the growth of the market. In addition, the growing demand for intelligent virtual assistants, the expansion of 5G infrastructure, and the advent of AI powered industrial and surgical robots are creating a positive outlook for the market in the region.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global artificial intelligence market. Some of the companies covered in the report include:

• Amazon Web Services Inc.
• Apple Inc.
• Baidu
• Cisco Systems Inc.
• Facebook Inc.
• General Electric Company
• Google LLC (Alphabet Inc.)
• International Business Machines
• Intel Corporation
• Micron Technology Inc.
• Microsoft Corporation
• Nvidia Corporation
• Oracle Corporation
• Rockwell Automation Inc.
• Samsung Electronics Co. Ltd.
• SAP SE
• Siemens AG
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the artificial intelligence market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global artificial intelligence market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the artificial intelligence industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.