According to a recent report published by Allied Market Research, titled, "Enterprise Artificial Intelligence (AI) Market by Deployment Type, Technology, Organization Size, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global enterprise artificial intelligence market was valued at $4.68 billion in 2018, and is projected to reach $53.06 billion by 2026, registering a CAGR of 35.4% from 2019 to 2026.
Artificial intelligence (AI) has huge potential to transform any industry due to which not only enterprises but various government entities are also aggressively investing in this technology. Despite the availability of some of the technologies for decades, advancements in computing power and new algorithmic developments are making AI technologies more attractive for new entrants in the enterprise AI market. Moreover, enterprises are implementing advanced analytics technologies for numerous reasons, such as better understanding behaviors, gaining competitive advantage, and improving operational efficiency. On the contrary, some of the enterprises are using artificial intelligence (AI) technology for customer behavior analysis and detecting frauds & risks; some are using machine learning for the purpose of preventive maintenance. Currently, majority of enterprises are using natural language interfaces to build interactive chatbots and B2B applications.
Furthermore, early adopter of the AI technology has an experience and clues to the best practices compared to the enterprises that are getting started with the AI technologies. However, with the help of centers of excellence (CoEs) and hiring analytics leaders and data scientists’ new entrants can gain advantage rapidly.
Moreover, manufacturers in the enterprise AI market are witnessing enormous underlying intellectual challenges in the development and revision of such 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 and other threats restrict the enterprise artificial intelligence market growth. Nonetheless, the impact of these factors is expected to be minimal because of the introduction of new technologies in the market.
In terms of industry vertical, the IT & telecom segment is expected to contribute the highest enterprise Artificial Intelligence (AI) market share in the coming years, as various new startups have been investing in artificial intelligence solutions. Moreover, the rapid urbanization, technological advancement, and increase in demand for cloud applications fuel the demand for AI technologies in developing economies. However, automotive and transportation industry is also one of the major adopters to the AI technology. The AI has enabled this industry to evolve at very rapid pace, as many automotive manufacturers are focusing on AI technologies due to rise in demand for smart and connected cars among consumers. For instance, Tesla, Morris Garages (MG), and others have already developed smart and connected cars. Recently, MG launched its MG Hector that has over 50+ connected features.
North America is one of the fastest-growing regions in the enterprise artificial intelligence (AI) market. It is expected to witness a higher growth rate during the forecast period, owing to presence of the key artificial intelligence companies in the region.
Key Finding of The Enterprise Artificial Intelligence (Ai) Market:
- Based on deployment type, the on-premise segment dominated the overall market in 2018 and is expected to generate highest revenue during the enterprise artificial intelligence market forecast period. The growth of this segment is mainly attributed to the rise in deployment of Artificial Intelligence (AI) solutions and services that are on-premise in industries such as manufacturing and production.
- On the basis of technology, the machine learning segment dominated the overall enterprise AI market in 2018 and it is expected to remain dominant throughout the forecast period. On the contrary, image processing segment is expected to exhibit highest growth throughout the forecast period. Image processing technology of AI is expected to soon provide accurate image analysis, with the expanded potential to detect harmful abnormalities and reduce false positives to a greater extent.
- In terms of organization size, the large enterprises segment dominated the overall market 2018 and is expected to generate highest revenue during the forecast period. The growth of this segment is mainly attributed to increase in need to improvise business outcomes. On the contrary, small & medium enterprises are also expected to garner major market growth in upcoming years due to, an emerging enterprise Artificial Intelligence (AI) market trends of cloud-based services that deploy the artificial intelligence at a comparatively low price. Also, growth in number of data sources and diversification of businesses are also expected to lead to the exponential growth of the enterprise Artificial Intelligence (AI) market among small & medium enterprises.
Some of the key enterprise Artificial Intelligence (AI) industry players profiled in the report include Alphabet Inc. (Google Inc.), Apple Inc., Amazon Web Services, Inc., International Business Machines Corporation, IPsoft Inc., MicroStrategy Incorporated, NVIDIA Corporation, SAP, Verint, and Wipro Limited.