Global AI in Marketing Market 2024-2031

Global AI in Marketing Market 2024-2031

AI in Marketing Market Size, Share & Trends Analysis Report by Component (Software, and Services), by Deployment (On-Premises, and Cloud), by Application (Social Media Advertising, Search Engine Marketing, Virtual Assistant, Sales & Marketing Automation, Analytics Platform, and Others), and by End-User (BFSI, Retail, Consumer Goods, Media & Entertainment, IT & Telecommunications, and Others) Forecast Period (2024-2031)

Artificial intelligence (AI) in marketing market is anticipated to grow at a significant CAGR of 15.5% during the forecast period (2024-2031). The market growth is attributed to the growing demand for Al-based marketing and sales solutions, the expanding usage of social media for advertising, and the growing use of customer-centric marketing methods. According to the Artificial Intelligence Index Report 2023, the global AI private investment was $91.9 billion in 2022. During the last decade, AI investment has significantly increased. In 2022, the amount of private investment in AI was 18 times greater than it was in 2013. The US led the global in terms of the total amount of AI private investment. In 2022, the $47.4 billion invested in the US was roughly 3.5 times the amount invested in the next highest country, China ($13.4 billion).

Market Dynamics

Growing Personalization and Higher Customer Expectations

Personalization with AI is about creating fully customized, end-to-end journeys for every single lead and customer, not just about changing content fields or segmenting and targeting audience groups. The application of behavioral triggers in automated flows, content creation, predictive analytics, and enhanced internet connectivity for companies with physical locations. Although it is still a way off, actual one-to-one personalization at this level is growing increasingly conceivable. To increase the engagement of advertisements in a crowded and competitive market, marketing has started utilizing sophisticated AI technologies.

Market Segmentation

Based on the component, the market is segmented into software and services.

Based on the deployment, the market is segmented into on-premises and cloud.

Based on the application, the market is segmented into social media advertising, search engine marketing, virtual assistant, sales & marketing automation, analytics platform, and others (content curation).

Based on the end-users, the market is segmented into BFSI, retail, consumer goods, media & entertainment, IT & telecommunications, and others (education, healthcare, manufacturing, and automotive).

Software is Projected to Hold the Largest Segment

The software segment is expected to hold the largest share of the market. The primary factors supporting the growth include the growing usage of AI software in a variety of applications, such as smartphone assistants, and speech and picture recognition apps on social networks. AI marketing software is used to generate automated judgments. Furthermore, data that has been gathered, examined, and interpreted in light of market trends is the basis for decisions. Such software AI tools offer to maximize the effectiveness and engagement of email marketing campaigns and initiatives. In March 2024, Copy.ai introduced First Ever GTM AI Platform that unifies data, workflows, and tooling for go-to-market teams to achieve sustainable revenue growth and increased profitability. Copy.ai promises to eliminate GTM Bloat by automating repetitive, mundane tasks for sales, marketing, and operations teams. Such developments are further contributing to the growth of this market segment.

IT & Telecommunications Segment to Hold a Considerable Market Share

The IT & telecommunications segment is expected to hold a considerable share of the market. The factors supporting segment growth include the growing demand for data-driven and customized marketing solutions in the IT & telecom sectors. The sector offers other businesses AI-powered marketing solutions and leverages AI technologies to enhance its marketing initiatives. The market players are also expanding marketing solutions for better customer service, network optimization, and predictive maintenance of telecom networks. For instance, in February 2024, Rakuten and OpenAI collaborated to deliver innovative AI Tools for Telecom. Rakuten AI enhances operators' ability to detect and resolve network issues in near real-time, enabling more responsive and adaptive network operations while improving service reliability and performance for customers.

Regional Outlook

Global AI in marketing market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Growing Demand for AI in Marketing in Asia-Pacific

The regional growth is attributed to pivotal factors such as e-commerce and online retail sectors' expansion, rising investment in AI, and growing awareness and acceptance of AI-powered marketing solutions among major organizations. The demand for customized and data-driven marketing solutions is driving the rapid expansion of the AI business in the Asia-Pacific. A major industrial vertical for AI in marketing is the retail and e-commerce industries.

According to the World Economic Forum, in December 2023, in the Asia-Pacific region, generative AI drives significant economic opportunities. In Australia, it is estimated that generative AI could contribute up to AUD 115.0 billion (around $76.0 billion) annually to the economy by 2030, depending on adoption and how workers transition to other tasks. In Japan, it is estimated generative AI could unlock JPY 148.7 trillion (around $1.1 trillion) in productive capacity.

North America Holds Major Market Share

The market growth is attributed to the high adoption of AI in marketing across several industries such as retail, BFSI, healthcare, and automotive. Marketing tech companies in the area are aware of the exciting opportunities AI in marketing presents. Furthermore, AI is being heavily used in the region by both large and small businesses. Market players offering improved digital marketing ROI, customer experiences, and call conversion rates. For instance, in October 2023, Invoca introduced game-changing conversation intelligence AI innovations to transform digital marketing and contact centers. Invoca AI enables digital marketing and contact center teams to collaborate in driving revenue growth. Additionally, Invoca introduced Topic Explorer and GPT Call Analysis as part of Invoca Labs, along with several other AI innovations.

The major companies serving AI in marketing market include Amazon Web Services, Inc., Google LLC, IBM Corp., Microsoft Corp., and NVIDIA Corp. among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market.

Recent Development

In September 2023, Oracle Corp. added AI to marketing, sales, and service applications to help customers grow revenue. The new AI capabilities in Oracle Fusion Cloud CX automate processes, improve insights, and enhance employee productivity. The latest AI capabilities liberate marketers, sellers, and service agents from time-consuming and manual tasks by unlocking relevant content, recommendations, and insights with automation and conversational interfaces.