Description
Artificial Intelligence (AI) market was valued at USD 11.71 Billion in 2016, and is projected to reach USD 191.60 billion by 2025, growing at a CAGR of 36.68% over the forecast period. Significant improvements in AI deployment and technological advancements in dynamic AI solutions are anticipated to spur the industry growth. Robust augmentations in computing power, data storage capacity, and parallelization have also contributed to the rapid uptake of AI technology in various end-use industries such as healthcare and automotive.
Growing big data analytics vendors, increasing demand for intelligent virtual assistants and rising adoption of cloud-based applications and services are also projected to drive the global artificial intelligence market. Moreover, increasing demand for understanding and analyzing visual contents, for improving significant insights, is further anticipated to gain traction to the technology over the forecast period.
Artificial intelligence technology has been implemented across varied industries such as healthcare and consumer electronics. Global organizations have started exploring and implementing the benefits of AI technologies for effective positioning of their products & services to consumers, this in turn, will drive the AI technology market. However, prominent players are facing challenges in funds acquisition in early R&D stage of prototypes and technologies.
AI technology also offers various benefits which include high figuring force & information volumes, and modification in data storage. The technology has been advanced with information driven applications, for instance, picture and voice acknowledgment techniques. Additionally, self-driven vehicle and Unmanned Aerial Vehicles (UAVs) market will project firm demand for AI technology in automotive and defense sector. Growth in high computing powers and information storage capacity has contributed to technological implementation in end-use industries such as healthcare and automotive.
Based on solution segment, the report displays the revenue, market share, and growth rate of each type, primarily split into
• Hardware
• Software
• Services
Hardware segment comprises of chipsets including Application-Specific Integrated Circuits (ASIC), Central Processing Unit (CPU), Graphics Processing Unit (GPU) and, Field-Programmable Gate Array (FPGA). Currently, the hardware segment is projected to dominate the solution segment by GPUs and CPUs owing to their high computing capabilities required for AI frameworks. Furthermore, service segment includes integration, installation, maintenance and support undertakings.
Based on technology, the report includes the market share, revenue, and growth rate of each type, primarily split into
• Deep Learning
• Machine Learning
• Natural Language Processing
• Machine Vision
The deep learning & machine learning segments are expected to cover the major investment area in AI over the forecast period. The segment includes both AI platforms and cognitive applications (such as searching, tagging, filtering, alerting, categorization, text and rich media analytics, clustering, question answering, hypothesis generation, visualization, and navigation), facilitating the technological advancement of advisory, intelligent, and cognitively enabled solutions. Machine learning segment is also anticipated to offer opportunities to retail industry by scaling human expertise with decision support and real-time learning capabilities.
On the basis of Application, the market has been segmented into
• Manufacturing & Processing
• BFSI
• Oil & Gas
• Healthcare
• Agriculture
• Automotive & Transportation
• Retail
• Others
AI proliferation in the end-user industries has supported organizations to achieve optimum working capabilities through complete utilization of resources. For instance, AI technology has been adopted by various end-use industry verticals such as manufacturing, BFSI, oil & gas, agriculture, healthcare, automotive and retail. Healthcare and manufacturing sectors are benefited substantially owing to artificial intelligence implementation.
Geographically, the global market has been segregated into North America, Asia Pacific, Europe, the Middle East & Africa and Latin America. Market share, revenue (Billion USD), and growth rate for these regions, from 2015 to 2025 (forecast) are:
• North America: U.S., Rest of North America
• Europe: Germany, France, UK, rest of Europe
• Asia Pacific: China, Japan, India and Rest of Asia Pacific
• Middle East & Africa: GCC, North Africa, South Africa and Rest of MEA
• Latin America: Brazil and Rest of Latin America
North America region has been predicted to have largest market share in terms of revenue, owing to the availability of huge government funding, strong technical implementation base and leading players’ existence in the region. Moreover, the adoption of cloud-based services in countries, such as the U.S. and Canada, has substantially contributed to the regional growth.
In Europe region, AI deployment is expected to witness remarkable growth over the forecast period owing to growing consumers’ awareness towards AI benefits such as easy document control and on-demand access to data. Furthermore, various private and public organizations have been gathering domain-specific information embracing issues such as cyber security, marketing, medical informatics, national intelligence and fraud detection.
The key industry players include Atomwise Inc., Enlitic Inc., Lifegraph, Zebra Medical Vision Inc., Sense.ly Inc., Baidu, Inc., IBM Watson Health, H2O AI, NVIDIA, Google Inc., Intel Corporation, and Microsoft Corporation.
Research Methodology
This research study involved the usage of extensive secondary sources; directories; databases such as Hoovers, Bloomberg Business, Factiva, and Avention; white papers; annual reports; company house documents; and SEC filings of companies. Secondary research was mainly used to identify and collect information useful for the extensive, technical, market-oriented, and commercial study of the market. It was also used to obtain key information about the market classification and segmentation according to the industry trends, regional markets, and developments related to the market and technology perspectives. Primary sources were mainly several industry experts from core and related industries; and preferred suppliers, manufacturers, distributors, service providers, technology developers, researchers, and organizations related to all segments of this industry‘s value chain. In-depth interviews were conducted from various primary respondents which included key industry participants, subject-matter experts (SMEs), C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information as well as to assess future prospects. The following figure shows the market research methodology applied in making this report.
After the complete market engineering (which includes calculations for market statistics, market breakdown, market size estimation, market forecasting, and data triangulation), extensive primary research was conducted to gather information and to verify and validate the critical numbers arrived at. Primary research was also conducted to identify the segmentation types and key market dynamics such as drivers, restraints, and opportunities.
In the complete market engineering process, both top-down and bottom-up approaches were extensively used along with several data triangulation methods to perform market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to list key information/insights throughout the report.