Global Artificial Intelligence Market

Global Artificial Intelligence Market Size, Share, Growth Analysis, By Product & Service(Hardware, Software), By Technology(Machine Learning, Natural Language Processing (NLP)), By End User(Technology and Communication, Transportation and Logistics) - Industry Forecast 2023-2030


Report ID: SQMIG45C2073 | Region: Global | Published Date: February, 2024
Pages: 157 | Tables: 100 | Figures: 76

Global Artificial Intelligence Market Insights

Global Artificial Intelligence Market size was valued at USD 129.12 Billion in 2022 and is poised to grow from USD 241.80 Billion in 2023 to USD 2359.1 Billion by 2031, at a CAGR of 38.1% during the forecast period (2024-2031). 

The global Artificial Intelligence market has experienced robust growth in recent years. The rapid growth in Big Data and the Internet of Things (IoT) serves as a significant driver for the AI industry. The effectiveness of big data, particularly when coupled with IoT technologies, act as significant drivers for the AI industry. Big data, powered by the vast amounts of information collected from IoT devices, provides invaluable insights into consumer behavior, market trends, and operational efficiencies.

This data serves as the fuel for AI algorithms, enabling businesses to make informed decisions, personalize customer experiences, and optimize processes. The United States is at the forefront of implementing full-scale IoT operations, with over 44% of companies fully embracing this technology. Following closely behind is the United Kingdom, where 41% of companies have adopted IoT technology, and Germany, where 35% of companies are utilizing IoT solutions.

Thus, The strong adoption of IoT in the US, UK, and Germany drives demand for AI solutions, creating opportunities for AI companies to develop innovative technologies tailored for IoT integration. The utilization of big data in investment strategies, particularly through advanced analytics and machine learning techniques, drives the AI market by fostering innovation and efficiency. As of 2022, nearly 97% of businesses are actively investing in the expanding capabilities of big data. Based on SkyQuest Analysis, around 60% of organizations around the world use big data analytic.

By harnessing vast amounts of data from diverse sources such as financial statements, web traffic, and satellite imagery, investment professionals enhance their decision-making processes. This integration of big data analytics with AI algorithms enables the development of dynamic models capable of adapting to evolving market conditions. Thus, the integration of AI with IoT devices enables real-time data analysis and decision-making, leading to more responsive and adaptive systems. 

US Artificial Intelligence Market is poised to grow at a sustainable CAGR for the next forecast year.

Market snapshot - 2024-2031

Global Market Size

USD 129.12 Billion

Largest Segment

Software

Fastest Growth

Hardware

Growth Rate

38.1% CAGR

Global Artificial Intelligence Market ($ Bn)
Country Share for North America Region (%)
Global Artificial Intelligence Market Size By Product & Service ($ Bn)
Global Artificial Intelligence Market Size By Product & Service (%)

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Global Artificial Intelligence Market Segmental Analysis

Global Artificial Intelligence Market is segmented into product & service, technology, industry, and region. By product & services, it is segmented hardware, software, and services. By technology, it is segmented into machine learning, natural language processing (NLP), speech processing, generative AI, robotics, computer vision, planning, scheduling & optimization. By industry, the market is segmented into technology and communication, transportation and logistics, financial services, healthcare, energy, manufacturing, travel and hospitality, and others. By region, the market is segmented into North America, Asia Pacific, Europe, Latin America, and MEA.

Artificial Intelligence Market Analysis by Solution

In 2023, the software segment dominated the global market. The main factors driving the software segment growth are advances in parallel processing, data storage, and computer power. The segment is expanding because of the increased need for software technologies including linear algebra, video analytics, hardware communication capacity, inference, and sparse matrices that are used in the deployment and design of AI applications. The demand for software solutions in the global market is anticipated to develop in response to the growing requirement for businesses to acquire relevant data and information through visual content analysis.  

During the forecast period, it is predicted that the hardware segment will expand the fastest. The hardware for artificial intelligence consists of a variety of parts, including CPU, GPU, ASIC, and FPGA. Due to the great computing capacity of CPUs and GPUs, there is a huge demand for them, which has led to their domination in the hardware industry. In the upcoming years, the demand for artificial intelligence hardware systems is anticipated to increase due to the growing acceptance of AI technology across a variety of end use industries. 

Artificial Intelligence Market Analysis by Technology

The largest segment is machine learning which hold approximate 37% in 2023. Machine learning has seen extensive adoption across various industries for tasks such as predictive analytics, pattern recognition, and decision making. 

The fastest-growing segment is natural language processing (NLP). NLP has been experiencing rapid growth in recent years due to the increasing demand for language understanding in various applications such as chatbots, virtual assistants, sentiment analysis, and language translation.

Global Artificial Intelligence Market Size By Product & Service (%), 2022 (%)

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Global Artificial Intelligence Market Regional Insights

In 2023, North America held the greatest Global Artificial Intelligence market share. The artificial intelligence market has grown dramatically as a result of favourable government regulations encouraging North American enterprises to use AI and the rising demand for automated and technologically sophisticated hardware and software solutions across a variety of end-use verticals. Leading tech companies like Facebook, Amazon, Google, IBM, Microsoft, and Apple have a big impact on the growth of the North American AI market as they are based in North America.  

During the projected period, the market in Asia Pacific is anticipated to develop the fastest. The demand for technology is increasing as a result of the increasing investments made by numerous enterprises in the deployment of AI. A Chinese digital company called Baidu Incorporation has agreements with investors for the sale of a financial services group that offers consumer credit, wealth management, and other business-related services. Additionally, the Asia Pacific artificial intelligence market is expanding due to the increasing usage of AI in a variety of sectors, including the automotive, healthcare, retail, and food and beverage industries.

Global Artificial Intelligence Market By Geography, 2024-2031
  • Largest
  • Fastest

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Global Artificial Intelligence Market Dynamics

Artificial Intelligence Market Driver

Rising Demand for Virtual Assistants Driving Market Growth 

  • The growth in AI-powered virtual assistants has been a significant driver of the AI market. In 2024, there is a notable increase in AI-driven virtual assistants that can understand natural language, learn from user engagements, and adjust to individual preferences. The emergence of AI technologies and their incorporation into everyday products has spurred significant advancements in virtual assistant software. Presently, we have exceptionally efficient and robust virtual assistant software systems offering diverse functionalities and highly useful features. These virtual assistant tools are fueling a new era of advanced IoT products and enhancing customer accessibility.
  • The 10x growth in demand for Virtual Assistants in 2021 acts as a significant driver for AI. This surge indicates a widespread recognition of the value and utility of AI-powered virtual assistants across various sectors. As AI-powered virtual assistants become more sophisticated and capable of handling complex tasks, their adoption across various industries and sectors has increased rapidly. This widespread adoption translates into a larger market for AI technologies. 
  • Amid the ongoing cost of living crisis, SpareMyTime, a UK-based virtual assistant company, has observed a substantial surge in demand for its services. Since 2020, the company has experienced notable growth, with a remarkable increase of 325%. Additionally, its revenue has risen significantly, showing a 74% uptick since May 2022.

Artificial Intelligence Market Restraint

Rising Data Privacy Concerns

  • Data privacy and a wide range of algorithms are expected to cause problems for the industry. For the purpose of giving consumers results that are pertinent, the technology makes use of machine learning and deep learning capabilities. These tools, which include search algorithms, recommendation systems, and adtech networks, may be used to abuse sensitive user information. Small errors can lead to system failure or malfunction, which has a big impact on the consequences and anticipated results.

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Global Artificial Intelligence Market Competitive Landscape

Market vendors are focusing on growing their customer base in order to gain a competitive advantage. As a result, key players are pursuing a variety of strategic initiatives, including mergers and acquisitions and partnerships. For example, Advanced Micro Devices announced a strategic alliance with Oxide Interactive LLC, a video game developer company, in April 2020 to develop graphics technologies for the cloud gaming market space. Both companies intend to develop a set of tools and techniques to meet the real-time requirements of cloud-based gaming. In addition, Intel Corporation completed the acquisition of Habana Labs Ltd., an Israel-based deep learning company, in December 2019. This acquisition is expected to boost Intel Corporation's AI portfolio and efforts in the AI silicon market.

Artificial Intelligence Market Top Player's Company Profiles

  • Microsoft
  • IBM
  • Alphabet (Google)

  • NVIDIA

  • Meta Platforms (Facebook) 

  • Palantir

  • Mobileye

  • Dynatrace

  • UiPath

  • SentinelOne

  • Aurora Innovation

  • C3 AI

  • Darktrace

  • Presight AI

  • ODDITY Tech

  • Upstart

  • NWTN Inc.

  • Bayanat AI

  • PROS

  • Exscientia

Artificial Intelligence Market Recent Developments

  • In March 2024, MSI has introduced a new Claw gaming handheld device alongside a lineup of artificial intelligence (AI)-powered laptops. These laptops incorporate various AI-based software features, such as automatic optimisation of laptop settings based on the application being used.

  • In March 2024, Technology company Cognizant Technology Solutions Corp. has launched an advanced artificial intelligence lab focused on research, innovation and production of AI systems through the development of intellectual property and AI-enablement technologies.

Global Artificial Intelligence Key Market Trends

Rising Digitization Trend

  • Global market is growing owing to the increased popularity of numerous life-saving medical gadgets and the self-driving functionality in new electric vehicles. The world's shifting attention to digitalization is having a favourable effect on market expansion.

  • The leading international digital behemoths, including Apple, Google, Microsoft, IBM, Amazon, and IBM, are increasing their investments in the development and improvement of various AI applications. During the projection period, it is anticipated that increasing initiatives by tech giants to increase access to AI will promote market growth.

Global Artificial Intelligence Market SkyQuest Analysis

SkyQuest’s ABIRAWA (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to our Global Artificial Intelligence Market analysis, hardware network and worldwide traffic are rising rapidly. This adds complexity, incurs expense, and requires time. AI can automate and optimize networks, keeping them safe and secure while reducing operational costs. Applications of AI and machine learning in telecom include anomaly detection, root cause investigation, managed services, and network optimization. In the subject of system monitoring, anomaly detection systems are essential for identifying performance problems and unusual network behaviour. During the projected period, the growth of the AI market is anticipated to be driven by the rising implementation of AI in e-commerce. The online retail industry is undergoing a change thanks to artificial intelligence, which forecasts purchase trends based on what and when customers are buying. With the help of precise product recommendations and advertising, AI can offer customers a personalised experience.

Report Metric Details
Market size value in 2022 USD 129.12 Billion
Market size value in 2031 USD 2359.1 Billion
Growth Rate 38.1%
Base year 2022
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Product & Service
    • Hardware, Software, Services
  • Technology
    • Machine Learning, Natural Language Processing (NLP), Speech Processing, Generative AI, Robotics, Computer Vision, Planning, Scheduling & Optimization
  • End User
    • Technology and Communication, Transportation and Logistics, Financial Services, Healthcare, Energy, Manufacturing, Travel and Hospitality, and Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Microsoft
  • IBM
  • Alphabet (Google)

  • NVIDIA

  • Meta Platforms (Facebook) 

  • Palantir

  • Mobileye

  • Dynatrace

  • UiPath

  • SentinelOne

  • Aurora Innovation

  • C3 AI

  • Darktrace

  • Presight AI

  • ODDITY Tech

  • Upstart

  • NWTN Inc.

  • Bayanat AI

  • PROS

  • Exscientia

Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Global Artificial Intelligence Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Global Artificial Intelligence Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Global Artificial Intelligence Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Artificial Intelligence Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Artificial Intelligence Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Global Artificial Intelligence Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

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FAQs

Global Artificial Intelligence Market size was valued at USD 129.12 Billion in 2022 and is poised to grow from USD 241.80 Billion in 2023 to USD 2359.1 Billion by 2031, at a CAGR of 38.1% during the forecast period (2024-2031). 

Market vendors are focusing on growing their customer base in order to gain a competitive advantage. As a result, key players are pursuing a variety of strategic initiatives, including mergers and acquisitions and partnerships. For example, Advanced Micro Devices announced a strategic alliance with Oxide Interactive LLC, a video game developer company, in April 2020 to develop graphics technologies for the cloud gaming market space. Both companies intend to develop a set of tools and techniques to meet the real-time requirements of cloud-based gaming. In addition, Intel Corporation completed the acquisition of Habana Labs Ltd., an Israel-based deep learning company, in December 2019. This acquisition is expected to boost Intel Corporation's AI portfolio and efforts in the AI silicon market. 'Microsoft', 'IBM', ' Alphabet (Google) ', ' NVIDIA ', ' Meta Platforms (Facebook)  ', ' Palantir ', ' Mobileye ', ' Dynatrace ', ' UiPath ', ' SentinelOne ', ' Aurora Innovation ', ' C3 AI ', ' Darktrace ', ' Presight AI ', ' ODDITY Tech ', ' Upstart ', ' NWTN Inc. ', ' Bayanat AI ', ' PROS ', ' Exscientia '

The growth in AI-powered virtual assistants has been a significant driver of the AI market. In 2024, there is a notable increase in AI-driven virtual assistants that can understand natural language, learn from user engagements, and adjust to individual preferences. The emergence of AI technologies and their incorporation into everyday products has spurred significant advancements in virtual assistant software. Presently, we have exceptionally efficient and robust virtual assistant software systems offering diverse functionalities and highly useful features. These virtual assistant tools are fueling a new era of advanced IoT products and enhancing customer accessibility.

Global market is growing owing to the increased popularity of numerous life-saving medical gadgets and the self-driving functionality in new electric vehicles. The world's shifting attention to digitalization is having a favourable effect on market expansion.

In 2023, North America held the greatest Global Artificial Intelligence market share. The artificial intelligence market has grown dramatically as a result of favourable government regulations encouraging North American enterprises to use AI and the rising demand for automated and technologically sophisticated hardware and software solutions across a variety of end-use verticals. Leading tech companies like Facebook, Amazon, Google, IBM, Microsoft, and Apple have a big impact on the growth of the North American AI market as they are based in North America.  

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