Artificial Intelligence Market Growth, Trends, and Top Growing Companies 2031

As one of the fastest progressing and expanding technologies, artificial intelligence (AI) holds immense potential across several industries worldwide. This technology plays a crucial role in influencing the global economy and has been identified as an exceptional aid in national security. The global artificial intelligence market eyes stellar growth between the forecast years. Global behemoths like Amazon, Google, Apple, IBM, Microsoft, and Facebook amplifying their investments in R&D of AI will serve a vital role in shaping up the market in the long run.

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Artificial Intelligence Market: Key Report Findings

Worldwide AI Market Size: Likely to exceed US$718.7 Bn in 2030.

Service-Based Models: Remain at the core of developmental strategies of key industry participants.

Largest Economic Gains: Expected from AI technology in North America and China.

BFSI Segment: AI consumption in the BFSI segment equals over 28% of total market valuation.

North America's Market Share: Accounts for over 29% of global industry revenue.

Growth Drivers

An Influx of Investments

The International Trade Administration (ITA)'s global artificial intelligence market report indicates twofold growth in global AI funding in 2021 over the previous year. Around 65 AI companies have already hit the billion-dollar mark. While these statistics point to a massive AI wave worldwide, many governments and organizations are soon to embrace AI as a crucial aid in their business journey. The rate of investment flow indicates the colossal growth of the AI industry, especially between 2020 and 2022, in the form of an increase in total annual corporate global AI investments in startups by nearly US$5 Bn. The artificial intelligence market is thus poised to witness notable growth over the long term.

Rising Demand from Healthcare Industry

AI is being employed for scanning pre-existing medications to redesign their usage to combat specific diseases. This application potentially brings down drug development costs, presenting ample opportunity for using AI to enhance customized healthcare services. AI-based solutions can provide end-to-end assistance throughout the healthcare process, ensuring better patient outcomes and improved accessibility without compromising security and safety amidst risks of fraud. This trend is expected to significantly boost demand for AI in the healthcare industry, pushing the market to a large extent.

Growth Challenges

Inadequate Expertise to Operate AI

The field of data science continues to struggle with the desired expertise, and this gap further aggravates with the deepening penetration of automation technologies that take over data processes. Besides data science, AI, and machine learning also face challenges from the critically growing need for comprehensive capabilities. This factor is expected to continue posing a growth challenge for the artificial intelligence market through the end of 2030.

Overview of Key Segments

Adoption Highest in BFSI Sector

With more than 28% revenue share in the global market for artificial intelligence, the BFSI segment will continue to surge ahead in the long term. Widening uptake of AI technology for FinTech applications, risk assessment, financial analysis, portfolio or investment management, and regulatory compliance is expected to drive top performance in the BFSI industry in terms of AI consumption. Rampant e-commerce expansion represents a strong factor underpinning the next key positioning of the e-commerce segment in uplifting the prospects of the AI market. Along with retail, the segment currently accounts for over 19% market share.

Healthcare to Emerge Lucrative

Adoption across healthcare is likely to surge in line with a growing number of potential use cases in segments like hospital workflow management, robotic surgeries, nursing and medication assistance, clinical trials, and primary diagnosis. Other key business verticals include automotive and transportation, retail, agriculture, manufacturing, and e-commerce. The high opportunity bearers, i.e., manufacturing industry and government & defense, together contribute more than 25% revenue to the global AI market value.

Growth Opportunities Across Regions

North America’s Primacy Intact

Banking on higher spending by governments and the public sector on AI technology, North America, which currently spearheads the global artificial intelligence market, will retain its leading position in the long run, according to the report. The region accounts for more than 29% share in the overall market valuation, followed by Asia Pacific and Europe. The markets of North America and Europe collectively hold over 55%.

The US market continues to enjoy the first-mover’s advantage, with the American AI Initiative launched in 2019 reaffirming America’s leadership in AI. Under this initiative, Federal agencies formed a set of guidelines for the public over the development and real-life implementation of AI-enabled systems. This has been a major booster to the North American market.

Asia Pacific All Set for an AI-Ready Future

With sizeable investments flowing in, the Asia Pacific market for artificial intelligence will demonstrate significant growth in revenue through the forecast period. The region is likely to benefit largely from the thriving startup sector, improving funds, and growing inclination toward process automation and greater efficiency. Asia Pacific’s AI market represents more than a fourth of the global market valuation.

Key Players in AI Industry

Leading companies steering the competitive landscape of the artificial intelligence market include Microsoft Corporation, Cisco Systems, Sailpoint Technologies, IBM, Oracle, DELL, CA Technologies, HITACHI, and Okta. These companies are focusing on strategic analysis and profiling to strengthen their market presence.

Press Release Summary

The global artificial intelligence market is set for substantial growth, driven by increasing investments, rising demand from the healthcare industry, and widespread adoption across various sectors. With a projected market size of US$718.7 Bn by 2030 and a CAGR of 31.2% between 2022 and 2030, AI technology is poised to revolutionize industries and economies worldwide. Key players and regions are gearing up for a future where AI plays a pivotal role in shaping business and technology landscapes.