The global artificial intelligence (AI) market size was estimated at US$ 119.78 billion in 2022 and it is expected to hit US$ 1,591.03 billion by 2030 with a registered CAGR of 38.1% from 2022 to 2030. The North America artificial intelligence market was valued at USD 51 billion in 2021.
Key Takeaway
Growth Factors
The rapid penetration of the digital technologies and internet has significantly contributed towards the growth of the global artificial intelligence market in the past few years. The heavy investments by the tech giants in the research and development are continuously fueling the technological advancements in various industries. The burgeoning demand for the artificial technology among the various end use verticals such as automotive, healthcare, banking & finance, manufacturing, food and beverages, logistics, and retail is expected to significantly drive the growth of the global artificial intelligence market in the forthcoming years. Technological innovations have been always an important part of the majority of the industries.
The rising popularity of various life-saving medical devices and the self-driving feature in the new electric vehicles is significantly boosting the growth of the AI market across the globe. The shifting focus of the globe towards the digitalization is positively impacting the market growth. The top global tech giants such as Google, Microsoft, IBM, Amazon, and Apple are increasing their investments in the upgradation and development of various applications of AI. The rising efforts of the tech giants towards improving the access to the AI is expected to foster the growth of the global AI market during the forecast period.
Favorable government initiatives are expected to impose a positive impact on industry growth. The establishment of subcommittees on machine learning and AI within the federal government has drawn the traction towards the AI industry. In 2020, The Government of India increased the spend for Digital India to $477 million to boost AI, IoT, big data, cyber security, machine learning and robotics. The artificial intelligence market is expected to witness significant growth in the BFSI sector on account of data mining applications as there is an increase in the adoption of artificial intelligence solutions in data analytics, fraud detection, cybersecurity, and database systems.
End-use industries have started integrating artificial intelligence into their business processes to streamline their operations. The artificial intelligence technology is gaining momentum as it assists enduser organizations to become more efficient and result oriented. The growing adoption of artificial intelligence is encouraging new entrants to venture into the AI marketplace by offering niche applicationspecific products and solutions. Furthermore, companies are also taking several strategic initiatives in industry consolidations to gain competitive advantages.
Economical parallel processing set-up
The artificial intelligence industry has been a software player so far, and very few companies manufacture hardware components such as CPU, ASIC, FPGA, and GPU. Recent trends in design tools have made FPGAs compatible with complex software practices and accessible to those who organize and build algorithm models. Hardware-based artificial intelligence solutions are being introduced to combat challenges associated with power consumption, sluggish processing, and lack of efficiency. Furthermore, as the market is maturing, there is an increasing need for creating a new business model through predictive, efficient automation and scalable parallel processing capabilities.
The need for hardware-based artificial intelligence products was recognized as end-use applications demanded lower power and higher performance. Over the past few years, very few companies ventured into the development of these components. However, to gain a competitive advantage, vendors such as IBM Corporation and Intel Corporation have started manufacturing artificial intelligence chipsets to obtain high performance in scaling dynamic processes parallelly.
Report Scope of the Artificial Intelligence Market
| Report Coverage | Details |
| Market Size by 2030 | USD 1,591.03 Billion |
| Growth Rate from 2022 to 2030 |
CAGR of 38.1% |
| North America Market Share in 2021 | 42% |
| Software Segment Market Share in 2021 | 39% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2030 |
| Segments Covered | By Offering, By Technology, By Deployment, By Organization Size, By Business Function and By End-Use |
| Companies Mentioned | Intel Corporation, Microsoft, IBM, Google, Amazon Web Services, Baidu, Inc., NVIDIA Corporation, H2O.ai., Lifegraph, Sensely, Inc., Enlitic, Inc., AiCure, HyperVerge, Inc., Arm Limited |
Technology Insights
Based on the technology, the deep learning segment accounted largest market share in 2022. This dominance is attributable to its complex applications driven by the data such as audio, video, and text recognition. The rising technological advancements in the field of deep learning is expected to overcome the challenges associated with the high volumes of data. Furthermore, the rising adoption of the deep learning technology in the medical field is expected to further fuel the growth of the segment during the forecast period.
The huge share of the machine learning in the total investments in AI technology is fueling its adoption in various applications such as hypothesis generation, clustering, altering, tagging, clustering, filtering, visualization, and navigation promotes the development of the cognitive solutions. The rising deployment of the on-premises hardware and cloud computing platforms for handling and storing huge volumes of data has significantly contributed to the rise of the data analytics platforms. The rising investments by the top tech giants in the innovation and research are expected to fuel the growth of the AI market in the upcoming future.
Solution Insights
The software segment contributed largest share in 2022. The improvements in the data storage system, parallel processing, and improved computing power are the major drivers of the software segment in the AI market. The higher demand for the software technologies for the deployment and designing of AI applications such as linear algebra, video analytics, hardware communication capacity, inference, and sparse matrices is fueling the growth of the segment. The rising need for the enterprises to gain meaningful data and information through visual content analysis is expected to boost the demand for the software solutions in the global artificial intelligence market.
The hardware is estimated to be the fastest-growing segment during the forecast period. The artificial intelligence hardware includes various components such as CPU, GPU, ASIC and FPGA. The huge demand for the CPUs and GPUs owing to their high computing power has resulted in the dominance of the CPU and GPU in the hardware segment. The rising adoption of the AI technology across the different end use verticals is expected to boost the demand for the artificial intelligence hardware systems in the forthcoming years.
End User Insights
The advertising & media segment has garnered largest market share in 2022. The rising adoption of AI in the marketing applications has fueled the growth of this segment. The increased investments by the various companies in the marketing and advertisement have led to the dominance of the marketing & media segment in the global AI market.
The healthcare segment is expected to overtake the advertising & media segment during the forecast period. The increased adoption of the AI in various applications such as virtual nursing assistants, robotic surgery, clinical trials, automated image diagnosis, and so on is significantly fostering the growth of this segment. Furthermore, the rising penetration of the telehealth platforms and rising adoption of the remote monitoring systems and electronic health records is expected to boost the growth of this segment during the forecast period.
Regional Insights
North America has garnered largest market share in 2022. The higher demand for automated and technologically advanced hardware and software products across various end-use verticals and the favorable government policies that encourages the industries in North America to adopt artificial intelligence has significantly contributed towards the growth of the artificial intelligence market. In 2019, the American president launched an American initiative to promote US as leader in the artificial intelligence technology. This initiative focused at adoption of AI based systems by providing guidelines for the real life application of artificial intelligence technology in various industries and sectors. North America is the home to the leading tech giants such as Facebook, Amazon, Google, IBM, Microsoft, and Apple, which have significant contributions in the development of the AI market in North America.
Asia Pacific is expected to be the fastest growing artificial intelligence market during the forecast period. The rising investments by various organizations towards the adoption of artificial intelligence are boosting the demand for artificial intelligence technology. Baidu Incorporation, a tech giant based in China has entered into agreements with investors for the divestiture of financial services group providing consumer credit, wealth management, and other services related to business. Moreover, the growing adoption of artificial intelligence across various industries such as automotive, healthcare, retail, and food and beverages is propelling the growth of the artificial intelligence market in Asia Pacific region.
Key Market Developments
Some of the prominent players include:
Segments Covered in the Report
(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)
By Offering
By Technology
By Deployment
By Organization Size
By Business Function
By End-Use
By Geography
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