Artificial Intelligence Market Opportunities and Strategies to 2033

This report describes and explains the artificial intelligence market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global artificial intelligence market reached a value of nearly $147.31 billion in 2023, having grown at a compound annual growth rate (CAGR) of 33.21% since 2018. The market is expected to grow from $147.31 billion in 2023 to $537.74 billion in 2028 at a rate of 29.56%. The market is then expected to grow at a CAGR of 31.31% from 2028 and reach $2.09 trillion in 2033.

Growth in the historic period resulted from the increased internet penetration, investments in the research and development of artificial intelligence technology, increased digital transformation across industries, rise in adoption of AI in healthcare and increased demand for personalized solutions. Factors that negatively affected growth in the historic period were data privacy and security concerns and lack of trust in ai systems.

Going forward, increasing availability of smartphones, favorable government initiatives, growing adoption of automation in industries, growth of autonomous vehicles and expansion of the information communication technology industry will drive the growth. Factor that could hinder the growth of the artificial intelligence market in the future include lack of skilled personnel and technical expertise and concerns over job displacement.

The artificial intelligence market is segmented by offering into hardware, software and services. The software market was the largest segment of the artificial intelligence market segmented by offering, accounting for 40.71% or $59.97 billion of the total in 2023. Going forward, the services segment is expected to be the fastest growing segment in the artificial intelligence market segmented by offering at a CAGR of 32.34% during 2023-2028.

The artificial intelligence market is segmented by technology into machine learning, natural language processing, context-aware computing, computer vision and other technologies. The machine learning market was the largest segment of the artificial intelligence market segmented by technology, accounting for 42.07% or $61.98 billion of the total in 2023. Going forward, the context-aware computing segment is expected to be the fastest growing segment in the artificial intelligence market segmented by technology, at a CAGR of 33.16% during 2023-2028.

The artificial intelligence market is segmented by end-user industry into healthcare, automotive, agriculture, retail, BFSI, advertising & media, manufacturing and other end-user industries. The BFSI market was the largest segment of the artificial intelligence market segmented by end-user industry, accounting for 17.67% or $26.02 billion of the total in 2023. Going forward, the healthcare segment is expected to be the fastest growing segment in the artificial intelligence market segmented by end-user industry, at a CAGR of 36.45% during 2023-2028.

North America was the largest region in the artificial intelligence market, accounting for 34.68% or $51.09 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the artificial intelligence market will be Asia Pacific and Africa where growth will be at CAGRs of 35.05% and 32.05% respectively. These will be followed by Middle East and South America where the markets are expected to grow at CAGRs of 31.64% and 30.55% respectively.

The global artificial intelligence market is fairly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 12.22X% of the total market in 2023. NVIDIA Corporation was the largest competitor with a 3.09% share of the market, followed by Microsoft Corporation with 1.35%, Alphabet Inc (Google LLC) with 1.25%, Intel Corporation with 1.16%, OpenAI with 1.09%, Meta Platforms Inc. (formerly Facebook, Inc.) with 0.92%, Baidu Inc. with 0.90%, International Business Machines (IBM) Corporation with 0.89%, Amazon.com Inc. with 0.80% and Apple Inc. with 0.78%.

The top opportunities in the artificial intelligence market segmented by offering will arise in the software segment, which will gain $163.27 billion of global annual sales by 2028. The top opportunities in the artificial intelligence market segmented by technology will arise in the machine learning segment, which will gain $180.0 billion of global annual sales by 2028. The top opportunities in the artificial intelligence market segmented by end-user industry will arise in the healthcare segment, which will gain $90.98 billion of global annual sales by 2028. The artificial intelligence market size will gain the most in the USA at $98.3 billion.

Market-trend-based strategies for artificial intelligence market include focus on developing innovative products to enhance AI capabilities and offer advanced solutions in various industries, focus on developing innovative services, focus on innovative services, such as AI chatbots, to enhance customer engagement and streamline business operations, focus on developing innovative services to enhance legal professionals' productivity, focus on developing innovative services like AI-ready platforms to enhance scalability and integration of AI solutions across industries, focus on developing innovative products like AI-powered DevSecOps platforms, which enhance security, automate development processes and streamline operations for faster, more secure software deployment.

Player-adopted strategies in the artificial intelligence market include focus on enhancing operational capabilities through strategic partnerships, focus on strengthening operational capabilities through new product launches, focus on strengthening business capabilities through new product developments and focus on strengthening business operations through new solutions.

To take advantage of the opportunities, the analyst recommends the artificial intelligence companies to focus on developing Ai-powered solutions for enhanced customer experience, focus on leveraging Ai for recruitment process optimization, focus on integrating Ai-powered solutions to enhance customer engagement, focus on leveraging Ai for legal industry efficiency, focus on developing Ai-ready platforms for seamless integration, focus on developing Ai-powered devsecops platforms, focus on the services segment for growth, focus on context-aware computing for rapid growth, expand in emerging markets, focus on expanding distribution channels for artificial intelligence companies, focus on strategic pricing for competitive advantage, focus on targeted marketing campaigns, focus on strategic thought leadership and focus on healthcare for Ai market growth.