The global artificial intelligence market is on a remarkable growth trajectory, expanding from $147.32 billion in 2023 to an impressive $537.75 billion by 2028, at a compound annual growth rate (CAGR) of 29.56%.
By 2033, the market is predicted to exceed $2 trillion, revolutionizing industries worldwide and offering businesses unparalleled opportunities to lead the technological future.
Insights into key drivers and trends
The historic growth of the artificial intelligence market has been fueled by increased internet penetration, R&D advancements, digital transformation, and the adoption of artificial intelligence in healthcare. The forecast period offers even stronger growth opportunities as industries embrace automation, autonomous vehicles, and government-backed digital initiatives. However, challenges such as a lack of skilled AI staff and concerns about job displacement remain.
The most important elements of market segmentation
- Supply segments: Software leads the way, accounting for 40.71% of the market in 2023. However, services is the fastest growing segment, which is projected to grow at a CAGR of 32.34% during 2023-2028.
- Technology segments: Machine learning dominates with 42.07% market share in 2023. Context-aware computing is expected to grow the fastest at a staggering CAGR of 33.16% during the same period.
- End user industry: In 2023, the BFSI sector holds the largest share (17.69%), while the healthcare sector is projected to lead the future with a CAGR of 36.45% by 2028.
Regional opportunities for AI
North America continues to be the largest market for artificial intelligence, contributing $51.09 billion in 2023. However, Asia Pacific and Africa are expected to outperform other regions with CAGRs of 35.05% and 32.05% respectively, offering lucrative investment and innovation opportunities.
Top industry players driving AI innovation
The AI market is competitive yet fragmented, with major players such as NVIDIA Corporation, Microsoft, Alphabet (Google), Intel, and OpenAI. These companies continue to focus on strategic partnerships, product innovations and operational expansions to gain market share.
Explore the Possibilities
The United States, United Kingdom, and Japan are at the forefront of AI adoption and innovation. In these regions, companies can take advantage of excellent opportunities such as the growth of machine learning, healthcare applications, and expanding software solutions. For example, the healthcare sector alone will reach $90.99 billion in global annual sales by 2028.
Where to find out more
The Business Research Society Global Artificial Intelligence Market Report 2024 provides in-depth analysis of this transformative market, with forecasts, trends and actionable insights tailored for businesses looking to navigate and succeed in the AI revolution.
About the Business Research Society:
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