Industrial Automation Magazine India

Increase in investments in artificial intelligence systems, rise in collaboration between industries and artificial intelligence and machine learning solution companies.

New Castle, Del., November 6, 2023 – Allied Market Research published a report, titled, "Artificial Intelligence Market by Component, Technology, Industry Vertical, Deployment (On-Premise and Cloud), Enterprise Size, Business Function and Type: Global Opportunity Analysis and Industry Forecast, 2024-2033". According to the report, the global artificial intelligence (AI) industry generated $153.6 billion in 2023, and is anticipated to generate $3,636 billion by 2033, witnessing a CAGR of 37.3% from 2024 to 2033.

Rise in artificial intelligence maturity in the modern business enterprises and everyday lifestyle of people are signaling significant growth opportunities for the future of the global market. In addition, growing digital and internet penetration around the world is positively impacting the growth of the artificial intelligence market.

Based on component, the software segment held the highest market share in 2023, accounting for nearly two-thirds of the global artificial intelligence (AI) market revenue, and is estimated to maintain its leadership status throughout the forecast period, as AI software is increasingly used in financial institutions for fraud detection, algorithmic trading, risk assessment, and customer service through chatbots and virtual assistants. However, the service segment is projected to attain the highest CAGR of 42.1% from 2024 to 2033, as AI models require continuous monitoring, updating, and maintenance.

Based on technology, the machine learning segment held the highest market share in 2023, accounting for more than two-fifths of the global artificial intelligence (AI) market revenue, and is estimated to maintain its leadership status throughout the forecast period, owing to the fact that machine learning solutions and technologies assist in reviewing massive volume of data and identifying particular trends and patterns that may get missed by humans. However, the generative AI segment is projected to attain the highest CAGR of 41.3% from 2024 to 2033, owing to the fact that these models are then capable of generating new data instances that resemble the training data. Further, generative AI is used to create realistic simulations and training scenarios for various industries, such as aviation and healthcare.

Based on deployment mode, the on-premise segment accounted for the largest share in 2023, contributing more than three-fifths of the global artificial intelligence (AI) market revenue, as on-premises deployment allows organisations to customise AI models and solutions to meet specific business needs, industry requirements, or regulatory constraints. However, the cloud segment is expected to portray the largest CAGR of 40.3% from 2024 to 2033. This is attributed to fact that cloud providers offer AI services, including machine learning platforms, natural language processing, and computer vision APIs, enabling organisations to access AI capabilities through simple APIs without managing underlying infrastructure. In addition, cloud platforms are integrating machine learning operations (MLOps) and DevOps practices to streamline the development, deployment, and management of AI models.

Leading market players: Amazon Web Services Inc., Apple Inc., Google Inc., IBM Corporation, Intel Corporation, Microsoft Corporation, NVIDIA Corporation, Oracle, SAP SE, Siemens, OpenAI, among others.