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The artificial intelligence platforms market is estimated to grow at a CAGR of 34.86% between 2022 and 2027. The size of the market is forecast to increase by USD 31,255.01 million. The growth of the market depends on serval factors, including rising demand for AI-based solutions, increasing investments in R&D for AI technology, and a rise in demand for cloud-based AI solutions.
This report extensively covers market segmentation by application (retail, banking, manufacturing, healthcare, and others), deployment (on-premise and cloud-based), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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Technavio categorizes the global artificial intelligence (AI) platforms market as a part of the global application software market within the global IT software market. The overall global IT software market covers companies that are engaged in developing and producing application and system software. It also includes companies offering database management software. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The rising demand for AI-based solutions is notably driving the market growth, although factors such as the lack of skilled professionals may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Artificial Intelligence Platforms Market Driver
The rising demand for AI-based solutions is notably driving market growth. One of the major factors driving the growth of AI infrastructure is the emergence of cloud-based services and ML platforms. Increasing demand for AI hardware in high-performance computing data centers and the growing volumes of data in industries such as healthcare and automotive are the reasons behind the growth of cloud-based solutions. The benefits of cloud-based AI solutions deployments, such as reduced operational costs, hassle-free deployment, high scalability, easy data accessibility, faster access to critical data, and low capital requirements, are increasing the adoption of cloud-based AI platforms.
The advent of advanced technologies, such as IoT and blockchain, has made IT infrastructure management increasingly complex, which, in turn, is driving organizations to migrate their solutions from traditional on-premises to cloud-based deployments. This is encouraging solution providers to develop more robust cloud-based solutions to meet customer demands. The deployment of cloud platforms improves the capability to predict risks due to the easy accessibility of resources in critical situations. Moreover, cloud-based deployment increases the flexibility of business operations for companies and facilitates their access to real-time data. Furthermore, it helps them maintain a competitive edge by eliminating the administrative hurdles posed by the supporting infrastructure and, thus, enables organizations to focus on improving their core competencies. Hence, such factors are expected to drive the growth of the global AI platforms market during the forecast period.
Significant Artificial Intelligence Platforms Market Trend
Increasing investments in AI start-ups is an emerging trend in the market. AI has the potential to transform several industries. Hence, investors worldwide are investing heavily in AI start-ups. These deals are related to all applications that use AI technology in sectors such as healthcare, finance, advertising, energy, and general-purpose AI. Furthermore, the number of AI start-ups has surged in recent years. In 2018, globally, there were 18 start-ups, including SoftBank-backed ByteDance, which was the most funded company.
Industries such as healthcare, finance, and transportation were the major investors in AI start-ups. Intel Corp. (Intel) and Google heavily invested in AI in 2019 as they acquired the greatest number of AI start-ups. For instance, in December 2019, Intel acquired AI Chip start-up Habana Labs for USD 2 billion. Similarly, in May 2020, Intel announced plans to acquire AI-powered transit start-up Moovit for USD 900 million. Furthermore, in January 2020, Apple acquired Xnor.ai, a start-up, for USD 200 million. The increase in the number of start-ups is expected to lead to more mergers and acquisitions in the market in focus. As all vendors want to be leaders in terms of using AI technology, this will result in the development of AI technology. Hence, such factors are expected to drive the growth of the global AI platforms market during the forecast period.
Major Artificial Intelligence Platforms Market Challenge
The lack of skilled professionals is a major challenge impeding market growth. A major deterrent to the growth of the market is the lack of technical expertise among the workforce. End-user companies that implement AI must have sound knowledge of the working of AI software platforms and be capable of carrying out periodic updates to ensure smooth operations. This lack of technical knowledge often deters end-users from adopting AI in their social media platforms.
The rise in the number of industries and businesses around the world has led to the generation of huge volumes of data. These data sets cannot be processed using a single machine. Thus, AI and cybersecurity professionals need to have in-depth knowledge of programming languages. Successful analysis also requires technical and functional expertise. Furthermore, AI chips are undergoing evolution due to changing technologies. Most activities, such as bug fixing, testing, digital, and cloud implementation, are being taken over by AI chips. However, inadequate skill sets can adversely affect the efficient delivery of AI platforms. Therefore, such factors are expected to hinder the growth of the global AI platforms market during the forecast period.
Key Artificial Intelligence Platforms Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Artificial Intelligence Platforms Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Salesforce.com Inc. - The company operates under one segment. The company under this segment focuses on delivering customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce from anywhere. The key offerings of the company include artificial intelligence platforms.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, robust, tentative, and weak.
The market share growth by the retail segment will be significant during the forecast period. The retail market segment is one of the fastest growing compared with other end-users. Rising digitalization and the prominence of e-commerce or e-retail have bolstered the need for significant business transformation in the retail industry. The emergence of technologies such as Big Data, IoT, and workflow automation are accelerating technological transformations in the sector.
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The retail segment was valued at USD 534.73 million in 2017 and continued to grow until 2021. Customer-centricity is a new phenomenon in the modern world. Customer-centricity is impossible to achieve without the smart collection, analysis, and management of data and content generated across platforms and systems. This phenomenon has also permanently transformed the way retailers target customers. In a bid to stay competitive in the globalized world, players in the retail sectors are increasingly deploying AI tools for a centralized and omnichannel product and custom content management solution. The AI platform facilitates superior decision-making capabilities across the retail value chain and helps in customer relationship management (CRM). Furthermore, retailers are embracing advanced IT solutions to transform their IT environment to remain competitive in the marketplace. They are revamping their front-end and back-end mainframe lifecycle development processes with the help of the AI platform to increase business efficiencies. Hence, such factors will fuel the growth momentum of the market segment during the forecast period.
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North America is estimated to contribute 66% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is one of the major regions driving the adoption of AI platforms in various industries, such as banking and retail. The need for automated machine-driven decisions is one of the major factors driving the growth of AI. The US is one of the leading countries in terms of the number of AI-related patents filed globally. The US and Canada together hold approximately 26% of all global AI-related patent applications. Additionally, the US federal government has also launched several initiatives for AI and its adoption.
The implementation of AI platforms requires high computing power, as these are used to develop tools that deal with huge volumes of data. North America has highly advanced data center infrastructure and related services. Enterprises in the region also focus on developing AI-specific hardware chips to cater to the demand for AI in the region. Moreover, increasing investments toward AI-R&D by technology players, such as Microsoft, IBM, and Google, as well as toward AI-focused start-ups, will drive the development of AI-based solutions.
Furthermore, increasing penetration of IoT through connected devices in the US and Canada is expected to be one of the drivers for the growth in data volumes. The trend of using connected home devices is growing due to increased awareness and the adoption of smart speakers, such as Alexa. Smart products and devices are increasingly replacing existing traditional home control products and devices, such as thermostats, which are expected to be one of the major factors in the development and implementation of various AI platforms to handle data efficiently in the region.
The increased adoption of cloud-based AI platforms is also another factor driving the growth of the AI platforms market in North America. For instance, Salesforce integrated Einstein, its AI-enabled business intelligence tool, into its CRM software, which enables the company to deliver one billion predictions per day to its users. Technology players like Microsoft and Google offer cloud-based AI platforms, such as Microsoft Azure and Google Cloud, respectively. This is mainly attributed to the increasing demand for virtual assistants in cloud platforms, as well as the rising adoption of cloud-based services to achieve more agility. Hence, all these factors will drive the regional AI platforms market during the forecast period.
In 2020, the outbreak of COVID-19 had a positive impact on the regional market. This is because AI algorithms allow healthcare professionals to diagnose diseases and customize medical care and follow-up plans to get better results. With the outbreak of COVID-19, several companies were focusing on understanding how hospitals work and on helping them deliver better services, which were achieved by using various AI algorithms. In addition, ML and AI were used to fight against the COVID-19 pandemic. Multiple AI-powered projects based on big data were being used to predict, explain, and manage the different scenarios caused by the COVID-19 pandemic. For instance, scientists from different US-based organizations worked on predicting the protein structure of the novel coronavirus, SARS-CoV-2, for the development of a vaccine, along with the findings of other research projects. Therefore, the abovementioned factors increased the demand for AI platforms in the region. Hence, such factors are expected to drive the growth of the regional AI platforms market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027.
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Artificial Intelligence Platforms Market Scope |
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Report Coverage |
Details |
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Page number |
185 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 34.86% |
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Market growth 2023-2027 |
USD 31,255.01 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
32.45 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 66% |
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Key countries |
US, China, Germany, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Amazon.com Inc., Amelia US LLC, Baidu Inc., Dell Technologies Inc., Hewlett Packard Enterprise Co., Infosys Ltd., Intel Corp., International Business Machines Corp., Microsoft Corp., Nuance Communications Inc., NVIDIA Corp., Palantir Technologies Inc., Qualcomm Inc., Salesforce.com Inc., SAP SE, SAS Institute Inc., ServiceNow Inc., Tata Consultancy Services Ltd., and Wipro Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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