GLOBAL ARTIFICIAL INTELLIGENCE (AI) MARKET (2024 - 2030)

The global artificial intelligence market was valued at USD 150 billion and is projected to reach a market size of USD 1379.70 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 37.3%.

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Unlike the intelligence of people, artificial intelligence is the intelligence possessed by robots or software. Additionally, computer science research in this area focuses on creating and studying intelligent devices. The field of AI started gaining immense attention in 2010. With technological advancements and extensive usage in almost every end-user industry, this market is currently experiencing tremendous growth. In the future, with R&D activities and integration, this market will have enormous expansion.

Key Market Insights:

• With 13,993 active patent families, Baidu held the greatest number of machine learning and artificial intelligence (AI) patent families globally as of December 2022. With 13,187 active patent families held, the corporation, which had overtaken Tencent in the top spot in 2022, is currently placed second. With somewhat fewer than 9,500 active patent families, IBM came in sixth.
• The entire amount of money that businesses invested globally in artificial intelligence (AI) in 2022 was close to 92 billion dollars.
• With a valuation of almost 140 billion dollars, ByteDance, a Chinese artificial intelligence (AI) business, was the biggest AI unicorn startup in 2021.
• By 2030, 73 million American jobs might be lost due to the quick development of artificial intelligence and robotics, as per a recent McKinsey Global Institute analysis. To address this, educational programs, training, and upskilling are being implemented.

Artificial Intelligence Market Drivers:

• Technological advancements are enabling market expansion

Over the years, there have been major developments in the software and services of this technology. Deep learning, machine learning, and natural language processing have been a boon. AI helps companies with many day-to-day tasks to ease human life and time management. Additionally, support with complex tasks is provided. Insights regarding data analytics, financial data, risk assessment, etc., are obtained. This helps ensure accuracy, precision, reduction in errors, and optimization. All these factors make this technology attractive to be employed in various firms and other organizations. Furthermore, there is a lot of progress in research and developmental activities. Continuous projects are being undertaken in this field to broaden human understanding.

• Increasing demand for healthcare is boosting growth

AI can assist providers with gathering, storing, and analyzing this data, as well as producing data-driven insights from large populations. By utilizing this data, medical practitioners may make more informed decisions about how to treat and manage illnesses. Secondly, AI is being implemented in diagnostic tools like X-rays, CT scans, MRIs, and DXAs. This is used for producing medical images and identifying patterns, infections, and other medical data. Thirdly, it is used in the process of drug discovery and development. This involves the creation of medicine tailored to an individual's genetic makeup. Furthermore, it is used for other healthcare operations for improved outcomes.

Artificial Intelligence Market Restraints and Challenges:

• Costs, lack of jobs, data privacy, absence of creativity, and algorithmic bias are the main barriers that the market is currently experiencing

The whole process of installation, maintenance, and upgrades requires a lot of funding. Smaller organizations and startups can overcome many obstacles due to this. Secondly, advancements in AI have resulted in unemployment. Many companies have started layoffs and frozen their hiring because AI can take over these jobs with more accuracy and less time. Thirdly, data security is one of the biggest hindrances. There have been several cases of data breaches, cyberattacks, and fraud. This can cause significant losses for the organization and the country. Moreover, there can be fewer innovations with continuous use. Furthermore, extreme reliance on data can lead to partial decisions.

Artificial Intelligence Market Opportunities:

The AI market has an infinite number of possibilities in many fields. Its usage is being explored in education, agriculture, smart manufacturing, cybersecurity, marketing, sales, gaming, and other industries. Chatbots, assistants, and agents are providing the market with an ample number of opportunities. Self-driving vehicles integrated with AI technologies have been equipped with better safety and traffic flow. The healthcare sector is implementing AI for the early detection of diseases. The automation field is adopting AI-enabled machines for manufacturing, logistics, and quality control tasks. Apart from all of this, R&D activities are being prioritized.

GLOBAL ARTIFICIAL INTELLIGENCE MARKET REPORT COVERAGE:

Segmentation Analysis:

Artificial Intelligence (AI) Market - By Solution:

• Hardware

• Software

• Services

Based on solutions, software is the largest segment in the market, holding a share of around 37%. This is due to their ability to provide insights, aid in decision-making, versatility, flexibility, diverse applications, computing power, demand, advancements in algorithms, cloud-based solutions, customization, and information storage. During the forecast period, this category is predicted to show more growth. Services are the fastest-growing segment due to convenience, scalability, consultation needs, data labeling, annotation, and support. This segment is also expected to show tremendous growth during the forecast period.

Artificial Intelligence (AI) Market - By Deployment Mode:

• Cloud-based

• On-Premise

Based on deployment mode, the cloud-based sector is the both largest and fastest-growing segment of the market and is expanding at a rate that exceeds 70%. This flourishing is facilitated by elements such as cost-effectiveness, scalability, adaptability, accessibility, automated upgrades, and user-friendly features.

Artificial Intelligence (AI) Market - By Technology:

• Deep Learning

• Machine Learning

• Natural Language Processing (NLP)

• Machine Vision

Deep learning is the largest segment in the market, holding a share of approximately 37%. This is because of research activities, demand, company investments, collaborations, advancements, technological expertise, data-driven insights, and rising adoption in various fields. Machine learning is the fastest-growing owing to its capacity to swiftly evaluate vast volumes of data and provide insights that may be put to use. Additionally, it helps with spam filtering, business process automation, data security, and cyber protection. Organizations have increased their funds in this field, driving growth.

Artificial Intelligence (AI) Market - By Organization Size:

• Small and Medium Scale Enterprise

• Large Scale Enterprise

Large-scale firms, with an approximate share of about 60%, are the largest organizations in terms of size. This is because of things like having more employees, running more complicated operations, doing more work, international expansion, money, and services. However, with a market share of around 40%, small and medium-sized businesses are expanding at the fastest rate. This is a result of growing investments, improved infrastructure, more accessibility, emerging players, assistance from the government, and global operations.

Artificial Intelligence (AI) Market - By End User:

• BFSI

• Healthcare

• IT & Telecom

• Law

• Retail

• Agriculture

• Advertising & Media

• Automotive & Transportation

• Manufacturing

• Others

Based on end users, BFSI is the largest segment in the market. AI is being used in the BFSI sector to enhance internal processes and customer connections through chatbots, predictive analytics, risk management, cybersecurity, and digital marketing. Apart from this, AI can help in verification, automation, customer queries, setting up accounts, and providing general guidance. The healthcare segment is the fastest-growing. AI helps in the analysis of medical records, interpreting data, diagnosis, drug delivery, treatment, and other administrative applications. Furthermore, the growing prevalence of diseases is helping the segment expand.

Artificial Intelligence (AI) Market - By Regional:

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

North America is the largest region, with a rough share of 36%. This is because of the existence of key players, financial growth, accessibility, facilities, research activities, technological advancements, a larger labor pool, and the industry's quick expansion. The top-ranking nations are the United States and Canada.

However, Asia Pacific is the fastest growing region, with nations like China, India, and Japan at the top, due to its expanding economy, rising investments, governmental involvement through initiatives, growth of emerging enterprises, worldwide operations, R&D activities, and trained workforce. This region holds a share of around 23%.

Europe is also one of the leading regions, along with countries like the United Kingdom, Germany, France, and Sweden, owing to a growing AI ecosystem, funds, and research facilities.

COVID-19 Impact Analysis on the Global Artificial Intelligence Market:

The market benefited from the virus's emergence. The new norm was mobility limitations, social isolation, and lockdowns. This brought a shift in favor of working from home. Adopting this service order was essential to ensuring efficient operation management, data security, and other services related to strategic planning. In addition, a decline in the economy resulted from interruptions in import and export operations. This led to budgetary constraints. AI tools were used to efficiently plan the company's financial resources that are now available. To avoid the spread of the virus, people started adopting telehealth services. This further caused a positive impact as AI tools were being adopted. As per Statista, around half of the patients seen by 43% of doctors at the height of the epidemic were using telehealth technology. Post-pandemic, the market continued to earn profits.

Latest Trends/ Developments:

• Companies in this industry are driven to increase their market share using a variety of tactics, including alliances, investments, and acquisitions. Along with maintaining competitive pricing, businesses are paying much to advance the existing technology as well as finding choices. This has also led to greater enlargement.
• Large volumes of data may be analyzed by AI technology to learn about the preferences and behavior patterns of clients. Businesses may offer customized goods and services thanks to it, which increases client happiness and loyalty. For example, AI algorithms may be used by online merchants to suggest goods to customers based on their browsing and purchase history. It encourages clients to make additional purchases by assisting them in finding things that pique their interest.

Key Players:

• Google

• Amazon

• Microsoft

• IBM

• Apple

• Meta Platform

• NVIDIA

• Intel

• Salesforce

• Baidu

In June 2023, Google Cloud and Mayo Clinic partnered to use generative AI to transform healthcare. The initiative would begin with Enterprise Search in Generative AI App Builder (Gen App Builder), which would enhance clinical workflow efficiency, facilitate information retrieval for researchers and clinicians, and ultimately help improve patient outcomes. Furthermore, Google Cloud declared that HIPAA compliance is now supported by its Enterprise Search on Gen App Builder.

In January 2023, Microsoft and OpenAI expanded their collaboration by investing billions of dollars over several years to speed up AI advancements and make sure the world can profit from them all. It expanded their continuous cooperation in AI research and supercomputing and gave them the freedom to independently market the sophisticated AI technologies that are produced.

In September 2020, in a $40 billion transaction, Nvidia Corp. purchased Arm Holdings Ltd. from its owner, SoftBank Group Corp. Nvidia was pitching the merger as offering a greater emphasis on artificial intelligence, particularly in terms of building the world's leading computer firm for the AI era.