The global enterprise artificial intelligence market size was valued at USD 11.4 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 34.6% from 2022 to 2030. Factors such as the growing demand for virtual assistants, chatbots, and robots from numerous enterprises and the increasing need to analyze exponentially growing demand for data sets are driving the demand for artificial intelligence among enterprises. Additionally, the shift of businesses from traditional to digital platforms is fueling the demand for artificial intelligence technology in enterprises worldwide.
The COVID-19 pandemic severely impacted every sector across the world. However, the enterprise artificial intelligence (AI) market experienced growth due to the increased demand for advanced and creative AI-based enterprise products across several sectors such as healthcare, retail, and education during the pandemic. In July 2020, UC San Diego Health, an academic medical center within the University of California, deployed a machine learning-based imaging algorithm that can detect signs of Covid-19 with the help of Amazon Elastic Compute Cloud (Amazon EC2).
The increasing adoption of artificial intelligence in enterprises to enhance customer satisfaction, provide better organization management, and organize data sets are the key factors boosting the demand for artificial intelligence in enterprises. Several AI service providers are innovating and developing new products & services by collaborating with several government institutes, and research & development departments to fulfill the growing demand for AI in the market.
For instance, in May 2022, IBM Corporation announced its strategic collaboration with Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the first research university of artificial intelligence based in Abu Dhabi, United Arab Emirates (UAE). The collaboration focuses on the advancement of AI fundamental research as well as the acceleration of numerous types of scientific breakthroughs that would enhance the potential of AI to help resolve challenges in the future.
The growing demand for artificial intelligence technology in developing countries offers a significant opportunity for enterprise artificial intelligence service providers. According to a study published in June 2020 by MIT Technology in association with the U.S.-based software company Genesys, AI is offering growth opportunities in the Latin American region as it is helping in tackling numerous critical issues such as food security, unemployment, the smart cities, and natural resources.
Additionally, the study also reported that about 80% of large businesses across the region have ongoing projects, which would benefit the regional enterprises in increased operational efficiency and management decision-making.
The cloud segment held the dominant revenue share of 62.6% in 2021 and is expected to register the highest CAGR of over 36.0% during the forecast period. The growth can be attributed to the factors such as increasing investments in technology and the need to reduce costs of on-premise infrastructure maintenance. Cloud deployment enables enterprises to advance their existing system with artificial intelligence-based technology without any reinvestment in their capital cost.
The on-premise segment is projected to grow at a CAGR of 31.6% over the forecast period. The growth of the on-premise segment can be attributed to the increasing concerns over the protection of data related to research, personal information, account transactions, and others.
Based on technology, the market is segmented into natural language processing (NLP), machine learning, computer vision, speech recognition, and others. The others sub-segment further includes technologies such as planning, scheduling and optimization, robotics, and expert systems. The natural language processing (NLP) segment accounted for the largest revenue share of around 33.0% in 2021 and is projected to grow at a CAGR of 33.2% over the forecast period.
The growth of this segment can be attributed to the increase in the adoption of virtual support services among enterprises and rising investments in AI technology by numerous industry verticals. Moreover, owing to the ability to generate & extract intent from a text in a readable, grammatically correct, and stylistically natural form is driving the demand for NLP technology among enterprises. On the other hand, computer vision is expected to witness the fastest-growing segment and is anticipated to expand at a CAGR of over 36.6% in the coming years.
Based on end-use, the market is segmented into media & advertising, retail, BFSI, IT & telecom, healthcare, automotive & transportation, and others. The other sub-segment further comprises academics, manufacturing, and aerospace & defense. The IT & telecom segment accounted for the largest revenue share of USD 2.95 billion in 2021 and is projected to grow at a CAGR of over 32.0% over the forecast period. The growth is attributed to an increase in investment from various IT & telecom startups in AI solutions.
The retail and BFSI segments accounted for a significant revenue share with a CAGR of 33.2% and 33.9% respectively over the forecast period. This growth can be attributed to the increasing demand from banking and financial institutions to increase efficiency in business processes, eliminate downtime, and reduce costs on capital investments.
Based on application, the market is divided into large enterprises and small & medium enterprises. The large enterprises segment held the largest revenue share of 63.9% in 2021 and is projected to retain its position over the forecast period. The growth of this segment can be attributed to the factors such as the increasing need to enhance productivity, reduce costs on infrastructure, and increase flexibility & agility by reducing redundant tasks.
The small and medium enterprises segment is expected to witness the fastest CAGR of 38.4% over the forecast period. The growth of this segment is attributed to the increasing inclination of small and medium enterprises toward AI to ease time-consuming work, improve decision-making, and enhance scalability, productivity, and cost-efficiency.
North America held the dominant revenue share of 38.1% in 2021 and is anticipated to expand at a CAGR of over 33.0% over the forecast period. Factors such as the existence of leading companies that develop the AI solutions & services, technology infrastructure facilities, and the high number of end-users utilizing data management devices are driving the market in the region.
For instance, in February 2019, the president announced the American AI Initiative as the strategy for advancement in artificial intelligence leadership. Moreover, as part of these initiatives, federal authorities have set standards for the real-world implementation and development of AI-based systems across various industrial sectors.
Asia-Pacific is expected to register the fastest CAGR of 36.4% during the forecast period. The regional growth can be attributed to the increasing adoption of AI and installation of data management platforms which resolve issues such as privacy & security, team coordination, and establishment of moral standards for enterprises. Advancements in AI technology, increasing investment expenditures by governments, and the adoption of innovative technologies across various sectors are acting as the key growth drivers.
For instance, established in 2021 by 663 academicians worldwide, Hong Kong-based, Asia Pacific Artificial Intelligence Association’s (AAIA) principal objective is to empower scientists in the domains of AI and other relative fields. The organization aims to promote AI development and application through academic research and exchanges.
The competitive landscape of the enterprise artificial intelligence market is fragmented, featuring several global as well as regional players. The key participants are entering into strategic collaborations, partnerships, and mergers & acquisitions to expand their business footprint and survive the highly competitive environment. Service providers are investing considerably in R&D activities to incorporate new technologies in their offerings and develop advanced solutions to gain a competitive advantage over other players.
In February 2022, IBM Corporation announced the acquisition of Sentaca, a leading telco solutions and consulting services provider. By acquiring Sentaca, IBM aims to accelerate the growth of its cloud business. Moreover, Sentaca’s consulting services are expected to help IBM’s clients’ in solving their technology and strategic challenges related to revenue, infrastructure, expense, and scalability issues. Some prominent participants in the global enterprise artificial intelligence market include:
Amazon Web Services, Inc.
Hewlett Packard Enterprise Development LP
Market size value in 2022
USD 14.39 billion
Revenue forecast in 2030
USD 155.2 billion
CAGR of 34.6% from 2022 to 2030
Base year for estimation
2017 - 2020
2022 - 2030
Revenue in USD Billion and CAGR from 2022 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Deployment, technology, organization, end-use, region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; U.K.; Germany; France; Italy; China; India; Japan; Brazil; Mexico
Key companies profiled
Amazon Web Services, Inc.; IBM Corporation; Microsoft Corporation; Oracle Corporation; Intel Corporation; Alphabet; SAP SE; C3.ai, Inc.; DataRobot, Inc.; Hewlett Packard Enterprise; Wipro Limited; NVidia Corporation
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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 from 2017 to 2030. For this study, Grand View Research has segmented the global enterprise artificial intelligence market report based on deployment, technology, organization, end-use, and region:
Deployment Outlook (Revenue, USD Million, 2017 - 2030)
Technology Outlook (Revenue, USD Million, 2017 - 2030)
Natural Language Processing (NLP)
Organization Outlook (Revenue, USD Million, 2017 - 2030)
Small And Medium Enterprises
End-use Outlook (Revenue, USD Million, 2017 - 2030)
Media & Advertising
IT & Telecom
Automotive & Transportation
Regional Outlook (Revenue, USD Million, 2017 - 2030)
Middle East & Africa
b. The global enterprise artificial intelligence market size was estimated at USD 11.4 billion in 2021 and is expected to reach USD 14.39 billion in 2022.
b. The global enterprise artificial intelligence market is expected to grow at a compound annual growth rate of 34.6% from 2022 to 2030 to reach USD 155.2 billion by 2030.
b. North America dominated the enterprise artificial intelligence market with a share of 38.1% in 2021. This is attributable to the existence of leading companies for developing AI-based enterprise solutions & services, technology infrastructure facilities, and the enormous number of end-users in the enterprise industry.
b. Some key players operating in the enterprise AI market include. Amazon Web Services, Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Intel Corporation, Alphabet Inc., SAP SE, C3.ai, Inc., DataRobot, Inc., Hewlett Packard Enterprise Development LP, Wipro Limited, NVIDIA Corporation.
b. Key factors driving the enterprise AI market growth include growing demand for virtual assistants, chatbots & robots from enterprises, and the increasing need to analyze exponential growing demand for data set across the globe.
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