Artificial Intelligence (AI) Image Recognition Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The artificial intelligence (AI) image recognition market size has grown rapidly in recent years. It will grow from $2.76 billion in 2024 to $3.29 billion in 2025 at a compound annual growth rate (CAGR) of 19.2%. The growth in the historic period can be attributed to growth in retail automation and self-checkout systems, expansion of autonomous vehicles and advanced driver assistance systems, increasing demand for security and surveillance applications, healthcare innovations in medical imaging and diagnostics, social media applications using facial recognition technologies.

The artificial intelligence (AI) image recognition market size is expected to see rapid growth in the next few years. It will grow to $6.55 billion in 2029 at a compound annual growth rate (CAGR) of 18.8%. The growth in the forecast period can be attributed to smart city initiatives leveraging AI imaging capabilities, government investments in AI-based defense technologies, rising adoption of AI in manufacturing and quality control processes, increasing consumer use of image recognition through mobile apps, emergence of machine learning operations (MLOps) for operationalization of AI image recognition models. Major trends in the forecast period include transition from traditional computer vision to deep learning, use of graph neural networks (GNNs), pre-trained models, focus on edge computing, automated machine learning (AutoML), enhanced data labeling.

The growing adoption of artificial intelligence (AI) is expected to drive the growth of the AI image recognition market in the coming years. AI involves the simulation of human intelligence processes by machines, particularly computer systems. The increasing use of AI enhances image recognition by leveraging algorithms to analyze and interpret visual data in a way similar to human perception and understanding of images. For example, in March 2024, a report by the United States Census Bureau, a US-based federal statistical agency, revealed that AI adoption is rapidly increasing, with the percentage of companies using AI rising from 3.7% in Fall 2023 to 5.4% in February 2024. Projections indicate that the adoption rate will reach 6.6% by Fall 2024, and about 12% of workers in firms will be using AI. Therefore, the growing adoption of AI is fueling the expansion of the AI image recognition market.

Innovative technologies, such as AI-powered image recognition tools, are at the forefront of major companies' strategies within the AI image recognition market. These tools leverage computer vision and artificial intelligence to identify and categorize elements within images or videos. For example, in October 2023, Klarna introduced Shopping Lens, an AI-powered image recognition tool aimed at enhancing users' shopping experiences. This innovative tool allows customers to upload images of items they wish to purchase, leveraging AI to translate the image into a search term. Subsequently, customers gain access to tailored product offers on Klarna's app, streamlining the shopping process and improving user engagement.

In October 2023, HUKUI Biotechnology Co. Ltd., a prominent US-based digital healthcare company, forged a strategic partnership with EyeZense Inc., the leading provider of AI image recognition technologies, for an undisclosed sum. This collaboration capitalizes on HUKUI's proficiency in miniature endoscopic lenses to jointly design and manufacture intelligent security wearable camera devices. The objective of this partnership is to integrate AI image recognition technology into security wearables, facilitating applications such as access control, surveillance, and public safety.

Major companies operating in the artificial intelligence (AI) image recognition market report are Apple Inc., Google LLC, Samsung, Microsoft Corporation, Meta Platforms Inc., Amazon Web Services (AWS), Intel Corporation, The International Business Machines Corporation, Qualcomm Technologies Inc., NVIDIA Corporation, NEC Corporation, Adobe Inc., Baidu Inc., Hikvision, Arista Networks, Xilinx Inc., Cognex Corporation, SenseTime, Ambarella Inc., Megvii, Trax, Cambricon Technologies Corporation Limited, Vayyar Imaging, aiMotive, Cortexica Vision Systems, Clarifai, Blippar, Imagga, Yitu Technology.

North America was the largest region in the artificial intelligence (AI) image recognition market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (ai) image recognition market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai) image recognition market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI) image recognition market includes revenues earned by entities by providing services such as medical image analysis, visual search, emotion analysis, gesture recognition, scene recognition. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The artificial intelligence (AI) image recognition market also includes sales of various technologies such as magnetic resonance imaging (MRI), X-ray, and computed tomography (CT). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Artificial intelligence (AI) image recognition involves the utilization of technology to identify and classify objects within images through AI algorithms. This technology employs artificial intelligence and computer vision to discern specific objects, places, individuals, text, and actions depicted in digital images and videos.

The primary components of AI image recognition encompass hardware, software, and services. These components rely on various technologies including code recognition, facial recognition, object recognition, pattern recognition, and optical character recognition (OCR). They find application across diverse sectors such as scanning and imaging, security and surveillance, image search, augmented reality, marketing, and advertising. End-users of AI image recognition span industries such as banking, financial services, and insurance (BFSI), media and entertainment, retail and e-commerce, as well as information technology (IT) and telecommunications.

The artificial intelligence (AI) image recognition market research report is one of a series of new reports that provides artificial intelligence (AI) image recognition market statistics, including artificial intelligence (AI) image recognition industry global market size, regional shares, competitors with an artificial intelligence (AI) image recognition market share, detailed artificial intelligence (AI) image recognition market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) image recognition industry. This artificial intelligence (AI) image recognition market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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