Artificial Intelligence (AI) Market: Global Opportunity Analysis and Industry
Forecast, 2021-2030
According to Polaris and other Market research company, the global artificial intelligence market was valued at USD 65.48 billion in 2020 and is projected to reach USD 1,581.70 billion by 2030, with a compound annual growth rate (CAGR) of 38.0% from 2021 to 2030.
This Forecast is based on components (solutions and services), technology (machine learning, natural language processing, computer vision, and others), and industry verticals (IT and telecommunications, retail and e-commerce, BFSI, healthcare, manufacturing, automotive, and others).
The growth of the artificial intelligence market is primarily driven by the increasing demand for intelligent systems that enhance efficiency and productivity across various sectors such as IT and telecommunications, retail and e-commerce, BFSI, healthcare, manufacturing, and automotive. Furthermore, the market is expected to expand due to the rising digital dependence and the emergence of industry 4.0 trends.
Artificial Intelligence Market Analysis:
The rapid increase in network equipment and global traffic presents challenges in terms of complexity, cost, and time. However, AI can optimize and automate networks, ensuring their health and security while reducing operational expenses. Applications of AI and machine learning in the telecommunications industry include anomaly detection, root cause analysis, managed services, and network optimization. Anomaly detection systems play a critical role in identifying performance issues and abnormal network behavior, thus preventing outages by predicting key performance indicators’ decline and identifying the root cause. Predictive maintenance is another area where AI makes a significant impact, as it accurately predicts and warns about potential hardware problems by recognizing patterns in historical data. This proactive approach enables telcos to maintain their equipment effectively and resolve issues before they affect end-users, thereby driving the growth of the artificial intelligence market in the telecom sector.
The adoption of artificial intelligence in e-commerce is on the rise, contributing to the growth of the AI market. AI revolutionizes the online retail sector by anticipating buying trends based on customer behavior. Through accurate product recommendations and tailored advertising, AI enhances the customer experience. By sifting through vast databases, AI algorithms extract valuable insights into customer behavior, enabling better predictions of customer needs. Furthermore, e-commerce companies are increasingly utilizing chatbots and virtual assistants to provide 24/7 customer support. Natural language processing (NLP) empowers these chatbots to interpret voice-based conversations and offer personalized offers to customers.
The banking industry‘s adoption of AI is expected to further fuel the growth of the artificial intelligence market. AI applications in conversational banking, fraud detection, risk management, and underwriting help banks save costs and improve operations. AI enables banks to streamline client identification and verification, simulate human interactions through chatbots and voice assistants, enhance customer relationships, and provide personalized insights and recommendations. In the middle office, AI aids in detecting and preventing payment fraud, strengthening antimoney laundering (AML) and know-your-customer (KYC) checks. Additionally, alternative lenders can assess a client’s creditworthiness by evaluating data from various sources, thereby enabling the creation of lending systems supported by robust credit scoring models.
The healthcare industry benefits from AI in various ways, including medical imaging analysis, drug development, and predictive analytics. AI can analyze vast amounts of healthcare data, such as photographs, clinical trials, and medical claims, to identify patterns and insights that are often missed by humans. Natural language processing enables AI systems to extract meaningful data by recognizing and classifying patterns.
In the automotive industry, AI finds applications in areas such as design, supply chain management, production, and post-production. AI is transforming driving assistance and driver risk assessment systems, revolutionizing transportation. Moreover, AI is reshaping aftermarket services such as predictive maintenance and insurance. The increasing adoption of AI in the automotive sector is expected to drive the growth of the artificial intelligence market.
Overall, with its wide-ranging applications and benefits across industries, artificial intelligence is poised for substantial growth. As the world moves toward Industry 4.0, AI, machine learning, and deep learning models will play an increasingly significant role in enhancing productivity, optimizing operations, and delivering a higher return on investment.