Artificial Intelligence Market

Artificial Intelligence Market Size, Share, Trends, Growth, and Industry Analysis, By Offering (Hardware, Software and Services), Technology (Machine Learning, Natural Language Processing, Context-Aware Computing and Computer Vision), By Deployment (On-premise and Cloud), Organization Size (Large enterprises and Small & medium enterprises (SMEs)), By End-Use (Healthcare, BFSI, Law, Retail, Advertising & Media, Automotive & Transportation, Agriculture , Manufacturing and Others) Regional Analysis and Forecast 2032.

ICT & Media | June 2024 | Report ID: EMR00895 | Pages: 259

Global Artificial Intelligence market size was USD 126.62 billion in 2023 and the market is projected to touch USD 635.20 billion by 2032, at a CAGR of 19.63% during the forecast period.

 

AI systems can understand, learn, and adapt to complex tasks, revolutionizing industries across the globe. This market is being driven by increased demand for automation, data-driven insights, and improved decision-making capabilities. AI applications range from virtual assistants and autonomous vehicles to predictive analytics and robotics, and they are constantly evolving.

Companies are heavily investing in AI research and development to remain competitive and meet the demands of the digital age. As AI technologies mature, they are expected to transform a variety of industries, including healthcare, finance, retail, and manufacturing, opening up new opportunities for innovation and efficiency. However, challenges such as data privacy concerns, ethical implications, and regulatory constraints must be addressed to realize the full potential of AI in a responsible way.

 

Global Artificial Intelligence report scope and segmentation.

Report Attribute

Details

Estimated Market Value (2023)

USD 126.62 billion

Projected Market Value (2032)

USD 635.20 billion

Base Year

2023

Forecast Years

2024 – 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Based on By Offering, By Technology, By Deployment, By Organization Size, By End-Use, & Region.

Segments Covered

By Offering, By Technology, By Deployment, By Organization Size, By End-Use, & By Region.

Forecast Units

Value (USD Million or Billion), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032.

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others.

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Artificial Intelligence dynamics

Key drivers include the growing use of AI technologies across industries to streamline operations, improve productivity, and gain a competitive advantage. The proliferation of big data and the need for advanced analytics solutions are driving up demand for AI-powered tools that can extract actionable insights from massive datasets. Furthermore, the proliferation of Internet of Things (IoT) devices and connected technologies presents opportunities for AI integration to enable smart automation and predictive maintenance.

Furthermore, the growing investments in AI research and development by governments, corporations, and venture capitalists are driving innovation and pushing the boundaries of what AI can achieve. However, the market dynamics also face challenges such as concerns over data privacy, security risks, and ethical considerations surrounding AI deployment.

Regulatory frameworks and standards are evolving to address these concerns and mitigate potential risks associated with AI adoption. Furthermore, the shortage of skilled AI talent remains a significant hurdle for organizations looking to leverage AI effectively. Addressing these challenges will be crucial for unlocking the full potential of the AI market and realizing its transformative impact across industries.

 

Global Artificial Intelligence drivers

  • Increasing Adoption Across Industries

The increasing adoption of AI technologies across industries is a key driver of market growth. Companies are increasingly recognizing AI's potential to improve operational efficiency, optimize processes, and provide personalized customer experiences. For example, in healthcare, AI-powered diagnostic tools are transforming patient care by allowing for early disease detection and personalized treatment plans. Similarly, in manufacturing, AI-powered predictive maintenance systems help to reduce downtime and maintenance costs by anticipating equipment failures before they happen. Organizations are investing in AI solutions to remain competitive and meet changing customer expectations as they become more aware of the benefits.

  • Proliferation of Big Data and Advanced Analytics

The exponential growth of big data is another major factor driving demand for AI technologies. With the proliferation of digital devices and online platforms, massive amounts of data are created every day. AI-powered analytics tools allow organizations to harness this data deluge and extract actionable insights to drive informed decision-making.

For example, in the retail industry, AI-powered recommendation engines analyse customer behaviour and preferences to provide personalized product recommendations, improving the shopping experience and driving sales. Similarly, in finance, AI algorithms analyse market trends and trading patterns to identify profitable investment opportunities and reduce risk. As organizations strive to gain a competitive edge in the data-driven economy, the demand for AI-powered analytics solutions is expected to surge, driving market growth.

 

Restraints:

  • Data Privacy and Security Concerns

One of the primary challenges to the widespread adoption of AI is growing concern about data privacy and security. AI applications rely heavily on data, including sensitive personal information, which increases the risk of unauthorized access, misuse, or data breaches. This presents significant challenges for organizations, particularly in highly regulated industries like healthcare and finance, where strict compliance standards must be met. Additionally, the ethical implications of AI algorithms, such as bias and discrimination, raise concerns about fairness and transparency, complicating the adoption process.

  • Shortage of Skilled AI Talent

Building and deploying AI solutions requires expertise in machine learning, data science, and software engineering, among other specialties. However, the demand for AI talent far outstrips the supply, creating intense competition for skilled professionals. This talent gap not only slows the pace of AI innovation, but it also raises the costs of hiring and retaining AI professionals. To address this challenge, educational institutions, governments, and businesses must work together to invest in AI education and training programs and cultivate a diverse talent pool to meet the growing demand for AI expertise.

 

Opportunities:

  • Integration of AI with Internet of Things (IoT)

The integration of AI and IoT represents yet another significant opportunity for market growth. The proliferation of connected devices, sensors, and actuators embedded in everyday objects generates massive amounts of real-time data that can be analysed and acted on using AI algorithms. Organizations can create intelligent systems by combining AI and IoT technologies to automate processes, optimize resource utilization, and enable predictive maintenance. For example, in smart cities, AI-powered IoT platforms can analyse real-time data from sensors and cameras to monitor traffic patterns, manage energy consumption, and improve public safety. As the IoT ecosystem evolves, the demand for AI-driven IoT solutions is expected to increase, creating new opportunities for innovation and value creation.

 

Segment Overview

  • By Offering

The AI market is divided into three segments based on its offerings: hardware, software, and services. Hardware refers to physical components like processors, memory, and storage devices that are optimized for AI workloads. Software consists of the algorithms, frameworks, and development tools used to create and deploy AI applications. AI vendors and service providers offer consulting, implementation, and maintenance services to help organizations adopt and leverage AI technologies effectively. Together, these offerings form the backbone of the AI ecosystem, allowing organizations to harness the power of artificial intelligence to drive innovation, improve decision-making, and achieve business goals.

  • By Technology

Machine learning, natural language processing, context-aware computing, and computer vision are all examples of AI technologies. Machine learning algorithms allow systems to learn from data and improve performance over time without requiring explicit programming. Natural language processing enables computers to understand, interpret, and generate human language, thereby facilitating human-machine communication.

Context-aware computing uses environmental and situational data to offer users personalized and adaptive experiences. Computer vision allows machines to interpret and analyse visual information in images or videos, enabling applications like facial recognition, object detection, and autonomous driving. These technologies collectively drive the development of AI applications across various domains, from virtual assistants and chatbots to autonomous vehicles and medical imaging systems.

  • By Deployment

AI solutions can be deployed on-premises or in the cloud. On-premise deployment entails installing and operating AI software and hardware infrastructure on an organization's own data center or premises, giving it greater control and security over sensitive data and applications. Cloud deployment, on the other hand, entails hosting AI services and infrastructure on third-party cloud platforms, which provide scalability, flexibility, and accessibility advantages. Organizations can choose the deployment model that best suits their requirements, balancing factors such as data privacy, cost-effectiveness, and scalability to maximize the value of AI investments.

  • By Organization Size

The AI market serves businesses of all sizes, from large corporations to small and medium-sized enterprises (SMEs). Large corporations frequently have the resources and expertise to develop and implement AI solutions in-house or through collaborations with AI vendors and service providers. Small and medium-sized enterprises (SMEs) may face resource constraints and expertise gaps, but they can use AI-as-a-Service offerings and cloud-based solutions to gain access to AI capabilities without making significant upfront investments. AI technologies can help drive innovation, improve operational efficiency, and enhance competitiveness in the digital economy, benefiting both large corporations and small and medium-sized enterprises.

  • By End-Use

AI applications span across various industries, including healthcare, BFSI (Banking, Financial Services, and Insurance), law, retail, advertising & media, automotive & transportation, agriculture, manufacturing, and others. In healthcare, AI is transforming patient care with applications such as medical imaging analysis, predictive analytics, and drug discovery. BFSI institutions use AI for fraud detection, risk management, and personalized financial services.

In law, AI-powered legal research tools and contract analysis software streamline legal workflows and improve decision-making. Retailers leverage AI for demand forecasting, customer segmentation, and personalized marketing. Across industries, AI is driving innovation, improving efficiency, and unlocking new opportunities for growth and differentiation.

 

Global Artificial Intelligence Overview by Region

North America dominates the market, owing to the presence of major technology companies, robust R&D activities, and significant AI investment from both the public and private sector. The United States, in particular, is at the forefront of AI innovation, with Silicon Valley serving as a hub for start-ups and research institutions driving advances in AI technologies.

Europe is also a major player in the AI market, with nations such as the United Kingdom, Germany, and France investing heavily in AI research and development. The European Union has established AI strategies and initiatives that promote innovation and ethical AI adoption across member states. Asia Pacific is emerging as a key growth region for the AI market, driven by rapid digitalization, increasing investments in AI infrastructure, and government-led initiatives to promote AI adoption.

Countries like China, Japan, and South Korea are investing heavily in AI technologies to drive economic growth and maintain global competitiveness. Additionally, emerging economies in Southeast Asia, such as Singapore and India, are witnessing growing AI adoption across various industries.

 

 

Global Artificial Intelligence market competitive landscape

Established companies such as Google, Microsoft, IBM, and Amazon dominate the market due to their comprehensive AI platforms, extensive data resources, and robust research capabilities. These industry leaders provide a wide range of AI solutions, including machine learning, natural language processing, computer vision, and cloud-based AI services, catering to a variety of industry verticals and use cases.

In addition to the major players, a thriving ecosystem of start-ups and emerging vendors is propelling AI innovation and disruption. These start-ups use cutting-edge technologies, agile development methodologies, and domain expertise to provide specialized AI solutions tailored to specific industry needs or niche applications. Furthermore, traditional software vendors, consulting firms, and system integrators are expanding their AI capabilities through partnerships, acquisitions, and investments in order to meet the growing demand for AI technologies.

As competition heats up, AI market participants are focusing on differentiation through product innovation, strategic partnerships, and customer-centric solutions to gain a competitive advantage and market share. Furthermore, regulatory developments, ethical considerations, and concerns about data privacy and security shape the competitive landscape, influencing market dynamics and customer preferences.

Key Players:

  • Intel Corporation
  • Microsoft
  • IBM
  • Google
  • Amazon Web Services
  • Baidu, Inc.
  • NVIDIA Corporation
  • H2O.ai.
  • Lifegraph
  • Sensely, Inc.
  • Enlitic, Inc.
  • AiCure
  • HyperVerge, Inc.
  • Arm Limited
  • Clarifai, Inc.  

 

Global Artificial Intelligence Recent Developments

  • June 2024, Cisco Investments, the venture investment branch of Cisco has unveiled a $1 billion AI investment fund aimed at strengthening the start-up ecosystem and fostering the creation of secure and dependable AI solutions. Within this initiative, Cisco is strategically investing in companies like Cohere, Mistral AI, and Scale AI, among others, to enhance customers' AI preparedness and align with Cisco's own AI innovation strategy. To date, Cisco has already allocated nearly $200 million from the $1 billion investment fund.
  • May 2024, OpenAI and Stack Overflow are partnering to enhance the capabilities of their generative AI models specifically for programming tasks.
  • May 2024, Sanofi, a pharmaceutical company, has joined forces with OpenAI, an artificial intelligence (AI) company, and Formation Bio, a tech-driven pharmaceutical firm, to develop AI-powered software aimed at speeding up the process of drug development.
  • May 2024, News Corp., the owner of The Wall Street Journal, has entered a multi-year content partnership with OpenAI, valued at $250 million. This collaboration will involve sharing news content with OpenAI, aiming to enhance its services.

 

Scope of global Artificial Intelligence report

Global Artificial Intelligence report segmentation

ATTRIBUTE

DETAILS

By Offering

  • Hardware
  • Software
  • Services  

By Technology

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

By Deployment

  • On-premise
  • Cloud

By Organization Size

  • Large enterprises
  • Small & medium enterprises (SMEs)

By End-Use

  • Healthcare
  • BFSI (Banking, Financial Services, and Insurance)
  • Law
  • Retail
  • Advertising & Media
  • Automotive & Transportation
  • Agriculture
  • Manufacturing
  • Others

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Artificial Intelligence size and forecast: To identify and estimate the market size for global Artificial Intelligence market segmented By Offering, By Technology, By Deployment, By Organization Size, By End-Use, and by region. Also, to understand the consumption/ demand created by consumers between 2024 and 2032.
  • Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for global Artificial Intelligence
  • Market Influencing Factors: To find out the factors which are affecting the market of global Artificial Intelligence among consumers.
  • Company Profiling:  To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

Global Artificial Intelligence forecast period is 2024 - 2032.
According to global Artificial Intelligence research, the market is expected to grow at a CAGR of ~ 19.63% over the next eight years.
The possible segments in global Artificial Intelligence are based on By Offering, By Technology, By Deployment, By Organization Size, By End-Use, & by region.
The expected market size for Global Artificial Intelligence is USD 635.20 billion in 2032.
The major players in the market are Intel Corporation, Microsoft, IBM, Google, Amazon Web Services, Baidu, Inc., NVIDIA Corporation, H2O.ai., Lifegraph, Sensely, Inc., Enlitic, Inc., AiCure, HyperVerge, Inc., Arm Limited, and Clarifai, Inc.
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