Measuring trends in Artificial Intelligence:

February 8, 2023 | 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

  • The Asia Pacific market is expected to grow at highest CAGR 42% from 2022 to 2030.
  • Based on the technology, the deep learning segment has captured 39% market share in 2022.
  • By solution, the software segment has accounted for a market share of over 41% in 2022.
  • By end user, the advertising & media segment has accounted for 22% of the market share in 2022.
  • North America accounted 43% market share in 2022.

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 end user 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 application specific products and solutions. Furthermore, companies are also taking several strategic initiatives in industry consolidations to gain competitive advantages.

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

Regional Insights