Cloud AI Global Market Report 2024

Cloud AI involves harnessing artificial intelligence (AI) capabilities and technologies delivered through cloud computing platforms. This entails utilizing the computational power and resources provided by cloud infrastructure to execute AI tasks, enabling businesses to access AI (artificial intelligence) and ML (machine learning) without the need to construct or maintain their own infrastructure.

The primary types of cloud AI are solutions and services. Cloud AI solutions involve the use of cloud computing infrastructure and AI technologies to address specific business challenges or fulfill particular needs. This encompasses various technologies such as deep learning, machine learning, natural language processing, and others. The main end-users of cloud AI include industries such as banking, financial services, and insurance (BFSI), healthcare, automotive, retail, government, education, and others.

The cloud AI market research report is one of a series of new reports from The Business Research Company that provides cloud AI market statistics, including cloud AI industry global market size, regional shares, competitors with a cloud AI market share, detailed cloud AI market segments, market trends and opportunities, and any further data you may need to thrive in the cloud AI industry. This cloud AI market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The cloud ai market size has grown exponentially in recent years. It will grow from $59.49 billion in 2023 to $82.02 billion in 2024 at a compound annual growth rate (CAGR) of 37.9%. The expansion observed in the historical period can be attributed to the growth of computational power and its increased affordability, the development of readily available AI models, the emergence of big data and data analytics, and the rising demands for automation and optimization.

The cloud ai market size is expected to see exponential growth in the next few years. It will grow to $301.2 billion in 2028 at a compound annual growth rate (CAGR) of 38.4%. The anticipated growth in the forecast period can be attributed to the growing adoption of hybrid and multi-cloud strategies, an increased emphasis on edge computing, a growing focus on transparency, and the rise of AI-powered applications across diverse industries. Major trends in the forecast period include integration with IoT, strategic collaborations, investments by key players, and technological advancements.

The anticipated surge in demand for virtual assistants is set to drive the growth of the cloud AI market in the future. Virtual assistants, also known as voice assistants or digital assistants, leverage artificial intelligence (AI) technologies to offer users interactive and personalized assistance. They are designed to comprehend and respond to user queries, perform tasks, and provide relevant information or services. Cloud AI is commonly utilized to power virtual assistants, enhancing their capabilities and enabling businesses to build, train, deploy, and manage AI models at scale. This approach brings benefits such as scalability, reliability, security, and cost-effectiveness. For example, as of April 2023, reports shared by Demand Sage, a US-based AI-powered demand planning platform, indicate that there will be 4.2 billion voice assistants by 2023, and this number is projected to increase to 8.4 billion in 2024, encompassing 72% of individuals who utilized voice assistants in the preceding six months of 2023. Therefore, the increasing demand for virtual assistants propels the growth of the cloud AI market.

The escalating demand in the automotive industry is expected to drive the growth of the cloud AI market in the coming years. The automotive industry encompasses companies, organizations, and activities involved in the design, development, manufacturing, marketing, and sale of motor vehicles. The adoption of cloud-based AI in the automotive sector contributes to the creation of more intelligent, efficient, and connected vehicles, offering manufacturers and users various benefits in terms of functionality, maintenance, and overall user experience. As of May 2023, the European Automobile Manufacturers Association reports that the global production of motor vehicles in 2022 reached 85.4 million units, reflecting a notable increase of 5.7% compared to the previous year. Moreover, in February 2022, Brand Finance plc, a UK-based brand valuation company, notes that the automobile sector achieved approximately 78 million unit sales in 2022, marking a substantial 10% increase. Therefore, the increasing demand in the automotive industry is poised to drive the growth of the cloud AI market.

Innovative AI cloud services emerge as a prominent trend gaining traction in the cloud AI market, with major companies concentrating on developing inventive AI cloud services to maintain their market positions. For instance, as of March 2023, NVIDIA Corporation, a US-based software company, launched DGX Cloud, a novel AI supercomputing cloud service. This technology solution empowers businesses to run AI workloads at scale and speed while accessing the latest AI technologies. Equipped with powerful GPUs, DGX Cloud allows companies to access their AI supercomputers through a simple online browser, eliminating the need for purchasing, deploying, and operating on-premises hardware. Additionally, this cloud service provides scalability, reliability, security, and cost-effectiveness. Overall, DGX Cloud stands as a versatile and powerful cloud AI supercomputer service, making it a compelling choice for businesses of all sizes.

Major companies in the cloud AI market are dedicated to developing innovative solutions, offering AI supercomputing-as-a-service to gain a competitive edge. AI supercomputing-as-a-service (AI SaaS) refers to a cloud-based service model providing access to high-performance computing resources specifically tailored for artificial intelligence (AI) workloads. As of November 2023, NeevCloud, an India-based cloud infrastructure company, introduced AI supercloud with the aim of making supercomputing and AI more accessible to Indian startups and businesses. This AI supercomputing-as-a-service model seeks to democratize access to AI and supercomputing, ultimately boosting India's global IT standing. With the world's lowest pricing for Cloud GPUs at $1.69/hour, representing a 50% cost reduction, the AI supercloud offers an affordable solution.

In July 2023, DigitalOcean Holdings Inc., a US-based software company, completed the acquisition of Paperspace for $111 million. This strategic move enables DigitalOcean Holdings Inc. to expand its cloud computing and AI offerings, gain access to Paperspace's customer base, and enhance its competitiveness in the cloud computing market. Paperspace is a US-based provider of cloud AI services, aiming to make cloud computing more accessible.

Major companies operating in the cloud ai market report are Amazon Web Services Inc., MicroStrategy Incorporated, Apple Inc., Microsoft Corporation, Google LLC, Huawei Cloud, Intel Corporation, Accenture PLC, International Business Machines Corporation (IBM), Cisco Systems Inc., Oracle Corporation, Salesforce Inc., SoundHound Inc., Tata Consultancy Services, Nvidia Corporation, Capgemini SE, Baidu Inc., Cognizant Technology Solutions Corporation, Infosys Limited, ZTE Corp., DXC Technology, Atos SE, HCL Technologies, Wipro Ltd., Twilio Inc., Nuance Communications Inc., Verint Systems Inc., DataRobot Inc., H2O.ai.

North America was the largest region in the cloud AI market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud ai market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the cloud ai market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The cloud AI market consists of revenues earned by entities by providing cloud AI services such as AI model training and deployment, pre-built AI models, computer vision services, data storage and management, AI-enabled APIs and services, and automated machine learning services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Cloud AI Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on cloud ai market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for cloud ai ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The cloud ai market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Solution; Service
• 2) By Technology: Deep Learning; Machine Learning; Natural Language Processing; Other Technologies
• 3) By End-User Vertical: Banking Financial Services And Insurance (BFSI); Healthcare; Automotive; Retail; Government; Education; Other End-User Verticals
• Companies Mentioned: Amazon Web Services Inc.; MicroStrategy Incorporated; Apple Inc.; Microsoft Corporation; Google LLC
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.