What Has Been the Progress and Growth of the Applied Artificial intelligence AI Market in Recent Years?
The applied artificial intelligence ai market has seen considerable growth due to a variety of factors.
• The market size for applied artificial intelligence (AI) has seen an immense surge in recent years. The projections indicate that it will expand from $177.28 billion in 2024 to $225.79 billion in 2025, representing a compound annual growth rate (CAGR) of 27.4%.
This notable growth in the past period has been driven by factors such as increased data accessibility, an upsurge in cloud computing usage, heightened demand for automation processes, significant investment in AI research and development, along with regulatory and compliance prerequisites.
What Can Be Expected from the Applied Artificial intelligence AI Market?
The applied artificial intelligence ai market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of applied artificial intelligence (AI) is predicted to surge significantly in the forthcoming years. It's projected to escalate to $587.3 billion by 2029, maintaining a compound annual growth rate (CAGR) of 27.0%.
The predicted growth during the forecast period can be due to the growth of AI capabilities, more emphasis on AI ethics and governance, the expansion in edge computing, the emergence of AI-based personalization, and a greater synergy between AI suppliers and industry leaders. The forecast period will also likely witness major trends like the blend of AI with IoT, AI technology advancements, AI-fueled automation, AI-centric decision support systems, and AI-oriented cybersecurity solutions.
What Are The Core Factors Supporting Growth In The Applied Artificial intelligence AI Market?
The applied artificial intelligence (AI) market is projected to expand driven by the escalating availability of data. Access to and suitability of data for analytical reasons and decision making are aspects of data availability which is surging as a result of the spread of digital devices, internet expansion, and enhancements in data storing and processing technologies leading to an unprecedented level of data collection, storing, and access. Applied AI capitalizes on this data availability to bolster decision making, enhance predictive analytics, and streamline operations across a variety of sectors by evaluating large volumes of accessible data more efficiently. For example, a report from The Linux Foundation in December 2022 pointed out a significant hike in data growth for standard end-user organizations, touching 2,208 TB—a surge of 215.43% from the 700 TB noted in 2021. Hence, the rise in data availability is expected to fuel the expansion of the applied Artificial Intelligence (AI) market.
How Is The Applied Artificial intelligence AI Market segmented?
The applied artificial intelligence (AI) market covered in this report is segmented –
1) By Technology: Machine Learning, Natural Language Processing (NLP), Computer Vision, Expert Systems, Other Technologies
2) By Component: Software, Services
3) By Deployment: Cloud-Based, On-Premise
4) By Application: Healthcare, Automotive, Retail, Finance, Manufacturing, Other Applications
5) By End-User: Large Enterprises, Small And Medium Enterprises (SMEs)
Subsegments:
1) By Machine Learning: Supervised Learning, Unsupervised Learning, Reinforcement Learning, Deep Learning, Neural Networks, Transfer Learning, Ensemble Learning
2) By Natural Language Processing (NLP): Speech Recognition, Text Analytics And Sentiment Analysis, Machine Translation, Chatbots And Virtual Assistants, Named Entity Recognition (NER), Text Summarization, Speech-to-Text And Text-to-Speech
3) By Computer Vision: Image Recognition, Object Detection, Facial Recognition, Video Analytics, Optical Character Recognition (OCR), Image Segmentation, Gesture Recognition
4) By Expert Systems: Rule-Based Expert Systems, Knowledge-Based Expert Systems, Fuzzy Logic Systems, Decision Support Systems, Cognitive Computing Systems
5) By Other Technologies: Robotics Process Automation (RPA), Predictive Analytics, Augmented Reality (AR) And Virtual Reality (VR), Swarm Intelligence, Quantum Computing In AI
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What New Trends Are Influencing The Applied Artificial intelligence AI Market?
Principal firms in the applied artificial intelligence (AI) sector are concentrating on AI-fueled customization, such as AI-enabled website helpers, to boost user interaction, stimulate customer involvement, and elevate conversion rates via the delivery of personalized content and assistance. AI-enabled website helpers are digital aids that employ AI to interact with users, offering personalized support, resolving queries, and upgrading the comprehensive user experience on websites. For instance, Cognistx, a US-based applied AI firm that creates multi-strategy AI systems to tackle complicated business problems, rolled out SQUARY in June 2024. This is an AI-enabled website helper that evolves according to user interactivity. Unlike conventional chatbots, SQUARY leverages machine learning to comprehend user objectives and supply precise, personalized responses. It interconnects with current systems to maintain consistency with organizational objectives. In the medical field, SQUARY delivers trustworthy medical details and schedules appointments, while in education, it helps with course-related inquiries, scholarly resources, and homework assignments.
Who Are the Key Players In The Applied Artificial intelligence AI Market?
Major companies operating in the applied artificial intelligence (AI) market are:
• Apple Inc.
• Alphabet Inc.
• Microsoft Corporation
• Meta Platforms Inc.
• Amazon Web Services Inc.
• Intel Corporation
• International Business Machines Corporation
• Salesforce Inc.
• NVIDIA Corporation
• Baidu Inc.
• SAS Institute Inc.
• HubSpot Inc.
• Databricks Inc.
• UiPath Inc.
• Anthropic PBC
• Mango Technologies Inc. (ClickUp)
• Freshworks Inc.
• C3.ai Inc.
• DataRobot Inc.
• OpenAI L.P.
• Pipedrive OÜ
• Jasper AI Inc.
• H2O.ai Inc.
• Deep North Inc.
• Gridspace Inc.
What Is The Most Dominant Region In The Applied Artificial intelligence AI Market?
North America was the largest region in the applied artificial intelligence (AI) market in 2024. The regions covered in the applied artificial intelligence (AI) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
