Artificial Intelligence Market Size & Trends

The global artificial intelligence market size was estimated at USD 196.63 billion in 2023 and is projected to grow at a CAGR of 36.6% from 2024 to 2030. The continuous research and innovation directed by tech giants are driving adoption of advanced technol...

Market Concentration & Characteristics

The growth stage of the artificial intelligence industry is high, and the pace of the growth is accelerating. The market is characterized by a high degree of innovation owing to the rapid technological advancements driven by factors such as advancements in...

Market Dynamics

The introduction of big data is projected to accelerate the expansion of the artificial intelligence market as a large volume of data needs to be stored, captured, and analyzed. End-users are increasingly concerned about the need to manage and improve the computational model of such data. This is encouraging companies to AI solutions at a faster pace and increase the implementation of artificial intelligence in business. Several private and public organizations have gathered tasks or application-specific information comprising issues, such as medical informatics, fraud detection, national intelligence, marketing, and cybersecurity. Artificial intelligence algorithms enable automated analysis of unsupervised and unorganized data by continuously improving each set of data.AI is becoming increasingly important in big data because it enables the extraction of high-level and complex abstractions through a centralized learning process. The need for extracting and mining meaningful patterns from large amounts of data propels the growth of artificial intelligence in big data analytics. The technology also aids in overcoming big data analytics challenges such as data analysis trustworthiness, raw data format variation, imbalanced input data, and highly distributed input sources. Another issue is a lack of efficient storage and information retrieval, as data is collected in large quantities and made available across multiple domains. These difficulties are overcome by using semantic indexing, which improves comprehension and knowledge discovery.

End-use Insights

The advertising & media segment led the market and accounted for the largest revenue share in 2023. This is attributable to the growing application of AI marketing with significant traction. For instance, in January 2022, Cadbury started an initiative to...

Solution Insights

Software solutions led the market and accounted for 35.8% of the global revenue in 2023. This leading share can be attributed to prudent advances in information storage capacity, high computing power, and parallel processing capabilities to deliver high-end services. The ability to extract data, provide real-time insight, and aid decision-making has positioned this segment to capture a significant portion of the market. Artificial intelligence software solutions include libraries for designing and deploying AI applications, such as primitives, linear algebra, inference, sparse matrices, video analytics, and multiple hardware communication capabilities. The need for enterprises to understand and analyze visual content to gain meaningful insights is expected to spur the adoption of artificial intelligence software over the forecast period.Companies adopt AI services to reduce their overall operational costs, yielding more profit. Artificial Intelligence as a Service, or AIaaS, is being used by companies to obtain a competitive advantage over the cloud, thus assisting the growth of the mobile AI market. Artificial intelligence services include installation, integration, maintenance, and support undertakings. The segment is projected to grow significantly over the forecast period. AI hardware includes chipsets such as Graphics Processing Unit (GPU), CPU, application-specific integrated circuits (ASIC), and field-programmable gate arrays (FPGAs). GPUs and CPUs currently dominate the artificial intelligence hardware market due to their high computing capabilities required for AI frameworks.

Technology Insights

The deep learning segment led the market with the largest revenue share in 2023, owing to the growing prominence of the complicated data-driven applications of deep learning, including text/content or speech recognition. Deep learning offers lucrative investment opportunities as it helps overcome the challenges of high data volumes. Rising R&D investments by leading players will also play a crucial role in increasing the uptake of artificial intelligence technologies.Machine learning and deep learning cover significant investments in AI. They include both AI platforms and cognitive applications, including tagging, clustering, categorization, hypothesis generation, alerting, filtering, navigation, and visualization, which facilitate the development of advisory, intelligent, and cognitively enabled solutions. Growing deployment of cloud-based computing platforms and on-premises hardware equipment for the safe and secure restoration of large volumes of data has paved the way for the expansion of the analytics platform.During the forecast period, the Natural Language Processing (NLP) segment is expected to gain momentum. NLP is widely being used in various businesses to understand client preferences, evolving trends, purchasing behavior, decision-making processes, and more, in a better manner. This factor is anticipated to bode well for this segment’s growth.

Function Insights

The operations segment accounted for the largest market revenue share in 2023. The operations segment is the engine room of a business, encompassing all day-to-day activities that deliver products or services to customers. Implementation of AI can automate repetitive tasks, such as data entry and order processing, improving efficiency and reducing errors. Furthermore, by using AI for predictive maintenance, process automation, and supply chain optimization, businesses can streamline workflows, reduce costs, and ensure the smooth delivery of their offerings.The sales and marketing segment is projected to grow at the fastest CAGR from 2024 to 2030. It leverages AI to transform how businesses attract and convert customers. AI can analyze vast amounts of customer data to identify high-potential leads, prioritize sales efforts, and personalize marketing campaigns. Chatbots powered by AI can answer customer inquiries, qualify leads, and even schedule appointments, freeing up sales reps for more complex interactions. AI can personalize marketing messages and recommendations based on a customer's demographics, purchase history, and online behavior, leading to more targeted and effective marketing campaigns that drive sales.

Regional Insights

The North America AI market accounted for a revenue share of 30.9% in 2023. This can be attributed to favorable government initiatives to encourage the adoption of AI across various industries. Governments in North America are investing in AI research and development, establishing specialized research institutes and centers, and funding AI-related projects. They also utilize AI in many fields, such as enhancing public safety and transportation and promoting healthcare innovation.

U.S. AI Market Trends

The U.S. artificial intelligence market was valued at USD 42.00 billion in 2023 and has made remarkable progress in the field of AI and robotics. Regional companies and research institutions have been at the forefront of creating innovative robots that leverage AI to perform various tasks. In addition, the U.S. is actively developing social and companion robots capable of interacting with humans and offering assistance in diverse environments.

Europe AI Market Trends

The Europe artificial intelligence market is anticipated to witness a substantial CAGR of 33.2% from 2024 to 2030. The financial sector Europe is undergoing a significant transformation due to the growing adoption of AI technologies. Artificial intelligence is being integrated into different areas of finance, leading to revolutionary changes in traditional practices and improving customer experiences.The AI market in UK accounted for a 24.8% revenue share of Europe in 2023. The UK's rapid digitalization across various sectors, including banking, insurance, healthcare, and business services, has emerged as a primary catalyst for the accelerated growth of artificial intelligence in the UK.The Germany AI market is expected to grow at a CAGR of 30.9% from 2024 to 2030. This growth is prominently driven by government initiatives such as the German AI Strategy and the National AI Competence Center (KI-Campus) that promote the adoption of artificial intelligence in the country.The AI market in France is projected to grow over the forecast period, due to a rise in government initiatives such as the National Strategy for AI and France 2030. Furthermore, the increasing R&D investments and a notable rise in AI startups are anticipated to drive the growth of the artificial intelligence market in France.

Asia Pacific AI Market Trends

The Asia Pacific artificial intelligence market accounted for a 25.6% share of the global revenue in 2023. The educational institutions in Asia Pacific embrace AI to enhance educational outcomes through personalized learning experiences, intelligent tutoring systems, and data analytics.The AI market in China is projected to grow at a CAGR of 43.5% from 2024 to 2030. This is due to the implementation of AI applications, such as natural language processing, computer vision, robotics, autonomous vehicles, and virtual assistants in various end-use industries in China.The India AI market is portraying prominent growth opportunities as the Indian government is actively supporting the progress of AI through multiple initiatives, notably the National AI Strategy. This strategy outlines the country's approach to AI research, development, and adoption, aiming to unlock AI's potential for fostering innovation, economic prosperity, and societal progress.

Middle East & Africa AI Market Trends

The AI market in the Middle East and Africa (MEA) region is anticipated to reach USD 166.33 billion by 2030. With its diverse linguistic landscape, the MEA region significantly emphasizes advancing Arabic language processing in AI technologies. This includes natural language processing (NLP) and speech recognition capabilities that can accurately interpret and generate Arabic text and speech.The Saudi Arabia AI market growth is driven through a range of initiatives, policies, and financial support programs. For instance, the Saudi Data and AI Authority (SDAIA) is a government agency that creates an AI ecosystem of government and private sector entities. SDAIA deploys innovative AI solutions, which comprise strategies for combining data and AI into key domains.

Key Artificial Intelligence Company Insights

Vendors are focusing on increasing their customer base to gain a competitive edge in the market. Therefore, the key players are taking several strategic initiatives, such as mergers and acquisitions and partnerships with other major companies. For instance, in October 2023, NVIDIA Corporation and Oracle entered into a partnership agreement to assist customers in overcoming business difficulties using accelerated computing and AI. The partnership is aimed to help speed up customer adoption of artificial intelligence services.

Recent Developments

Artificial Intelligence Market Report Scope

Report AttributeDetailsMarket size value in 2024USD 279.22 billionRevenue forecast in 2030USD 1,811.75 billionGrowth rateCAGR of 36.6% from 2024 to 2030Actual data2017 - 2023Forecast period2024 - 2030Quantitative unitsRevenue in USD billion/million and CAGR from 2024 to 2030Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trendsSegments coveredSolution, technology, end-use, function, regionRegional scopeNorth America; Europe; Asia Pacific; South America; MEACountry scopeU.S.; Canada; Germany; UK; France; China; Japan; India; South Korea; Australia; Brazil; Mexico; KSA; UAE; and South AfricaKey companies profiledAdvanced Micro Devices; AiCure; Arm Limited; Atomwise, Inc.; Ayasdi AI LLC; Baidu, Inc.; Clarifai, Inc; Cyrcadia Health; Enlitic, Inc.; Google LLC; H2O.ai.; HyperVerge, Inc.; International Business Machines Corporation; IBM Watson Health; Intel Corporation; Iris.ai AS.; Lifegraph; Microsoft; NVIDIA Corporation; Sensely, Inc.; Zebra Medical Vision, Inc.Customization scopeFree report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.Pricing and purchase optionsAvail customized purchase options to meet your exact research needs. Explore purchase options

Global Artificial Intelligence Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global artificial intelligence market report based on solution, technology, function, end-use, and region: