Artificial Intelligence Market Forecasts to 2028 - Global Analysis By Solution (Software, Hardware, Services, Other Solutions), System (Decision Support Processing, Fuzzy Systems, Intelligence Systems, Hybrid Systems, Other Systems) and Others

According to Stratistics MRC, the Global Artificial Intelligence Market is accounted for $118.22 billion in 2022 and is expected to reach $505.51 billion by 2028 growing at a CAGR of 27.4% during the forecast period. Artificial intelligence (AI) is a simulation of human intelligence by devices that uses algorithms to automate and carry out tasks that are typically performed by humans. Although AI is a multidisciplinary discipline with many different techniques, developments in machine learning and deep learning have caused a paradigm change in almost all tech sectors.

According to the Cisco Internet Report, total devices connected to the Internet stood at 18.4 billion in 2018, which is projected to reach 29.3 billion by 2023, thereby enabling effective information/data collection. According to March 2021 report by European Parliament, the volume of data produced across the globe is anticipated to reach 175 zettabytes in 2025 from 33 zettabytes in 2018.

Market Dynamics:

Driver:

Growing adoption of AI by banks

The rising application of AI by banks is expected to support the expansion of the artificial intelligence market. The three major areas where artificial intelligence might very well help banks save money are the front office, middle office, and back office. On the front end, banks are using AI to simplify client identification and verification, augment human personnel and via chat bots but instead voice assistants, strengthen customer relationships, and provide personalised insights and recommendations. Banks are also implementing artificial intelligence (AI) in middle-office tasks to identify and avoid disbursement fraud, in addition to strengthen generally pro laundering (AML) and understand (KYC) regulatory checks.

Restraint:

High Initial cost of setting up AI in a system or product

AI-based system development takes a long time, a lot of resources, a skilled workforce, and a lot of money. AI-based system development necessitates the use of latest update hardware and software. It also necessitates highly skilled AI/ML engineers, who command a high salary. The overarching production cost is still quite high and therefore not affordable for everyone.

Opportunity:

Rapid penetration of the digital technologies and internet

The recent expansion of the global artificial intelligence industry has been considerably aided by the quick uptake of digital technologies and the internet. The massive research and development expenditures made by the IT behemoths are continually accelerating technical development across a wide range of businesses. The growing demand for artificial technology across a range of end-use industries, including manufacturing, banking & finance, healthcare, automotive, food & beverage, retail, and logistics, is anticipated to significantly fuel the rise of the global artificial intelligence market in the years to come. The majority of sectors have traditionally placed a high priority on technological advancements.

Threat:

Limitations in Protecting Privacy

With different algorithms and concerns over data privacy, the market is probably going to struggle. To give users relevant results, the system makes advantage of deep and machine learning capabilities. These technologies, which include algorithms, recommendation systems, and adtech networks, may use the user's private information for their own purposes. Furthermore, without the user's permission, artificial intelligence algorithms generate new information based on historical data. This will probably reduce consumer demand for the technology.

COVID-19 Impact

Since its emergence, COVID-19, a new strain of virus, has been dispersing at an alarming rate. Due to the lack of a human COVID vaccine or treatment, patients received a variety of treatments based on their symptoms, which finally allowed for the straightforward treatment of numerous individuals with similar symptoms. In collaboration with the government, hospitals use artificial intelligence to separate data, keep track of patients and the medications and treatments they receive, as well as other factors and geographic conditions that may affect them, in order to maintain an inventory of the general population and COVID patients.

The software segment is expected to be the largest during the forecast period

The software segment is estimated to have a lucrative growth, due to high computing power, equidistant processing potential, and sensible advancements in information storage capacity are all responsible for the high percentage. Additionally, this sector was positioned to capture the largest market share due to its capacity to eliminate data, provide real-time insights, and aid in decision-making. Over the forecast period, artificial intelligence software is expected to become more popular as businesses become more dependent on the ability to perceive and analyse visual input in order to derive insightful conclusions.

The Healthcare segment is expected to have the highest CAGR during the forecast period

The Healthcare segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the expanding databases of digital patient health information, rising demand for tailored therapy, and rising interest in cutting healthcare costs. Enhanced hardware and technology capabilities for computational applications have made AI commercially available. Furthermore, applying AI for improved analytical purposes was made possible by the healthcare industry's rapid expansion and availability of created data.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to increasing their AI investments. This shift in preferences in favour of technology has made room for market growth in the area. Additionally, the growing start-up businesses that are thriving thanks to the implementation of AI have increased operational effectiveness and automated processes. The development of technology has benefited the region's developing economies. As a result, the area has left plenty of room is for AI market to flourish during the projection period.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to robust innovation ecosystem, which is supported by strategic federal investments in cutting-edge technology. Visionary scientists and entrepreneurs from around the world have also congregated here, along with renowned research institutions. A favourable climate for the market to boom in the area has been established by government initiatives and the accessibility of developed resources. As a result of the increase in initiatives, the government agencies increased public confidence in AI-based systems by allowing them to follow specific specified rules for the advancement and practical applications of AI in various fields.

Key players in the market

Some of the key players profiled in the Artificial Intelligence Market include Oracle Corporation, Amazon Web Services, Inc., Intel Corporation, SAP SE, Apple Inc., Microsoft Corporation, Baidu, Inc., Clarifai, Inc., Fair Isaac Corporation (FICO), IBM Corporation, Nvidia, Google LLC, HyperVerge, Inc., BigML.

Key Developments:

In July 2022, Intel launched the first set of open-source AI reference kits specifically developed to make AI more accessible to organizations in on-premise, cloud, and edge environments. These kits could allow data scientists and developers to learn how to deploy AI faster and more easily across manufacturing, healthcare, retail, and other industries with higher accuracy, better performance, and lower total cost of implementation.

In December 2019, Intel Corporation finished the acquisition of Habana Labs Ltd. The acquisition is anticipated to reinforce Intel Corporation's AI portfolio and push its efforts in the AI silicon market.

Solutions Covered:

• Software
• Hardware
• Services
• Other Solutions

Systems Covered:

• Decision Support Processing
• Fuzzy Systems
• Intelligence Systems
• Hybrid Systems
• Other Systems

Technologies Covered:

• Machine Vision
• Deep Learning
• Natural Language Processing (NLP)
• Machine Learning
• Other Technologies

End Users Covered:

• Banking, Financial Services and Insurance (BFSI)
• Retail
• Agriculture
• Law
• Healthcare
• Automotive & Transportation
• Manufacturing
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances