Artificial Intelligence (AI) Market by End-user and Geography - Forecast and Analysis 2021-2025

The artificial intelligence (AI) market share is expected to increase by USD 76.44 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 21%.

This artificial intelligence (AI) market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers artificial intelligence (AI) market segmentation by end-user (retail, banking, manufacturing, healthcare, and others) and geography (North America, Europe, APAC, South America, and MEA). The artificial intelligence (AI) market report also offers information on several market vendors, including Alphabet Inc., CognitiveScale, Intel Corp., International Business Machines Corp., Microsoft Corp., Nuance Communications Inc., NVIDIA Corp., Oracle Corp., Tesla Inc., and Wipro Ltd. among others.

What will the Artificial Intelligence (AI) Market Size be During the Forecast Period?

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Artificial Intelligence (AI) Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The prevention of fraud and malicious attacks is notably driving the artificial intelligence (AI) market growth, although factors such as shortage of AI experts may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the artificial intelligence (AI) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Artificial Intelligence (AI) Market Driver

The cybersecurity industry has recorded a growing number of fraud and malicious attacks, ranging from stealing personal data to important organizational information, in the past few years. AI technology help in threat detection, pattern recognition, and response time reduction. It also helps in combating threats such as distributed denial-of-service (DDoS) attacks. Organizations need to protect their internal as well as users? data against these digital security threats. The network activity can be analyzed while also comparing data samples using predictive analytics algorithms. Prevention of fraud and malicious attacks is one of the factors driving the growth of the market during the forecast period.

Key Artificial Intelligence (AI) Market Trend

The rise in cloud-based AI services will also contribute to the growth of the global AI market during the forecast period. There is an increase in the demand for cloud-based Al products and services as the adoption of Al technologies in the on-premises data center is expensive. The demand for cloud-based Al products and services is inducing major public cloud players to leverage their technical expertise to offer different cloud-based Al products and services. Al-powered applications are used in a wide variety of use cases including recommendation engines, pricing optimization, lead generation, chatbots, and supply chain optimization.

Key Artificial Intelligence (AI) Market Challenge

The shortage of AI experts will be a major challenge for the artificial intelligence (AI) market during the forecast period. Most of the companies lack the expertise and resources that are needed to take full advantage of AI. Machine learning and deep learning applications need access to large data sets and specialized infrastructure and processing power. A dedicated team of AI experts is needed to carry out the tasks. AI experts are difficult to find as there is a big competition among the top technology companies to hire the best talent. The lack of experts is slowing down the development of strong AI technology. The expertise currently is toward the development of narrow AI. This will result in the lower adoption of AI in some of the major sectors such as the government. Furthermore, the development of AI has created many jobs, and there are institutions globally that have courses designed to train individuals. However, this has not been beneficial for the expert base of strong AI developers. Thus, this is one of the potential challenges.

This artificial intelligence (AI) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global artificial intelligence (AI) market as a part of the global application software market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the artificial intelligence (AI) market during the forecast period.

Who are the Major Artificial Intelligence (AI) Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Alphabet Inc.
• CognitiveScale
• Intel Corp.
• International Business Machines Corp.
• Microsoft Corp.
• Nuance Communications Inc.
• NVIDIA Corp.
• Oracle Corp.
• Tesla Inc.
• Wipro Ltd.

This statistical study of the artificial intelligence (AI) market encompasses successful business strategies deployed by the key vendors. The artificial intelligence (AI) market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

Alphabet Inc - The company offers Cloud AutoML, Tensorflow Enterprise and other products.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The artificial intelligence (AI) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Artificial Intelligence (AI) Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the artificial intelligence (AI) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the application software market includes the following core components:

• Inputs
• Software development process
• Marketing and distribution
• Post-selling services

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Artificial Intelligence (AI) Market?

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56% of the market's growth will originate from North America during the forecast period. The US is the key market for artificial intelligence (AI) in North America. Market growth in this region will be slower than the growth of the market in other regions.

The heavy investments in R&D facilities for AI will facilitate the artificial intelligence (AI) market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating End-user Segments in the Artificial Intelligence (AI) Market?

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The artificial intelligence (AI) market share growth by the retail segment will be significant during the forecast period. AI has been deployed to support multiple functions in retail organizations. The retail sector is also one of the fastest-growing segments in the global AI market. The several use cases for AI in the retail industry include supply chain planning, demand forecasting, price optimizing, customer intelligence, and enhancing day-to-day store operations. The increased penetration of Long-term Evolution (LTE) networks worldwide has driven the adoption of vending machines among retailers, restaurant owners, and banks. Internet-connected vending machines provide real-time data about the quality and quantity of products stocked in these machines. Since security concerns are serious in the retail industry, we expect to see a significant rise in the adoption of AI in this industry.

This report provides an accurate prediction of the contribution of all the segments to the growth of the artificial intelligence (AI) market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Artificial Intelligence (AI) Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive artificial intelligence (AI) market growth during the next five years
• Precise estimation of the artificial intelligence (AI) market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the artificial intelligence (AI) industry across North America, Europe, APAC, South America, and MEA
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of artificial intelligence (AI) market vendors

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