Artificial Intelligence Market Analysis, Insights, and Future Outlook 2031

Artificial intelligence (AI) is one of the fastest progressing and expanding technologies globally, with a wealth of potential applications across several industries. AI plays a crucial role in influencing the global economy and has been identified as an exceptional tech aid in national security. The global AI market eyes stellar growth between 2022 and 2030. Global behemoths like Amazon, Google, Apple, IBM, Microsoft, and Facebook are amplifying their investments in R&D of AI, which will serve a vital role in shaping the market in the long run.
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Artificial Intelligence Market: Key Report Findings

• Worldwide AI market size is likely to exceed US$718.7 Bn by 2030.
• Service-based models remain at the core of developmental strategies of key industry participants.
• North America and China are expected to see the largest economic gains from AI technology.
• BFSI segment accounts for over 28% of total market valuation.
• North America holds over 29% of global industry revenue.

Influx of Investments

The International Trade Administration (ITA)'s global artificial intelligence market report indicates a twofold growth in global AI funding in 2021 over the previous year. Around 65 AI companies have already hit the billion-dollar mark. Governments and organizations are embracing AI as a crucial aid in their business journey, with investment flow pointing to colossal growth in the AI industry. Between 2020 and 2022, total annual corporate global AI investments in startups rose by nearly US$5 Bn, positioning the artificial intelligence market for notable growth over the long term.

Rising Demand from Healthcare Industry

AI is being employed for scanning pre-existing medications to redesign their usage to combat specific diseases, potentially bringing down drug development costs. Ample opportunities exist for using AI to enhance customized healthcare services, leading to better patient outcomes and improved accessibility. AI-based solutions, including chatbots, can provide end-to-end assistance throughout the healthcare process without compromising security and safety amidst risks of fraud. This will likely drive significant demand for AI in the healthcare industry, pushing the artificial intelligence market to new heights.

Inadequate Expertise to Operate AI

The field of data science continues to struggle with a lack of desired expertise, and this gap further aggravates with the deepening penetration of automation technologies that take over data processes. AI and machine learning also face challenges due to the growing need for comprehensive capabilities. This factor is expected to continue posing a growth challenge for the AI market through 2030.

Adoption Highest in BFSI Sector

With more than 28% revenue share in the global AI market, the BFSI segment will continue to surge ahead in the long term. The widening uptake of AI technology for FinTech applications, risk assessment, financial analysis, portfolio or investment management, and regulatory compliance is expected to drive top performance in the BFSI industry. Rampant e-commerce expansion represents a strong factor underpinning the next key positioning of the e-commerce segment in uplifting AI market prospects. Along with retail, the segment currently accounts for over 19% market share.

Healthcare to Emerge Lucrative

Adoption across healthcare is likely to surge with a growing number of potential use cases in hospital workflow management, robotic surgeries, nursing and medication assistance, clinical trials, and primary diagnosis. Other key business verticals include automotive and transportation, retail, agriculture, manufacturing, and e-commerce. High opportunity bearers, such as the manufacturing industry and government & defense, together contribute more than 25% revenue to the global AI market value.

North America’s Primacy Intact

Banking on higher spending by governments and the public sector on AI technology, North America currently spearheads the global AI market and is expected to retain its leading position in the long run. The region accounts for more than 29% share in the overall market valuation, followed by Asia Pacific and Europe. The markets of North America and Europe collectively hold over 55% of the global market share.

The US market enjoys the first-mover advantage, with initiatives like the American AI Initiative launched in 2019 by the then-president reaffirming America’s leadership in AI. Federal agencies under this initiative have formed guidelines for public development and real-life implementation of AI-enabled systems, significantly boosting the North American market.

Asia Pacific All Set for an AI-ready Future

With sizeable investments flowing in, the Asia Pacific AI market is set to demonstrate significant revenue growth through the end of the forecast period. The region is likely to benefit from a thriving start-up sector, improving funds, and a growing inclination toward process automation and greater efficiency. Asia Pacific’s AI market represents more than a fourth of the global market valuation.

Leading companies steering the competitive landscape of the AI market include:

• Microsoft Corporation
• Cisco Systems
• Sailpoint Technologies
• IBM
• Oracle
• DELL
• CA Technologies
• HITACHI
• Okta

These companies are significantly contributing to the growth of the AI market through continuous innovation and strategic initiatives.

The global artificial intelligence market is set for unprecedented growth, driven by increased investments, rising demand from various sectors, and continuous technological advancements. As key players continue to innovate and expand their AI capabilities, the market is poised to achieve remarkable milestones, transforming industries and economies worldwide.