Artificial Intelligence Market - Forecast(2024 - 2030)

The Artificial Intelligence Market is expected to reach $1035 billion by 2030, growing at a CAGR of 37.2% during the forecast period 2024-2030. Artificial Intelligence (AI) refers to a recreation of human intelligence functions by machines. It is used in the internet of things for multiple tasks including cloud computing, customer relationship management, data analysis, facial recognition technology, fraud detection and predictive analysis. The widescale adoption of Artificial Intelligence in various sectors on a global scale is for updating systems with intelligent features to enhance operational efficiency. In October 2022, Google Cloud introduced an AI-enabled medical imaging suite for use in the healthcare sector. It would reduce manual work done by radiologists as it has storage, datasets and an AI pipeline for imaging.

Multimodal AI is a pivotal trend in the evolving landscape of artificial intelligence. Diverging from conventional single-mode data processing, it simultaneously analyzes diverse data types, fostering a holistic approach. This comprehensive methodology enhances the adaptability of AI systems, enabling them to interpret and respond to a broader array of inputs. As the market embraces multimodal AI, its potential applications expand, contributing to the continuous advancement and sophistication of artificial intelligence solutions. In January 2024, Google has unveiled a new multimodal AI model ‘Lumiere’. Google's Lumiere, a groundbreaking multimodal AI video model, revolutionizes video creation. It seamlessly integrates text-based image editing, providing users with a powerful tool for consistent and authentic video editing experiences.

The “Artificial Intelligence Market Report – Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Artificial Intelligence Market.

By Offering: Hardware, Software and Services.

By Technology: Machine Learning, Natural Language Processing, Context-Aware Computing and Computer Vision.

By Deployment: On-premises and Cloud.

By Organization Size: Small and Medium Enterprises and Large Enterprises.

By Product: Medical devices, Connected Consumer Devices, Smart Wearables, Home appliances, electronic gadgets, Mobiles, Laptops & PCs, Robots, Industrial Systems, Cameras, AR/VR, Drones and Others.

By Application: Industrial processes, Medical Assistance and Diagnosis, Marketing and sales, Security systems, Finance, Supply chain management, Service deployment, Cloud computing, Customer relationship management, Data analysis, Facial recognition technology, Fraud detection, Predictive analysis and Others.

By End-users: BFSI, IT and Telecommunication, Government, Defense, Consumer Electronics, Manufacturing, Healthcare, Retail and E-commerce, Automotive, Logistics and Transportation, Power and Utilities, Oil and Gas, Education and Others.

By Geography: North America (the US, Canada and Mexico), Europe (Germany, the UK, France, Italy, Spain and Others), APAC (China, Japan, South Korea, India, Australia and Others), South America (Brazil, Argentina and Others) and RoW (the Middle East and Africa).

● The Smart wearables segment by product type in the Artificial Intelligence Market is expected to grow the fastest at a CAGR of 39.2%, during the forecast period 2024-2030. The widescale adoption of AI in smart wearables is for upgrading the real-time monitoring features of smart connected devices.

● The Healthcare segment by end-users in the Artificial Intelligence Market is expected to grow the fastest at a CAGR of 39.5%, during the forecast period 2024-2030. The increased adoption of AI in the healthcare sector for upgrading medical infrastructure with accurate and real-time monitoring systems would provide uninterrupted patient care services.

● In 2023, North America held the largest market share of 38% in the Artificial Intelligence Market in terms of revenue. The widescale use of AI in this region is due to the government's efforts to encourage the adoption of AI-enabled solutions for the effective management of internet systems and delivery of uninterrupted services.

● The increased deployment of AI in the Education sector for modernizing infrastructures with intelligent connected devices to deliver uninterrupted education is driving the market growth.

 

The Artificial Intelligence Market by product types has been segmented into medical devices, connected consumer devices, smart wearables, home appliances, electronic gadgets, mobiles, laptops & PCs, robots, industrial systems, cameras, AR/VR, drones and others. The Smart wearables segment in the Artificial Intelligence Market is expected to grow the fastest at a CAGR of 39.2%, during the forecast period 2024-2030. The widescale adoption of AI in smart wearables is for upgrading the real-time monitoring features of smart connected devices. Rising demand for AI-based IoT devices such as fitness bands among consumers to track their health vitals is also significantly contributing to market growth in this sector. In November 2023, GE HealthCare launched an ultra sound imaging highlighting Venue Family point-of-care ultrasound systems, an AI technology delivering real-time guidance capturing diagnostic-quality cardiac images and LOGIQ E10 Series, featuring Verisound Digital & AI Solutions.

The Artificial Intelligence Market by end-users has been segmented into BFSI, IT and telecommunication, government, defense, manufacturing, healthcare, retail and e-commerce, automotive, logistics and transportation, power and utilities, oil and gas, education and others. The Healthcare segment in the Artificial Intelligence Market is expected to grow the fastest at a CAGR of 39.5%, during the forecast period 2024-2030. The healthcare sector is increasingly opting for AI technology to upgrade medical infrastructure and establish precise, real-time monitoring systems to deliver unhindered medical care services. In March 2023, Medtronic and NVIDIA collaborated to integrate Holoscan and IGX, NVIDIA's real-time AI software, into medical devices, aiming to enhance AI innovation and accelerate medical device development.

The Artificial Intelligence Market by geography is segmented into North America, Europe, APAC, South America and RoW. North America held the largest market share of 38% in the Artificial Intelligence Market in terms of revenue, in 2023. The widescale use of AI in this region is due to the government's efforts to encourage the adoption of AI-enabled solutions for the effective management of internet systems and delivery of uninterrupted services. Growing e-commerce and online streaming segments are also boosting demand for AI-based automated systems. According to Networking and Information Technology Research and Development U. S. government spent on artificial intelligence (AI) contracts hit $3.3 billion in fiscal year 2022. This investment highlights substantial market growth, emphasizing AI's increasing significance and demand.

The teaching and learning processes have been greatly improved in recent years using AI in the education industry. AI-powered solutions are being rapidly adopted by EdTech companies to modernize iinfrastructure with intelligent connected devices and provide continuous education to consumers from anywhere in the world. AI offers several benefits, such as personalized material, tutoring, 24-hour access and task automation. AIM, NITI Aayog, CBSE, and Intel India initiates a groundbreaking collaboration, investing USD 1.35 billion in Artificial Intelligence (AI) over the next five years to revolutionize education. This strategic investment aims to integrate AI solutions, fostering innovation and enhancing the learning landscape.

AI-based technology is being rapidly adopted by the defense industry in several domains, including security systems and medical devices. AI-based military equipment handles a massive amount of data and remote monitoring systems more effectively. In July 2022, the Defense Minister of India launched 75 newly developed Artificial Intelligence (AI) products/technologies during the first-ever 'AI in Defense' symposium and exhibition, organized by the Ministry of Defense in New Delhi. AI-based products launched include AI platform automation, autonomous/unmanned/Robotics systems and intelligent monitoring systems with 90% enhanced productivity.

The development of AI-based systems requires lots of time, resources, a skilled workforce and significant monetary investments. The development of AI-based systems requires updated hardware and software. It also requires highly skilled AI/ML engineers who demand a high pay range. The overall production cost is quite expensive and not affordable for all. According to Aalpha company, AI will cost at least $35,000 to build a customized analysis system, while it will cost $60000 to create a customized chatbot. 80% of medium and small businesses with restricted budgets cannot afford the high budget to create their own AI solutions, which could impede market expansion.

Product launches, collaborations and R&D activities are key strategies adopted by players in the Artificial Intelligence Market. The top 10 companies in the Artificial Intelligence market are:

● In February 2022, Forbes in their Artificial Intelligence market report stated that 50% of enterprises planned to spend more on AI-based cloud computing and machine learning to enhance customer relationship management in 2021.

● In July 2022, IBM Corporation strategically acquired Databand.ai, enhancing its data observability capabilities in the AI landscape. This acquisition aligns with IBM's commitment to bolstering its hybrid cloud and AI expertise, reinforcing its position to capture emerging opportunities in the rapidly growing market for data observability.