Artificial Intelligence (AI) Market by Component (Hardware, Software, and Services), Deployment (Cloud and On-Premise), Application (Virtual Assistants/Chatbots, Forecasts & Modeling, Text Analytics, Speech Analytics, Computer Vision, Predictive Maintenan

Artificial Intelligence (AI) Market by Component (Hardware, Software, and Services), Deployment (Cloud and On-Premise), Application (Virtual Assistants/Chatbots, Forecasts & Modeling, Text Analytics, Speech Analytics, Computer Vision, Predictive Maintenance, and Others), and End User Industry (BFSI, Government, Aerospace & Defense, Automotive, Healthcare IT & Telecom, Manufacturing, Education, Retail & E-commerce, Energy & Utilities, Media & Entertainment, and Others) – Global Opportunity Analysis and Industry Forecast, 2024–2030

Artificial Intelligence (AI) Market size was valued at USD 0.86 billion in 2023 and is projected to reach USD 12.43 billion by 2030, clocking a CAGR of 46.5% during the forecast period from 2024 to 2030.

Artificial intelligence (AI) is revolutionizing industries by creating intelligent machines that can learn, solve problems, and make decisions. From self-driving cars to medical diagnostics, AI is transforming how we live and work. As AI advances, its potential to shape the future is both exciting and profound.

The AI landscape is increasingly influenced by organizations' focus on digital transformation, aiming to accelerate their efforts by leveraging AI technologies. With a drive towards data-driven decision-making, process automation, and enhanced customer experiences, AI enables insights, operational efficiency, and innovation. Despite high adoption rates, companies realize only a fraction of anticipated benefits, indicating room for growth in maximizing AI's potential.

However, data privacy issues hinder AI growth due to concerns such as unauthorized access and biased decision-making, eroding trust. Varying regulations complicate establishing consistent standards, highlighting the need for robust data protection and ethical AI development to build trust and realize AI's full potential.

On the contrary, AI's extensive integration across industries heralds a transformative era in business, with personalized healthcare, predictive finance, proactive manufacturing, and tailored retail experiences. This widespread adoption underscores AI's potential to drive efficiency, innovation, and customer satisfaction across diverse sectors. Thus, presenting ample opportunities for the global AI market in the coming years.

Segment Overview

The global AI market is segmented based on component, deployment, application, end user industry, and region.
Based on components, the market is classified into hardware, software, and services.
Based on deployment, the market is categorized into cloud and on-premise.
Based on application, the market is categorized into virtual assistants/chatbots, forecasts & modeling, text analytics, speech analytics, computer vision, predictive maintenance, and others.
Based on end user industry, the market is categorized into BFSI, government, aerospace and defense, automotive, healthcare IT & telecom, manufacturing, education, retail & e-commerce, energy & utilities, media & entertainment, and others
Region-wise, the market is segmented into North America, Europe, Asia-Pacific, and RoW.

Regional Analysis

The North American Region is Projected to Hold the Dominant Share by 2030

North America has been at the forefront of AI research and development for decades. North America is home to a large number of technology firms, as well as a multitude of research and development institutions. The United States, Canada, and Mexico are among the major markets for AI-based services and technologies.

In addition, the presence of Key Market Players including Alphabet Inc., Nvidia Corporation, Intel Corporation, and Amazon Inc. employ diverse strategies to expand and propel the AI market. For example, Nvidia's introduction of Clara Holoscan MGX, an AI computing platform for medical devices, exemplifies efforts to meet regulatory standards and advance real-time AI applications.

Key Market Players

The emerging and leading players in the AI market include:
• IBM Corporation
• Google LLC
• Microsoft Corporation
• NVIDIA Corporation
• Intel Corporation
• Amazon Web Services (AWS)
• Oracle Corporation
• Nvidia Corporation
• Meta Platforms, Inc.
• Salesforce, Inc.

Recent Developments

May 2024

Microsoft planned to invest USD 2.2 billion in Malaysia to accelerate cloud and AI transformation, prioritizing digital infrastructure, AI skilling, and cybersecurity. This substantial investment targets enhancing Malaysia's digital prowess and positioning it for global tech leadership.

March 2024

NVIDIA launched generative AI microservices for developers, enabling them to create and deploy custom applications with full ownership and control of their intellectual property, leveraging NVIDIA CUDA GPU installations.

February 2024

IBM and Wipro partnered to enhance AI services, offering integrated and enterprise-ready solutions to customers through an expanded partnership.

February 2024

Google rebranded its AI services as Gemini, offering a free version and a $20/month advanced subscription via a new app. The advanced AI technology, Ultra 1.0, provides tutoring, programming tips, and content generation, aligning with Google's smartphone-focused AI expansion.

April 2022

Salesforce launched a new service and marketing cloud innovation that uses trusted data and AI-powered conversational intelligence for customers. These technologies help service teams and marketers to create more personalized experiences for every industry, including retail, manufacturing, and healthcare.

April 2022

HP launched the new HPE Machine Learning Development System. The new system integrates machine learning software platform, computing, accelerators, and networking to develop & train more accurate AI models faster and at scale.

KEY BENEFITS
• The Artificial Intelligence (AI) market report provides a quantitative analysis of the current market and estimations from 2024 through 2030 that assist in identifying and capitalizing on the prevailing market opportunities.
• The study comprises a deep-dive analysis of the Artificial Intelligence (AI) market trend, including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the Artificial Intelligence (AI) market is provided in the report.
• The competitive analysis of the market players, along with their market share in the renewable energy market
• The SWOT analysis and Porter’s Five Forces model are elucidated in the study.
• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.