February 22, 2024

Global Artificial Intelligence Market Set to Skyrocket to $718.7 Billion by 2030 with a CAGR of 31.2%

The global artificial intelligence (AI) market is on the cusp of a monumental transformation, with staggering growth projections that foresee it reaching a valuation of $718.7 billion by 2030, compared to its 2019 valuation of $29.9 billion. This unprecedented growth is projected to be driven by a Compound Annual Growth Rate (CAGR) of 31.2% between 2022 and 2030, according to a recent market analysis report.

Artificial intelligence, one of the most rapidly advancing technologies, is poised to impact industries worldwide, making it a crucial driver of global economic development and an indispensable tool for national security. Major industry players such as Amazon, Google, Apple, IBM, Microsoft, and Facebook are intensifying their investments in AI research and development, further fueling the market’s growth.

Key Report Findings

  • The global AI market is expected to exceed $718.7 billion by 2030.
  • Service-based models remain pivotal in the strategies of industry leaders.
  • North America and China are anticipated to yield the largest economic gains from AI technology.
  • The Banking, Financial Services, and Insurance (BFSI) sector is set to account for over 28% of the total market valuation.
  • North America currently leads the AI market, contributing over 29% of global industry revenue.

Growth Drivers

  1. An Influx of Investments: The report highlights a twofold increase in global AI funding in 2021 compared to the previous year, with approximately 65 AI companies achieving billion-dollar valuations. Governments and organizations worldwide are increasingly recognizing AI as a strategic asset in their business endeavors. Notably, between 2020 and 2022, there was a nearly $5 billion increase in annual corporate global AI investments in startups, indicating the remarkable growth potential of the AI industry.
  2. Rising Demand from Healthcare: AI is finding applications in reimagining drug development, lowering costs, and enhancing personalized healthcare services. AI-enabled chatbots are improving patient outcomes and accessibility while maintaining security and safety, leading to growing demand in the healthcare sector.
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Growth Challenges

Inadequate Expertise to Operate AI: The shortage of expertise in data science and AI, compounded by the growing need for comprehensive capabilities, poses a significant challenge. This gap is expected to persist through 2030.

Overview of Key Segments

  1. Adoption Highest in BFSI Sector: The BFSI sector is projected to continue its growth trajectory, representing over 28% of global AI market revenue. The sector’s uptake of AI is driven by applications in FinTech, risk assessment, financial analysis, portfolio management, and regulatory compliance.
  2. Healthcare Emerges as a Lucrative Segment: The healthcare sector is expected to witness increased adoption of AI in hospital workflow management, robotic surgeries, medication assistance, clinical trials, and diagnosis, among other areas.

Growth Opportunities Across Regions

  1. North America’s Primacy Intact: North America, spearheaded by the United States, maintains its leadership in the global AI market. Government investments and initiatives have solidified the region’s position as a frontrunner in AI adoption.
  2. Asia Pacific All Set for an AI-ready Future: With substantial investments, a thriving startup ecosystem, and a focus on process automation, the Asia Pacific AI market is poised for significant growth, representing over a quarter of the global market valuation.

Key Players in AI Industry

Leading companies shaping the competitive landscape of the AI market include Microsoft Corporation, Cisco Systems, Sailpoint Technologies, IBM, Oracle, DELL, CA Technologies, HITACHI, and Okta.

Global Artificial Intelligence Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 – (By Deployment Coverage, By Organization Size Coverage, By Vertical Coverage, By Business Function Coverage, By Offerings Coverage, By Technology Coverage, By Geographic Coverage and By Company) https://www.fairfieldmarketresearch.com/report/artificial-intelligence-market

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