Artificial Intelligence (AI) Market Analysis: Growth, Size, Share & Future Trends (2024-2029) 

The market report offers a detailed analysis segmented by Offering (Discriminative AI, Generative AI, Hardware, Services); by Technology (Machine Learning (ML), Natural Learning Processing (NLP), Computer Vision, Context-Aware Artificial Intelligence (CAAI)); by Business Function (Marketing & Sales, Human Resources, Finance & Accounting, Operations, Cybersecurity); by Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa).

Outlook

• The artificial intelligence (AI) market is estimated to be at USD 225.94 Bn in 2024 and is anticipated to reach USD 1,161.97 Bn in 2029. 

• The artificial intelligence (AI) market is registering a CAGR of 38.75% during the forecast period of 2024-2029. 

• The global artificial intelligence (AI) market’s rapid expansion is fueled by the widespread adoption of AI technologies across various industries, including healthcare, finance, automotive, and retail. 

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Ecosystem  

• The participants in the global artificial intelligence (AI) industry lead the market through continuous innovation, extensive research, and strategic partnerships. 

• These companies primarily focus on continuous investment in R&D, focusing on developing new AI chips and architectures, along with partnerships and acquisitions to expand their AI capabilities and maintain competitive edge in the market. 

• Several important entities in the artificial intelligence (AI) market include IBM Corp.; NVIDIA Corp.; Oracle Corp.; Microsoft Corp.; Intel Corp.; and others. 

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Findings 

Attributes	Values
Historical Period	2018-2022
Base Year	2023
Forecast Period	2024-2029
Market Size (2024)	USD 225.94 Bn
Market Size (2029)	USD 1,161.97 Bn
Growth Rate	38.75% CAGR from 2024 to 2029
Key Segments	Offering (Discriminative AI, Generative AI, Hardware, Services); Technology (Machine Learning (ML), Natural Learning Processing (NLP), Computer Vision, Context-Aware Artificial Intelligence (CAAI)); Business Function (Marketing & Sales, Human Resources, Finance & Accounting, Operations, Cybersecurity); Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa)
Key Vendors	IBM Corp.; NVIDIA Corp.; Oracle Corp.; Microsoft Corp.; Intel Corp.
Key Countries	The US; Canada; Mexico; Brazil; Argentina; Colombia; Chile; China; India; Japan; South Korea; The UK; Germany; Italy; France; Spain; Turkey; UAE; Saudi Arabia; Egypt; South Africa
Largest Market	Asia Pacific

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Trends  

• Customized AI Models: Growing demand for AI capabilities is straining GPU availability and increasing cloud computing costs. This trend is driving innovation towards smaller, more efficient AI models and alternative hardware solutions. Enterprises are adapting by using a mix of model sizes and flexible deployment strategies. Cloud providers and companies like IBM are offering versatile options to meet diverse infrastructure needs and deployment preferences. 

• Multimodal AI Models: Cutting-edge AI is evolving towards multimodal models that can process various data types, including text, images, and video. These models, like GPT-4V and Lumiere, offer more versatile applications and intuitive user interactions. By integrating diverse data inputs, especially video, AI gains a richer understanding of the world. This advancement promises more comprehensive learning and broader capabilities for AI systems. 

• Shift Towards Smaller, More Efficient AI Models: Growing demand for AI capabilities is straining GPU availability and increasing cloud computing costs. This trend is driving innovation towards smaller, more efficient AI models and alternative hardware solutions. Enterprises are adapting by using a mix of model sizes and flexible deployment strategies. Cloud providers and companies like IBM are offering versatile options to meet diverse infrastructure needs and deployment preferences. 

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Catalysts 

• Advancements in Big Data and Analytics: The rise of big data and advanced analytics is propelling the growth of AI, as these technologies rely heavily on data processing and analysis. In 2023, IBM launched an AI-powered analytics platform that enables businesses to gain deeper insights from vast datasets, fueling demand for AI solutions. 

• Integration of AI in Healthcare: AI’s role in healthcare is expanding rapidly, particularly in diagnostics, drug discovery, and personalized medicine. In 2023, Pfizer used AI-driven algorithms to accelerate the drug discovery process, reducing the time and cost involved in bringing new drugs to market and driving adoption in the healthcare sector. 

• Proliferation of AI-Powered Consumer Products: The increasing availability of AI-powered consumer products such as smart home devices and virtual assistants, is driving market growth. In 2023, the launch of Amazon Echo with enhanced AI capabilities attracted significant consumer interest, contributing to the widespread adoption of AI in everyday life. 

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Restraints 

• Data Privacy of Users: The widespread use of AI raises significant data privacy concerns, particularly in sectors like healthcare and finance. In 2023, Facebook faced scrutiny over the use of AI in data collection practices, leading to public outcry and stricter regulations on AI data usage. 

• High Implementation Costs: The high costs associated with AI implementation, including the need for specialized hardware, software, and skilled personnel, pose a challenge, particularly for small and medium-sized enterprises (SMEs). 

• Regulatory Challenges: The rapidly evolving regulatory landscape around AI, particularly concerning data protection and algorithm transparency, poses challenges for companies. In 2023, the European Union’s AI Act introduced new regulations that require companies to ensure their AI systems are transparent, explainable, and free from bias, increasing the compliance burden on businesses. 

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Table of Contents 

1.       Introduction         1.1.    Research Methodology         1.2.    Scope of the Study  2.       Market Overview / Executive Summary         2.1.    Global Artificial Intelligence (AI) Market (2018 – 2022)         2.2.    Global Artificial Intelligence (AI) Market (2023 – 2029)  3.       Market Segmentation         3.1.    Global Artificial Intelligence (AI) Market by Offering                3.1.1.    Discriminative AI                3.1.2.    Generative AI                3.1.3.    Hardware                3.1.4.    Services         3.2.    Global Artificial Intelligence (AI) Market by Technology                3.2.1.    Machine Learning (ML)                3.2.2.    Natural Learning Processing (NLP)                3.2.3.    Computer Vision                3.2.4.    Context-Aware Artificial Intelligence (CAAI)         3.3.    Global Artificial Intelligence (AI) Market by Business Function                3.3.1.    Marketing & Sales                3.3.2.    Human Resources                3.3.3.    Finance & Accounting                3.3.4.    Operations                3.3.5.    Cybersecurity  4.       Regional Segmentation         4.1.    North America                4.1.1.    The US                4.1.2.    Canada                4.1.3.    Mexico         4.2.    South America                4.2.1.    Brazil                4.2.2.    Argentina                4.2.3.    Colombia                4.2.4.    Chile                4.2.5.    Rest of South America         4.3.    Asia Pacific                4.3.1.    China                4.3.2.    India                4.3.3.    Japan                4.3.4.    South Korea                4.3.5.    Rest of Asia Pacific         4.4.    Europe                4.4.1.    The UK                 4.4.2.    Germany                4.4.3.    Italy                4.4.4.    France                4.4.5.    Spain                4.4.6.    Rest of Europe         4.5.    The Middle East                4.5.1.    Turkey                4.5.2.    UAE                4.5.3.    Saudi Arabia                4.5.4.    Rest of the Middle East         4.6.    Africa                4.6.1.    Egypt                4.6.2.    South Africa                4.6.3.    Rest of Africa  5.       Value Chain Analysis of the Global Artificial Intelligence (AI) Market  6.       Porter Five Forces Analysis         6.1.    Threats of New Entrants         6.2.    Threats of Substitutes         6.3.    Bargaining Power of Buyers         6.4.    Bargaining Power of Suppliers         6.5.    Competition in the Industry  7.       Trends, Drivers and Challenges Analysis         7.1.    Market Trends         7.1.1.    Market Trend 1         7.1.2.    Market Trend 2         7.1.3.    Market Trend 3         7.2.    Market Drivers         7.2.1.    Market Driver 1         7.2.2.    Market Driver 2         7.2.3.    Market Driver 3         7.3.    Market Challenges         7.3.1.    Market Challenge 1         7.3.2.    Market Challenge 2         7.3.3.    Market Challenge 3  8.       Opportunities Analysis         8.1.    Market Opportunity 1         8.2.    Market Opportunity 2         8.3.    Market Opportunity 3  9.       Competitive Landscape         9.1.    IBM Corp.         9.2.    NVDIA Corp.         9.3.    Oracle Corp.         9.4.    Microsoft Corp.         9.5.    Intel Corp.         9.6.    Company 6         9.7.    Company 7         9.8.    Company 8         9.9.    Company 9         9.10.  Company 10

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Artificial Intelligence (AI) Market – FAQs 

1.  What is the current size of the artificial intelligence (AI) market? 

Ans. In 2024, the artificial intelligence (AI) market size is USD 225.94 Bn. 

2.  Who are the major vendors in the artificial intelligence (AI) market?  

Ans. The major vendors in the artificial intelligence (AI) market are IBM Corp.; NVDIA Corp.; Oracle Corp.; Microsoft Corp.; Intel Corp. 

3.  Which segments are covered under the artificial intelligence (AI) market segments analysis?  

Ans. The artificial intelligence (AI) market report offers in-depth insights into Offering, Technology, Business Function, and Geography.