Artificial Intelligence (AI) Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Global Artificial Intelligence Industry Report, Overview, and the Market is Segmented by Components (Hardware and Software and Services), by End-User Industry (BFSI, Fashion and Retail, Healthcare and Life Sciences, Manufacturing, Automotive, Aerospace and Defense, Construction, and Other End Users), by Geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Rest of Asia Pacific), Latin America, and Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value in USD Billion for all the Above Segments.

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Artificial Intelligence Market Size

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Artificial Intelligence Market Summary
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Study Period 2019-2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 31.22 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Low

Major Players

Artificial Intelligence Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Artificial Intelligence Market Analysis

The Artificial Intelligence Market is expected to register a CAGR of 31.22% during the forecast period.

  •  Artificial intelligence (AI), particularly computer vision and machine learning (ML), is transforming the landscape of industries. The artificial intelligence market is expanding globally due to breakthroughs in deep learning and data-driven AI, and the necessity to acquire robotic autonomy to compete in a global market is projected to promote the adoption of AI products and services.
  • In recent years, the growing use of digital technologies and the Internet considerably aided the expansion of the worldwide AI industry. Technology breakthroughs in various industries are constantly fueled by the extensive research and development investments made by tech giants.
  • Expanding predictive analytics solutions based on AI-based ML technology will boost the artificial intelligence market over the forecast period. Many end-user firms are using predictive modeling worldwide for industry planning and growth.
  • With increased Internet penetration and new technology, there is a tremendous increase in the amount of data created globally. AI is being encouraged by technologies such as the Internet of Things, Industry 4.0, 5G, and others—significant data results from a massive increase in data created due to technological breakthroughs.
  • COVID-19 significantly impacted the market. While specific industries witnessed an increase in AI adoption, others saw a decline. The Covid-19 debacle provided critical insights about digital transformation for company executives. One of the most compelling takeaways was the potential that data analytics and AI bring to a business.
  • For example, AI enables the public sector to bring processes, people, and services online and encourages local, regional, and national governments to adopt AI. In only a few months, governments throughout the globe have learned to employ artificial intelligence as a weapon in combating the virus. This includes educating the public and screening patients to track and trace contacts.
  • Employees need rapid assistance to be productive with the move to "work from anywhere," whether they have an IT problem, an HR request, or a question regarding the company's expenditure policy. Due to a lack of size or speed, traditional service desks can no longer provide round-the-clock real-time assistance to a hybrid workforce. Service desks often resolve employee issues in an average of three working days, which lowers engagement and productivity. To address these problems, in July 2022, Tata Consultancy Services (TCS) announced a partnership with Moveworks. This AI platform offers employees seamless multilingual support by querying their needs at any moment. Such initiatives are projected to boost the demand for digital transformation and help market growth in the post-COVID-19 scenario.

Artificial Intelligence Market Trends

Growth in Adoption of Cloud-based Applications and Services is Expected to Drives the Market Growth

  • Cloud-based solutions are an essential component of today's digital environment. The expanding trend of multi-cloud operation and the growing need for cloud-based intelligence services drive the demand in the market under study. The latest artificial intelligence (AI) technologies add unique and increased value to cloud computing. This aspect improves overall process viability and is necessary for incorporating new technology.
  • AI software can also help bridge the gap between cloud computing and modern breakthroughs. It also assists in satisfying the needs of new enterprises and startups. According to IBM, In 2022, 25 percent of respondents said they were using multi-cloud to leverage different application services like AI/ML, big data analytics, business intelligence, IoT, etc.
  • The continuous operations and infrastructure requirement raises the demand for hybrid computing models to reduce long-term costs, security, and scalability. To extend and manage IT, investment in hybrid public cloud deployment models that span private, public, and edge environments has flourished. For example, in February 2023, Oracle announced it would establish a third public cloud in Saudi Arabia to address the fast-expanding demand for its cloud services. The new cloud region, located in Riyadh, is part of Oracle's projected USD 1.5 billion investment to increase cloud infrastructure capabilities in the country.
  • SAS, a pioneer in analytics, entered into an arrangement with Moro Hub to leverage Moro Hub's superior cloud services to strengthen its AI-based solutions for businesses in Dubai and accelerate its journey toward digital transformation. SAS announced cooperation with Moro Hub, a branch of Dubai Electricity and Water Authority's digital arm, Digital Dewa, in July 2022 to accomplish this. As part of the new arrangement, SAS will employ Moro Hub's multiple cloud services on a single platform to increase its data management products' agility, scalability, and security.
  • Furthermore, due to its benefits, such as scalability, increased productivity, and cost reduction, the cloud method is gaining popularity in various industries, such as financial services, e-commerce, industrial, and others.
  • The use of cloud computing to power applications, such as 3D printing for outsourcing 3D prototypes, components, and products, is rapidly expanding. New platforms from 3D printing makers are also assisting cloud expansion. Markforged, a metal and carbon fiber 3D printer maker, recently introduced Digital Forge, an industrial 3D printing software platform. The platform is intended to connect all of the Markforged systems now in operation worldwide, which number in the thousands.
Artificial Intelligence Market: Primary Driver of Multi Cloud Adoption, In Percentage (%), Global, 2019-2022

North America is Expected to Hold Significant Market Share

  • The United States has a robust innovation ecosystem supported by strategic federal investments in cutting-edge technology, in addition to the presence of forward-thinking scientists and entrepreneurs who come together from around the world and renowned research centers that have accelerated the development of artificial intelligence in the North American region.
  • The industry is anticipated to benefit from many US government initiatives related to AI. For instance, the Expanding AI Innovation through Capacity Building and Part II program was launched by the US National Science Foundation in December 2022 in coordination with the US Department of Agriculture, the US Department of Homeland Security, the Science and Technology Directorate, the National Institute Institute of Standards and Technology, National Institute of Food and Agriculture, and the US Department of Defense, Office of the Under Secretary of Defense for Research and Engineering. ExpandAI seeks to significantly increase the participation of institutions that serve underrepresented groups in artificial intelligence education, research, and workforce development through capacity-building projects and collaboration within the NSF-led National AI Research Institutes ecosystem.
  • Moreover, the United States has been working to formalize the National Artificial Intelligence (AI) Initiative, which concentrates on six strategic pillars: advancing trustworthy AI, enhancing AI innovation, enhancing current infrastructure through new technologies, developing new opportunities for education and training through AI, facilitating private and federal sector utilization of AI to improve existing systems, and fostering an international environment that supports further advancements in AI.
  • Major corporations like Google, Facebook, and Uber have established core research laboratories that work with numerous institutions all over Canada thanks to the country's top researchers, vibrant start-ups, open immigration rules, considerable tax subsidies for R&D, and access to international markets. The Canadian government finances several initiatives to demonstrate Canada's leadership in AI through the Canadian Institute for Advanced Research (CIFAR).
  • Moreover, in November 2022, artificial intelligence (AI) was one of the most revolutionary technological fields. Canada, a worldwide innovator leader, is creating and utilizing technology like AI to help all Canadians have a better future. A USD 30 million investment has been made in Vancouver-based Sanctuary Cognitive Systems Corporation, an advanced AI and robotics business, according to the Minister of Innovation, science, and Industry. The Strategic Innovation Fund will use this funding to finance a USD 120.8 million initiative to build the first general-purpose robots with human-like intelligence that function. The Canadian government continues to support businesses with a wealth of intellectual property because it is dedicated to ensuring that Canadians can capitalize on their ideas.
Artificial Intelligence Market - Growth Rate by Region

Artificial Intelligence Industry Overview

The artificial intelligence market is highly fragmented, with the presence of major players like IBM Corporation, Intel Corporation, Microsoft Corporation, Google LLC (Alphabet Inc.), and Amazon Web Services Inc. Players in the market are adopting strategies such as partnerships, innovations, mergers, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

SAS Institute Inc. joined The Clean Energy Smart Manufacturing Innovation Institute (CESMII), the Smart Manufacturing Institute, in February this year to further promote advanced analytics and Artificial Intelligence across manufacturing.

NVIDIA developed a new AI-on-5G solution in February this year that combines 5G vRAN, edge AI, and digital twin workloads on an all-in-one, hyper-converged, and GPU-accelerated system. Built with NTT DOCOMO, Fujitsu, and others, the all-in-one solution enables telcos to deliver immersive graphics, metaverse applications, and computer vision from a single server.

Artificial Intelligence Market Leaders

  1. IBM Corporation

  2. Intel Corporation

  3. Microsoft Corporation

  4. Google LLC. (Alphabet Inc.)

  5. Amazon Web Services Inc. (amazon.com Inc.)

*Disclaimer: Major Players sorted in no particular order

Artificial Intelligence Market Concentration
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Artificial Intelligence Market News

  • February 2023: NVIDIA announced NVIDIA DGX Cloud, allowing companies to access the DGX AI supercomputer for their AI models. DGX Cloud is already available through Oracle Cloud infrastructure and will soon be in other cloud platforms such as Microsoft Azure, GCP, and others.
  • February 2023: McKinsey is collaborating with the Stanford Institute for Human-Centered Artificial Intelligence, an organization especially dedicated to building and guiding the future of artificial intelligence to help leaders realize the full potential of AI within their organizations.

Artificial Intelligence Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Technology Snapshot

      1. 4.3.1 Machine Learning

      2. 4.3.2 Computer Vision

      3. 4.3.3 Natural Language Processing (NLP)

      4. 4.3.4 Context-aware Computing and Other Technologies

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Demand for Predictive Analytics Solutions

      2. 5.1.2 Massive Growth in Data Generation due to Technological Advancements

      3. 5.1.3 Growth in Adoption of Cloud-based Applications and Services

      4. 5.1.4 Rising Demand for Enhanced Consumer Experience

    2. 5.2 Market Challenges

      1. 5.2.1 High Initial Costs and Concerns over Replacement of Human Workforce

      2. 5.2.2 Lack of Skilled and Expert AI Technicians

      3. 5.2.3 Concerns Regarding Data Privacy

    3. 5.3 Key Use-cases/Applications

      1. 5.3.1 Sales and Marketing

      2. 5.3.2 Logistics Management

      3. 5.3.3 Automated Customer Service

      4. 5.3.4 Automated Threat Intelligence

      5. 5.3.5 IT Automation, Among Others

    4. 5.4 Impact of COVID-19 on the Market

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Components

      1. 6.1.1 Hardware

      2. 6.1.2 Software and Services

    2. 6.2 By End-user Industry

      1. 6.2.1 BFSI

      2. 6.2.2 Fashion and Retail

      3. 6.2.3 Healthcare and Lifesciences

      4. 6.2.4 Manufacturing

      5. 6.2.5 Automotive

      6. 6.2.6 Aerospace and Defense

      7. 6.2.7 Construction

      8. 6.2.8 Other End-user Industries

    3. 6.3 By Geography

      1. 6.3.1 North America

        1. 6.3.1.1 United States

        2. 6.3.1.2 Canada

      2. 6.3.2 Europe

        1. 6.3.2.1 United Kingdom

        2. 6.3.2.2 Germany

        3. 6.3.2.3 France

        4. 6.3.2.4 Rest of Europe

      3. 6.3.3 Asia Pacific

        1. 6.3.3.1 China

        2. 6.3.3.2 India

        3. 6.3.3.3 Japan

        4. 6.3.3.4 South Korea

        5. 6.3.3.5 Rest of Asia Pacific

      4. 6.3.4 Latin America

      5. 6.3.5 Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 IBM Corporation

      2. 7.1.2 Intel Corporation

      3. 7.1.3 Microsoft Corporation

      4. 7.1.4 Google LLC (Alphabet Inc.)

      5. 7.1.5 Amazon Web Services Inc. (amazon.com Inc.)

      6. 7.1.6 Oracle Corporation

      7. 7.1.7 Salesforce Inc.

      8. 7.1.8 SAP SE

      9. 7.1.9 SAS Institute Inc.

      10. 7.1.10 Cisco Systems Inc.

      11. 7.1.11 Siemens AG

      12. 7.1.12 Nvidia Corporation

      13. 7.1.13 Hewlett Packard Enterprise

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Artificial Intelligence Industry Segmentation

Artificial intelligence (AI) is a simulation of human intelligence by machines through algorithms to automate and perform tasks commonly done by humans. AI is an interdisciplinary science with multiple approaches, but advancements in machine learning and deep learning create a paradigm shift in virtually every tech industry sector.

The artificial intelligence market is segmented by components (hardware and software and services), by end-user industry (BFSI, fashion and retail, healthcare and life sciences, manufacturing, automotive, aerospace and defense, construction, and other end users), by geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Rest of Asia Pacific), Latin America, and Middle East and Africa).

The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Components
Hardware
Software and Services
By End-user Industry
BFSI
Fashion and Retail
Healthcare and Lifesciences
Manufacturing
Automotive
Aerospace and Defense
Construction
Other End-user Industries
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia Pacific
China
India
Japan
South Korea
Rest of Asia Pacific
Latin America
Middle East and Africa
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Artificial Intelligence Market Research Faqs

The Artificial Intelligence Market is projected to register a CAGR of 31.22% during the forecast period (2024-2029)

IBM Corporation, Intel Corporation, Microsoft Corporation, Google LLC. (Alphabet Inc.) and Amazon Web Services Inc. (amazon.com Inc.) are the major companies operating in the Artificial Intelligence Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Artificial Intelligence Market.

The report covers the Artificial Intelligence Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Artificial Intelligence Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Artificial Intelligence Industry Report

Statistics for the 2024 Artificial Intelligence (AI) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Artificial Intelligence (AI) analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Artificial Intelligence (AI) Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)