Market Outlook
Artificial intelligence (AI) is a process which mimics human intelligence and offers similar interactions to its users. The machines capable of learning AI use it to enhance their cognitive power, reasoning, and self-correction. The global artificial intelligence market report by Market Research Future (MRFR) states drivers, opportunities, threats, and weakness in the market in a step-by-step manner.
Rising demand for the technology to improve processes in finance and media & entertainment sectors is predicted to boost market demand. The proliferation of internet of things (IoT) across industries to improve productivity and efficiency can bode well for the market. Deep learning and pattern recognition are other subsequent technologies which can grow with the help of AI and offer substantial growth opportunities to the market.
The global artificial intelligence market size can touch USD 25 billion at 48% CAGR from 2016 to 2023 (forecast period). The use of AI enabled chatbots to resolve queries and lower headcount is pivotal to its integration in systems. In addition, the focus of enterprises on customer experience is likely to drive the market growth. AI can recognize common terms and assist in rapid responses. Sales teams can use AI to drive their numbers exponentially.
Top Drivers and Key Restraints
Artificial intelligence has grown to be one of the most sought-after technologies in recent times. AI is related to human intelligence with somewhat similar properties including reasoning, language understanding, problem-solving, learning, and others. Manufacturers are facing a number of significant underlying intellectual issues pertaining to the development as well as revision of this technology but are consistently working towards achieving their goals of reaching a better position in the market. AI is considered to be the core of the advanced software technologies within the market, with renowned players like Microsoft, IBM, and Google actively implementing AI in their technologies.
AI’s ability to assess the collected data accurately and predict sound decisions via vital algorithms results in better productivity. For example, Netflix makes suggestions for movies based on the previous viewing experiences of the viewers. In the present business landscape, AI has completely revolutionized the concept of business management by integrating trend predictions, brand purchase advertising, workflow management tools along with other tools. Besides, a number of small startups, as well as tech companies, are making considerable investments in the deployment of open-source AI platforms in an attempt to attain better productivity in their value chains. Additionally, the rising availability of low-cost AI technologies seems to be working in favor of the global market.
Furthermore, AI finds use in a variety of application areas such as finance, oil & gas, media & advertising, healthcare, retail, agriculture, automotive & transportation, educational institutions, law, among others. This has led AI to greater heights in recent years, given the developments like accurate weather predictions, space exploration, self-driving cars, and others. Speaking of positive developments in the market, AI also has the potential to induce numerous healthcare advancements, thanks to its ability to assess massive amounts of genomic data and also ensure highly accurate treatment of several medical conditions.
Regional
Geographically, the global artificial intelligence (AI) market is segmented into Asia Pacific (APAC), North America, Europe, and Rest-of-the-World (RoW).
North America can be the dominating region of the market due to the extensive use of AI in finance, defense, and aviation. The U.S. holds the largest market share thanks to adoption of AI based platforms and programs to boost efficiency. Development of AI enabled chipsets by Apple, IBM, and Tesla for medical equipment, smartphones, and automotive can bode well for the market in the coming years. Moreover, launch of office programs by Microsoft and Google with the insertion of AI to improve productivity and efficiency can augur favorably for the market.
Europe has assumed the second position after North America due to demand for applications across sectors for extracting information and demand for on-access data. Concerns regarding data privacy and security can impede the regional market growth.
The APAC is expected to exhibit a robust pace and accumulate high revenues for the artificial intelligence market. Presence of large number of smartphone manufacturers and semiconductor companies in South Korea, Taiwan, and China are accountable for over 80% market share can drive the regional market growth.
Segmentation
The global artificial intelligence market is segmented by system type, service, and application.
By system type, it is segmented into automotive robotics system, embedded system, digital assistant, and artificial neural network. The digital assistant type is expected to display the highest growth rate during the forecast period. This can be credited to the resolution of major queries by virtual assistants that can reduce overhead costs for large corporations.
By service, it is segmented into robots, language processing, speech recognition, and gesture control. Language processing holds high promise due to digital assistants such as Siri and Alexa learning new phrases to adapt to the language, accent, and tone. Demand for automation and personalization is likely lead to better iterations of AI to be embedded in applications.
By application, it is segmented into media & entertainment, healthcare, oil & gas, automotive, education, aerospace, and others.
Competitive Outlook
Prominent names include Infosys, Salesforce, Qualcomm, Microsoft Corporation, Google Inc., Sentient Technologies, Facebook, Rocket Fuel Inc., IBM Corporation, Brighterion Inc., Kensho Technologies, Inc., and others.
Industry News
Researchers from the U.S. and Israel have developed a method based on AI to predict metabolic pathways which can assist crops in growing in extreme weather conditions. The machine learning techniques will assist farmers in strengthening the immunity of crops.
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