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Artificial Intelligence Market - Global

The worldwide market size for Artificial Intelligence market is estimated to be USD 987.9 million in 2017 and is estimated to grow at a CAGR of 55.9%

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Definition / Scope

Artificial Intelligence is any device that perceives its environment and takes actions that maximize its chance of successfully achieving its goals. Artificial Intelligence can be defined as the engineering & science of making intelligent computer systems that are able to exhibit intelligence similar to humans (natural intelligence) & perform tasks directly without any human intervention.

Artificial intelligence uses software & algorithms to approximate human perception in order to analyse complex data & to analyse the relationship among devices & human. The application of artificial intelligence varies from advanced analytics & research to robotics. Artificial Intelligence has made dramatic progress in its development over the last couple of years.

This technology has rapidly permeated the most important spheres of our lives like healthcare, communication, business, and education.

Market Overview

Geographically, North America leads the global artificial intelligence market by capturing the largest market share in terms of revenue in 2017.

The dominance of North American artificial intelligence market is attributed to the increasing number of internet users, connected devices & rising investment by big technocrats in the region. The investments made by federal government & private organization towards the development & innovation of artificial intelligence in the region is also fuelling the growth of artificial intelligence market in the region.

On the other hand, Asia-Pacific artificial intelligence market is mainly driven by rising adoption & investment activities in artificial intelligence within countries such as China, India, Japan, and Australia. China is a dominating country in the Asia Pacific region owing to high development activities done by government in China provenience. The Chinese government is focusing on the development of artificial intelligence by innovating the abilities of robotics, inventory forecasting & developing driverless cars in the country. The rising government initiative & private-public initiatives to develop AI is boosting growth in the Asia Pacific AI market.

The worldwide market size for Artificial Intelligence market is estimated to be USD 987.9 million in 2017 and is estimated to grow at a CAGR of 55.9% during the forecast period. [1]

Key Metrics

Metrics Value Explanation
Base Year 2017 Researched through internet


Market Risks

There are various factors that still need to be addressed which could impact the artificial intelligence market negatively in the long run. Data security & privacy is a key issue with respect to the implementation of artificial intelligence. For instance, in the healthcare sector, private records of patient & family form a valuable asset, and it can be misused by a malevolent AI or a rogue malware infecting the AI.

Top Market Opportunities

  • Rising funding & investment in AI technology
  • Growing number of start-ups in the AI market
  • Increased adoption of AI for improving customer service experience
  • Integration of big data with artificial intelligence & machine learning
  • AI-driven improvements are the new trend of enhancing productivity
  • Artificial intelligence is finding major application in research & development sector. Companies are investing immense funds in R&D.
  • The growing demand for connected cars is expected to create a huge growth opportunity for artificial intelligence in the automotive & transportation sector.
  • Competence in advanced persistent threat (APT) protection
  • Increased Adoption of AI in Developing Regions
  • Developing Smarter Robots
  • Stringent regulations to maintain compliance and data privacy

Market Drivers

The market for artificial intelligence is primarily driven by the improved productivity, diversified application areas, increased customer satisfaction, and big data integration.

Some other drivers include

  • Cost incurred from increasing severity of security breaches
  • Assurance of security professionals on greater reliability on AI based security
  • Huge demand to bridge the existing security gaps
  • Increase in Investment in AI Technologies
  • Growth in Demand for Analysing & Interpreting Large Amounts of Data
  • Increased Customer Satisfaction & Increased Adoption of Reliable Cloud Applications

Market Restraints

Lack of skilled workforce and a threat to human dignity are some of the restraints of the market. Lack of data scientists, Vulnerabilities in AI platforms are also a restrains for AI market.

Industry Challenges

There are questions emerging within research and academic circles about whether the technologies fuelling the AI revolution, particularly deep learning, might be hitting a bottleneck. The recent controversy surrounding Facebook and data privacy, AI safety and explain ability with Uber’s self-driving car fatality, or questions about authenticity and the power of generative algorithms to create fake images and video, are all issues that highlight the risks and challenges facing AI in 2018.

Market Size and Forecast

A research firm, Inkwood research, anticipates the global market for artificial intelligence to advance with an estimated CAGR of 45.22% over the forecast period. The base year considered for the market study is 2017 & the forecast period is between 2018 & 2026. Cite error: Closing </ref> missing for <ref> tag

Based on industry verticals, the market is categorized into media & advertising, retail, telecom & IT, healthcare, automotive & transportation, and others (agriculture, law, educational institutions). The IT & telecom segment is anticipated to dominate the global artificial intelligence market throughout the forecast period.

Competitive Landscape

Geographically, global enterprise AI market report has been segmented in regions such as North America, Asia Pacific, Europe and Rest of the World. North America is expected to dominate market during the forecast period due to technological advancements in artificial intelligence, presence of majority of the prominent market players, etc.

However, Asia Pacific is expected to be the fastest growing region in enterprise AI market during the forecast period due to increasing applications in various end-user industries, etc. [2]

Competitive Factors

The key strategies adopted by the key players from 2015 to 2018 were product launches, acquisitions, collaboration, partnership, contracts, and agreements in order to gain a competitive edge over each other.

In August 2018, Google rolled out Android Pie, its highly-anticipated mobile phone operating system. This OS’s major updates focus is on artificial intelligence, which will allow the system to “learn” from the user & customise the Android experience.

In August 2018, Samsung Electronics announced that it plans to spend a whopping $22 billion over the next three years on artificial intelligence, auto components & other future businesses. In July 2017, Microsoft signed an agreement with Google’s DeepMind to create its new Artificial Intelligence (AI) lab to move toward developing general-purpose learning systems.

Also, in April 2017, Intel Corporation launched AI Developer Program in India to boost the market of artificial intelligence in healthcare[3]

The growth in global enterprise AI market is also influenced by the presence of major players such as Google Inc. (United States), IBM Corporation (United States), Microsoft Corporation (United States), Amazon Web Services, Inc. (United States), Hewlett Packard Enterprise (United States), etc.

In order to gain competitive advantage, the major players of global enterprise AI market are adopting various strategies such as mergers & acquisitions, product launch, strategic partnership, collaboration, joint ventures, investment, strategic expansion, funding, etc. during the forecast period. [4]

Key Market Players

  • Alphabet (Google Inc.): Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a corporate restructuring of Google on October 2, 2015 and became the parent company of Google and several former Google subsidiaries.
  • Apple Inc.: Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.
  • Baidu: Baidu, Inc. incorporated on 18 January 2000, is a Chinese multinational technology company specializing in Internet-related services and products and artificial intelligence, headquartered at the Baidu Campus in Beijing's Haidian District. It is one of the largest AI and internet companies in the world. The holding company of the group was incorporated in the Cayman Islands.
  • IBM: International Business Machines Corporation (IBM) is an American multinational information technology company headquartered in Armonk, New York, United States, with operations in over 170 countries.
  • IPsoft: IPsoft Inc. is an American technology company, founded on 1998 by Chetan Dube. It is based in New York, with 16 offices in 11 different countries. It has three products: IPcenter, 1Desk, and Amelia. Amelia is a multi-purpose artificial intelligence-based virtual assistant. Its branded cognitive capability (i.e., human behaviour emulation) is credited to a virtual brain divided into six sub-units (or sub-brains, as the company calls): semantics, logics, process memory, emotional memory, social-talk and episodic. The underlying technology is text-based, with text-to-speech capability.
  • Microsoft Corporation: Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports and sells computer software, consumer electronics, personal computers, and related services.
  • Intel Corporation: Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, in the Silicon Valley and on 6 Campus Drive, Parsippany-Troy Hills, New Jersey. Intel supplies processors for computer system manufacturers such as Apple, Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphics chips, embedded processors and other devices related to communications and computing.

References

  1. https://www.polarismarketresearch.com/industry-analysis/artificial-intelligence-market/
  2. https://globenewswire.com/newsrelease/2018/09/28/1586388/0/en/Global-Enterprise-AI-Market-to-2024-Market-is-Expected-to-Rise-with-the-CAGR-of-about-48-5.html
  3. https://www.inkwoodresearch.com/reports/artificial-intelligence-market/
  4. https://globenewswire.com/news-release/2018/09/28/1586388/0/en/Global-Enterprise-AI-Market-to-2024-Market-is-Expected-to-Rise-with-the-CAGR-of-about-48-5.html

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