The global artificial intelligence market size was estimated at USD 196.63 billion in 2023 and is projected to grow at a CAGR of 36.6% from 2024 to 2030. 

The continuous research and innovation directed by tech giants are driving adoption of advanced technologies in industry verticals, such as automotive, healthcare, retail, finance, and manufacturing. For instance, in December 2023, Google LLC launched ‘Gemini’, a large language AI model, made available in three sizes, namely, Gemini Nano, Gemini Pro, and Gemini Ultra. Gemini stands out from its competitors due to its native multimodal characteristic.

AI has proven to be a significant revolutionary element of the upcoming digital era. Tech giants like Amazon.com, Inc.; Google LLC; Apple Inc.; Facebook; International Business Machines Corporation; and Microsoft are investing significantly in research and development (R&D) of AI, thus increasing the artificial intelligence market cap. These companies are working to make AI more accessible for enterprise use cases. Moreover, various companies adopt AI technology to provide a better customer experience and improve their presence in the artificial intelligence industry 4.0.

Gather more insights about the market drivers, restrains and growth of the Artificial Intelligence Market

Detailed Segmentation:

Market Concentration & Characteristics

The growth stage of the artificial intelligence industry is high, and the pace of the growth is accelerating. The market is characterized by a high degree of innovation owing to the rapid technological advancements driven by factors such as advancements in machine learning algorithms, availability of big data, and increasing computing power. Subsequently, innovative AI applications are constantly emerging, disrupting existing industries and creating new ones.

Market Dynamics

The introduction of big data is projected to accelerate the expansion of the artificial intelligence market as a large volume of data needs to be stored, captured, and analyzed. End-users are increasingly concerned about the need to manage and improve the computational model of such data. This is encouraging companies to AI solutions at a faster pace and increase the implementation of artificial intelligence in business. Several private and public organizations have gathered tasks or application-specific information comprising issues, such as medical informatics, fraud detection, national intelligence, marketing, and cybersecurity. Artificial intelligence algorithms enable automated analysis of unsupervised and unorganized data by continuously improving each set of data.

End-use Insights

The advertising & media segment led the market and accounted for the largest revenue share in 2023. This is attributable to the growing application of AI marketing with significant traction. For instance, in January 2022, Cadbury started an initiative to let small business owners create their AD for free using the face and voice of a celebrity, with the help of an AI tool.

Solution Insights

Software solutions led the market and accounted for 35.8% of the global revenue in 2023. This leading share can be attributed to prudent advances in information storage capacity, high computing power, and parallel processing capabilities to deliver high-end services. The ability to extract data, provide real-time insight, and aid decision-making has positioned this segment to capture a significant portion of the market. Artificial intelligence software solutions include libraries for designing and deploying AI applications, such as primitives, linear algebra, inference, sparse matrices, video analytics, and multiple hardware communication capabilities. The need for enterprises to understand and analyze visual content to gain meaningful insights is expected to spur the adoption of artificial intelligence software over the forecast period.

Technology Insights

The deep learning segment led the market with the largest revenue share in 2023, owing to the growing prominence of the complicated data-driven applications of deep learning, including text/content or speech recognition. Deep learning offers lucrative investment opportunities as it helps overcome the challenges of high data volumes. Rising R&D investments by leading players will also play a crucial role in increasing the uptake of artificial intelligence technologies.

Function Insights

The operations segment accounted for the largest market revenue share in 2023. The operations segment is the engine room of a business, encompassing all day-to-day activities that deliver products or services to customers. Implementation of AI can automate repetitive tasks, such as data entry and order processing, improving efficiency and reducing errors. Furthermore, by using AI for predictive maintenance, process automation, and supply chain optimization, businesses can streamline workflows, reduce costs, and ensure the smooth delivery of their offerings.

Regional Insights

The North America AI market accounted for a revenue share of 30.9% in 2023. This can be attributed to favorable government initiatives to encourage the adoption of AI across various industries. Governments in North America are investing in AI research and development, establishing specialized research institutes and centers, and funding AI-related projects. They also utilize AI in many fields, such as enhancing public safety and transportation and promoting healthcare innovation.

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Key Artificial Intelligence Company Insights

Vendors are focusing on increasing their customer base to gain a competitive edge in the market. Therefore, the key players are taking several strategic initiatives, such as mergers and acquisitions and partnerships with other major companies. For instance, in October 2023, NVIDIA Corporation and Oracle entered into a partnership agreement to assist customers in overcoming business difficulties using accelerated computing and AI. The partnership is aimed to help speed up customer adoption of artificial intelligence services.

Key Artificial Intelligence Companies:

The following are the leading companies in the artificial intelligence market. These companies collectively hold the largest market share and dictate industry trends.

• Advanced Micro Devices

• AiCure

• Arm Limited

• Atomwise, Inc.

• Ayasdi AI LLC

• Baidu, Inc.

• Clarifai, Inc.

• Cyrcadia Health

• Enlitic, Inc.

• Google LLC

• H2O.ai.

• HyperVerge, Inc.

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