Artificial Intelligence Market to Reach USD 266.92 Billion by 2027; Increasing AI Technology Users to Spur Market Growth: Fortune Business Insights™
Top Players in the Global Artificial Intelligence Market are Alphabet (Google LLC), Apple Inc., Baidu Inc., IBM Corporation, IPsoft Inc., Microsoft Corporation, MicroStrategy, Inc., NVIDIA Corporation, Qlik Technologies Inc., Verint Systems Inc., SAP SE May 07, 2021 01:25 ET | Source: Fortune Business Insights
Pune, India, May 07, 2021 (GLOBE NEWSWIRE) -- The global artificial intelligence market size is expected to reach USD 266.92 billion by 2027. As per the report, the market size was valued at USD 27.23 billion in 2019 and is estimated to display a stellar CAGR of 33.2% during the forecast period. This information is presented by Fortune Business Insights™, in its report, titled, “Artificial Intelligence Market, 2020-2027.” The increasing number of linked devices and rising implementation of Internet of Things (IoT) are steering the market growth. Multiplying usage of cloud-based applications in various industries such as medical, online retail, production, and Banking, Financial Services, & Insurance (BFSI) coupled with rising complexity of cyber-crimes are presenting exciting opportunities to expand the utilization of artificial intelligence in the market. For example, use of machine learning (ML) in precisely identifying cancerous cells is anticipated to propel its demand in the healthcare industry.
AI Technology that Traces COVID-19 Patients Set to Promote Market Growth
The medical industry is projected to considerably benefit from AI applications during the COVID-19 pandemic. For example, in the clinical health care procedures, AI will assist in improving the precision and efficacy in diagnosing the disease, suggesting treatments, and predicting results. In the United States, the government is employing essential data from detachable devices to trace COVID-19 positive patients. AI assists in developing and mining the coronavirus stress and using it to improve and scale the testing equipment. The extracted data can be useful for drug discovery. For example, the TCSI lab is making use of AI capabilities to recognize potential molecules and to target it against the COVID stress. Therefore, amid pandemic, the artificial intelligence market is anticipated to observe substantial growth.
Segmentation
By component, the artificial intelligence market is divided into hardware, software and services. The services segment is estimated to gain momentum during the forecast period. The incorporation of AI with the prevailing systems in companies needs suitable skillset and expertise. Furthermore, for maintenance and to support artificial intelligence, an insightful set of expertise is essential. Additionally, the software segment held a share of 40.9% in the year 2019.
On the basis of technology, the market is segregated into computer vision, machine learning and natural language processing. Based on deployment, it is further bifurcated into cloud and on-premise. By industry, the market is separated into healthcare, retail, IT and telecom, BFSI, automotive, advertising and media, and manufacturing among others. In terms of region, the global market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
Drivers and Restraints
Budding BFSI Industry to Inflate Opportunities for Artificial Intelligence Market
The BFSI industry is estimated to extend the applications of artificial intelligence (AI). It is already consuming the technology for making trading decisions, for chatting robots, credit scoring applications, and to study the financial market impact analysis, among others. For example, several banks are utilizing ML tools to generate trading robots that are capable of self-analysing and to teach trading, based on past data. Moreover, BFSI is making use of AI technology to provide personalized guidance to its users concerning debt administration, investment tactics, refinancing, and much more. The technology is also efficient in detecting fraud activities. This is expected to create widespread opportunities for the application of the technology, thereby initiating in the artificial intelligence market growth in the near future.
Regional Insights
North America to Hold Command Backed by Active Government Initiatives
The artificial intelligence market share in the North American region was USD 11.40 billion in 2019, where the U.S. was a major contributor due to increasing government initiatives and investments in the market. This is expected to boost demand for artificial intelligence in the near future.
Europe is estimated to be an equal contributor to the global economy in the artificial intelligence market. Countries in the European region are tactically financing in AI. For example, the European Investment Fund, assigned USD 111 million for the AI-based start-ups in 2020.
Asia Pacific is estimated to witness speedy growth during the forecast period. In this region, China is responsible for generating the main income share, owing to collective investments by leading players in the technology. Furthermore, to offer strong outcomes in the field, it also presented the New Generation Artificial Intelligence Development Plan.
List of Key Players Covered in the Artificial Intelligence Market Report
- Alphabet (Google LLC) (California, USA)
- Apple Inc. (California, USA)
- Baidu Inc. (Beijing, China)
- IBM Corporation (New York, USA)
- IPsoft Inc. (New York, USA)
- Microsoft Corporation (Washington, USA)
- MicroStrategy, Inc. (Virginia, USA)
- NVIDIA Corporation (California, USA)
- Qlik Technologies Inc. (Pennsylvania, USA)
- Verint Systems Inc. (Next IT Corp) (New York, USA)
- SAP SE (Walldorf, Germany)
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