Artificial Intelligence Market: Industry Analysis, Opportunity Assessment and Forecast upto 2024
Posted: Oct 04, 2017
The global market for artificial intelligence is dominated by key players such as MicroStrategy Inc., Nuance Communications, QlikTech International AB, IBM Corporation, Google Inc., Next IT Corporation, eGain Corporation, Brighterion Inc., and Microsoft Corporation. These companies are undertaking strategic business decisions such as mergers and acquisitions to enhance their market presence. Also, other companies are partnering with established key players to enter the lucrative market for artificial intelligence.
On account of the presence of numerous vendors worldwide, the global artificial intelligence market is fragmented in nature. This has also served to intensify competition in the market.
Recently, Mastercard acquired Brighterion Inc., a company that specializes in artificial intelligence, to foray into the global artificial intelligence market with a vision to deliver improved consumer experience and security. Brighterion’s company portfolio of AI and technologies for machine learning offer real-time intelligence from all the sources of data independent of complexity, type, and volume, according to the public announcement.
The global artificial intelligence market had an overall valuation of US$126.24 bn in the year 2015. The market is estimated to grow at a phenomenal CAGR of 36.1% during the course of the given forecast period from 2016 to 2024. It is expected to reach an overall valuation of US$3,061.35 bn by the end of the given forecast period.
Depending upon the type of application, the deep learning segment accounted for maximum share in the global artificial intelligence market. It accounted for nearly 21.6% of the global market. The segment of smart robots comes in the second position in terms of market share. This segment of smart robots is chiefly driven by upcoming technologies called affective computing which is slated to significantly boost the market for artificial intelligence in the coming years.
Demand for AI in Multiple Sectors Propel Global Artificial Intelligence Market
Increasing number of companies these days focusing on various disruptive technologies for reaching out to customers effectively. This is one of the chief driving factors of the global market for artificial intelligence. These technologies involve use of marketing activities such as SMAC (social, mobile, analytics, and cloud) technologies which aid the company to gain a solid foothold in the digital business. The market demand is also growing with the expansion of applications of artificial intelligence across different segments such as health informatics, e-commerce, BFSI, and retails, among many others. This, in turn, is mainly on account of the increase in IT spending by the companies across the world for creating more innovative and advanced services and products.
Lack of Initial Funding Impedes Market Growth
The global market for artificial intelligence is presently challenged by the low initial investment across the globe. Most companies offering artificial intelligence services face problems in gathering funds in the early stages for research and development. This lack of funding slows down the process of developing new prototypes and subsequent supporting technologies. Moreover, there is a dearth of skilled resources in the market to carry out complicated technical tasks. This dearth of skilled resources is also an impeding factor in the overall development of the global market for artificial intelligence.
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