How Has the Artificial Intelligence Products Market Size Evolved in Recent Years?
The artificial intelligence products market has seen considerable growth due to a variety of factors.
• In recent times, the market size for artificial intelligence products has expanded considerably. The projection is that it will increase from $2.53 billion in 2024 to $2.71 billion in 2025, with a compound annual growth rate (CAGR) of 7.3%.
Factors contributing to this growth during the historical period include enhanced computing capabilities, the emergence of big data, increased government funding for research and development, as well as a rising trend in the adoption of cloud computing.
What Is The Forecast For The Artificial Intelligence Products Market Size?
The artificial intelligence products market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the size of the artificial intelligence products market is predicted to experience significant expansion. It will increase to $3.59 billion in 2029 with a compound annual growth rate (CAGR) of 7.3%.
Factors such as the rapid increase in data generation, the incorporation of AI into business processes, emphasis on responsible AI, and enhanced use of AI in cybersecurity all contribute to this forecasted growth. There are also emerging trends during this forecast period, including the adoption of AI in preventive maintenance, AI's role in natural language processing (NLP), the debut of AI-driven virtual assistants and chatbots, as well as the initial integration of AI into predictive analytics platforms.
What Are The Essential Drivers Behind The Growth Of The Artificial Intelligence Products Market?
The escalation of government actions is projected to stimulate the expansion of the market for artificial intelligence products. These initiatives, whether they be specific measures, programs or policies, are taken by governmental bodies to tackle certain issues or objectives, or instigate beneficial changes in numerous societal realms. Governments take on the role of conveners, amalgamating researchers, industry participants, and civil society groups to cooperate on the production of AI goods. An example of this took place in June 2023, when the Canada-based Ministry of Innovation, Science, and Industry inaugurated the second stage of the Pan-Canadian artificial intelligence scheme, which, backed by a hefty investment surpassing US$ 443 million, highlighted the government's dedication to augment the incorporation and commercial use of AI in diverse sectors of the country's economy. Consequently, the amplification of government initiatives is propelling the expansion of the artificial intelligence products market.
How Is The Global Artificial Intelligence Products Market Divided Into Key Segments?
The artificial intelligence products market covered in this report is segmented –
1) By Product Type: Computer And GPU Chip Hardware, Cloud Hardware, Other Products
2) By Enterprise Size: Large Enterprise, Small And Medium-Sized Enterprise
3) By Application: Media And Advertising, Healthcare, Automotive And Transportation, Other Applications
Subsegments:
1) By Computer and GPU Chip Hardware: Graphics Processing Units (GPUs), Tensor Processing Units (TPUs), Application-Specific Integrated Circuits (ASICs)
2) By Cloud Hardware: Cloud Servers, Cloud Storage Solutions, Cloud Networking Equipment
3) By Other Products: AI Development Kits, AI-optimized Servers, Edge Devices For AI Applications
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What Emerging Trends Are Influencing The Growth Of The Artificial Intelligence Products Market?
Mainstream companies functioning in the artificial intelligence product market are creating progressive products using groundbreaking technologies, such as the application programming interface, to enrich the user's experience. The application programming interface is a cluster of rules and processes that allow distinct software applications to engage and coordinate. For example, OpenAI L.L.C., a technology company based in the USA rolled out a new AI model named GPT-4o, along with a desktop version of ChatGPT in May 2024. GPT-4o, where 'o' symbolizes 'omni', denotes its capacity to facilitate 50 diverse languages with improved speed and excellence. Apart from this, OpenAI launched a desktop variant of ChatGPT, delivering a more user-centric and effective platform. This modern update includes advanced audio capabilities, allowing the chatbot to identify emotions and participate in organic dialogues. The inauguration aims to considerably bolster user interactions and extend the usage of AI technology in several sectors.
Who Are the Key Players In The Artificial Intelligence Products Market?
Major companies operating in the artificial intelligence products market report are:
• Apple Inc.
• Alphabet Inc.
• Microsoft Corporation
• Tencent Holdings Ltd.
• Amazon Web Services Inc.
• Siemens AG
• Intel Corporation
• International Business Machines Corporation
• NVIDIA Corporation
• Salesforce Inc.
• Advanced Micro Devices Inc.
• Baidu Inc.
• Zebra Technologies Corp.
• Autodesk Inc.
• Arm Holdings plc
• Palantir Technologies Inc.
• Databricks Inc.
• UiPath
• Open AI
• Ayasdi AI LLC
• AiCure
• Enlitic Inc.
• Clarifai Inc.
• Sensely Inc.
• Atomwise Inc.
What Are The Regional Insights Into The Artificial Intelligence Products Market?
North America was the largest region in the artificial intelligence products market in 2024. The regions covered in the artificial intelligence products market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
