Global Artificial Intelligence (AI) Market to Reach US$459.3 Billion by 2030

The global market for Artificial Intelligence (AI) estimated at US$87.4 Billion in the year 2023, is expected to reach US$459.3 Billion by 2030, growing at a CAGR of 26.8% over the analysis period 2023-2030. Software, one of the segments analyzed in the report, is expected to record a 26.5% CAGR and reach US$188.2 Billion by the end of the analysis period. Growth in the Hardware segment is estimated at 22.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$30.9 Billion While China is Forecast to Grow at 30.9% CAGR

The Artificial Intelligence (AI) market in the U.S. is estimated at US$30.9 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$87.6 Billion by the year 2030 trailing a CAGR of 30.9% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 21.2% and 23.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 26.8% CAGR.

Global Artificial Intelligence (AI) Market - Key Trends & Drivers Summarized

Artificial Intelligence (AI) is revolutionizing numerous industries by enabling machines to perform tasks that typically require human intelligence. AI technologies, including machine learning, natural language processing, computer vision, and robotics, are being integrated into various applications to enhance efficiency, accuracy, and decision-making processes. The deployment of AI spans across diverse sectors such as healthcare, finance, retail, automotive, and manufacturing, where it is used for predictive analytics, automation, customer service, and more. The continuous advancement of AI algorithms and the increasing availability of big data are significantly contributing to the evolution and adoption of AI solutions.

In healthcare, AI is transforming patient care by providing tools for early diagnosis, personalized treatment plans, and advanced medical research. AI-powered diagnostic systems can analyze medical images and detect abnormalities with high precision, while machine learning algorithms can predict disease outbreaks and patient outcomes. In the financial sector, AI is enhancing fraud detection, risk management, and personalized banking services. Retailers are using AI for inventory management, personalized marketing, and improving customer experiences through chatbots and recommendation engines. The automotive industry benefits from AI through the development of autonomous vehicles and advanced driver-assistance systems (ADAS), which enhance safety and efficiency on the roads.

The growth in the artificial intelligence market is driven by several factors. Firstly, the exponential increase in data generation and the need for data-driven decision-making across industries are major drivers. Secondly, advancements in computing power and the development of sophisticated AI algorithms are making AI applications more effective and accessible. Thirdly, the rising adoption of AI in healthcare for diagnostics, treatment planning, and drug discovery is significantly contributing to market growth. Additionally, the integration of AI in financial services for fraud detection and personalized banking is expanding its application scope. Furthermore, the development of autonomous vehicles and the implementation of AI in manufacturing for automation and predictive maintenance are also propelling the market. Lastly, substantial investments by governments and private sectors in AI research and development are further driving the growth of the AI market.