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Global Artificial Intelligence (AI) Market to Reach US$291.5 Billion by the Year 2026 Posted on : Oct 27 - 2021

AI technology is associated with making machines and related processes intelligent through the use of advanced computer programming solutions. The AI technology market is poised to grow at a robust pace driven by its increasing adoption in an expanding range of applications in varied industries. The growing need to analyze and interpret burgeoning volumes of data and the escalating demand for advanced AI solutions to improve customer services are expected to fuel growth in the AI market. With significant improvements being seen in data storage capacity, computing power and parallel processing capabilities, the adoption of AI technology in various end-use sectors is on the rise. The rising adoption of cloud-based services and applications, rapid growth of big data, and the increasing need for intelligent virtual assistants are also contributing to the rapid growth of AI market. The advent of face, image, and voice recognition technologies is further favoring growth in the global market.

 

Amid the COVID-19 crisis, the global market for Artificial Intelligence (AI) estimated at US$47.1 Billion in the year 2020, is projected to reach a revised size of US$291.5 Billion by 2026, growing at a CAGR of 34.3% over the analysis period. Services, one of the segments analyzed in the report, is projected to grow at a 34.1% CAGR to reach US$154.8 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Software segment is readjusted to a revised 31.7% CAGR for the next 7-year period. This segment currently accounts for a 37.9% share of the global Artificial Intelligence (AI) market. The increasing penetration of chatbots or virtual assistants for providing customer assistance in various end-use industries including e-commerce and banking is expected to further enhance demand for AI-based software and systems.

 

The Artificial Intelligence (AI) market in the U.S. is estimated at US$28.9 Billion in the year 2021. The country currently accounts for a 41.4% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$53.6 Billion in the year 2026 trailing a CAGR of 40.9% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 28.8% and 30.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 32.5% CAGR while Rest of European market (as defined in the study) will reach US$70.9 Billion by the end of the analysis period. The dominant share of the US is mainly attributed to the widespread adoption of AI technology in several end-use industries including media, e-commerce and manufacturing. Increased funding for developing and advancing AI technology and applications, and a robust technical adoption base are also favoring growth. Europe, is the second largest regional AI market. Europe is expected to witness a significant increase in the deployments of cloud-based AI solutions, driven by the growing consumer demand for on-demand and faster access to data and relatively easy document control. Europe`s AI market is likely to benefit from the European Commission`s plans to invest €20 billion for AI research during the period 2018-2020 in order to fuel R&D initiatives for businesses and government. Growth in Asia-Pacific including China is propelled by the increasing adoption of natural language processing (NLP) and deep learning technologies in sectors such as marketing, finance, law, and agriculture. The market also benefits from the rapid pace of improvements being seen in computing power, data storage capacity and processing capabilities, which facilitate adoption of AI technology in sectors such as healthcare and automotive. View more