ARTIFICIAL INTELLIGENCE  MARKET OVERVIEW 2025

The global artificial intelligence market size is expected to reach USD 169411.8 Million in 2025, from USD 4065 Million in 2016 growing at a CAGR of 55.6% from 2018 to 2025.

Artificial Intelligence (AI) has been one of the most progressive technologies in computer science since its introduction in the 1950s. The developments in making more human-like robots and increase in rate of deployments in the developing regions have further transformed the overall market. Google, IBM, Microsoft, and Apple are some of the leading players of the global AI market.

 The technology of machine-learning has driven an exceptional increase in productivity. For instance, Google and Baidu have increased investment to expand their business capabilities in the AI market. Moreover, developments such as self-driving cars, space exploration, accurate weather predictions, and other prominent developments are boosting the demand for artificial intelligence technologies. However, limited availability of skilled and expert AI employees can negatively impact the growth of the AI Market.

 The AI market is segmented by technology, industry vertical, and geography. The various technologies are sub-divided into machine learning, natural language processing, image processing, and speech recognition. In 2016, the machine learning segment dominated the market, in term of revenue, and is expected to maintain this trend in the coming years, owing to an increase in demand for artificial intelligence industry solutions. Based on industry verticals, the market is categorized into media & advertising, retail, telecom & IT, healthcare, automotive & transportation, and others (agriculture, law, educational institutions). The IT & telecom segment is anticipated to dominate the global artificial intelligence market throughout the forecast period. Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2017, the North America region contributed the highest revenue share in the artificial intelligence market and is anticipated to secure the leading position during the forecast period, owing to the presence of key companies and large investment in the AI Market.

TOP IMPACTING FACTORS

Growing investment in AI technologies and growing need for analyzing and interpreting large amounts of data are expected to drive the growth of the artificial intelligence market. However, lack of trained and experienced staff is expected to restrict the growth of the AI industry.

Increasing investment in AI technologies

The ability of the AI technology to analyze the collected data efficiently and forecast decisions through crucial algorithms helps in productivity improvement; for instance, Netflix suggests movies on the basis of users’ previous viewing experiences. In the current business scenario, AI has revolutionized the way of business management through integration of workflow management tools, brand purchase advertising, trend predictions, and other tools. These are the major factors of the increasing investment in AI technologies and machine learning market. Moreover, many small startups and tech companies have been investing in adoption of open-source AI platforms to achieve higher efficiencies in their value chains. Moreover, the growing availability of low-cost quality AI technologies is expected to also contribute to the growth of the market.

Growing Need for Analyzing and Interpreting Large Amounts of Data

AI has varied application areas including media & advertising, finance, retail, healthcare, automotive & transportation, agriculture, law, educational institutions, oil & gas, and other industries. This has driven the market of AI across the globe, owing to developments, such as self-driving cars, space exploration, accurate weather predictions, and others. Furthermore, AI is expected to affect healthcare advancements, owing to its ability to analyze huge amounts of genomic data and ensure more accurate treatment and prevention of medical conditions.

Lack of Trained and Experienced Staff

Development of AI is possible after handling complex algorithms. Further, management of AI and automated systems is sometimes difficult. This requires exceptional software engineering skills and a notable experience of addressing distributed and concurrent programming or debugging with communication protocols. However, many regions, particularly the emerging economies, lack people with such skills. Hence, lack of skilled workforce is a prominent restraining force for the AI market.

LATEST INDUSTRY ANNOUNCEMENT IN ARTIFICIAL INTELLIGENCE (AI) MARKET

• Over the last few years, the major artificial intelligence market players went toe-to-toe with each to deliver the best application based on AI and though companies do not intend to replace humans, they surely want to make robots more humane. For instance, the recently launched Samsung’s Neon project. 
• The company emerged from Samsung Technology and Advanced Research Labs debuted its technology at CES 2020 and flaunted AI-based virtual beings, which is named Neon. Neon is artificially created a virtual being that appears and behaves like a real human and even manifests emotions and intelligence. 
• In another news, the pioneer in AI, IBM announced the launch of an advertising accelerator collaborating with Watson. The new offering would leverage AI to anticipate the optimal combination of various elements to increase engagement and conversion for consumers. The new technology is expected to use the abilities of Watson to develop campaigns that can understand and engage customers. 
• Apart from this, several startups are heading toward the artificial intelligence market. For instance, HoloAsh recently got accepted into 500 startups in Kobe. Moreover, the startup is expected to launch its new product, LeaVoice at CES 2020. HoloAsh has been working on AI-based LeaVoice, an AI friend that could help reduce stress by creating a safe space for people who often feel that they do not fit into society.

KEY BENEFITS FOR STAKEHOLDERS

• The report provides an extensive analysis of the current and emerging market trends, and dynamics in the global artificial intelligence market.
• In-depth analysis is conducted by constructing market estimations for the key market segments between 2018 and 2025.
• Extensive artificial intelligence market analysis is conducted by following key product positioning and monitoring of the top competitors within the market framework.
• A comprehensive analysis of all regions is provided to determine the prevailing opportunities in these geographies.
• Key market players within the artificial intelligence market are profiled in this report and their strategies are analyzed thoroughly, which help in understanding the competitive outlook of the global artificial intelligence market.

ARTIFICIAL INTELLIGENCE (AI) MARKET KEY SEGMENTS:

By Technology

• Machine learning
• Natural language processing
• Image processing
• Speech recognition

By Industry Vertical

• Media & advertising
• BFSI
• IT & Telecom
• Retail
• Healthcare
• Automotive & transportation
• Others (agriculture, law, educational institutions)

By Geography

• North America
• U.S.
• Canada
• Mexico
• Europe
• UK
• Germany
• France
• Russia
• Rest of Europe
• Asia-Pacific
• China
• Japan
• India
• Australia
• Rest of Asia-Pacific
• LAMEA
• Latin America
• Middle East
• Africa

Key Players

• Alphabet (Google Inc.)
• Apple Inc.
• Baidu
• IBM Corporation
• IPsoft
• Microsoft Corporation
• MicroStrategy, Inc.
• NVIDIA  
• Qlik Technologies Inc
• Verint Systems Inc (Next IT Corp)