MarketsandMarkets forecasts the Artificial intelligence market to be valued at USD 21.46 billion in 2018 and is likely to reach USD 190.61 billion by 2025, at a CAGR of 36.62% during the forecast period. Major drivers for the AI market are growing big data, the increasing adoption of cloud-based applications and services, and an increase in demand for intelligent virtual assistants.

Artificial intelligence market for hardware to grow at a high CAGR during forecast period

The AI market for hardware is expected to grow at a high CAGR during the forecast period. This can be attributed to the increasing need for hardware platforms with high computing power to run various AI software. The presence of major companies that contribute to the AI sector in North America has made the region a major market for hardware related to AI.

By technology, the artificial intelligence market for computer vision holds the largest share of the market

Machine learning�s ability to collect and handle big data, and its applications in real-time speech translation, autonomous robots, and facial analysis are fueling its growth. The growing adoption of computer vision in autonomous or semiautonomous applications in various industries, such as manufacturing and automotive, is propelling the growth of this technology in the AI market.

By geography, the market in Asia Pacific (APAC) is expected to gain highest growt

The artificial intelligence market in APAC includes China, Japan, South Korea, India, and Rest of APAC. Rest of APAC includes countries such as Singapore, Malaysia, Thailand, Australia, and New Zealand. China, Japan, Australia, and India are among the major countries driving the AI market in APAC. The increasing adoption of deep learning and NLP technologies in finance, agriculture, marketing, and law applications is also driving the market in this region.

Growing e-commerce, online streaming, and increasing internet penetration have resulted in the growth of marketing industries. Marketers are now looking for more sophisticated and state-of-the-art marketing solutions for large and ever-growing consumer base. This has resulted in the adoption of AI-enabled solutions for marketing. In security, with increasing incidents of cyberattacks and a growing cyber-war in the region, organizations and governments are focusing on robust defense infrastructure. APAC, especially China, Japan, and South Korea, is considered the largest market for industrial robots. Industrial robots generate a huge volume of data, which is used for training robots. This would act as one of the major drivers for the artificial intelligence market in APAC.

Market Dynamics

Driver : Growth in big data

Big data and artificial intelligence market are becoming part of business organizations driven by the availability of data from sources such as the Internet of Things (IoT). Nowadays, companies are striving to analyze the consumer data obtained from CRM systems, product reviews, and media comments to understand their customers at a granular level, making their marketing more targeted and effective. Digitization in the manufacturing industry has increased the capability to access, analyze, and manage vast volumes of data while rapidly developing the information architecture in the factory. Data plays a critical role in the successful operation of a manufacturing plant. A strongly coupled digitized system in the manufacturing industry improves the overall quality and reduces the cost by improving defect tracking and forecasting abilities. By analyzing the data, AI market systems can draw conclusions on the machine�s condition and detect irregularities to provide predictive maintenance.

Restraint: Limited number of AI experts

AI is a complex system, and for developing, managing, and implementing AI systems, companies require a workforce with certain skill sets. For instance, workforce dealing with AI systems should be aware of technologies such as cognitive computing, ML and machine intelligence, deep learning, and image recognition. In addition, the integration of AI solutions into the existing systems is a difficult task, which requires extensive data processing to replicate the behavior of a human brain. Even minor errors can result in system failure or malfunctioning of a certain solution, and this can drastically affect the outcome and desired result.

Professional services of a data scientist or a developer are needed to customize an existing ML-enabled AI service. As AI technology is still in its early stage of product life cycle, the workforce possessing in-depth knowledge of this technology is limited. Thus, the impact of this restraining factor will likely remain high during the initial years of the forecast period of AI market.

Opportunity:Improving operational efficiency in manufacturing industry

AI-based predictive analytics can be used to minimize outages and improve plant utilization by anticipating demand and taking appropriate steps to match production with demand. AI-based algorithm helps in reducing the scrap rate to streamline supplies and maintain optimum inventory. AI-based inventory management eventually establishes a new pricing strategy for manufacturers. The global manufacturers have multiple plants in different parts of the world. An AI-enabled manufacturing plant can connect all these locations strategically, and if there is a production or demand fluctuation in 1 plant, the operations can be shifted to other facilities as needed by using an AI-based production planning application and routing algorithm. artificial intelligence market production planning can be used for supply optimization, preventive maintenance, and aftermarket cost reduction. Therefore, to meet these requirements, manufacturers are expected to adopt AI-based technologies in their manufacturing plants, propelling the growth of the AI in manufacturing market.

Challenge:Concerns regarding data privacy

The main factor that is predicted to be a challenge for AI adoption among businesses is data privacy. AI market technologies process data and generate outputs. Machine learning, deep learning, NLP, facial recognition, and emotion detection technologies feed on the stored data and provide actionable results. These technologies churn out useful data from enormous volumes of data and help businesses make critical decisions. Customers fear about their personal data being collected and used by AI; this data may include information such as their location and spending habits. To safeguard this information is a challenge for enterprises. Many nations follow privacy regulations to protect their citizens� privacy and avoid any misuse. To maintain public trust and the ethical use of data by AI, many organizations, along with the governments of various nations, are working toward creating a robust AI-based framework

Scope of the Report

Report Metric Details AI Market size available for years 2015�2025 Base year considered 2017 Forecast period 2018�2025 Forecast units Million and Billion (US Dollars) Segments covered Offering, Technology, End-user Industry, and Region Geographies covered North America, Europe, APAC, Rest of the World (South America, the Middle East and Africa) Companies covered Intel (US), NVIDIA (US), Samsung Electronics (South Korea), Xilinx (US), Micron Technology (US), IBM (US), Microsoft (US), Google Inc (US), Amazon Web Services (US), Facebook (US), Baidu (China), Oracle (US), Salesforce (US). SAS (US), SAP SE (Germany), General Electric (US), Cisco (US), Rockwell Automation (US), Siemens (Germany), Graphcore(UK)

The research report categorizes artificial intelligence market to forecast the revenues and analyze the trends in each of the following sub-segments:

Artificial Intelligence Market, By Offering

Hardware

Software

Services

Artificial Intelligence Market, By Technology

Machine Learning

Natural Language Processing

Context-Aware Computing

Computer Vision

Artificial Intelligence Market, By Technology

Narrow / Weak AI

General / Strong AI

Artificial Intelligence Market, By End-user Industry

Healthcare

Manufacturing

Automotive

Agriculture.

Retail

Security

Human Resources

Marketing

Law

Fintech

Construction

Defense

Aerospace

Supply Chain

Building Automation

Consumer

Food & Beverage

Gaming

Media & Entertainment

Telecommunication

Oil & Gas

Artificial Intelligence Market, By Region

North America

Europe

Asia Pacific (APAC)

ROW

Key Market Players

Intel (US), NVIDIA (US), Samsung Electronics (South Korea), Xilinx (US), Micron Technology (US), IBM (US), Microsoft (US), Google Inc (US), Amazon Web Services (US), Facebook (US), Baidu (China), Oracle (US), Salesforce (US). SAS (US), SAP SE (Germany), General Electric (US), Cisco (US), Rockwell Automation (US), Siemens (Germany),

Please visit 360Quadrants to see the vendor listing of Artificial Intelligence Software

Intel designs and develops key products and technologies that power the cloud and smart, connected world. Intel delivers computer, networking, and communication platforms to a broad set of customers, including original equipment manufacturers (OEMs), original design manufacturers (ODMs), cloud and communications service providers, and industrial, communications, and automotive equipment manufacturers.

Recent Developments

In January 2018 NVIDIA announced a new architecture of �NVIDIA DRIVE,� its AI autonomous vehicle platform that uses redundant and diverse functions to enable vehicles to operate safely, even in the event of faults related to the operator, environment, or systems. NVIDIA DRIVE architecture enables automakers to build and deploy self-driving cars and trucks that are functionally safe and certified to international safety standards, such as ISO 26262

In January 2018, Samsung launched an application processor�Exynos 9 Series 9810. This chipset is built on Samsung�s 10nm FinFET process and has custom CPU, gigabit LTE modem, and image processing with deep learning-based software.

In November 2017, AWS launched 3 language-oriented services�Amazon Comprehend (analyzes text for key phrases and sentiments), Amazon Translate (translates text), and Amazon Transcribe (converts speech into text).

In June 2017, Google launched MultiModel, a neural network architecture that draws from the success of vision, language, and audio networks to simultaneously solve problems spanning multiple domains, including image recognition, translation, and speech recognition.

Critical questions the report answers:

Where will all these developments take the industry in the long term?

What are the upcoming trends for the Artificial Intelligence market?

Which segment provides the most opportunity for growth?

Who are the leading vendors operating in this market?

What are the opportunities for new market entrants?

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