Industry Insights, Market Size, CAGR, High-Level Analysis: Artificial Intelligence Market
The global artificial intelligence market size was valued at USD 24.9 billion in 2018 and is anticipated to expand at a CAGR of 46.2% from 2019 to 2025. Significant improvements in commercial aspects of artificial intelligence (AI) advancements and deployment in dynamic artificial intelligence solutions are propelling industry growth. Rapid improvements in high computing power have contributed to the rising adoption of AI and robotics in end-use industries like IT, automotive, healthcare, and manufacturing. Furthermore, the need for recognizing and scrutinizing visual content in order to gain deeper insights is expected to boost the uptake of artificial intelligence technologies over the forecast period.
Machine intelligence is expected to hold immense growth prospects and key players are focusing on developing integrated solutions to include software and hardware. Furthermore, to expand their customer reach, several vendors have collaborated with distributors and end users for product distribution. Increasing prominence of parallel processing applications is leading to growing adoption of intelligence technology in scientific disciplines such as artificial intelligence and data science. Organizations are utilizing AI to extract valuable insights from data for providing innovative products and improving customer experience, thereby increasing revenue opportunities.
Artificial intelligence is gaining rising importance due to its complicated and data-driven applications such as image, face, voice, and speech recognition. The technology offers a significant investment opportunity, as it can be leveraged over other technologies to overcome the challenges of data storage, high data volumes, and high computing power. Rapid adoption of virtual reality (VR) and AI in end-use industries such as retail, healthcare, and automotive is expected to augment market growth. Organizations are making investments to incorporate AI capabilities into their product portfolio. Machine learning offers increasing opportunities for the retail industry by scaling human expertise with its decision support capabilities and real-time learning. The technology enables retailers to provide customized experiences to their customers and is expected to allow a broader range of innovation in the retail industry.
AI has many potential applications in the automotive sector, such as in autonomous driving and Advanced Driver Assistance Systems (ADAS). Neural networks are widely adopted in vehicles for lane detection, facilitating the replacement of expensive sensors. Furthermore, artificial intelligence helps organize large amounts of data collected by IoT sensors and mobile devices to improve the data collection and storage process.
Solution Insights of Artificial Intelligence Market
Artificial intelligence hardware includes chipsets such as graphics processing unit (GPU), central processing unit (CPU), application-specific integrated circuits (ASIC), and field-programmable gate array (FPGA). Currently, the artificial intelligence market is dominated by GPUs and CPUs due to their high computing capabilities required for AI frameworks. The segment is projected to grow at a significant rate over the forecast period. AI software solutions include libraries for deploying and designing artificial intelligence applications, such as those for primitives, inference, video analytics, linear algebra, and sparse matrices, and multiple hardware communication capabilities.
Artificial intelligence services include installation, integration, and maintenance and support undertakings. AI service solutions are expected to register the fastest growth rate over the forecast period. Prudent improvements in information storage capacity, high computing power, and parallel processing capabilities have further contributed to the swift uptake of artificial intelligence technology in dynamic end-use verticals. Additionally, the need among enterprises for understanding and analyzing visual content to gain meaningful insights is expected to spur the adoption of artificial intelligence over the forecast period.
Technology Insights of Artificial Intelligence Market
The AI market is segmented by core technologies into natural language processing (NLP), machine learning, deep learning, and machine vision archetype. The deep learning technology segment is anticipated to dominate the market in terms of revenue. This technology is gaining prominence on account of its complicated data-driven applications that include text/content, or sound recognition. Deep learning offers lucrative investment opportunities as it helps in overcoming challenges of high data volumes.
Machine learning and deep learning cover major investments in AI. It includes both cognitive applications (including machine learning, tagging, categorization, clustering, filtering, hypothesis generation, question answering, alerting, navigation, and visualization) and AI platforms, which facilitate the development of advisory, intelligent, 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. Rising investments in research and development by leading players will also play a crucial role in increasing the uptake of artificial intelligence technologies.
The market for artificial intelligence includes end-use verticals such as healthcare, advertising and media, law, BSFI, retail, automotive and transportation, manufacturing, agriculture, and others. The advertising and media segment dominated the overall market for AI in 2018. However, the healthcare sector is anticipated to gain the leading share by 2025. This segment has been segregated based on use-cases, such as virtual nursing assistants, robot-assisted surgery, dosage error reduction, hospital workflow management, clinical trial participant identifier, preliminary diagnosis, and automated image diagnosis. The BFSI segment includes risk assessment, financial analysis/research, and investment/portfolio management solicitations. Artificial intelligence has witnessed tremendous growth in the recent past due to the need for advancement in the areas of machine translation, object perception, and object recognition.
The landscape of infrastructure and tools for deploying and training of neural networks using machine learning is expected to evolve rapidly. The swift uptake of AI in end-use industries such as retail and business analytics is expected to augment market growth over the next few years. Artificial intelligence technology is extensively deployed by several mobile and online services such as Google Assistant, dialogue and voice recognition of Siri, Microsoft Cortana, image classification in Facebook & Google Photo, and Amazons Alexa. Increasing amount of digital data in the form of speech, videos, and images from different social media sources such as IoT and consumer analytics is driving the need for data mining and analytics.
Regional Insights of Artificial Intelligence Market
Based on region, the market is segmented into North America, Europe, Asia Pacific, South America, and Middle East and Africa. In 2018, North America governed the global AI market in terms of revenue in 2018, owing to the presence of leading players in the region, strong technical adoption base, and availability of government funding. Furthermore, rising adoption of cloud services in developed countries such as U.S. and Canada is significantly contributing to the regional market.
In Europe, cloud-based AI deployment is expected to witness significant growth in the coming years due to increasing consumer demand for faster and on-demand access to data and easy document control. Furthermore, several private and public organizations are collecting domain-specific data that comprises issues such as medical informatics, cybersecurity, marketing, national intelligence, and fraud detection. Big data-based AI algorithms help in analyzing such unorganized and unsupervised data by continuously improving each set of data.
Market Share Insights of Artificial Intelligence Market
Artificial intelligence provides outstanding opportunities for investment firms, companies, and consultants looking for acquisitions or mergers. The persistent need for digital transformation is encouraging mergers and acquisitions at record levels among technical and non-technical AI stake-holding firms. Moreover, several vendors are entering into partnerships with end-use industries to enhance their reach. Key industry participants include Atomwise, Inc.; Lifegraph; Sense.ly, Inc.; Zebra Medical Vision, Inc.; Baidu, Inc.; H2O ai; IBM Watson Health; NVIDIA; Enlitic, Inc.; Google LLC; Intel Corporation; and Microsoft Corporation.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Artificial Intelligence Market Research Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global artificial intelligence market report based on solution, technology, end use, and region:
Solution Outlook (Revenue, USD Billion, 2019 - 2030)
- Hardware (HW)
- Software (SW)
Technology Outlook (Revenue, USD Billion, 2019 - 2030)
- Deep Learning
- Machine Learning
- Natural Language Processing
- Machine Vision
End-use Outlook (Revenue, USD Billion, 2019 - 2030)
- Advertising & Media
- Automotive & Transportation