Global Artificial Intelligence Market 2022-2028

Global Artificial Intelligence Market 2022-2028

Global AI market is anticipated to grow at a considerable CAGR of 38.7% during the forecast period. The market is growing at a rapid rate due to the rise in the investment in AI technology by big market players. AI emphasizes the creation of intelligent machines that work and reacts like humans. AI will transform each and every business and have the potential to increase profits, market share and revenue.Companies such as Apple, Baidu and Google are working on suites of technology along with it, they are extensively focused on their AI business as well. Amazon is working on robotics and speech recognition, Salesforce on machine learning and virtual agents. BMW, Tesla, and Toyota are also taking interest in robotics and machine learning to develop driverless cars.

Increased investment and funding for AI start-ups are significantly contributing in the market growth. AI offers productivity enhancement service for various industries which will increase its adoption in diversified applications. The other factors that are boosting the market growth of the global AI market include growth in big data and growth in the adoption of cloud-based services. Further, collaboration between IoT and AI will also significantly drive the growth of the market. However, lack of availability of greater volumes and sources of data and limited skilled professionals will hinder the market growth. Focused high-tech automobile giants such as Tesla and BMW for autonomous cars will further influence the AI market in near future.

Impact of COVID-19 Pandemic on Global AI Market

The AI industry saw strong hiring growth and investment, during the COVID-19 pandemic despite the economic slowdown in other sectors during that period. According to the report published by Stanford University in March 2021, stated that the total global investment in AI grew 40% from 2019 to 2021, compared with only around 12% from 2021 to 2019. Moreover, AI is being largely utilized in the healthcare industry during COVID-19 pandemic, private companies channeled $13.8 billion into AI drug discovery in 2021, which is more than any other investment area, and 4.5 times higher than in 2019. Thus, the COVID-19 has a significant impact on AI industry.

Segmental Outlook

The global AI market is segmented on the basis on technology, end-user, and offerings. Based on technology, the market is sub-segmented into natural language generation, speech recognition, virtual agents, machine learning, robotic process automation, biometrics, text analytics and natural language processing, AI optimized hardware. Based on end user industry, journalism, entertainment, online retail stores, automobile sector, healthcare banking and finance, manufacturing, home appliances, and online customer support. The healthcare segment is expected to become the leading segment during the forecast period. The segment growth is attributed to the increased adoption of the AI technology in medical sector for patient monitoring and diagnosis. Based on offerings, the market is bifurcated into hardware, software, and services.

Text Analytics and Natural Language Processing is Projected to Grow at the Fastest Rate during the Forecast Period

The text analytics and natural language processing segment are expected to boom at the fastest rate during the forecast period. Natural language processing is communication that bridges a gap between technology and humans. The demand for natural language processing is increased due to rising adoption among various industry verticals such as manufacturing, healthcare, BFSI, advertising, and automotive.In addition, the machine learning approaches shows a systematic understanding of the input data provided in human language, thus the adoption of natural language rises in the coming years.Healthcare and research companies are largely using natural language processing and services to analyze and arrange large databases. For instance, in October 2021, the Journal of Medical Internet Research collected 204,597 Instagram posts, and 6,029,323 tweets to filter terms associated with the sales and marketing of COVID-19 related healthcare products. Hence, owing to its numerous advantages and application among end-user segments, the demand for text analytics and natural language processing remained stagnant throughout the year.

Regional Outlooks

The global AI market is further segmented based on geography including North America (the US, and Canada Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East &Africa, and Latin America).The AI in Asia-Pacific region is expected to grow significantly as various large market players are investing in regional start-ups. The presence of manufacturing facilities of the top industry leaders of various sectors in the Asia Pacific region is significantly propelling the demand for the artificial intelligence technology in manufacturing sector.

North America Region is Proved to be the Largest Region for Global AI Market

North America dominated the AI market globally owing to the presence of key market players and extensive R&D in AI technology in the region. Additionally, one of the biggest factors in the development of an AI hub in North America Region is that the establishment of local university programs that enables companies like Google, Uber, and Amazon to build and accelerate their companies’ machine learning technology.Moreover, various companies in North America adopt AI technology to provide a better customer experience. For instance, in May 2022, Intel Corp. launched a new chip called Gaudi2 focused on artificial intelligence computing. Gaudi2 is the second generation processor, and it is twice as fast as Habana’s previous AI chip. Moreover, Intel also launched another chip, Greco, for inference work, taking an AI algorithm and making a prediction or identifying an object.

Market Players Outlook

The major companies serving the global AI market Amazon.com, Inc., Apple, Inc., Bizzabo, DeepMind Technologies Ltd., Facebook, Inc., Google, Inc., Microsoft Corp., IBM Corp., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in April 2022, AI Advertising Inc., announced that it has entered into a License and Development Agreement with Genus AI.AI Advertising and Genus AI will co-develop the automation of predictive video image generation leveraging user-generated content from influencers. This will be activated on TikTok and YouTube, which are currently the fastest growing channels of digital media ad spend. This co-development will include the application of new deep learning models optimized for handling user-generated content.