Cloud Artificial Intelligence (AI) Market by Component and Geography - Forecast and Analysis 2022-2026

The cloud AI market share is expected to increase by USD 10.22 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 21.02%.

This cloud 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 cloud AI market segmentations by component (software and services) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The cloud AI market report also offers information on several market vendors, including Amazon.com Inc., AIBrain Inc., Alphabet Inc., Baidu Inc., Cisco Systems Inc., H2O.ai Inc., Informatica LLC, Infosys Ltd., Intel Corp., International Business Machines Corp., Microsoft Corp., Nuance Communications Inc., NVIDIA Corp., Oracle Corp., Salesforce.com Inc., SoundHound Inc., Verint Systems Inc., VMware Inc., Wipro Ltd., and ZTE Corp. among others.

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

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

The emergence of technologically advanced devices is notably driving the cloud AI market growth, although factors such as challenges from open-source platforms may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the cloud AI industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Cloud Artificial Intelligence (AI) Market Driver

One of the key factors driving the global cloud AI market growth is the emergence of technologically advanced devices. The increasing number of smart set-top-boxes (STBs) entering the market will increase the penetration of cloud DVR. With the help of a home network, a smart STB connects all devices, and media content can be streamed and played on the internet, a central repository, or any connected device. For instance, in March 2021, Velocix, a leading company dealing in carrier-grade video streaming and advertising technology, expanded its portfolio of fully managed software-as-a-service (SaaS) applications. In March 2022, the ZTE Next-gen Cloud AI Home Security Camera Pro was awarded the best-connected consumer device award as it brings new and smart applications with the help of cloud AI technology to enhance efficiencies and functionality to the user. All these factors are expected to fuel the growth of the global cloud AI market during the forecast period.

Key Cloud Artificial Intelligence (AI) Market Trend

Growing 5G adoption and mobile penetration is one of the key cloud AI market trends that is expected to impact the industry positively in the forecast period. With the early commercial launch of 5G mobile services in 2019, the telecom pioneer operators in the markets have been progressively promoting the wide-scale deployment and adoption of 5G networks. By mid-2020, 93 commercial 5G networks are live around the world, mainly distributed in APAC, Europe, Middle East, and North America region. For instance, 5G subscriptions with capable devices were raised by more than 70 million during the first quarter of 2021, reaching 290 million when compared to 2019. Cloud AIs will help replace traditional wireless algorithms in 5G networks, dramatically reducing power consumption and achieving high performance. Therefore, these factors will contribute to the market growth during the forecast years.

Key Cloud Artificial Intelligence (AI) Market Challenge

One of the key challenges to the global cloud AI market growth is the challenges from open-source platforms. Several small and emerging enterprises use these platforms as the purchasing and licensing costs of commercial software are high. The availability of the source code makes the software available to the public, which improves its security by identifying and eliminating defects that might otherwise be missed. In addition, open-source platforms can be easily tested before implementation, and this makes them suitable for rapid prototyping and experimentation. DNS, Sendmail, and Apache and languages such as HTML and Perl are some of the examples of open-source platforms. These platforms have been proven to be both reliable and robust under the most strenuous conditions. Thus, the rising adoption of open-source platforms is expected to hinder the adoption of cloud AI software during the forecast period.

This cloud 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 2022-2026.

Parent Market Analysis

Technavio categorizes the global cloud AI market as a part of the global Internet services and infrastructure 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 cloud AI market during the forecast period.

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

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

 

• Amazon.com Inc.
• AIBrain Inc.
• Alphabet Inc.
• Baidu Inc.
• Cisco Systems Inc.
• H2O.ai Inc.
• Informatica LLC
• Infosys Ltd.
• Intel Corp.
• International Business Machines Corp.
• Microsoft Corp.
• Nuance Communications Inc.
• NVIDIA Corp.
• Oracle Corp.
• Salesforce.com Inc.
• SoundHound Inc.
• Verint Systems Inc.
• VMware Inc.
• Wipro Ltd.
• ZTE Corp.

 

This statistical study of the cloud AI market encompasses successful business strategies deployed by the key vendors. The cloud AI market is fragmented and the vendors are deploying growth strategies such as technological innovation to compete in the market.

Product Insights and News

• Amazon.com Inc. - The company offers Cloud AI products such as Amazon Polly, Amazon Transcribe, and Amazon SageMaker.
• Baidu Inc. - The company offers Cloud AI products such as Dedicated Cloud Compute Service, CDN Abroad, and GaiaDB-X.

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 cloud 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.

Cloud Artificial Intelligence (AI) Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the cloud 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.

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

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51% of the market's growth will originate from North America during the forecast period. The US is the key market for cloud AI in North America. However, market growth in this region will be slower than the growth of the market in regions.

The strong existence and penetration of the top vendors and the early adoption of technologies will facilitate the cloud 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.

COVID Impact and Recovery Analysis

The COVID-19 pandemic is expected to propel the growth of the market in North America in 2022. The emergence of a new business environment with a work-from-home culture is increasing the adoption of cloud AI solutions. Lockdown norms across various industries have augmented the need for working from home with remote planning, tracking, and monitoring project status. Banking and finances are critical sectors that are expected to adopt cloud-based deployment of these services progressively. This will be achieved by the IT sectors continuing quest for optimized infrastructure and the ability to construct infrastructure components from several providers to build a hybrid cloud-based AI solution. Owing to such factors, the market for cloud AI is expected to grow significantly in the region during the forecast period.

What are the Revenue-generating Component Segments in the Cloud Artificial Intelligence (AI) Market?

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The cloud AI market share growth by the software segment will be significant during the forecast period. Cloud-based software AI applications across the globe will enable the healthcare data stored across remote systems and geographies to be readily available for all stakeholders to access and consume. Such factors will drive segment growth in the coming years.

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

 

Cloud Artificial Intelligence (AI) Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 21.02%
Market growth 2022-2026	$ 10.22 billion
Market structure	Fragmented
YoY growth (%)	20.26
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 51%
Key consumer countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Amazon.com Inc., AIBrain Inc., Alphabet Inc., Baidu Inc., Cisco Systems Inc., H2O.ai Inc., Informatica LLC, Infosys Ltd., Intel Corp., International Business Machines Corp., Microsoft Corp., Nuance Communications Inc., NVIDIA Corp., Oracle Corp., Salesforce.com Inc., SoundHound Inc., Verint Systems Inc., VMware Inc., Wipro Ltd., and ZTE Corp.
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, Market condition analysis for forecast period
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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What are the Key Data Covered in this Cloud Artificial Intelligence (AI) Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive cloud artificial intelligence (AI) market growth during the next five years
• Precise estimation of the cloud artificial intelligence (AI) market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behaviour
• The growth of the cloud AI industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of cloud artificial intelligence (AI) market vendors

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