Globally, there is a wave of Artificial Intelligence Market across various industries, especially consumer electronics and healthcare. The wave is likely to continue in the years to come with the expanding base of applications of the technology. The global market for artificial intelligence is expected to witness phenomenal growth over the coming years as organizations worldwide have started capitalizing on the benefits of such disruptive technologies for effective positioning of their offerings and customer reach. In addition, the increasing It spending by enterprises across the globe for better advancements in their services and products.
According to a study by Transparency Market Research (TMR), the Artificial Intelligence Market is estimated to post an impressive 36.1% CAGR between 2016 and 2024, rising to a valuation of US$3,061.35 bn by the end of 2024 from US$126.14 bn in 2015. The upward growth of the market is, however, hampered by the low upfront investments. The majority of companies operating in the market are facing difficulties in accumulating funds for early stage research and development of prototypes and their underlying technologies. The dearth of personnel with adequate technical knowledge is also restricting the market from realizing its full potential.
Expert Systems to Lead Revenue Generation through 2024
On the basis of type, the report segments the global artificial intelligence market into digital assistance system, expert system, embedded system, automated robotic system, and artificial neural network. The expert system segment was at the forefront of growth in 2015, representing 44% of the overall market revenue and is poised to maintain its dominance until 2024. The growth of the segment can be attributed to the rising implementation of artificial intelligence across various sectors such as process control, monitoring, diagnosis, design, planning, and scheduling.
Digital assistance is estimated to be the most promising segment in terms of revenue during the review period. The proliferation of portable computing devices such as tablets and smartphones is the primary factor propelling the growth of the segment. Based on application, deep learning held the lion’s share of 21.6% in the global market in terms of value in 2015, closely trailed by smart robots. The demand for artificial intelligence in image recognition is likely to rise at a noteworthy rate over the forecast horizon.
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Domicile of a Raft of Leading Players to Fuel North America’s Dominance
North America was the major revenue contributor in 2015, accounting for approximately 38.0% of the overall Artificial Intelligence Market. The domicile of a large number of the leading technology firms enables early introduction and high acceptance of artificial intelligence in the region. Moreover, high government funding is playing a pivotal role in the technological development of artificial intelligence in the region. The widening scope of applications the technology in various verticals, including media and advertising, retail, BFSI, consumer electronics, and automotive are also contributing the Artificial Intelligence Market in North America. Owing to these factors, the region is expected to retain its leadership through 2024.
On the other hand, the Middle East and Africa is anticipated to exhibit a remarkable CAGR of 38.2% during the forecast period, which is higher than any other region. Rapid technological innovations, including robotic automation and increasing implementation of concepts such as smart cities are boosting the adoption of artificial intelligence in the region. Ongoing infrastructure projects such development of new airports are rendering the market in MEA highly opportunistic.