Artificial Intelligence Industry Overview

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.

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

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.

The essential fact accelerating the rate of innovation in AI is accessibility to historical datasets. Since data storage and recovery have become more economical, healthcare institutions and government agencies build unstructured data accessible to the research domain. Researchers are getting access to rich datasets, from historic rain trends to clinical imaging. The next-generation computing architectures, with access to rich datasets, are encouraging information scientists and researchers to innovate faster.

Furthermore, progress in profound learning and Artificial Neural Networks (ANN) has also fueled the adoption of AI in several industries, such as aerospace, healthcare, manufacturing, and automotive. ANN works in recognizing similar patterns and helps in providing modified solutions. Tech companies like Google Maps have been adopting ANN to improve their route and work on feedback received using ANN. ANN is substituting conventional machine learning systems to evolve precise and accurate versions.

For instance, recent advancements in computer vision technology, such as Generative Adversarial Networks (GAN) and Single Shot MultiBox Detector (SSD), have led to digital image processing techniques. For instance, images and videos taken in low light, or low resolution, can be transformed into HD quality by employing these techniques. Continuous research in computer vision has built the foundation for digital image processing in security & surveillance, healthcare, and transportation, among other sectors. Such emerging methods in machine learning are anticipated to alter the manner AI versions are trained and deployed.

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• The global software as a service (SaaS) market size was valued at USD 261.15 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.7% from 2023 to 2030.

• The global machine learning market size was valued at USD 36.73 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 34.8% from 2023 to 2030.

Artificial Intelligence Market Segmentation

Grand View Research has segmented the global artificial intelligence market based on solution, technology, function, end-use, and region:

Artificial Intelligence Solution Outlook (Revenue, USD Billion, 2017 - 2030)

• Hardware

• Software

• Services

Artificial Intelligence Technology Outlook (Revenue, USD Billion, 2017 - 2030)

• Deep Learning

• Machine Learning

• Natural Language Processing (NLP)

• Machine Vision

• Generative AI

Artificial Intelligence Function Outlook (Revenue, USD Billion, 2017 - 2030)

• Cybersecurity

• Finance and Accounting

• Human Resource Management

• Legal and Compliance

• Operations

• Sales and Marketing

• Supply Chain Management

Artificial Intelligence End-use Outlook (Revenue, USD Billion, 2017 - 2030)

• Healthcare

• BFSI

• Law

• Retail

• Advertising & Media

• Automotive & Transportation

• Agriculture

• Manufacturing

• Others

Artificial Intelligence Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America

  • US

  • Canada

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

• Latin America

  • Brazil

  • Mexico

• Middle East and Africa (MEA)

  • KSA

  • UAE

  • South Africa

Key Companies profiled:

• 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.

• International Business Machines Corporation

• IBM Watson Health

• Intel Corporation

• Iris.ai AS.

• Lifegraph

• Microsoft

• NVIDIA Corporation

• Sensely, Inc.

• Zebra Medical Vision, Inc.

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.

Recent Developments

• Open AI is developing an innovative artificial general intelligence (AGI) model code-named Project Q-Star. The model could have an immense impact on the overall AI market and provide breakthroughs in interactions with technology, process automation, and solving a few of the world’s most pressing issues.

• In March 2024, Microsoft and NVIDIA announced a collaboration focused on advancing AI for the healthcare and life sciences industry. This partnership leverages the strengths of both companies: Microsoft Azure's cloud infrastructure and advanced computing capabilities, alongside NVIDIA's DGX Cloud and Clara suite. The goal is to accelerate innovation and improve patient care through developments in areas like clinical research and drug discovery.

• In March 2024, NVIDIA launched new Generative AI Microservices designed to advance medical technology (MedTech), drug discovery, and digital health. These microservices leverage artificial intelligence (AI) to potentially improve healthcare technology.

• In January 2024, Google unveiled a new AI model, Lumiere. It is a text-to-video diffusion model capable of generating short video clips based on text descriptions. It can also be used to animate still images or apply a specific style to video generation.

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