According to a recent report published by Allied Market Research, titled, “Neural Network Market by Component and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global neural network market was valued at $14.35 billion in 2020, and is projected to reach $152.61 billion by 2030, registering a CAGR of 26.7% from 2021 to 2030.
Neural network is a simple processing element, node, or unit, which is an interconnection of groups, whose functionality is derived from the features of neurons. Moreover, it is known as artificial neural network (ANN). ANN has several advantages, such as ability to detect complex nonlinear relationships between dependent & independent variables and ability to learn from observing data sets. Neural network software is used in various fields such as, speech recognition, machine translation, video games, and medical diagnosis.
Advancement in the field of artificial intelligence (AI) market and growth in cloud disruption in the modern industry boost the growth of the global neural network market. In addition, availability of advanced analytical tools and prediction solutions positively impacts the growth of the market. However, huge requirement and high dependency on data, lack of experienced professionals, and difficulties in training multilayer neural network hamper the market growth. On the contrary, growing application areas for deep neural networks is expected to offer remunerative opportunities for expansion of the market during the forecast period.
Depending on industry vertical, the BFSI segment holds the largest market share neural network market, owing to rapid adoption of neural network software by various fintech and banking institutions for providing personalized message service and automated voice systems to the customer. However, the manufacturing segment is expected to grow at the highest rate during the forecast period, owing to process and record financial & production data; manage plant-level strategies; and account for material, capacity, and labor constraints.
Region wise, the neural network market was dominated by North America in 2020, and is expected to retain its position during the forecast period, owing to technological advancements and new strategies applied by the major companies such as, Google, Microsoft, and Facebook to adopt AI as core strategic driver for business. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to industrialization and demand for efficient technologies in industries such as retail, IT & telecom, Banking, Financial Services and Insurance(BFSI), and growth of manufacturing & energy sectors in countries, such as China, India, and Japan.
The outbreak of COVID-19 is anticipated to have a positive impact on the neural network market size. It worked as a prediction model to help detect the positive cases, thus reducing spread of the virus. Moreover, the neural network-based prediction models not only helped allocating medical resources but also raising the preparedness of involved healthcare systems. However, application of ANN to predict the COVID-19 outbreak is limited.
Key Findings Of The Study
- Depending on component, the software segment accounted for the largest neural network market share in 2020.
- Region wise, North America generated the highest revenue in 2020.
- According to industry vertical, the BFSI segmented generated the highest revenue in 2020.
The key players that operate in the neural network industry are Afiniti, Alyuda Research, LLC, GMDH Inc., Neural Technologies Limited, NeuralWare, nDimensional, OLSOFT LLC, Starmind, SWIFTKEY (Microsoft Corporation), and Ward Systems Group, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the neural network industry.