Artificial Intelligence (AI) Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[228+ Pages Report] According to the report published by Facts & Factors, the global artificial intelligence (AI) market size was evaluated at $137 billion in 2022 and is slated to hit $1,812 billion by the end of 2030 with a CAGR of nearly 38% between 2023 and 2030.

The market report is an indispensable guide on growth factors, challenges, restraints, and opportunities in the global marketspace. The artificial intelligence industry report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, PESTEL analysis, SWOT analysis, Porter’s five force analysis, and value chain analysis. Additionally, the artificial intelligence market report explores the investor and stakeholder space to help companies make data-driven decisions.

Market Overview

Artificial intelligence is intelligence displayed by machines. Moreover, this intelligence includes the ability of learning and reason. The slew of AI applications includes recommendation systems, web search engines, understanding human speech, and automated decision-making tools.

Constant research & breakthroughs are enhancing the penetration of AI in retail, automotive, finance, manufacturing, retail, and healthcare sectors. Reportedly, in the last quarter of 2020, Intel Corporation acquired an Israeli firm with the aim of developing & operating a tool for data scientists with the help of machine learning models.

Key Insights

• As per the analysis shared by our research analyst, the global artificial intelligence (AI) market is projected to expand annually at the annual growth rate of around 38% over the forecast timespan (2023-2030)
• In terms of revenue, the global artificial intelligence (AI) market size was evaluated at nearly $137 billion in 2022 and is expected to reach $1,812 billion by 2030.
• The global artificial intelligence market is anticipated to record massive growth over the forecast period owing to high demand for data-based AI tools and breakthroughs in deep learning algorithms.
• Based on the solutions, the software segment is predicted to contribute majorly towards the global market share over the forecast timeline.
• In terms of deployment, the cloud segment is slated to register the fastest CAGR over the forecast period.
• On the basis of end-use, the advertising & media segment is slated to dominate the segmental surge over the forecast period.
• Based on technology, the deep learning segment is slated to dominate the segmental surge over the forecast period.
• Region-wise, the Asia-Pacific artificial intelligence (AI) market is projected to register the highest CAGR during the assessment period.

Industry Growth Factors

• The massive penetration of AI systems in various sectors to boost the global market trends

Demand for data-based AI tools and breakthroughs in deep learning algorithms is predicted to steer the expansion of the artificial intelligence (AI) market globally. Penetration of digital technologies & internet in various sectors will steer the growth of the market across the globe.

A rise in the allocation of funds by a large number of giant players will proliferate the size of the global market surge. Surging demand for life-saving medical equipment is likely to embellish the global market trends. Growing preference for autonomous vehicles will promulgate the scope of growth of the market across the globe.

Furthermore, government subsidies and favorable schemes will accentuate the scaling up of the global market. For instance, the Indian government raised the allocation of funds to nearly $478 million for developing effective AI, big data, IoT, and cybersecurity tools. An increase in the use of data mining applications in the BFSI sector and fraud detection will prop up the global market expansion.

Restraints

• The lack of availability of AI experts will decimate the global market expansion       

The low availability of AI professionals can put brakes on the global artificial intelligence (AI) industry growth. The inability of small-sized as well as medium-sized firms in adapting to the rapid changes taking place in AI systems will further retard the scope of growth of the global industry in the upcoming years.

Opportunities

• The rise in the use of AI technologies in complex systems will open new growth avenues for the global market

The expansion of AI tools in a complex system is predicted to open new growth opportunities for the global artificial intelligence (AI) market. Growing preference for AI systems for facial recognition and touch screens will further enlarge the scope of the global market surge.

Challenges

• Escalating concerns related to data safety to put up a big challenge in the global industry surge

Growing data safety concerns and the need for protecting the confidentiality of the data have become a challenging task for the global artificial intelligence (AI) industry surge.

Segmentation Analysis

The global Artificial Intelligence (AI) market is sectored into solutions, technology, deployment, organization size, end-use, and region.  

In deployment terms, the global artificial intelligence market is segregated into on-premise and cloud segments. In addition to this, the cloud segment, which accrued over 45% of the global market share in 2022, is slated to record the highest CAGR in the ensuing years. The segmental growth in the forecasting years can be due to a spectrum of benefits offered by cloud solutions. This includes a reduction in operational costs, huge scalability, and ease of installation. Apart from this, cloud-based tools provide flexibility for business operations and can be utilized effectively for real-time analytics. The growth of the segment over 2023-2030 can also be attributed to a plethora of benefits such as hassle-free deployment, low operating costs, and high scalability offered by cloud solutions. Furthermore, the deployment of cloud for natural language processing and machine learning tools in AI will further boost the demand for the cloud in the forthcoming years.

On the basis of the technology, the global artificial intelligence industry is divided into natural language processing, machine learning, deep learning, computer vision, and context-aware computing segments. Moreover, the deep learning segment, which accumulated a major share of the global industry in 2022, is anticipated to dominate the application space over the forecast timespan. The growth of the segment over 2023-2030 can be subject to a rise in the use of deep learning algorithms for the purpose of clustering, alerting, tagging, categorization, navigation, hypothesis testing, filtering, and visualization. Growing investments in research activities by key industry players are predicted to play a major role in leveraging the growth of the segment in the years ahead.

In terms of solutions, the artificial intelligence market across the globe is divided into hardware, software, and services. Moreover, the software segment, which garnered a major share of the global market in 2022, is anticipated to lead the solutions landscape over the forecast timeframe. The growth of the segment over 2023-2030 can be owing to innovations in AI software and its use in tablets, iPhones, and smartphones. Reportedly, AI software finds lucrative applications in ATMs, smartphone assistants, and image-recognizing software.

Based on the end-use, the artificial intelligence industry across the globe is divided into healthcare, retail, BFSI, law, advertising & media, farming, automotive & transportation, and manufacturing segments. Additionally, the advertising & media segment, which garnered a major share of the global market in 2022, is anticipated to lead the deployment segment over the forecast timeline.

The growth of the segment over the upcoming years can be subject to an increase in AI-based marketing applications in advertising & media. For instance, in the first half of 2022, Cadbury commenced an initiative that can help small-sized firms create their advertising displays free of cost by using the face or voice of a celebrity through the use of AI tool.

On the basis of organization size, the artificial intelligence industry is segregated into large enterprises and small & medium enterprises segments.

Recent Breakthroughs:

• In the first half of 2020, Advanced Micro Devices, Inc., key US-based player manufacturing semiconductors, signed a strategic agreement with Oxide Interactive, an Australian-based digital engagement firm, for developing graphics technology for enhancing cloud gaming. The move will boost the growth of the AI industry across the globe.
• In the first quarter of 2023, Baidu, Inc., a Chinese firm delivering internet and AI-based services, introduced AI Chabots referred to as Ernie bot and Wenxin Yiyan. The move is likely to boost the global industry trends.

Report Scope

 Artificial Intelligence (AI) Market: Regional Insights

• North American Artificial Intelligence (AI) market to establish a leading position over the forecast timeframe

North America, which garnered more than 41% of the global Artificial Intelligence (AI) market revenue in 2022, is anticipated to record notable growth during the projected timespan. The regional market expansion over 2023-2030 can be subject to supportive government policies that will promote the acceptance of AI in various sectors. Reportedly, in the first half of 2019, U.S. President Donald Trump introduced the AI initiative and this move will promote AI in the U.S. In addition to this, large-scale use of AI in e-commerce, BFSI, telecom, retail, and travel & hospitality sectors will embellish the regional market expansion.

Furthermore, the artificial intelligence (AI) industry in the Asia-Pacific region is anticipated to register the fastest CAGR in the anticipated timespan. The factor that is likely to favorably leverage the growth of the regional industry is the rising investments in AI in countries such as India and China. In the first half of 2018, Baidu, Inc., a key tech firm in China, signed a definitive agreement with investors for expanding its AI business in Asia, Europe, and North America. Presence of giant players in the sub-continent will contribute majorly towards the regional industry expansion.

Competitive Space

• Advanced Micro Devices 
• Sensely Inc. 
• AiCure 
• Arm Limited 
• NVIDIA Corporation 
• Atomwise Inc. 
• Ayasdi AI LLC 
• Microsoft Corporation 
• Baidu Inc. 
• Clarifai Inc. 
• Cyrcadia Health 
• Iris.ai AS. 
• Enlitic Inc. 
• Google LLC 
• H2O.ai. 
• Intel Corporation 
• HyperVerge Inc. 
• International Business Machines Corporation 
• Lifegraph 
• Zebra Medical Vision Inc.

The global artificial intelligence (AI) market is segmented as follows:

By Solutions Segment Analysis

• Hardware
• Software
• Services

By Technology Segment Analysis

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

By Deployment Segment Analysis

• On-Premise
•  Cloud

By Organization Size Segment Analysis

• Large Enterprises
• Small & Medium Enterprises

By End-Use Segment Analysis

• Healthcare
• Retail
• BFSI
• Law
• Advertising & Media
• Farming
• Automotive & Transportation
• Manufacturing

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America