Artificial Intelligence Market Trends

Artificial Intelligence (AI) Market Overview

Artificial Intelligence (AI) Market Size was valued at USD 93.5 billion in 2021. The Artificial Intelligence (AI) market industry is projected to grow from USD 128.1 billion in 2022 to USD 1,589.6 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 37.0% during the forecast period (2024 - 2032). The adoption of cutting-edge technology is being fueled by ongoing research and innovation carried out under the direction of the tech giants in sectors including manufacturing, healthcare, retail, and finance.

Figure 1: Artificial Intelligence Market Size 2024-2030

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

Latest Industry News of Artificial Intelligence (AI) Market

ImagenAI, a top supplier of AI-powered editing tools for pros, has announced a $30 million investment headed by Summit Partners, a global growth investor, with participation from current investor NFX. The funding will help Imagen continue to invest in strategic M&A and hiring, increase its SaaS offering, and accelerate its already rapid growth. By intelligently automating image editing at scale, Imagen was established in July 2020 to modernise and enhance the post-production process of professional photographers.

Increasing the uses of artificial intelligence market size will increase demand for it and, in turn, propel market expansion throughout the forecast period.

Covid-19 Analysis

Due to the required WFH (work-from-home) policy brought on by this pandemic, the COVID - 19 outbreak is anticipated to accelerate the market growth of next-generation tech fields, including artificial intelligence. For instance, the epidemic has resulted in a notable increase in new sign-ups across the entire product range of LogMeIn, Inc., a U.S.-based provider of SaaS (Software-as-a-Service) and cloud-based client interaction, remote connectivity, and collaboration services. In order to increase availability across the globe, tech companies are also increasing the range of products and services they offer. For instance, Google LLC introduced the Rapid Response Virtual Agent chatbot for call centres in April 2020. This chatbot is designed to address concerns clients may have regarding the coronavirus (COVID-19) outbreak via voice, chat, and other social media platforms.

Artificial Intelligence (AI) Market Trends

The ability of AI technology to effectively analyses the collected data and use to forecast future actions in real time with the use of sophisticated algorithms contributes in the growth of productivity. For instance, Netflix may suggest movies based on its users' prior viewing habits. By incorporating workflow management tools, trend forecasting, and other breakthroughs, AI has revolutionized company management in the contemporary business environment. These are the main factors influencing growing investment in machine learning and AI technology. In order to improve the efficiency of their value chains, numerous small startups and tech companies have invested in the adoption of open-source AI platforms. In addition, it is anticipated that the availability of low-cost, high-quality AI technology would help the AI industry grow.

Artificial Intelligence (AI) Market Segment Insights

Artificial Intelligence (AI) Component Insights

The Artificial Intelligence (AI) market segmentation, based on Component, includes Hardware, Software, and Services. With a revenue share of more than 38.0% in 2021, the software solutions category dominated the market. This significant proportion can be attributed to sensible improvements in data storage capacity, powerful computing, and parallel processing capabilities to provide high-end services. This segment was also well-positioned to take the largest share of the market thanks to its capacity for data extraction, real-time insight, and decision-making support. AI software in flexible end-use industries. Software for building and deploying artificial intelligence systems includes libraries for primitives, linear algebra, inference, sparse matrices, video analytics, and numerous hardware connection capabilities. Artificial intelligence software use is anticipated to increase throughout the forecast period as a result of the necessity for businesses to comprehend and analyse visual content in order to derive useful insights.

Figure 2: Artificial Intelligence Market Share By Component 2024 (%)

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

Artificial Intelligence (AI) Technology Insights

In 2021: the deep learning market sector held the top spot and represented about 37.0% of total revenue. Its complex data-driven applications, such as text/content or speech recognition, are blamed for this rise. Deep learning offers lucrative investment opportunities as it helps overcome the challenges of high data volumes.

July 2020: In order to increase the accessibility of the latter's deep learning solutions in North America and broaden AI solutions to clinical care settings and new modalities, Zebra Medical Vision teamed with TELUS Ventures.

Artificial Intelligence (AI) Deployment Insights

The artificial intelligence market is divided into On-premises and Cloud based on deployment mode. Multiple advantages of the cloud deployment approach include lower operational expenses, easy implementation, and great scalability. The use of cloud-based natural language processing and machine learning tools in Al is anticipated to increase as people become more aware of their advantages. Given that many businesses have moved to the private or public cloud, all solution providers concentrate on creating reliable cloud-based solutions for their clients. Cloud technology gives businesses more operational flexibility and makes real-time deployment simple for those using real-time analytics. IBM, Microsoft, Amazon, and Google are significant providers of cloud-based Al systems.

December 2021: AWS announced the launch of AWS Cloud WAN, which enables companies to combine cloud and on-premises settings rapidly and simply by enabling them to construct, manage, and keep an eye on a single network. Using the centralized dashboard offered by AWS Cloud WAN, businesses can quickly connect their on-premises branch offices, data centers, and Amazon Virtual Private Clouds to the AWS network.

Artificial Intelligence (AI) Organization Size Insights

Based on Organization Size, the AI market is divided into Large Enterprises and SME. Large Enterprises are expected to hold a significant share during the forecast period owing to increasing investment in AI technology.

Artificial Intelligence (AI) Business Function Insights

Based on Business Function, the AI market is segmented into Finance, Security, Human Resources, Law, Marketing And Sales, and Others. By compiling information from prior employees in comparable tasks and crafting tailored interview questions, AI in human resources helps eliminate subjectivity. This puts more emphasis on the candidate's skill set, gives additional context for the job's requirements, and compares the candidate to roles in comparable firms.

Artificial Intelligence (AI) Industry Vertical Insights

In 2021, the advertising and media category dominated the market with a revenue share of more than 20.0%. This large proportion can be attributed to the rapidly expanding AI marketing applications that have gained a lot of attention. However, it is projected that by 2030, the healthcare industry would take the lead. Based on use-cases, the healthcare market has been divided into categories such as robot-assisted surgery, dosage error reduction, virtual nursing assistants, clinical trial participant identification, hospital workflow management, preliminary diagnosis, and automated image diagnostic. Financial analysis, risk evaluation, and investment/portfolio management proposals are all included in the BFSI segment. The BFSI has seen a considerable increase in the use of artificial intelligence as a result of the industry's increasing demand for risk and compliance applications.

Artificial Intelligence (AI) Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2021, North America accounted for a sizeable portion of the artificial intelligence (AI) market share, with the U.S. playing a prominent role due to growing government initiatives and investments in the sector. The existence of several market participants in the U.S. is anticipated to boost market expansion. The RELX Emerging Tech Executive Report 2021 states that 81% of Americans now use this technology, up over 33% from 2018. Retail, BFSI, manufacturing, healthcare, and other important sectors of the economy are making large investments in this technology.

During the projected period, Asia Pacific is anticipated to experience substantial expansion in the artificial intelligence market. The region's Al use cases are projected to grow as 5G technology is increasingly implemented in nations including China, South Korea, Japan, Singapore, and India. Many countries have developed steadfast plans to increase technology use across industries. For instance, the market growth is being fueled by initiatives like India's Al for All goal, China's Next Generation Artificial Intelligence Development Plan, Singapore's National Al Strategy, and Japan's Society 5.0 vision. Similar to Malaysia, Indonesia, Vietnam, the Philippines, Thailand, and other nations, these nations are heavily utilizing the technology across a range of applications.

Europe is expected to control a sizable portion of the artificial intelligence market. European Union nations are carefully putting money into technology. For instance, the European Investment Fund allocated USD 171 million funding for the enterprises around Europe, according to the European Commission's December 2020 report.

Figure 3: Artificial Intelligence Market Share By Region 2024 (%)

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

Artificial Intelligence (AI) Key Market Players & Competitive Insights

There are a lot of new businesses entering the market. To provide specialized artificial intelligence solutions, these businesses are working with sectors like manufacturing, healthcare, and retail. While the major players in the market are concentrating on research and development to meet the growing demands of various industrial applications. These players are buying important start-ups all around the world in order to increase their footprint and improve their solution offerings. For instance, Apple Inc. increased the sophistication of its intelligent services by purchasing well-known businesses. Additionally, the knowledge of the engineers and technicians working for these startups aids in the creation of original solutions.

July 2021 - Qualcomm Technologies purchased assets from Twenty Billion Neurons GmbH, including an Al research team and video datasets used by the Al community.

August 2021 - OpenAI, LLC updated the OpenAl Codex and launched a private beta programme through API that reads natural language commands and executes them on behalf of users.

Key Companies in the Artificial Intelligence (AI) market include

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  Advanced Micro Devices

  
  


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  AiCure

  
  


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  Arm Limited

  
  


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  Atomwise, Inc.

  
  


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  Ayasdi AI LLC

  
  


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  Baidu, Inc.

  
  


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  Clarifai, Inc

  
  


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  Cyrcadia Health

  
  


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  Enlitic, Inc.

  
  


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  Google LLC

  
  


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  H2O.ai.

  
  


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  HyperVerge, Inc.

  
  


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  International Business Machines Corporation

  
  


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  IBM Watson Health

  
  


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  Intel Corporation

  
  


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  Iris.ai AS.

  
  


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  Lifegraph

  
  


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  Microsoft

  
  


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  NVIDIA Corporation

  
  


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  Sensely, Inc.

  
  


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  Zebra Medical Vision, Inc.

  
  

Artificial Intelligence (AI) Industry Developments

• In March 2024, Microsoft and NVIDIA reported collaborating to further develop AI technologies in the spheres of medicine and life science. This joint effort combines the resources of both organizations: the cloud and computing capabilities of Microsoft Azure and NVIDIA DGX Cloud with the Clara suite. The idea is that through innovation in areas such as clinical trials or drug development, patient care is going to get easier.


• In March 2024, NVIDIA unveiled new Generative AI Microservices that focused on accelerating Medical Technology (MedTech) drug research and digital medicine. These Microservices utilize Artificial Intelligence (AI) and augment the Med-Tech landscape.


• In January 2024, Google announced a new framework called Lumiere and plans to incorporate it into business. Lumiere dilutes images based on texts into sequences of short video clips. Furthermore, is it able to supplement still images with animation or orient videos to fit the specified characteristic?


• In December 2023, the company Google LLC. Gave birth to a new language, a large language model (LLM) dubbed Gemini. Gemini has three distinctive versions: Nano, Pro and Ultra. One of the gaping differentiators of Gemini from other LLMs is its multi-modality characteristic.


• In November 2023, The University of Cambridge, together with Intel Corporation and Dell Technologies, announced the deployment of the co-designed fastest AI supercomputer ‘Dawn Phase 1’. Members of the leading technical teams constructed this supercomputer which integrates High Performance Computing (HPC) and Artificial Intelligence so as to tackle some of the world’s greatest problems. This is expected to enhance the future technological direction as well as the inward investment into the UK technology sector.


• In March 2023, Enlitic launched a new version of the Enlitic Curie平台, which provides assistance to the radiology department in the management of their workflow. The platform includes Curie|ENDEX, which is an NLP and computer vision system for the analysis & processing of medical images, and Curie|ENCOG, a system that employs AI to process Protected Health Information.


• In June 2023, AMD presented its AI Platform vision for the future, which was initiated with the launch of the AMD Instinct MI300 Series accelerator family, among which the AMD Instinct MI300X accelerator was first showcased. The accelerator has been designed to meet the needs of training and inference of large language models for generative AI workloads.


• In June 2023, IBM made it known that they would be joining forces with The All England Lawn Tennis Club during the Wimbledon Championship. The firm would be using IBM Watsonx’s generative AI technology to create video commentary of highlights throughout the tournament. Moreover, the blunt interpretation of the draws will show how advantageous the draws would be for each single player, courtesy of IBM.


• In April 2023, H20.ai became known for its strategic cooperation with GeoTechnologies, a Japan-based company that provides map data & location information solutions to vehicle navigation systems. The firm was able to make use of H20.ai’s H2O AI Cloud to create an AI-driven system that can examine sidewalk footage taken from the onboard cameras on vehicles.


• In January 2023, Iris.ai made an announcement indicating that they had secured the EIC Accelerator Blended finance, which is described as the premium arm of funding start-ups within EIC. The daughter includes a 2.4 million euro grant and an investment of up to 12 million euro by the EIC and the European Investment Grant.

Artificial Intelligence (AI) Market Segmentation

Artificial Intelligence (AI) Component Outlook

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  Hardware

  
  


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  Software

  
  


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  Services

  
  

Artificial Intelligence (AI) Technology Outlook

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  Machine Learning

  
  


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  Natural Language Processing

  
  


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  Context-Aware Computing

  
  


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  Computer Vision

  
  

Artificial Intelligence (AI) Deployment Mode Outlook

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  On-premises

  
  


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  Cloud

  
  

Artificial Intelligence (AI) Organization Size Outlook

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  Large Enterprises

  
  


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  SMEs

  
  

Artificial Intelligence (AI) Business Function Outlook

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  Finance

  
  


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  Security

  
  


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  Human Resources

  
  


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  Law

  
  


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  Marketing And Sales

  
  


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  Others

  
  

Artificial Intelligence (AI) Industry Vertical Outlook

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  BFSI

  
  


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  IT & Telecom

  
  


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  Healthcare

  
  


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  Retail

  
  


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  Automotive

  
  


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  Advertising & Media

  
  


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  Manufacturing

  
  


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  Others

  
  

Artificial Intelligence (AI) Regional Outlook

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  North America

  
  

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  US

  
  


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  Canada

  
  


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  Mexico

  
  

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  Europe

  
  

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  Germany

  
  


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  France

  
  


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  UK

  
  


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  Rest of Europe

  
  

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  Asia-Pacific

  
  

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  China

  
  


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  Japan

  
  


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  India

  
  


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  Rest of Asia-Pacific

  
  

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  Middle East & Africa

  
  


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  South America