The global artificial intelligence market size is expected to reach USD $266.92 billion by 2027. As per the Fortune Business Insights report, the market size was valued at $27.23 billion in 2019 and is estimated to grow at a CAGR of 33.2% during the forecast period
The report titled, “Artificial Intelligence Market, 2020-2027”, suggests that the increasing number of linked devices and rising implementation of Internet of Things (IoT) will be steering the market growth.
Multiplying usage of cloud-based applications in various industries such as medical, online retail, production, and Banking, Financial Services, & Insurance (BFSI) coupled with rising complexity of cyber-crimes are presenting exciting opportunities to expand the utilization of artificial intelligence in the market. For example, use of machine learning (ML) in precisely identifying cancerous cells is anticipated to propel its demand in the healthcare industry.
AI Technology that Traces COVID-19 Patients Set to Promote Market Growth
The medical industry is projected to considerably benefit from AI applications during the COVID-19 pandemic. For example, in the clinical health care procedures, AI will assist in improving the precision and efficacy in diagnosing the disease, suggesting treatments, and predicting results.
In the United States, the government is employing essential data from detachable devices to trace COVID-19 positive patients. AI assists in developing and mining the coronavirus stress and using it to improve and scale the testing equipment. The extracted data can be useful for drug discovery.
For example, the TCSI lab is making use of AI capabilities to recognize potential molecules and to target it against the COVID stress. Therefore, amid pandemic, the artificial intelligence market is anticipated to observe substantial growth.
Report Coverage
The report provides a thorough study of the market segments and detailed analysis of the market overview. A profound evaluation of the current market trends as well as the future opportunities is presented in the report. It further shares an in-depth analysis of the regional insights and how they shape the market growth. The COVID-19 impacts have been added to the report to help investors and business owners understand the threats better. The report sheds light on the key players and their prominent strategies to stay in the leading position.
Segmentation
By component, the artificial intelligence market is divided into hardware, software and services. The services segment is estimated to gain momentum during the forecast period. The incorporation of AI with the prevailing systems in companies needs suitable skillset and expertise. Furthermore, for maintenance and to support artificial intelligence, an insightful set of expertise is essential. Additionally, the software segment held a share of 40.9% in the year 2019.
On the basis of technology, the market is segregated into computer vision, machine learning and natural language processing. Based on deployment, it is further bifurcated into cloud and on-premise.
By industry, the market is separated into healthcare, retail, IT and telecom, BFSI, automotive, advertising and media, and manufacturing among others. In terms of region, the global market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
Drivers and Restraints
Budding BFSI Industry to Inflate Opportunities for Artificial Intelligence Market
The BFSI industry is estimated to extend the applications of artificial intelligence (AI). It is already consuming the technology for making trading decisions, for chatting robots, credit scoring applications, and to study the financial market impact analysis, among others. For example, several banks are utilizing ML tools to generate trading robots that are capable of self-analysing and to teach trading, based on past data. Moreover, BFSI is making use of AI technology to provide personalized guidance to its users concerning debt administration, investment tactics, refinancing, and much more. The technology is also efficient in detecting fraud activities. This is expected to create widespread opportunities for the application of the technology, thereby initiating in the artificial intelligence market growth in the near future.
Regional Insights
North America to Hold Command Backed by Active Government Initiatives
The artificial intelligence market share in the North American region was USD 11.40 billion in 2019, where the U.S. was a major contributor due to increasing government initiatives and investments in the market. This is expected to boost demand for artificial intelligence in the near future.
Europe is estimated to be an equal contributor to the global economy in the artificial intelligence market. Countries in the European region are tactically financing in AI. For example, the European Investment Fund, assigned USD 111 million for the AI-based start-ups in 2020.
Asia Pacific is estimated to witness speedy growth during the forecast period. In this region, China is responsible for generating the main income share, owing to collective investments by leading players in the technology. Furthermore, to offer strong outcomes in the field, it also presented the New Generation Artificial Intelligence Development Plan.
Competitive Landscape
Partnerships and Mergers to Help Developers Innovate New Ideas and Expand Business
Prominent players in the market often come up with efficient strategies that include partnerships, acquisitions and mergers, product launches, etc. These strategies bolster their position as leading players and also benefit the other involved companies as well.
For instance, in May 2020, IPsoft Inc. protracted its collaboration with Unisys Corporation to apply AI capabilities in InteliServe and Amelia. The incorporated suite will aid organizations to solve workplace concerns with its intellectual technology.
Industry Development
June 2020: Microsoft Corporation made an investment in the Mount Sinai Health System. The company is a healthcare based firm and will be using AI to improve the COVID-19 related care through its advanced digital tools. This is likely to boost demand for artificial intelligence in the upcoming years.
Fortune Business Insights
Fortune Business Insights delivers accurate data and innovative corporate analysis, helping organizations of all sizes make appropriate decisions. We tailor novel solutions for our clients, assisting them to address various challenges distinct to their businesses. Our aim is to empower them with holistic market intelligence, providing a granular overview of the market they are operating in.
