Artificial Intelligence market was valued at approximately USD 18.03 Billion in 2019 and is expected to generate revenue of around USD 313.18 Billion by end of 2027, growing at a CAGR of around 42.9% between 2020 and 2027.
In recent years, artificial intelligence (AI) has been one of the technologies which is growing fast. AI has similar characteristics to human intelligence, such as listening, language comprehension, problem solving, reasoning, and others. Market manufacturers are witnessing huge underlying intellectual challenges in the development and overhaul of such a technology. AI is positioned among the market's next generation software technologies. Companies like Microsoft IBM, Google, and other leading players have been successfully integrating AI as a core part of their technology.
Growing popularity of applications for parallel processing contributes to the growing acceptance of intelligence technology in scientific disciplines such as artificial intelligence and data science. Organizations are using AI to derive useful insights from data to deliver new goods and to enhance customer experience, thus growing opportunities for revenue. Significant developments in operational dimensions of advances in artificial intelligence and implementation of complex artificial intelligence applications are driving development in the industry. Rapid advances in high computing power have helped increase the adoption of AI and robotics in end use industries like automotive, IT, healthcare and manufacturing.
Machine intelligence is likely to hold enormous potential for growth and key players are focused on developing integrated software and hardware solutions. In addition, a variety of retailers have partnered with distributors and end users for product delivery to extend their customer reach. In the automotive industry, AI has many possible applications in advanced driver assistance systems (ADAS) and autonomous driving. Neural networks are commonly used in lane recognition vehicles, which promote the replacement of costly sensors. Artificial intelligence helps coordinate vast volumes of data gathered by IoT sensors and mobile devices to boost the storage of data.
Based on offering, the market is segmented into hardware, software, and services. The hardware segment is likely to grow at CAGR in the forecast period. It can mainly be attributed to the growing need for hardware platforms with high processing power to run various AI applications. The presence of major companies operating in this segment has contributed to the AI-related hardware market.
The deep learning segment held almost 27% share of the market in 2019
The media & advertising segment accounted for almost 31% share of the market in 2019
North America held almost 37% owing to the involvement of leading regional players, a strong technological base for adoption and the availability of government funding.
Key Market Analysis:
Major players in artificial intelligence market are Oracle (U.S.), Baidu (China), General Electric (U.S.), Siemens (Germany), IBM (U.S.), Facebook (U.S.), SAP SE (Germany), Amazon Web Services (U.S.), Rockwell Automation (U.S.), and Samsung Electronics (South Korea) among others.