PUBLISHER: Roots Analysis | PRODUCT CODE: 1721394
PUBLISHER: Roots Analysis | PRODUCT CODE: 1721394
As per Roots Analysis, the global artificial intelligence market size is estimated to grow from USD 273.6 billion in the current year to USD 5,267 billion by 2035, at a CAGR of 30.84% during the forecast period, till 2035.
The opportunity for artificial intelligence market has been distributed across the following segments:
Type of Offering
Type of Processing
Type of Technology
Type of Deployment
Type of Application
Type of End User
Geographical Regions
Artificial Intelligence (AI) refers to a wide area of computer science focused on developing machines that can execute tasks typically requiring human intelligence. This technology features various capabilities, including speaking, seeing, language comprehension and translation, and data analysis, marking it as one of the groundbreaking developments in the digital age. Additionally, it is worth mentioning that AI is a broad term that includes a variety of technologies, such as machine learning, deep learning, computer vision, and natural language processing.
As technology continues to evolve, AI is advancing quickly and is being widely adopted across almost all business sectors. Industries such as healthcare, finance, education, and manufacturing are utilizing this technology to enhance their data-driven processes and manage repetitive tasks, boosting the potential expansion of the global AI market. Throughout the years, the increasing implementation of industrial automation, the growing use of IoT devices, and ongoing technological progress have created new opportunities for industry participants. Consequently, stakeholders are making significant investments in AI research and development to address the evolving requirements of various sectors.
Driven by the rise of artificial general intelligence (AGI), the global artificial intelligence market is expected to grow at a healthy pace during the forecast period.
Based on the type of offering, the global artificial intelligence market is segmented into AI hardware, software, and service offerings. According to our estimates, currently, software segment captures the majority share of the market. This can be attributed to the wide range of applications, including natural language processing, computer vision, edge AI, machine learning, deep learning, and robotics, which are utilized across various sectors such as healthcare, automotive, and finance. However, cloud-based segment is anticipated to grow at a higher CAGR during the forecast period.
Based on the type of technology, the artificial intelligence market is segmented into computer vision, context-aware AI, experts systems, machine learning, natural language processing, and robotics process automation. According to our estimates, currently, machine learning segment captures the majority share of the market. This can be attributed to the fact that machine learning serves as a fundamental component of AI solutions, enabling the development of models that allow computers to learn from data, identify patterns, and make decisions. However, natural language processing segment is anticipated to grow at a higher CAGR during the forecast period.
Based on the type of deployment, the artificial intelligence market is segmented into cloud-based and on-premises. According to our estimates, currently, cloud-based segment captures the majority share of the market; further, this segment is anticipated to grow at a higher CAGR in the future. This can be attributed to scalability and flexibility of cloud-based systems, allowing organizations to adjust AI resources based on their needs. Additionally, the cost-effectiveness of cloud-based options makes them increasingly popular and accessible to small and medium-sized enterprises with limited budgets, enabling them to take advantage of AI-as-a-service offerings at a manageable price.
Based on the type of application, the artificial intelligence market is segmented into automated customer service, fraud detection & risk management, healthcare diagnostics, marketing & sales, predictive analytics, robotics, and supply chain optimization. According to our estimates, currently, marketing & sales segment captures the majority share of the market. This can be attributed to the prevalent use of AI technology for audience targeting and improving customer engagement. Additionally, companies are utilizing AI tools to enhance personalized marketing strategies and gain AI-driven customer insights and analytics. However, automated customer service segment is anticipated to grow at a higher CAGR during the forecast period.
Based on the type of end user, the artificial intelligence market is segmented into automotive, BFSI, energy & utilities, government, healthcare, manufacturing, retail & e-commerce, telecommunication, and others. According to our estimates, currently, BFSI segment captures the majority share of the market. This can be attributed to its increased use of AI technology to optimize operations, manage large volumes of financial data, detect fraud, and provide personalized customer experiences. However, healthcare segment is anticipated to grow at a higher CAGR during the forecast period.
Based on the geographical regions, the artificial intelligence market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and Rest of the World. According to our estimates, currently, North America captures the majority share of the market. However, market share in Asia is anticipated to grow at a higher CAGR during the forecast period.
The report on the Artificial intelligence market features insights on various sections, including: