According to a new report published by Allied Market Research, titled,"Artificial Intelligence by Technology and Industry Verticals: Global Opportunity Analysis and Industry Forecast, 2014 - 2022,"the artificial intelligence market size accounted for $4,065.0 million in 2016, and is expected to reach $169,411.8 million by 2025, growing at a CAGR of 55.6% from 2018 to 2025. In 2016, North America dominated the global market, in terms of revenue, accounting for about 49.0% share of the global market, followed by Europe.
AI is associated to human intelligence with similar characteristics such as language understanding, reasoning, learning, problem solving, and other. Manufacturers in the market witness enormous underlying intellectual challenges in the development and revision of such a technology. The market for artificial intelligence is primarily driven by the improved productivity, diversified application areas, increased customer satisfaction, and big data integration. However, lack of skilled workforce and threat to human dignity & other threats are some of the restraints of the market. Nonetheless, the impact of these factors is expected to be minimal due to the introduction of new technologies in the market.
The machine learning segment secured the highest share of about 52.0% in the artificial intelligence market in 2016 and is expected to grow at a CAGR of 56.4% during the forecast period. In terms of industry vertical, IT & telecom sector is expected to contribute the highest market share in the coming years, as various new startups are investing in artificial intelligence solutions. Moreover, the rapid urbanization, technological advancement, and increase in demand for cloud applications has fueled the demand for AI technologies in developing economies.
Machine learning, natural language processing, image processing, and speech recognition are the major technologies of artificial intelligence (AI) in the market. Machine learning is extensively being adopted majorly in the IT & telecom and BFSI sectors. Among the industry verticals, the IT & telecom segment exhibited the highest artificial intelligence market growth, owing to the increasing adoption in insurance, trend analysis, and fraud detection systems. However, technologies, such as cloud computing, virtual mentors, and drones, in farming drove the market for AI in the other sub-segments. The industry is also expected to witness the emerging artificial intelligence market trends such as convergence of AI and IoT, automated machine learning, quantum computing, reinforcement learning, automation of DevOps through AIOps, etc.
North America accounted for the highest AI market share and is one of the fastest growing regions in the Artificial Intelligence market. It is expected to witness higher growth rate during the forecast period, owing to presence of the key artificial intelligence companies in the region. However, Asia-Pacific region is anticipated to grow at the fastest rate, due to the growing penetration of cloud computing and increasing workforce mobility.
Key Findings of the Artificial Intelligence market:
- In 2016, the IT & Telecom segment dominated the global artificial intelligence market, in terms of revenue, and is projected to grow at a CAGR of 56.7% during the forecast period
- The machine learning segment is projected to grow at a CAGR of 56.4% during the forecast period
- North America is projected as one of the fastest growing regions in the AI market and is expected to witness high growth rate.
Some of the key players operating in the market include Alphabet (Google Inc.), Apple Inc., Baidu, IBM, IPsoft, Microsoft Corporation, MicroStrategy, Inc, NVIDIA, Qlik Technologies Inc., Verint Systems Inc (Next IT Corp), have focused on developing new products as well as these companies expanded their business by acquiring small businesses to deal with competitors in AI Market.