Artificial Intelligence (AI) Market: Global Industry Analysis and Forecast (2021-2027) by End User, application, Industry

Artificial Intelligence (AI) Market was estimated to be USD 50.13 Bn. in 2020, and is expected to reach USD 233.50 Bn. by 2027, registering a CAGR of 26.1%, during the period of 2021-2027.

Artificial Intelligence (AI) Market Overview:

Artificial intelligence is a theory and development of computer systems that can perform tasks that typically require human intelligence. With the growing number of enterprises and increasing competition, companies are rigorously trying to integrate artificial intelligence (AI) technology within their applications, businesses, analytics, and services. Machine learning is being adopted at unprecedented rates, specifically to create propensity models. Banks and insurance companies are introducing machine learning-based solutions for web and mobile applications. This has further enhanced real-time target marketing by predicting customers' product propensity based on behavioral data. Artificial Intelligence (AI) Market To know about the Research Methodology :- Request Free Sample Report

Artificial Intelligence (AI) Market Dynamics:

Drivers:

The growth of predictive analytics solutions that works on AI-based machine learning technology will drive the market for Artificial Intelligence in the forecast period. Different end-user companies across the globe are utilizing predictive modeling for planning and growth in their respective industries. The insurance industry has been one of the significant adopters of predictive analytics solutions. The solutions create several opportunities for improving vital factors such as services and satisfaction. For instance, in March 2021, the Guardian Life insurance Company of America (Guardian Life) announced a joint venture with AI and predictive analytics company at Atidot. The partnership is focused on creating a platform that deploys AI and ML to power data-driven decision-making that assists in making insurance products and services more accessible for consumers to understand and buy. Recently, Rackspace Technologies, a global multi-cloud computing company, surveyed 1,870 IT leaders in various sectors, including manufacturing, finance, retail, government, and healthcare, across the Americas, Europe, Middle East, and Asia. Among the findings, a third (32%) of healthcare IT professionals said they plan to use AI/ML for data analytics, to predict (27%), and to predict business performance (27%). GIV 2025, by 2025, 40 billion intelligent devices will sense, and there will be 100 billion connections. The annual storage of data generated from this will be up to 180 billion TB, a 20 fold increase compared with 2020. Moreover, 86% of the global companies will adopt AI, & data utilization rates will reach 80%. Such growth in the data produced is driving the market for AI. With solid internet penetration and new technologies, there is a massive growth in the data generated across the globe. The technologies such as the Internet of Things, Industry 4.0, 5G, and others encourage Artificial Intelligence.

Restraints:

The costs of business consulting, research & development, computing power, and building minimal viable products are incurred before implementation. For implementation, the total price includes automatic data preparation, delivering the infrastructure, processing, and making it actionable for systems and employees. The implementation cost is high and depends on the size of the industry. In a survey conducted in 2020 by MIT regarding the problems of using artificial intelligence (AI) technology in businesses throughout the APAC region, about 52% of respondents stated that technology in their business made it difficult to build a business case, while 22% of the respondents pointed out that the high cost of technology was a challenge for the adoption of AI. A significant challenge in the market is of replacement of the human workforce by Artificial Intelligence. AI technology is the next step in maximum productivity that replaces individual craftsmanship with the factory production line. Several recent studies suggest that within a decade, automation will replace half of the current jobs. For instance, according to the World Economic Forum report, half of all the work tasks will be handled by machines by 2025. However, AI aims to perfect human cognitive function, but it can't develop emotions.

COVID-19 Impact on Artificial Intelligence (AI) Market:

COVID-19 has had a positive and negative impact on the market as few industries witnessed an increase in AI adoption while others faced a decline. For instance, AI helps push processes, people, and services online in the public sector and compels local, regional, and national governments to embrace AI. In a few months, governments worldwide have learned to use AI as a weapon to fight against the virus, from educating the public and screening patients to tracking and tracing contacts. According to a study released in October 2020 by RELX, information, and Analytics Company, Covid-19 is one of United States executives' most pressing issues. It reshapes and disrupts industries across the US. Most of the respondents (68%) increased the investment in AI technologies during the COVID-19 pandemic, with about 48% investing in new AI technologies while 46% investing in upgrades of already in use AI tech. Similarly, 63% of business leaders polled that AI technologies positively impacted the business's ability to stay strong during the pandemic.

Artificial Intelligence (AI) Market Segment Analysis:

Based on component, the Artificial Intelligence (AI) Market is segmented into Software & Services, and Hardware. The software & Service segment is leading the market during the forecast period. AI techniques are increasingly being integrated into various technology solutions, including fraud detection, and digital assistants (bots), among others. The growth of big data, flexible cloud platforms, the expansion of global commerce, and changes in the regulatory landscape are the factors driving opportunities for artificial intelligence solutions in the Fintech sector. Artificial Intelligence (AI) Market 1 A large amount of non-trivial data is generated in various industries, and due to the unstructured data with compliance issues, organizations are struggling to manage the data. These issues need to be monitored and analyzed to plan further actions. AI solutions allow organizations to extract a better picture of their compliance-related matters, as well as data management. Software tools help to deploy AI-enabled solutions to remove a large amount of data and accurate and complete data on time. Many companies are increasingly demanding AI-based solutions. Moreover, multiple industries are witnessing a considerable increase in the number of startups. These new players are highly attracted to the adoption of AI to automate and expand their businesses. The increase in demand for AI-based offerings is evident, with hardware serving as a differentiator. AI, semiconductor companies, are expected to see greater demand for their existing chips, but they could also profit by developing novel technologies like workload-specific AI accelerators. Businesses have a critical requirement to speed up their digital transformation using AI to access more extensive data sets. AI data pipelines need to be streamlined to meet evolving, and dynamic business needs to break through traditional data storage performance and scale bottlenecks. AI allowed semiconductor companies to capture 40% to 50% of the total value of a technology stack to provide next-generation accelerator architectures to enable semiconductor companies to increase computational efficiency. For instance, specialized memory for AI has 4-5 times higher bandwidth than conventional memory, making it suitable for handling the vast stores of big data that AI applications require. Based on end user, the Artificial Intelligence (AI) Market is segmented into BFSI, Fashion and Retail, Healthcare and life sciences, manufacturing, automotive, aerospace and defense, construction, and others. Out of which Fashion and retail hold the largest market share. In recent years, AI technology has been increasingly adopted in the BFSI industry to enhance operational efficiency and enable better consumer experiences. AI is heralding a variety of innovations and will continue to remain during the forecast period. The most common types of AI services include bots and digital assistance, fully managed machine learning services, cognitive computing APIs, among others. In the BFSI industry, AI is mainly used for chatbots, algorithmic trading, fraud detection, and customer recommendation. Banks like RBS are implementing chatbots, which are likely to compel other financial institutions to invest in similar technology.

Top business priorities include:

• Enhancing business agility to respond quickly to market trends and opportunities. • Employee productivity. • Integrating digital channels to provide Omnichannel experiences. To address the latter, respondents would also focus on sales and IT operations for the year. Hence, such priorities would fuel the need for AI offerings such as chatbots and other services. The retail industry worldwide is witnessing an ever-growing demand for Artificial Intelligence (AI) as key industry players and manufacturers increasingly look at innovative products. Most retailers are eying AI and taking considerable strides to embrace technology to enhance the retail experience. Artificial intelligence is generally employed in the R&D capabilities in the life sciences industry to provide meaningful insights from loosely coupled data. Since the deployment of AI in the life sciences industry is still in its nascent stage, the early adopters of the technology are expected to benefit from the technology, as it is expected to assist them in creating strategic technological capabilities to gain a competitive edge. The manufacturing industry has been taking advantage of AI-enabled chatbot functionality. Recalls are costly not only for manufacturing operations but also in terms of responding to consumer inquiries. Chatbots allow a streamlined way for consumers to directly contact manufacturers and receive answers about recalls without straining live agents' resources. This will enable chatbots to handle routine questions while also allowing live agents to respond to more complex inquiries.

Global Artificial Intelligence (AI) Market Regional Insights:

North America stands in the first position in the Artificial Intelligence (AI) Market. The United States has a robust innovation ecosystem fueled by strategic federal investments in advanced technology, complemented by visionary scientists and entrepreneurs coming together from the world & renowned research institutions, which has propelled the development of artificial intelligence (AI) in the North America. Several govt. initiatives in the US for AI are expected to impact the market positively. For instance, as early as Feb 2019, the US govt. launched the American Artificial Intelligence Initiative, the Nation’s strategy for promoting American AI leadership. The US had planned to promote federal investment in AI R&D in collaboration with academia, industry, international partners and allies, & other non-federal entities to generate multiple technological breakthroughs in AI. Moreover, large banks are adopting AI to stay ahead of the competition in the country. For instance, USAA, the financial service organization, uses AI to improve their banking offerings by making their operations more effective and efficient and providing more excellent value to their growing customer base. Also, in March 2021, US banking regulators announced they were soliciting public input on the growing use of artificial intelligence by financial institutions. The growth of Artificial Intelligence in China is driven by government initiatives and investments made by private players from growing industries such as Telecommunications, automotive, construction, and BFSI. For instance, in February 2021, A tech firm HK Innovation Lab operating under the Hong Kong Smart Government Innovation Lab, announced the launch of a new solution for building cost estimation that proved to be one of the major factors in surveying and the construction industry as it involves many steps of procedures from budget planning, building cost estimation to budget cost approval and cash management. The solution is developed using big data analytics, artificial intelligence, machine learning, and predictive modeling in building cost estimation. According to Oxford Insights and International Development Research Centre, a Canadian Federal Crown Corporation, the Government AI Readiness Index of the United Kingdom in 2020 was 81.124, ranking second right after the US in the world. Still, it ranked much lower in the Responsible Use Sub-Index in terms of responsible use of AI among 34 countries. Squarespace ranked the UK fourth in the technology sector with a score of 65.64. The United Kingdom has outlined the notable trends of growing investments in artificial intelligence and machine learning technologies with the government's continuous support to encourage further innovations in various industries, particularly, healthcare. The objective of the report is to present a comprehensive analysis of the global Artificial Intelligence (AI) Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants. PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers. The report also helps in understanding the global Artificial Intelligence (AI) Market dynamics, structure by analyzing the market segments and project the global Artificial Intelligence (AI) Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global Artificial Intelligence (AI) Market make the report investor’s guide.

Global Artificial Intelligence (AI) Market Scope: Inquire before buying

Global Artificial Intelligence (AI) Market
Report Coverage Details
Base Year: 2020 Forecast Period: 2021-2027
Historical Data: 2016 to 2020 Market Size in 2020: 50.13 Bn.
Forecast Period 2021 to 2027 CAGR: 26.1% Market Size in 2027: 233.50 Bn.
Segments Covered: by End User • BFSI • Fashion and Retail • Healthcare and Lifesciences • Manufacturing • Automotive • Aerospace and Defense • Construction • Food and Beverage • Others
by Component • Hardware • Software and Services

Global Artificial Intelligence (AI) Market, by End User

• BFSI • Fashion and Retail • Healthcare and Lifesciences • Manufacturing • Automotive • Aerospace and Defense • Construction • Food and Beverage • Others

Global Artificial Intelligence (AI) Market, by Component

• Hardware • Software and Services

Global Artificial Intelligence (AI) Market, by Region

• North America • Europe • Asia Pacific • Middle East and Africa • South America

Global Artificial Intelligence (AI) Market Key Players

• IBM Corporation • Intel Corporation • Microsoft Corporation • Google LLC • Amazon Web Services Inc. • Oracle Corporation • Salesforce.com Inc. • SAP SE • SAS Institute Inc. • Cisco Systems Inc. • Siemens SE • NVIDIA Corporation • Zebra Medical Vision Inc.
1. Global Artificial Intelligence (AI) Market: Research Methodology 2. Global Artificial Intelligence (AI) Market: Executive Summary 2.1. Market Overview and Definitions 2.1.1. Introduction to Global Artificial Intelligence (AI) Market 2.2. Summary 2.2.1. Key Findings 2.2.2. Recommendations for Investors 2.2.3. Recommendations for Market Leaders 2.2.4. Recommendations for New Market Entry 3. Global Artificial Intelligence (AI) Market: Competitive Analysis 3.1. MMR Competition Matrix 3.1.1. Market Structure by region 3.1.2. Competitive Benchmarking of Key Players 3.2. Consolidation in the Market 3.2.1 M&A by region 3.3. Key Developments by Companies 3.4. Market Drivers 3.5. Market Restraints 3.6. Market Opportunities 3.7. Market Challenges 3.8. Market Dynamics 3.9. PORTERS Five Forces Analysis 3.10. PESTLE 3.11. Regulatory Landscape by region • North America • Europe • Asia Pacific • The Middle East and Africa • Latin America 3.12. COVID-19 Impact 4. Global Artificial Intelligence (AI) Market Segmentation 4.1. Global Artificial Intelligence (AI) Market, by End User (2020-2027) • BFSI • Fashion and Retail • Healthcare and Lifesciences • Manufacturing • Automotive • Aerospace and Defense • Construction • Food and Beverage • Others 4.2. Global Artificial Intelligence (AI) Market, by Component (2020-2027) • Hardware • Software and Services 5. North America Artificial Intelligence (AI) Market (2020-2027) 5.1. North America Artificial Intelligence (AI) Market, by End User (2020-2027) • BFSI • Fashion and Retail • Healthcare and Lifesciences • Manufacturing • Automotive • Aerospace and Defense • Construction • Food and Beverage • Others 5.2. North America Artificial Intelligence (AI) Market, by Component (2020-2027) • Hardware • Software and Services 5.3. North America Artificial Intelligence (AI) Market, by Country (2020-2027) • United States • Canada • Mexico 6. European Artificial Intelligence (AI) Market (2020-2027) 6.1. European Artificial Intelligence (AI) Market, by End User (2020-2027) 6.2. European Artificial Intelligence (AI) Market, by Component (2020-2027) 6.3. European Artificial Intelligence (AI) Market, by Country (2020-2027) • UK • France • Germany • Italy • Spain • Sweden • Austria • Rest of Europe 7. Asia Pacific Artificial Intelligence (AI) Market (2020-2027) 7.1. Asia Pacific Artificial Intelligence (AI) Market, by End User (2020-2027) 7.2. Asia Pacific Artificial Intelligence (AI) Market, by Component (2020-2027) 7.3. Asia Pacific Artificial Intelligence (AI) Market, by Country (2020-2027) • China • India • Japan • South Korea • Australia • ASEAN • Rest of APAC 8. Middle East and Africa Artificial Intelligence (AI) Market (2020-2027) 8.1. Middle East and Africa Artificial Intelligence (AI) Market, by End User (2020-2027) 8.2. Middle East and Africa Artificial Intelligence (AI) Market, by Component (2020-2027) 8.3. Middle East and Africa Artificial Intelligence (AI) Market, by Country (2020-2027) • South Africa • GCC • Egypt • Nigeria • Rest of ME&A 9. Latin America Artificial Intelligence (AI) Market (2020-2027) 9.1. Latin America Artificial Intelligence (AI) Market, by End User (2020-2027) 9.2. Latin America Artificial Intelligence (AI) Market, by Component (2020-2027) 9.3. Latin America Artificial Intelligence (AI) Market, by Country (2020-2027) • Brazil • Argentina • Rest of Latin America 10. Company Profile: Key players 10.1. IBM Corporation 10.1.1. Company Overview 10.1.2. Financial Overview 10.1.3. Global Presence 10.1.4. Capacity Portfolio 10.1.5. Business Strategy 10.1.6. Recent Developments 10.2. Intel Corporation 10.3. Microsoft Corporation 10.4. Google LLC 10.5. Amazon Web Services Inc. 10.6. Oracle Corporation 10.7. Salesforce.com Inc. 10.8. SAP SE 10.9. SAS Institute Inc. 10.10. Cisco Systems Inc. 10.12. Siemens SE 10.13. NVIDIA Corporation 10.14. Zebra Medical Vision Inc.

About This Report

Report ID 11207
Category Information Technology & Telecommunication
Published Date Nov 2019
Updated Date Dec 2021
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