Artificial Intelligence Market Intelligence

Industry Outlook & Drivers

Global AI Industry Outlook

• The worldwide AI market was valued at $7.35 billion in 2018. The market is forecasted to grow at a CAGR of about 46 percent between 2018 and 2024, and it is estimated to reach $71 billion in 2024
• ML, predictive analytics, NLP, and image recognition are the prevalent technologies in AI space

AI: Market Overview

• The global AI market is expected to grow at a CAGR of about 46 percent for 2018–2024, reaching a market value of $71 billion in 2024
• Currently, North America has the highest adoption of AI, and also, the largest revenue share in the global market, i.e., more than 40 percent, followed by Asia-Pacific and Europe
• APAC is expected to emerge as a lucrative market for AI in the next 5–7 years. The key factors propelling this growth are cloud-based services and the emergence of several AI technology start-ups, which provide innovative products/services
• The AI market in key leading countries, such as the US, China, India, Germany, and Japan, has an advent growth, due to the high level of process automation, which is adopted in various industries
• Large number of tier-2 suppliers are emerging in the market, with specialized service offerings in the field of healthcare, BFSI, agriculture, gaming, etc.

Global AI: Industry Trends

• NLP and ML are major AI technologies, which are shaping the AI market space. Robotics, vision, and speech are also contributing significantly toward the industry's growth
• Many start-up companies are entering the market, with new ideas and innovations, in the field of ML, vision, speech, and autonomous cars

Regional Market Outlook

• The North American AI market is expected to grow at a CAGR of about 41-42 percent from 2018 to 2023
• The government & defense segments contributed the largest share to the North America's AI market in 2018, and they would continue to be a dominant market until 2022, and it is expected to grow at a CAGR of 41 percent during the forecast period
• The US AI market is highly fragmented, with a presence of a huge number of start-ups in the country, however, the market is expected to undergo consolidation in the coming years, with tech giants, such as Apple, Google, Microsoft, Intel, Amazon, IBM, etc., thrusting on inorganic expansion in the country's AI market
• Growing trend of integration of video surveillance with AI for video analysis, coupled with rising government spending on cyber security solutions, integrated with real-time analytics and AI, is expected to boost the AI market in the US over the next five years