Applied AI Market Share

Applied AI Market Overview

Global Applied AI Market Size was valued at USD 131.40 billion in 2022. The Applied AI Market industry is projected to grow from USD 143.36 billion in 2023 to USD 1,091.40 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 25.3% during the forecast period (2023 - 2032).

Artificial intelligence (AI) is the practical application of AI technologies to solve real-world issues, improve processes, and drive innovation in a variety of industries. It entails incorporating machine learning, deep learning, natural language processing, computer vision, and other artificial intelligence techniques into specific applications and systems. Natural Language Processing (NLP) is a popular area of applied AI that is used in chatbots and virtual assistants to interpret and respond to human language, increasing customer assistance and user interaction. AI is transforming patient care in healthcare by analyzing medical data to aid in diagnosis, therapy recommendation, and medication discovery.

Computer vision is used in industries such as automotive for self-driving vehicles and retail for cashier-less stores to improve the shopping experience. In finance, artificial intelligence is used for fraud detection and algorithmic trading, as well as to improve security and financial decision-making. Furthermore, AI-powered predictive analytics is used across multiple industries to foresee trends, manage supply chains, and streamline operations.

FIGURE 1: APPLIED AI MARKET SIZE 2018-2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Applied AI Market Trends

• 
  

  Increasing data availability

  
  

The growing availability of applied AI in various end use industry vertical produces a lot of data. Many orgazination and resrach institute release large  public dataset to foster new technique of dta filteration. Diverse data source help AI sysem to adapt a wide range of conditions and inputs for instance training a self driving car AI on data from various weather conditions and terrains.

Applied AI Market Segment Insights

Applied AI Components Insight

The global Applied AI market, in this report, has been segmented based on Components into software {machine learning libraries and frameworks, natural language processing (NLP) libraries, computer vision software, chatbot and virtual assistant platforms, predictive analytics software, ai-powered content generation tools, emotion and sentiment analysis software, image and video analysis software, automated translation software, others} and services {AI consulting and strategy, data science services, AI-driven personalization services, and others.

The software segment holds the largest share of the total market. AI software provides scalable solutions that may be used in a variety of sectors and applications. This adaptability makes it an appealing option for enterprises looking to leverage AI's capabilities without investing in specialized hardware or infrastructure. AI software development is progressing quickly, with open-source frameworks, pre-trained models, and developer-friendly tools becoming widely available. This has reduced the entrance barrier, allowing enterprises to develop AI solutions more efficiently.

Applied AI Market- Organization Size Insights

The global Applied AI market, in this report, has been segmented on the basis of Organization Size into small & medium enterprise and large enterprise.

The large enterprise segment holds the largest share of the total share. This is due to the fact that huge corporations have the resources to invest in AI solutions and the need to improve their operations. Large corporations are also more likely to have the necessary data and competence to apply AI solutions. Large corporations are increasingly relying on applied AI to achieve a competitive advantage. AI-powered solutions can increase product proliferation, offer operational efficiency, and provide strategic decision-making insights. The desire to stay ahead of the competition is a significant motivator for AI adoption. To advance their AI capabilities, several large corporations are actively forming collaborations with AI startups and acquiring AI companies. This strategic approach enables them to draw on outside experience and creativity.

Applied AI Market- Application Insights

The Applied AI market in this report has been segmented on the basis of Application into healthcare {medical image analysis, disease diagnosis, drug discovery, patient monitoring, personalized medicine}, finance {algorithmic trading, fraud detection, credit scoring, risk assessment, financial forecasting}, retail and e-commerce (recommendation systems, inventory management, demand forecasting, price optimization, customer segmentation, manufacturing and industry}, predictive maintenance {quality control, process optimization, chain management,}, industrial robotics {autonomous vehicles, self-driving cars, traffic optimization, fleet management, object detection, navigation systems}, natural language processing (NLP) {chatbots and virtual assistants, sentiment analysis, language translation, text summarization, named entity recognition}, energy and utilities {energy consumption optimization, smart grid management, renewable energy prediction, fault detection, energy-efficient systems}, agriculture {precision agriculture, crop disease detection, yield prediction, soil health monitoring, automated farming equipment}, cybersecurity {threat detection, anomaly detection, intrusion detection, malware analysis, identity verification}, education {personalized learning, intelligent tutoring systems, assessment automation, learning analytics, plagiarism detection}, entertainment and media {content recommendation, content generation, music and art creation, audience engagement analysis, video analysis and tagging} real estate {property valuation, predicting housing market trends, property management, risk assessment for loans, automated property tours}, transportation and logistics {route optimization, load scheduling, predictive maintenance for vehicles, inventory management, last-mile delivery optimization}, environmental monitoring {air and water quality analysis, climate change modeling, wildlife conservation tracking, disaster response planning, deforestation monitoring}, human resources {resume screening, employee performance analysis, diversity and inclusion monitoring, talent acquisition, workforce planning}, and others.

The retail segment holds 43.2% of the total share. To make individualized product recommendations, AI-powered recommendation engines examine client data such as past purchase history, preferences, and browsing behavior. This level of personalization improves the shopping experience, boosts customer engagement, and raises conversion rates. Natural language processing (NLP) chatbots and virtual assistants provide 24/7 customer service, answering questions, assisting with transactions, and completing mundane tasks. This increases customer satisfaction while freeing up human resources for more difficult questions.

Applied AI Market- Regional Insights

Based on Region, the global Applied AI is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Further, the major countries studied in the market report are the U.S., Canada, Germany, UK, Italy, Spain, China, Japan, India, Australia, UAE, and Brazil.

North America, notably the United States and Canada, has long been at the forefront of AI research and development. North America is home to several of the world's top AI research centers, colleges, and technology corporations. These organizations have been at the forefront of developing cutting-edge AI technology and driving field improvements. North America has seen significant investment and funding for AI businesses and initiatives. AI startups and efforts are being actively funded by venture capital firms, angel investors, and tech behemoths. This financial assistance drives innovation and the creation of useful AI applications.

Some of the world's most populated countries, such as China and India, are located in the Asia-Pacific area. This huge and diverse market provides considerable opportunity for businesses to use AI solutions to handle a variety of difficulties and meet the needs of a large consumer base. Businesses around the Asia-Pacific region are undergoing digital revolutions, with AI playing an important role. AI is being used by businesses in industries such as e-commerce, banking, healthcare, and manufacturing to improve operations, improve consumer experiences, and gain a competitive advantage. The Asia-Pacific region's numerous languages and cultures bring distinct problems and potential for AI development. Natural language processing (NLP) and cross-cultural applications are critical components of the region's AI progress.

FIGURE 3: APPLIED AI MARKET SIZE BY REGION 2022 VS 2032 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Global Applied AI Market Key Market Players and Competitive Insights

The Applied AI market is a highly competitive industry, making substantial investments in research and development to expand their product/service portfolios, contributing to the market's robust growth. The market is characterized by the presence of established and large Applied AI companies, as well as many smaller and large players such as Google (Alphabet Inc.), Microsoft, IBM, Amazon Web Services (AWS), Meta. These market leaders are implementing various strategic initiatives to expand their global presence. Key developments include new product/service launches, mergers and acquisitions, contractual agreements, increased investments, and collaborations with other organizations.

The competition in the Applied AI market is driven by various factors, including pricing, quality, delivery time, and the ability to offer customized solutions to customers. Moreover, partnerships and collaborations with other players in the industry, such as OEMs and suppliers, are crucial for companies to remain competitive in the market. Mergers and acquisitions are also common in the Applied AI market as companies seek to expand their reach and capabilities.

Key Companies in Applied AI Market Include

• Google (Alphabet Inc.)


• Microsoft


• IBM


• Amazon Web Services (AWS)


• Meta


• Apple


• NVIDIA


• Intel


• Open AI


• Baidu

Applied AI Market Industry Developments

November 2022, Applied AI Company (AAICO), a machine learning (ML) firm, has raised USD 42 million in funding to assist organizations in Europe and the United States in reducing their dependency on human business processes.

Applied AI Market Market Segmentation

Applied AI Market- Components Outlook

• 
  

  Software

  
  
  
  
  • Machine Learning Libraries and Frameworks
  
  
  • Natural Language Processing (NLP) Libraries
  
  
  • Computer Vision Software
  
  
  • Chatbot and Virtual Assistant Platforms
  
  
  • Predictive Analytics Software
  
  
  • AI-powered Content Generation Tools
  
  
  • Emotion and Sentiment Analysis Software
  
  
  • Image and Video Analysis Software
  
  
  • Automated Translation Software
  
  
  • Others
  
  
  
  


• 
  

  Services

  
  
  
  
  • AI Consulting and Strategy
  
  
  • Data Science Services
  
  
  • AI-driven Personalization Services
  
  
  • Others
  
  
  
  

Applied AI Market- Organization Size Outlook

• Small & Medium Enterprise


• Large Enterprise

Applied AI Market- Application Outlook

• Healthcare


• Medical image analysis


• Disease diagnosis


• Drug discovery


• Patient monitoring


• Personalized medicine


• Finance


• Algorithmic trading


• Fraud detection


• Credit scoring


• Risk assessment


• Financial forecasting


• Retail and E-commerce


• Recommendation systems


• Inventory management


• Demand forecasting


• Price optimization


• Customer segmentation


• Manufacturing and Industry


• Predictive Maintenance


• Quality control


• Process optimization


• Supply chain management


• Industrial robotics


• Autonomous Vehicles


• Self-driving cars


• Traffic optimization


• Fleet management


• Object detection


• Navigation systems


• Natural Language Processing (NLP)


• Chatbots and virtual assistants


• Sentiment analysis


• Language translation


• Text summarization


• Named entity recognition


• Energy and Utilities


• Energy consumption optimization


• Smart grid management


• Renewable energy prediction


• Fault detection


• Energy-efficient systems


• Agriculture


• Precision agriculture


• Crop disease detection


• Yield prediction


• Soil health monitoring


• Automated farming equipment


• Cybersecurity


• Threat detection


• Anomaly detection


• Intrusion detection


• Malware analysis


• Identity verification


• Education


• Personalized learning


• Intelligent tutoring systems


• Assessment automation


• Learning analytics


• Plagiarism detection


• Entertainment and Media


• Content recommendation


• Content generation


• Music and art creation


• Audience engagement analysis


• Video analysis and tagging


• Real Estate


• Property valuation


• Predicting housing market trends


• Property management


• Risk assessment for loans


• Automated property tours


• Transportation and Logistics


• Route optimization


• Load scheduling


• Predictive maintenance for vehicles


• Inventory management


• Last-mile delivery optimization


• Environmental Monitoring


• Air and water quality analysis


• Climate change modeling


• Wildlife conservation tracking


• Disaster response planning


• Deforestation monitoring


• Human Resources


• Resume screening


• Employee performance analysis


• Diversity and inclusion monitoring


• Talent acquisition


• Workforce planning


• Others

Applied AI Market- Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Middle East & Africa

  
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of the Middle East & Africa
  
  
  
  


• 
  

  South America

  
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Chile
  
  
  • Rest of South America