Artificial Intelligence (AI) Market (By Type: Narrow/Weak AI, General/Strong AI; By Technology: Machine Learning, Natural Language Processing, Context-Aware Computing, Computer Vision; By Solution: Software, Hardware, Services; By Deployment Mode: Cloud, On-premises; By End User; By Business Function; By Organization Size; By System Type) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030


The global artificial intelligence (AI) market size was estimated at US$ 87.04 billion in 2021 and it is expected to hit US$ 1,597.1 billion by 2030 with a registered CAGR of 38.1% from 2022 to 2030.

Artificial Intelligence Market Size, Statistics 2022 to 2030

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.

Report Scope of the Artificial Intelligence Market

Report Coverage Details
Market Size by 2030 USD 1,597.1 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 2021
Forecast Period 2022 to 2030
Segments Covered Type, Technology, Solution, End User, Business Function, Deployment Mode, Organization Size, System Type, Geography
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 was the leading segment that constituted a market share of around 38% in 2021. 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 accounted for a revenue share of over 39% in 2021. 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.

Artificial Intelligence Market Share, By Solution, 2021 (%)

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 global artificial intelligence market, based on the end user, was dominated by the advertising & media segment that accounted for over 21% of the market share in 2021. 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 accounted for a revenue share of more than 42% and dominated the global artificial intelligence market in 2021. 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.

Artificial Intelligence Market Share, By Region, 2021 (%)

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

  • In April 2020, Advanced Micro Devices entered into a strategic alliance with Oxide Interactive for the development of graphics technology for the cloud gaming space.
  • In December 2019, Intel completed the acquisition of an Israel based deep learning corporation, Habana Labs, to strengthen its AI portfolio.
  • In September 2019, IBM entered into an agreement with a France based medical imaging company, Guerbet, for the development of AI-based cancer monitoring and diagnosis solution.

Some of the prominent players in the global battery technology market include:

  • 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.

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Type

  • Narrow/Weak AI
  • General/Strong AI

By Technology

  • Machine Learning
    • Deep Learning
    • Supervised Learning
    • Unsupervised Learning
    • Reinforcement Learning
    • Other Technology
  • Natural Language Processing
  • Context-Aware Computing
  • Computer Vision

By Solution

  • Software
  • Hardware
  • Services

By End User

  • BFSI
    • Risk Assessment
    • Financial Analysis/Research
    • Investment/Portfolio Management
    • Others
  • Retail
  • Law
  • Healthcare
    • Robot Assisted Surgery
    • Virtual Nursing Assistants
    • Hospital Workflow Management
    • Dosage Error Reduction
    • Clinical Trial Participant Identifier
    • Preliminary Diagnosis
    • Automated Image Diagnosis
  • Advertising & Media
  • Manufacturing
  • Automotive and Transportation
  • Others

By Business Function

  • Marketing and Sales
  • Security
  • Finance
  • Law
  • Human Resource
  • Other

By Deployment Mode

  • Cloud
  • On-premises

By Organization Size

  • Large enterprises
  • Small and medium-sized enterprises (SMEs)

By System Type

  • Artificial Neural Networks
  • Digital Assistant
  • Automotive Robotics System
  • Embedded System

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

What is the current size of artificial intelligence market?
The global artificial intelligence market size was reached at US$ 87.04 billion in 2021 and is anticipated to rake US$ 1,597.1 billion by 2030.
The global artificial intelligence market is projected to grow at a CAGR of 38.1% from 2022 to 2030.
The major players operating in the artificial intelligence market are Intel Corporation, Microsoft, IBM, Google, Amazon Web Services, Baidu, Inc., NVIDIA Corporation, H2O.ai., Lifegraph, Sensely, Inc., Enlitic, Inc., AiCure, HyperVerge, Inc., and Arm Limited.
The rising demand for artificial intelligence technology across various induce verticals such as a retail, BFSI, healthcare, food and beverages, automotive, and logistics is significantly contributing towards the growth of the global artificial intelligence market.
North America region will lead the global artificial intelligence market over the next ten years.

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