AI-Based Forecasting Market - Forecasts from 2024 to 2029

AI-Based Forecasting Market - Forecasts from 2024 to 2029

The AI-based forecasting market is expected to grow at a CAGR of 27.08%, reaching a market size of US$33.387 billion in 2029 from US$13.996 billion in 2024.

AI-based forecasting refers to the employment of AI technology software and machine learning algorithms to predict the future values of different business aspects and sectors based on past data. An AI-based forecasting application automates data connection and preparation processes. It identifies different business metrics on which to base the forecast to create a customized AI forecasting solution for different enterprises and departments. The major reasons for the high demand for AI-based forecasting software across the healthcare, retail, and various other manufacturing sectors are the demand for minimal input from the user and the consideration of several thousand factors and metrics.

However, evolutionary algorithms, deep learning, and Bayesian networks are some of the most widely used technologies in the AI-based forecasting market. Its application provides an edge to organizations and reduces manufacturing errors. With this in mind, more organizations embrace AI-powered forecasting techniques in their business processes. For instance, with the incorporation of an AI-based forecasting approach in Reynolds Aluminium, it was possible to reduce its inventory cost by 1 million pounds and reduce errors in its forecasting by about 2%.

Therefore, due to the constant evolution in AI technology and the increasing adoption of AI-powered forecasting methods across several industries, the AI-based forecasting market can grow significantly over the forecast period.

AI-based forecasting market drivers
An increase in the amount of data generated by companies is fueling the AI-based forecasting market growth

The digitalization of companies' business operations in different fields is resulting in massive growth in the data generated by companies and their customers. This results in the need for big data analytics solutions using AI technology in enterprises. For instance, a survey revealed that a medium portion of around 40% of the data generated by an enterprise is being effectively utilized.

However, the optimum utilization of the data generated by companies by using them in AI-based forecasting and data analytics models could help them to accurately predict demand, forecast growth, and manage supply chains and inventories. For instance, the integration of an AI-based forecasting model in the business operations of Danone Group enabled the company to enhance its demand forecasting and lower revenue loss by around 30%. Hence, companies are extensively adopting AI-based forecasting software to improve their business operations.

AI-based forecasting market geographical outlook
Asia Pacific is witnessing exponential growth during the forecast period

AI-based forecasting in the Asia Pacific region is witnessing high growth due to increasing investments in the field of AI and the influence of the retail and agricultural sectors in this region. This growth in the retail sector of the economies in this region can be because of increased e-commerce activities and business activity digitalization. Consequently, a large proportion of companies in the retailing industry are incorporating the use of AI-based forecast tools for centralizing working departments to ensure proper management of inventory storage and issued purchase orders. For instance, the Asian HnM fashion retail stores use AI-driven demand forecasting tools to make production and other business decisions. Therefore, the increasing market size of the retail sector in the Asia Pacific region encourages AI-based forecasting market expansion.

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Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The AI-based forecasting market is segmented and analyzed as follows:

By Technology

Bayesian Network
Evolutionary Algorithms
Deep Learning

By End-Users

Manufacturing
Healthcare
Retail
Agriculture
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Italy
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
India
South Korea
Australia
Singapore
Indonesia
Others