MENA Artificial Intelligence Market Size, Share & Trends Analysis Report By Solution (Hardware, Software & Services), By Technology, By End-use, By Region, And Segment Forecasts, 2024 - 2030

MENA Artificial Intelligence Market Trends

The MENA artificial intelligence market size was estimated at USD 11.92 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 44.8% from 2024 to 2030. The growth is attributable to actively embracing AI to build smart and sustainable urban environments in this region. AI finds application in traffic management, energy optimization, and public safety, fostering more efficient and secure cities. For instance, Dubai has deployed AI-powered smart traffic control systems that utilize real-time data from traffic cameras and sensors to analyze traffic patterns and optimize signal timings, effectively reducing congestion and enhancing overall transportation efficiency.

The governments of MEA region promote AI through various initiatives, policies, and funding programs. National AI strategies aim to support AI research, development, and adoption to drive economic growth and innovation. For instance, the UAE launched the AI Strategy 2031 to become a global AI leader by investing in research, talent, and integration across education, healthcare, transportation, and public services.

Moreover, Middle East and Africa (MEA) emphasizes advancing the use of Arabic language processing in AI technologies owing to the region’s diverse linguistic aspects. This emphasis includes improving natural language processing (NLP) and speech recognition capabilities, enabling more accurate interpretation and generation of Arabic text and speech.

The government in Saudi Arabia are actively promoting Artificial Intelligence (AI) through a range of initiatives, policies, and financial support programs. For instance, the Saudi Data and AI Authority (SDAIA) is a government agency to help Saudi Arabia create an AI ecosystem of government and private sector entities. SDAIA deploys innovative AI solutions, which comprise strategies for combining data and AI into key domains.

Various business processes can be automated and streamlined with AI, increasing productivity and efficiency. For instance, in September 2022, The Saudi Company for Artificial Intelligence (SCAI), owned by the Public Investment Fund in Saudi Arabia, for developing AI applications, collaborated with the Saudi Technology and Security Comprehensive Control Company, a company in the fields of security, safety, and technology to develop the super-computing capabilities and AI infrastructure, which is crucial to power the next generation of AI applications. These activities by the market participants are slated to propel the market over the coming years.

Market Concentration & Characteristics

AI is becoming more and more popular across a range of business verticals, including automotive, healthcare, retail, finance, and manufacturing, which is attributable to the tech giants' constant research and invention. AI has been demonstrated to be a major disruptive force in the next digital era.

Moreover, NLP has gained significant traction and advancement. NLP is used in virtual assistants such as Apple's Siri, Amazon's Alexa, and Google Assistant to enable users to communicate with their gadgets using natural language commands. Companies widely use NLP-powered chatbots for customer service, improving communication, and giving prompt answers to questions.

There are no direct service substitutes for AI. However, there are numerous technologies that can be used to achieve similar outcomes to AI, such as automation, rule-based systems, and expert systems. These technologies can be used as substitutes for AI in certain applications, but they typically do not offer the same level of performance or flexibility as AI.

The definitions of the fundamental AI principles by OECD and G20 are in line with the AI regulation and guidelines that are now being considered. These include robust risk management, sustainability, human rights respect, and openness. These governments are regulating AI according to a risk-based framework. That implies that they are adjusting their AI laws to reflect fundamental principles like security, nondiscrimination, privacy, and openness, as well as the hazards that are thought to arise from AI.

End-user concentration is a significant factor in the AI market as there are a number of end-user industries that are driving demand for AI solutions. Majority of the businesses are transforming into Al-driven businesses to provide new value propositions and improve customer experiences.

Technology Insights

The deep learning technology segment held the largest market revenue share in 2023. Deep learning technology empowers machines to improve their performance by learning from experience and data. Particularly effective with unstructured data like images, videos, and language, it finds extensive applications. One noteworthy instance is within autonomous vehicles, where deep neural networks play a pivotal role in tasks such as object detection and recognition, road mapping, and decision-making processes. Due to complex data-driven applications in deep learning like text, content, and speech recognition, this technology has gained significant prominence, driving the market growth. Its intricate capabilities offer attractive investment prospects by addressing challenges associated with vast data volumes.

Machine vision is anticipated to witness significant CAGR over the forecast period. Automation is a key trend in machine learning, intending to reduce manual labor to construct and deploy models. Platforms for automated machine learning (AutoML) are becoming increasingly common, allowing non-experts to take advantage of machine learning capabilities and quicken model building.

Moreover, embedded analytics with built-in machine learning models have become a mainstream capability of all business intelligence platforms. Marketers are benefiting from machine learning-driven behavioral analytics tools, which support the enhancement of user retention strategies. These tools scrutinize user interactions with websites or applications to detect signs of disengagement or potential customer churn. With this data, marketers can take proactive actions to retain users and boost customer lifetime value. For instance, if a user is displaying reduced activity on a platform, personalized offers or content can be delivered to rekindle their interest.

End-use Insights

BFSI end-use segment held the largest market share in 2023. AI is streamlining the credit scoring and underwriting processes. Machine learning models analyze vast datasets to assess borrowers’ creditworthiness more accurately. This trend allows financial institutions to make better lending decisions, reducing the risk of default and improving the overall efficiency of loan origination. Moreover, existing banks are transforming into Al-driven businesses to provide new value propositions and improve customer experiences. Large amounts of transaction data are instantly analyzed by AI systems to look for irregularities and suspected fraud. By locating abnormalities and patterns that might point to fraudulent behavior, it improves security measures.

Healthcare is anticipated to witness significant CAGR over the forecast period. AI helps in analyzing vast amount of data, such as clinical trial data and health records, accumulated by health organizations and provides actionable insights for making decisions. In addition, generative AI can benefit the healthcare industry by improving operational efficiency, custom experiences, and data connectivity. Prominent players are collaborating with companies to expand the business. For instance, in August 2023, Google announced a partnership with Cognizant, wherein Cognizant will be tasked with crafting healthcare solutions utilizing Google's developed Language and Learning Models (LLMs). The primary intent of this venture is to harness the potential of advanced AI to tackle diverse obstacles prevalent in the healthcare sector, thereby paving the way for fresh opportunities for expansion within the LLM market.

Solution Insights

The software segment dominated the market with a revenue share of 35.9% in 2023. Prominent M&A by major players are propelling the market growth. For instance, in July 2022, IBM Corporation announced the acquisition of Databand.ai, Ltd., a provider of data observability software. The addition of Databand.ai expands IBM Corporation's R&D efforts and strategic partnerships in automation and artificial intelligence. IBM is well-positioned to address the complete spectrum of observability across IT operations by merging Databand.ai Ltd. with IBM observability by IBM Watson Studio and Instana APM. In addition, the prudent improvements in information storage capacity, high computing power, and parallel processing capabilities to deliver high-end AI software in dynamic end-user verticals propel the growth of the market.

The service segment is anticipated to witness a significant CAGR over the forecast period. Enterprises are investing extensively in AI services these days to unlock the power of their businesses. They are implementing services to execute activities ranging from forecasting, planning, and predictive maintenance to customer service chatbots and other applications. Services for artificial intelligence also include integration, maintenance, and support tasks. Over the projection period, the segment is expected to have significant growth. M&A by key players are fueling the market growth for instance, in September 2022, the completion of Google LLC's acquisition of cybersecurity company Mandiant was announced. It seeks to offer clients on-premises and cloud contexts an end-to-end security operations suite with additional capabilities.

Country Insights

UAE held the largest market share in 2023. The United Arab Emirates (UAE) has led the way in accepting and incorporating artificial intelligence (AI) into all facets of its business and culture. With the release of its National AI Strategy 2031, the UAE has shown that it is firmly committed to being a global powerhouse for artificial intelligence. The goal of this extensive project is to use AI technology in a variety of fields, such as government services, healthcare, education, and transportation. The UAE government is aware of how revolutionary AI may be in raising production, creativity, and efficiency.

Qatar is anticipated to witness significant CAGR over the forecast period. As an outcome of its strong dedication to innovation and technical advancement, Qatar has become a regional leader in the adoption and advancement of AI technology. The government has incorporated AI strategically into its national development program, realizing its potential to revolutionize a number of industries. The government hopes to use AI to boost economic diversification, strengthen public services, and promote research and development through programs like the Qatar National AI Strategy.

Key Companies & Market Share Insights

Some of the key players operating in the market include Advanced Micro Devices, Inc.; AiCure; Baidu, Inc.; Google LLC; and IBM.

• Google LLC is an internet and computer software solutions provider. The multinational company specializes in providing internet-related services and products and is a wholly-owned subsidiary of Alphabet, Inc

• International Business Machines Corporation is a global provider of a wide range of hardware, software, cognitive computing & cloud-based services. IBM Corporation operates in six segments: Cloud & Cognitive Software, Global Business Services, Global Technology Services, Systems, Global Financing, and Others

Omdena Inc., DevisionX, Intelmatix, are some of the emerging market participants in the market.

• DevisionX, AI firm, based in Cairo, makes machine-learning model building accessible to non-programmers. DevisionX, which was founded in 2016, is an acronym for "deep vision systems." DevisionX facilitates the automation of business activities such as time management, production waste, quality inspection, etc. Their software, Tuba, has an intuitive and seamless user interface that makes it easy to label, train, and implement your AI-vision applications. In addition, compared to a manual procedure, this would mean a considerably speedier one

• Through digitization and unification, ServiceNow's cloud-based platforms and solutions enable enterprises to identify better, faster, and more efficient methods to streamline workflow. It enables clients to be more inventive, elegant, and connected. We can all design the future we want. Everybody uses ServiceNow around the world.

Recent Developments

• In April 2023, H20.ai announced a strategic partnership with GeoTechnologies, a provider of map data & location information solutions for vehicle navigation systems. The company has leveraged H20.ai’s H2O AI Cloud to develop an AI-powered platform that uses onboard camera footage for gauging sidewalk safety
• In March 2023, Enlitic introduced the latest release of Enlitic Curie, a platform that makes it easy for radiology departments to manage their workflow. The platform hosts Curie|ENDEX, which utilizes NLP and computer vision for the analysis & processing of medical images, and Curie|ENCOG, which leverages AI to identify and protect Protected Health Information
• In September 2022, The Saudi Company for Artificial Intelligence (SCAI), owned by the Public Investment Fund in Saudi Arabia, for developing artificial intelligence applications, collaborated with the Saudi Technology and Security Comprehensive Control Company, a company in the fields of security, safety, and technology to develop the super-computing capabilities and AI infrastructure, which is crucial to power the next generation of AI applications

MENA Artificial Intelligence Market Report Scope

MENA Artificial Intelligence Market Report Segmentation

This report forecasts revenue growth at 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 MENA artificial intelligence market report based on solution, technology, end-use, and region.

• Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Software

  • Hardware

  • Services

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • Deep Learning

  • Machine Learning

  • Natural Language Processing (NLP)

  • Machine Vision

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Media & Entertainment

  • BFSI

  • IT & Telecommunication

  • Healthcare

  • Automotive & Transportation

  • Oil & Gas

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • KSA

  • UAE

  • Kuwait

  • Qatar