Artificial Intelligence (AI) Market Forecasts to 2030 - Global Analysis By Type (General/Strong Artificial Intelligence, Narrow/Weak Artificial Intelligence and Other Types), System Type, Offering, Deployment Mode, Business Function, Technology, End User

Artificial Intelligence (AI) Market Forecasts to 2030 - Global Analysis By Type (General/Strong Artificial Intelligence, Narrow/Weak Artificial Intelligence and Other Types), System Type, Offering, Deployment Mode, Business Function, Technology, End User and By Geography

According to Stratistics MRC, the Global Artificial Intelligence (AI) Market is accounted for $664.88 billion in 2024 and is expected to reach $2086.67 billion by 2030 growing at a CAGR of 21.0% during the forecast period. The simulation of human intelligence in machines created to think and behave like humans is known as artificial intelligence, or AI. This includes a wide range of activities like learning, thinking, solving problems, perceiving, and comprehending language. Large-scale data processing algorithms and models give artificial intelligence (AI) systems their ability to identify patterns, make judgments, and develop over time. Moreover, AI is being used in a wide range of industries, such as healthcare, finance, and daily life.

According to the Association for the Advancement of Artificial Intelligence (AAAI), artificial intelligence is defined as the scientific understanding of the mechanisms underlying thought and intelligent behaviour and their embodiment in machines.

Market Dynamics:

Driver:

Enhanced accessibility of data

Artificial intelligence (AI) systems have access to a vast amount of data due to the exponential growth of data coming from a variety of sources, such as social media platforms, IoT devices, sensors, and online transactions. With this massive amount of data, AI models are able to accurately spot trends, forecast outcomes, and draw conclusions. Both structured and unstructured data are now readily available, which has accelerated the development of machine learning and data analytics algorithms. Additionally, this has facilitated the extraction of valuable information and accelerated the process of decision-making across the board.

Restraint:

Absence of skilled labor

The demand for qualified workers has not kept up with the AI industry's explosive expansion. Finding and keeping competent talent is difficult for organizations due to the severe lack of specialists in AI, machine learning, and data science. The intricate and dynamic nature of AI technologies, which necessitate constant learning and adaptation, exacerbates this talent gap. Furthermore, AI adoption and scalability are severely hampered for many businesses by the time and money required for training current staff members and hiring new hires.

Opportunity:

Enhancements in healthcare

AI has the power to completely transform healthcare by enhancing patient care, treatment strategies, and diagnosis. Artificial intelligence (AI)-powered tools are able to analyze medical images, find anomalies, and help with early disease diagnosis, including neurological disorders and cancer. Proactive care can be provided, and hospital readmissions can be decreased by using predictive analytics to foresee patient outcomes. Moreover, AI-powered personalized medicine adjusts medications based on each patient's unique genetic profile, increasing effectiveness and reducing side effects.

Threat:

Moral and ethical issues

Many ethical and moral questions are brought up by the use of AI, especially in relation to privacy, autonomy, and accountability. Artificial intelligence (AI) systems frequently work with huge datasets that contain personal data, which, if improperly managed, can result in privacy violations. The possibility of AI making decisions on its own also begs the question of who is responsible for mistakes or injuries. Additionally, determining responsibility for errors can be difficult, for example, in the cases of driverless cars and AI-driven medical diagnosis.

Covid-19 Impact:

The COVID-19 pandemic hastened the adoption of artificial intelligence (AI) in a number of industries as businesses attempted to manage the obstacles presented by the crisis. AI has been instrumental in the healthcare industry in terms of forecasting outbreaks, expediting the development of vaccines, and maximizing the use of available resources. AI has improved customer service through chatbots and virtual assistants, allowed remote work through sophisticated communication tools, and helped businesses manage supply chain disruptions. Furthermore, the pandemic also sparked innovation in data analysis, automation, and AI-driven contactless interaction solutions to boost resilience and operational efficiency.

The Cloud segment is expected to be the largest during the forecast period

The cloud segment has the largest market share in artificial intelligence (AI). The cloud's scalability, affordability, and flexibility—which enable enterprises to implement AI solutions without having to make sizable upfront infrastructure investments—are what propel the market's expansion. Businesses may innovate quickly and implement AI applications with ease thanks to cloud-based AI services, which offer simple access to sophisticated algorithms, enormous computational capacity, and sizable datasets. Moreover, cloud platforms provide strong security, compliance, and maintenance capabilities, which lessen the need for businesses to handle these facets on their own.

The Artificial Intelligence (AI) Enterprise Use Cases segment is expected to have the highest CAGR during the forecast period

The AI market's highest CAGR is anticipated for the Artificial Intelligence (AI) Enterprise Use Cases segment. This segment covers a wide range of applications from various industries, using AI to boost competitiveness, efficiency, and innovation. Businesses are using artificial intelligence (AI) more and more for applications like supply chain optimization, fraud detection, robotic customer support, and predictive maintenance. Furthermore, broadening the reach and influence of AI applications in businesses are technological developments in machine learning, natural language processing, and computer vision.

Region with largest share:

North America is the region with the largest share of the global artificial intelligence (AI) market. This region's high adoption rates across a range of industries, strong R&D efforts, and presence of important AI technology providers all contribute to this. The AI scene is dominated, in particular, by the United States, with Silicon Valley acting as a center of innovation and funding for AI startups. With their headquarters located in North America, major tech companies such as Google, Microsoft, and IBM heavily invest in AI research and development. Additionally, North America is leading the AI market in addition to supportive government initiatives, robust academic institutions, and an established venture capital ecosystem.

Region with highest CAGR:

Europe's artificial intelligence (AI) market is predicted to grow at the highest CAGR in the world. Europe is well-positioned to witness a substantial surge in the adoption of AI due to its emphasis on research and development, strong regulatory frameworks, and growing investments in AI technology. Leading the way in AI innovation and investment are nations like the UK, Germany, France, and Sweden, which are aided by government programs, academic institutions, and industry cooperation. Moreover, the region's AI market is growing, thanks in part to the European Union's AI strategy as well as programs that support innovation and digital transformation.

Key players in the market

Some of the key players in Artificial Intelligence (AI) market include Huawei, Google LLC, Microsoft, Salesforce Inc., Cisco Systems, Inc., IBM, Oracle Corporation, Dell Technologies, Intel Corporation, Accenture, Siemens, IPsoft Inc, NVIDIA Corporation, Amazon Web Services and Next IT Corporation.

Key Developments:

In June 2024, Microsoft has announced a multi-billion-dollar AI-focused partnership with Japan’s Hitachi. The collaboration is designed to use generative artificial intelligence (AI) to fuel the growth of Hitachi’s business software and services business Lumada, particularly in social infrastructure areas like energy and mobility.

In May 2024, Google LLC has entered into power purchase agreements (PPAs) with two Japanese energy providers securing 60 MW of solar capacity dedicated to providing electricity to the company's data centres in Japan.

In April 2024, Huawei and EDMI announced signing a patent license agreement under fair, reasonable, and non-discriminatory (FRAND) conditions. Huawei will grant a cellular IoT Standard Essential Patents (SEPs) license, including NB-IoT, LTE-M and LTE Cat. 1 to EDMI. This agreement represents recognition of the strength of Huawei's cellular IoT SEPs from industry peers.

Types Covered:
• General/Strong Artificial Intelligence
• Narrow/Weak Artificial Intelligence
• Other Types

System Types Covered:
• Artificial Neural Networks (ANN)
• Digital Personal Assistant
• Automotive Robotics System
• Fuzzy Systems
• Embedded System
• Intelligence Systems
• Decision Support Processing
• Robot-Integrated Manufacturing Systems
• Hybrid Systems
• Other System Types

Offerings Covered:
• Software
• Hardware
• Services

Deployment Modes Covered:
• Cloud
• On-Premises

Business Functions Covered:
• Marketing and Sales
• Human Resources
• Finance and Accounting
• Wealth Management
• Law
• Security
• Forecasts and Modelling
• Artificial Intelligence (AI) Enterprise Use Cases

Technologies Covered:
• Querying Method
• Natural Language Generation
• Speech Recognition (Speech Analytics)
• Text Analytics
• Computer (Machine) Vision
• Advanced Analytics
• Adaptive Learning
• Context-Aware Computing
• Machine Learning
• Natural Language Processing (NLP)
• Gesture Control
• Image Processing
• Other Technologies

End Users Covered:
• Healthcare
• BFSI
• Retail
• Advertising and Media
• Automotive and Transportation
• Agriculture
• Manufacturing
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements