Artificial Intelligence Market Size, Share & Trends Report

Artificial Intelligence Market Size, Share & Trends Analysis Report By Solution, By Technology (Deep Learning, Machine Learning, Natural Language Processing, Machine Vision), By End Use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Jun, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-955-5
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 125

Report Overview

The global artificial intelligence market size was valued at USD 62.35 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 40.2% from 2021 to 2028. The continuous research and innovation directed by the tech giants are driving the adoption of advanced technologies in industry verticals, such as automotive, healthcare, retail, finance, and manufacturing. However, technology has always been an essential element for these industries, but Artificial Intelligence (AI) has brought technology to the center of organizations. For instance, from self-driving vehicles to crucial life-saving medical gear, AI is being infused virtually into every apparatus and program. AI is proven to be the significant revolutionary element of the upcoming digital era. Tech giants like Amazon.com, Inc.; Google LLC; Apple Inc.; Facebook; International Business Machines Corporation; and Microsoft are investing significantly in the research and development of AI. These companies are working for making AI more accessible for enterprise use-cases.

Asia Pacific artificial intelligence market size, by solution, 2017 - 2028 (USD Billion)

The essential facet accelerating the rate of innovation in the field of AI is accessibility to historical datasets. Since data storage and recovery has become more economical, healthcare institutions and government agencies are building unstructured data accessible to the research domain. From historic rain trends to clinical imaging, researchers are getting access to rich datasets. The next-generation computing architectures, with access to rich datasets, are encouraging information scientists and researchers to innovate faster.

Furthermore, progress in profound learning and Artificial Neural Networks (ANN) has also fueled the adoption of AI in several industries, such as aerospace, healthcare, manufacturing, and automotive. ANN is substituting conventional machine learning systems to evolve precise and accurate versions. For instance, recent advancements in computer vision technology, such as Generative Adversarial Networks (GAN) and Single Shot Multi Box Detector (SSD), have led to digital image processing techniques. For instance, images and videos which are taken in low light or low resolution can be transformed into HD quality by employing these techniques. The continuous research in computer vision has built the foundation for digital image processing in security and surveillance, healthcare, and transportation, among other sectors. Such emerging machine learning methods are anticipated to alter the manner AI versions are trained and deployed.

The World Health Organization (WHO) has declared the novel coronavirus (COVID-19) outbreak as a pandemic, causing a massive impact on businesses and humankind. This pandemic has emerged as an opportunity for AI-enabled computer systems to fight against the epidemic as several tech giants and start-ups are working on preventing mitigating, and containing the virus. For instance, the Chinese tech giant Alibaba's research institute Damo Academy has developed a diagnostic algorithm that can detect new coronavirus cases with the chest Computed Tomography (CT) scan. The AI model used in the system has been trained with the sample data from over 5,000 positive coronavirus cases. For another instance, in June 2020, Lunit developed an AI solution for x-ray analysis of the chest for simpler management of Covid-19 cases, and offer assistance in interpreting, monitoring, and patient trial.

The COVID-19 outbreak is expected to stimulate the market growth of next-generation tech domains, including artificial intelligence, owing to the mandated work-from-home (WFH) policy due to this pandemic. For instance, LogMeIn, Inc., a U.S.-based company that provides Software as a Service (SaaS) and cloud-based customer engagement and remote connectivity and collaboration services, has experienced a significant increase in new sign-ups across its all product portfolios amid the pandemic. Also, tech companies are expanding their product offerings and services to widen availability across the globe. For instance, in April 2020, Google LLC launched an AI-enabled chatbot, called Rapid Response Virtual Agent for call centers. This chatbot is built to respond to issues customers might be experiencing due to the COVID-19 outbreak over voice, chat, and other social channels.

Solution Insights

Software solution led the artificial intelligence market and accounted for more than 38.0% share of the global revenue in 2020. This high share is attributed to the prudent improvements in information storage capacity, high computing power, and parallel processing capabilities to deliver high-end AI software in dynamic end-use verticals. Artificial intelligence software solutions include libraries for designing and deploying artificial intelligence applications, such as those for primitives, linear algebra, inference, sparse matrices, video analytics, and multiple hardware communication capabilities. The need for enterprises to understand and analyze visual content to gain meaningful insights is expected to spur the adoption of artificial intelligence software over the forecast period.

Artificial intelligence services include installation, integration, and maintenance & support undertakings. The segment is projected to grow at a significant rate over the forecast period. AI hardware includes chipsets such as Graphics Processing Unit (GPU), CPU, application-specific integrated circuits (ASIC), and field-programmable gate array (FPGA). Currently, the artificial intelligence hardware market is dominated by GPUs and CPUs due to their high computing capabilities required for AI frameworks. For instance, in September 2020, Atom wise partnered with GC Pharma to offer AI-based services to the former and help to develop more effective novel hemophilia therapies.

Technology Insights

Deep learning led the market and accounted for around 38.0% share of the global revenue in 2020. This high share is attributed to its prominence because of its complicated data-driven applications, including text/content or speech recognition. Deep learning offers lucrative investment opportunities as it helps in overcoming the challenges of high data volumes. For instance, in July 2020, Zebra Medical Vision collaborated with TELUS Ventures to enhance the availability of the former’s deep learning solutions in North America and expand AI solutions to clinical care settings and new modalities.

Machine learning and deep learning cover significant investments in AI. It includes both AI platforms and cognitive applications, including tagging, clustering, categorization, hypothesis generation, alerting, filtering, navigation, and visualization, which facilitate the development of advisory, intelligent, and cognitively-enabled solutions. The growing deployment of cloud-based computing platforms and on-premises hardware equipment for the safe and secure restoration of large volumes of data has paved the way for the expansion of the analytics platform. Rising investments in research and development by leading players will also play a crucial role in increasing the uptake of artificial intelligence technologies.

End-use Insights

The advertising and media segment led the market and accounted for more than an 18.0% share of the global revenue in 2020. This high share is attributable to the growing AI marketing applications with significant traction. However, the healthcare sector is anticipated to gain a leading share by 2028. This segment has been segregated based on use-cases, such as robot-assisted surgery, dosage error reduction, virtual nursing assistants, clinical trial participant identifier, hospital workflow management, preliminary diagnosis, and automated image diagnosis. The BFSI segment includes financial analysis, risk assessment, and investment/portfolio management solicitations. Artificial intelligence has witnessed a significant share in the BFSI due to the high demand for risk & compliance applications in the sector.

Global artificial intelligence market share, by end use, 2020 (%)

Other verticals for artificial intelligence systems include retail, law, automotive & transportation, agriculture, and others. The conversational AI platform is one of the most used applications in every vertical. For instance, in April 2020, Google LLC launched a Rapid Response Virtual Agent for call centers. This new chatbot is built to respond to issues customers might be experiencing due to the coronavirus outbreak over voice, chat, and other social channels. An increasing amount of digital data in the form of text, sound, and images from different social media sources is driving the need for data mining and analytics.

Regional Insights

North America dominated the market and accounted for over 40.0% share of global revenue in 2020. This high share is attributed to favorable government initiatives to encourage the adoption of artificial intelligence (AI) across various industries. For instance, in February 2019, U.S. President Donald J. Trump launched the American AI Initiative as the nation’s strategy for promoting leadership in artificial intelligence. As part of this initiative, Federal agencies have fostered public trust in AI-based systems by establishing guidelines for its development and real-life implementation across different types of industrial sectors.  

The Asia Pacific region is anticipated to witness significant growth in the forthcoming years. This growth owes to the significantly increasing investments in artificial intelligence. For instance, in April 2018, Baidu, Inc., a China-based tech giant, announced that it has entered into definitive agreements with investors concerning the divestiture of its financial services group (FSG), providing wealth management, consumer credit, and other business services. The investors are led by Carlyle Investment Management L.L.C. and Tarrant Capital IP, LLC, with participation from ABC International, and Taikang life, among others. Also, a growing number of AI start-ups in the region are boosting the adoption of AI to improve operational efficiency and enable process automation.

Key Companies & Market Share Insights

The key players that dominated the global AI market in 2020 include Microsoft; Amazon.com, Inc.; and Alphabet Inc. Vendors in the market are focusing on increasing the customer base to gain a competitive edge in the industry. Therefore, the key players are taking several strategic initiatives, such as mergers and acquisitions, partnerships, and collaborations with other major companies. For instance, in April 2020, Advanced Micro Devices announced a strategic alliance with Oxide Interactive LLC, a video game developer company, to develop graphics technologies for the cloud gaming market space. Both companies have planned to create a set of tools and techniques to address the real-time demands of cloud-based gaming. Also, in December 2019, Intel Corporation completed the acquisition of Habana Labs Ltd., an Israel-based deep learning company. This acquisition is anticipated to strengthen Intel Corporation’s AI portfolio and boost its efforts in the AI silicon market. 

In September 2019, IBM Watson Health signed an agreement with Guerbet, a France-based medical imaging company, for the development of an AI software solution for cancer diagnostics and monitoring. This partnership has marked an extension of their earlier collaboration that was allied with live cancer diagnostics and monitoring. Furthermore, in January 2019, Intel Corporation announced its partnership with Alibaba Group Holding Limited (China), to co-develop AI-powered tracking technology to be deployed at the Olympic Games 2020. This technology is based on Alibaba’s cloud computing technology and Intel’s hardware to power a deep learning application to perform the extraction of athletes’ 3D forms in competition or training. Some of the prominent players operating in the artificial intelligence market are:

  • Advanced Micro Devices

  • AiCure

  • Arm Limited

  • Atomwise, Inc.

  • Ayasdi AI LLC

  • Baidu, Inc.

  • Clarifai, Inc

  • Cyrcadia Health

  • Enlitic, Inc.

  • Google LLC

  • H2O.ai.

  • HyperVerge, Inc.

  • International Business Machines Corporation

  • IBM Watson Health

  • Intel Corporation

  • Iris.ai AS.

  • Lifegraph

  • Microsoft

  • NVIDIA Corporation

  • Sensely, Inc.

  • Zebra Medical Vision, Inc.

Artificial Intelligence Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 93.53 billion

Revenue forecast in 2028

USD 997.77 billion

Growth Rate

CAGR of 40.2% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Solution, technology, end use, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; Mexico; Germany; U.K.; China; Japan; India; Brazil

Key companies profiled

Advanced Micro Devices; AiCure; Arm Limited; Atomwise, Inc.; Ayasdi AI LLC; Baidu, Inc.; Clarifai, Inc; Cyrcadia Health; Enlitic, Inc.; Google LLC; H2O.ai.; HyperVerge, Inc.; International Business Machines Corporation; IBM Watson Health; Intel Corporation; Iris.ai AS.; Lifegraph; Microsoft; NVIDIA Corporation; Sensely, Inc.; Zebra Medical Vision, Inc.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from2017 to 2028. For this study, Grand View Research has segmented the global artificial intelligence market report based on solution, technology, end use, and region:

  • Solution Outlook (Revenue, USD Billion, 2017 - 2028)

    • Hardware

    • Software

    • Services

  • Technology Outlook (Revenue, USD Billion, 2017 - 2028)

    • Deep Learning

    • Machine Learning

    • Natural Language Processing (NLP)

    • Machine Vision

  • End-use Outlook (Revenue, USD Billion, 2017 - 2028)

    • Healthcare

    • BFSI

    • Law

    • Retail

    • Advertising & Media

    • Automotive & Transportation

    • Agriculture

    • Manufacturing

    • Others

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East & Africa (MEA)

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