Artificial Intelligence Market Overview
Intelligence Market is estimated to reach US$400.9 billion by 2027, growing at
a CAGR of 37.2% during the forecast period 2022-2027. Artificial Intelligence (AI) refers to a recreation of human intelligence functions by machines. It is used in the internet of things for multiple tasks including cloud
computing, customer relationship management, data analysis, facial recognition
technology, fraud detection and predictive analysis. The widescale adoption
of Artificial Intelligence in various sectors on a global scale is for updating
systems with intelligent features to enhance operational efficiency. In October
2022, Google Cloud introduced an AI-enabled medical imaging suite for use in the healthcare sector. It would reduce manual work done by radiologists as it has
storage, datasets and an AI pipeline for imaging.
Artificial Intelligence Market Report Coverage
The “Artificial Intelligence Market Report –
Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the
following segments in the Artificial Intelligence Market.
- The Smart wearables segment by product type in the Artificial Intelligence Market is expected to grow the fastest at a CAGR of 39.2%, during the forecast period 2022-2027. The widescale adoption of AI in smart wearables is for upgrading the real-time monitoring features of smart connected devices.
- The Healthcare segment by end-users in the Artificial Intelligence Market is expected to grow the fastest at a CAGR of 39.5%, during the forecast period 2022-2027. The increased adoption of AI in the healthcare sector for upgrading medical infrastructure with accurate and real-time monitoring systems would provide uninterrupted patient care services.
- In 2021, North America held the largest market share of 38% in the Artificial Intelligence Market in terms of revenue. The widescale use of AI in this region is due to the government's efforts to encourage the adoption of AI-enabled solutions for the effective management of internet systems and delivery of uninterrupted services.
- The increased deployment of AI in the Education sector for modernizing infrastructures with intelligent connected devices to deliver uninterrupted education is driving the market growth.
Artificial Intelligence Market Segment Analysis - by Product
Intelligence Market by
product types has been segmented into medical devices, connected
consumer devices, smart wearables, home appliances, electronic gadgets, mobiles,
laptops & PCs, robots, industrial systems, cameras, AR/VR, drones and
others. The Smart wearables segment in the Artificial Intelligence
Market is expected
to grow the fastest at a CAGR of 39.2%, during the forecast period
widescale adoption of AI in smart wearables is for upgrading the real-time
monitoring features of smart connected devices. Rising demand for AI-based IoT devices
such as fitness bands among consumers to track their health vitals is also
significantly contributing to market growth in this sector. In January 2021, OnePlus introduced its AI-based fitness band
with an intelligent algorithm to monitor blood oxygen saturation levels and
Artificial Intelligence Market Segment Analysis - by End-users
The Artificial Intelligence Market by end-users has been
segmented into BFSI, IT and telecommunication, government, defense,
manufacturing, healthcare, retail and e-commerce, automotive, logistics and
transportation, power and utilities, oil and gas, education and others. The
Healthcare segment in the Artificial Intelligence Market is
expected to grow the fastest at a CAGR of 39.5%, during the forecast period
sector is increasingly opting for AI technology to upgrade medical infrastructure and
establish precise, real-time monitoring systems to deliver unhindered medical
In May 2020, EKO announced
EKO Telehealth, an AI-powered telehealth platform for virtual cardiac and pulmonary
monitoring. It uses FDA-cleared AI algorithms to detect cardiac murmurs and enables
remote monitoring of patients with its smart features.
Artificial Intelligence Market Segment Analysis - by Geography
The Artificial Intelligence Market by geography is segmented into North America, Europe, APAC, South America and RoW. North America held the largest market share of 38% in the Artificial Intelligence Market in terms of revenue, in 2021. The widescale use of AI in this region is due to the government's efforts to encourage the adoption of AI-enabled solutions for the effective management of internet systems and delivery of uninterrupted services. Growing e-commerce and online streaming segments are also boosting demand for AI-based automated systems. In September 2020, Organization for Economic Cooperation and Development introduced Global Partnership on AI to support the development and use of AI based on human rights, diversity, innovation and economic growth while addressing the United Nations Sustainable Development Goals. The founding members of the multi-stakeholder initiative, which has a primary focus on AI, represent 2.5 billion people worldwide.
Artificial Intelligence Market Drivers
The increased deployment of AI in the Education sector for modernizing infrastructure with intelligent connected devices to deliver uninterrupted education:
The teaching and learning processes have been greatly improved in recent years using AI in the education industry. AI-powered solutions are being rapidly adopted by EdTech companies to modernize infrastructure with intelligent connected devices and provide continuous education to consumers from anywhere in the world. AI offers several benefits, such as personalized material, tutoring, 24-hour access and task automation. In July 2019, Forbes India announced that Byju’s purchased Osmo for $120 million. Osmo-Byju’s together launched an AI-based app, Disney Byju’s Early Learn for children in grades 1-3, to enhance their Artificial Intelligence market share. The app is designed to provide up to 85% uninterrupted service and it combines learning using physical tools.
The widespread use of AI in defense for upgrading the security and networking infrastructure with intelligent features:
AI-based technology is being rapidly adopted by the defense industry in
several domains, including security systems and medical devices. AI-based
military equipment handles a massive amount of data and remote monitoring
systems more effectively. In July 2022, the Defense Minister of India launched
75 newly developed Artificial Intelligence (AI) products/technologies during the first-ever 'AI in Defense' symposium and exhibition, organized by the Ministry of Defense in
New Delhi. AI-based products launched include AI platform automation, autonomous/unmanned/Robotics
systems and intelligent monitoring systems with 90% enhanced productivity.
Artificial Intelligence Market Challenge
High Initial cost of setting up AI in a system or product:
The development of AI-based systems requires lots of
time, resources, a skilled workforce and significant monetary investments. The development of AI-based systems requires updated hardware and software. It also requires highly skilled AI/ML
engineers who demand a high pay range. The overall production
cost is quite expensive and not affordable for all. In December 2020, TP&P
technology stated that the cost to produce an AI-based solution prototype
and minimum viable product ranges from $5000-$20,00 and $20,000-$100000
respectively. The budget can vary depending on the projects. 80% of medium and small
businesses with restricted budgets cannot afford the high budget to create
their own AI solutions, which could impede market expansion.
Key Market Players
Product launches, collaborations and R&D activities are key strategies adopted by players in the Artificial Intelligence Market. The top 10 companies in the Artificial Intelligence market are:
- Google LLC
- Microsoft Corporation
- Intel Corporation
- Samsung Electronics Co., Ltd.
- IBM Corporation
- Amazon Web Services Inc.
- Oracle Corporation
- Salesforce, Inc.
- Siemens AG
- Huawei Technologies Co., Ltd.
- In February 2022, Forbes in their Artificial Intelligence market report stated that 50% of enterprises planned to spend more on AI-based cloud computing and machine learning to enhance customer relationship management in 2021.
- In March 2021, Samsung in its Artificial Intelligence market report unveiled the Galaxy Buds Pro. It has a noise-canceling capability that reduces background noise by up to 99% and an AI-powered sensor.
- In April 2020, Current Health Ltd. planned to enhance its Artificial Intelligence market share with the launch of a new Current Health AI-based single enterprise platform for use in health organizations. It enables remote monitoring of patient's health and online data analysis for treatment.
Report Code: ITR 0171
Report Code: ESR 42612
Report Code: ESR 0695
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