Artificial intelligence (AI) market size to grow by USD 125.3 billion from 2022 to 2027; Prevention of fraud and malicious attacks to drive market growth - Technavio

NEW YORK, June 20, 2023 /PRNewswire/ -- According to Technavio, the global artificial intelligence (AI) market size is estimated to grow by USD 125.3 billion from 2022 to 2027. The market is estimated to grow at a CAGR of 22.26% during the forecast period. This report also offers a 5-year historical (2017-2021) data projection of market size, segmentation, and region. Discover some insights on market size before buying the full report -Request a sample report

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak. The Bargaining Power of Buyers & Suppliers and the Threat of New Entrants, Rivalry, and Substitutes have also been analyzed and rated between LOW-HIGH to provide a holistic view of market favorability.

Find Technavio's Exclusive Analysis of Price Sensitivity, Adoption Lifecycle, Customer Purchase Basket, Adoption Rates, and Purchase Criteria

• One of the core components of the customer landscape is price sensitivity, an analysis of which will help companies refine marketing strategies to gain a competitive advantage. 
• Another key aspect is price sensitivity drivers (purchases are undifferentiated, the purchase is a key cost to buyers, and quality is not important), which range between LOW and HIGH.
• Furthermore, market adoption rates for all regions have been covered.

The artificial intelligence market report also offers information on the criticality of inputs, R&D, CAPEX, technology, and products of 15 vendors listed below -

Advanced Micro Devices Inc., Alphabet Inc., Amazon Web Services Inc., Apple Inc., Argo AI LLC, Baidu Inc., China Cambrian Technology Co. Ltd., CognitiveScale, DataDirect Networks Inc., Graphcore Ltd., Huawei Technologies Co. Ltd., Intel Corp., International Business Machines Corp., Microsoft Corp., Nuance Communications Inc., NVIDIA Corp., Oracle Corp., Qualcomm Inc., Tesla Inc., and Wipro Ltd.

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Artificial Intelligence (AI) Market - Segmentation Assessment

Segment Overview
Technavio has segmented the market based on component (software, hardware, and services), end-user (retail, banking, manufacturing, healthcare, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). 

• The market share growth by the software segment will be significant during the forecast period. AI software enables developers to create intelligent applications and enhance existing applications with machine learning. It also helps improve employee experience and provides workers with efficient, automated solutions to do manual jobs. Such benefits are increasing the dependence on AI software among end-users, which is driving the growth of the segment.

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Artificial Intelligence (AI) Market – Market Dynamics

Key factor driving market growth

• The market is driven by the prevention of fraud and malicious attacks.
• The rising incidences of fraud and malicious attacks have compelled adopt AT technologies to combat them effectively.
• The use of AI technologies in cyber technology solutions helps organizations secure their users' data against digital security threats.
• AI predicts cyberattacks by tracking cyber threats through cybersecurity analytics. It uses Big Data to create predictive analyses of how and when cyberattacks will occur.
• Many such benefits are increasing the use of AI in cybersecurity applications, which is driving the growth of the market.

Leading trends influencing the market 

• The emergence of narrow AI is the key trend in the market.
• Narrow AI enables the implementation of AI technologies to establish a system to replicate human intelligence for a dedicated purpose.
• Siri is one example of narrow AI. It has been designed by Apple for use in its iPhones/iPads for some specific tasks, such as setting up reminders or answering simple questions.
• Another example for narrow AI is IBM's Watson supercomputer. It became famous for winning against a human contestant in the game show Jeopardy.
• The scope of narrow AI is expected to expand and be implemented on a wide range of problems in years to come.
• This trend is expected to have a positive impact on the growth of the market during the forecast period.

Major challenges hindering the market growth

• The shortage of AI experts is the key challenge in the market.
• Finding AI experts is difficult as there is a big competition among the top technology companies to hire the best talent.
• In addition, most companies lack the expertise that is needed to handle AI systems effectively.
• This is resulting in the lower adoption of AI in some of the major sectors, which is hindering the growth of the market in focus.

Geography Overview
By geography, the global artificial intelligence (AI) market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global artificial intelligence (AI) market.

• North America is estimated to contribute 56% to the growth of the global market during the forecast period. Increased investments in AI technologies by large and small enterprises in the retail and e-commerce sector are driving the growth of the regional market. In addition, the increase in technological advances, the rise in the number of connected devices, and the growth in the IoT device market are contributing to the growth of the regional market.

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What are the key data covered in this Artificial Intelligence (AI) Market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the Artificial Intelligence (AI) market between 2023 and 2027
• Precise estimation of the size of the Artificial Intelligence (AI) market and its contribution to the market with a focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the Artificial Intelligence (AI) market across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of Artificial Intelligence (AI) market vendors

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Related Reports:

• The deep learning market is estimated to grow at a CAGR of 29.79% between 2022 and 2027. The size of the market is forecast to increase by USD 11113.13 million. The increasing entry of startups is notably driving the market growth, although factors such as the lack of technical expertise may impede the market growth.
• The conversational AI market size is expected to increase by USD 1.14 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 21.6%. The growth in natural language processing (NLP), machine learning (ML), and AI technologies is notably driving the conversational AI market's growth, although factors such as resistance to using chatbots may impede the market growth.

Table of Contents

1 Executive Summary

• 1.1 Market overview
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Global Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market by Geography
• Exhibit 05: Executive Summary – Chart on Market Segmentation by Component
• Exhibit 06: Executive Summary – Chart on Market Segmentation by End-user
• Exhibit 07: Executive Summary – Chart on Incremental Growth
• Exhibit 08: Executive Summary – Data Table on Incremental Growth
• Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem
• Exhibit 10: Parent market
• Exhibit 11: Market Characteristics

3 Market Sizing

• 3.1 Market definition
• Exhibit 12: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 13: Market segments

• 3.3 Market size 2022

• 3.4 Market outlook: Forecast for 2022-2027 
• Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ billion)
• Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ billion)
• Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
• Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Global artificial intelligence (AI) market 2017 - 2021 
• Exhibit 18: Historic Market Size – Data Table on Global artificial intelligence (AI) market 2017 - 2021 ($ billion)

• 4.2 Component Segment Analysis 2017 - 2021 
• Exhibit 19: Historic Market Size – Component Segment 2017 - 2021 ($ billion)

• 4.3 End-user Segment Analysis 2017 - 2021 
• Exhibit 20: Historic Market Size – End-user Segment 2017 - 2021 ($ billion)

• 4.4 Geography Segment Analysis 2017 - 2021 
• Exhibit 21: Historic Market Size – Geography Segment 2017 - 2021 ($ billion)

• 4.5 Country Segment Analysis 2017 - 2021 
• Exhibit 22: Historic Market Size – Country Segment 2017 - 2021 ($ billion)

5 Five Forces Analysis

• 5.1 Five forces summary
• Exhibit 23: Five forces analysis - Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry
• Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition
• Exhibit 29: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Component

• 6.1 Market segments
• Exhibit 30: Chart on Component - Market share 2022-2027 (%)
• Exhibit 31: Data Table on Component - Market share 2022-2027 (%)

• 6.2 Comparison by Component 
• Exhibit 32: Chart on Comparison by Component
• Exhibit 33: Data Table on Comparison by Component

• 6.3 Software - Market size and forecast 2022-2027 
• Exhibit 34: Chart on Software - Market size and forecast 2022-2027 ($ billion)
• Exhibit 35: Data Table on Software - Market size and forecast 2022-2027 ($ billion)
• Exhibit 36: Chart on Software - Year-over-year growth 2022-2027 (%)
• Exhibit 37: Data Table on Software - Year-over-year growth 2022-2027 (%)

• 6.4 Hardware - Market size and forecast 2022-2027 
• Exhibit 38: Chart on Hardware - Market size and forecast 2022-2027 ($ billion)
• Exhibit 39: Data Table on Hardware - Market size and forecast 2022-2027 ($ billion)
• Exhibit 40: Chart on Hardware - Year-over-year growth 2022-2027 (%)
• Exhibit 41: Data Table on Hardware - Year-over-year growth 2022-2027 (%)

• 6.5 Services - Market size and forecast 2022-2027 
• Exhibit 42: Chart on Services - Market size and forecast 2022-2027 ($ billion)
• Exhibit 43: Data Table on Services - Market size and forecast 2022-2027 ($ billion)
• Exhibit 44: Chart on Services - Year-over-year growth 2022-2027 (%)
• Exhibit 45: Data Table on Services - Year-over-year growth 2022-2027 (%)

• 6.6 Market opportunity by Component 
• Exhibit 46: Market opportunity by Component ($ billion)

7 Market Segmentation by End-user

• 7.1 Market segments
• Exhibit 47: Chart on End-user - Market share 2022-2027 (%)
• Exhibit 48: Data Table on End-user - Market share 2022-2027 (%)

• 7.2 Comparison by End-user 
• Exhibit 49: Chart on Comparison by End-user
• Exhibit 50: Data Table on Comparison by End-user

• 7.3 Retail - Market size and forecast 2022-2027 
• Exhibit 51: Chart on Retail - Market size and forecast 2022-2027 ($ billion)
• Exhibit 52: Data Table on Retail - Market size and forecast 2022-2027 ($ billion)
• Exhibit 53: Chart on Retail - Year-over-year growth 2022-2027 (%)
• Exhibit 54: Data Table on Retail - Year-over-year growth 2022-2027 (%)

• 7.4 Banking - Market size and forecast 2022-2027 
• Exhibit 55: Chart on Banking - Market size and forecast 2022-2027 ($ billion)
• Exhibit 56: Data Table on Banking - Market size and forecast 2022-2027 ($ billion)
• Exhibit 57: Chart on Banking - Year-over-year growth 2022-2027 (%)
• Exhibit 58: Data Table on Banking - Year-over-year growth 2022-2027 (%)

• 7.5 Manufacturing - Market size and forecast 2022-2027 
• Exhibit 59: Chart on Manufacturing - Market size and forecast 2022-2027 ($ billion)
• Exhibit 60: Data Table on Manufacturing - Market size and forecast 2022-2027 ($ billion)
• Exhibit 61: Chart on Manufacturing - Year-over-year growth 2022-2027 (%)
• Exhibit 62: Data Table on Manufacturing - Year-over-year growth 2022-2027 (%)

• 7.6 Healthcare - Market size and forecast 2022-2027 
• Exhibit 63: Chart on Healthcare - Market size and forecast 2022-2027 ($ billion)
• Exhibit 64: Data Table on Healthcare - Market size and forecast 2022-2027 ($ billion)
• Exhibit 65: Chart on Healthcare - Year-over-year growth 2022-2027 (%)
• Exhibit 66: Data Table on Healthcare - Year-over-year growth 2022-2027 (%)

• 7.7 Others - Market size and forecast 2022-2027 
• Exhibit 67: Chart on Others - Market size and forecast 2022-2027 ($ billion)
• Exhibit 68: Data Table on Others - Market size and forecast 2022-2027 ($ billion)
• Exhibit 69: Chart on Others - Year-over-year growth 2022-2027 (%)
• Exhibit 70: Data Table on Others - Year-over-year growth 2022-2027 (%)

• 7.8 Market opportunity by End-user 
• Exhibit 71: Market opportunity by End-user ($ billion)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 72: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

• 9.1 Geographic segmentation 
• Exhibit 73: Chart on Market share by geography 2022-2027 (%)
• Exhibit 74: Data Table on Market share by geography 2022-2027 (%)

• 9.2 Geographic comparison 
• Exhibit 75: Chart on Geographic comparison
• Exhibit 76: Data Table on Geographic comparison

• 9.3 North America - Market size and forecast 2022-2027 
• Exhibit 77: Chart on North America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 78: Data Table on North America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 79: Chart on North America - Year-over-year growth 2022-2027 (%)
• Exhibit 80: Data Table on North America - Year-over-year growth 2022-2027 (%)

• 9.4 Europe - Market size and forecast 2022-2027 
• Exhibit 81: Chart on Europe - Market size and forecast 2022-2027 ($ billion)
• Exhibit 82: Data Table on Europe - Market size and forecast 2022-2027 ($ billion)
• Exhibit 83: Chart on Europe - Year-over-year growth 2022-2027 (%)
• Exhibit 84: Data Table on Europe - Year-over-year growth 2022-2027 (%)

• 9.5 APAC - Market size and forecast 2022-2027 
• Exhibit 85: Chart on APAC - Market size and forecast 2022-2027 ($ billion)
• Exhibit 86: Data Table on APAC - Market size and forecast 2022-2027 ($ billion)
• Exhibit 87: Chart on APAC - Year-over-year growth 2022-2027 (%)
• Exhibit 88: Data Table on APAC - Year-over-year growth 2022-2027 (%)

• 9.6 South America - Market size and forecast 2022-2027 
• Exhibit 89: Chart on South America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 90: Data Table on South America - Market size and forecast 2022-2027 ($ billion)
• Exhibit 91: Chart on South America - Year-over-year growth 2022-2027 (%)
• Exhibit 92: Data Table on South America - Year-over-year growth 2022-2027 (%)

• 9.7 Middle East and Africa - Market size and forecast 2022-2027 
• Exhibit 93: Chart on Middle East and Africa - Market size and forecast 2022-2027 ($ billion)
• Exhibit 94: Data Table on Middle East and Africa - Market size and forecast 2022-2027 ($ billion)
• Exhibit 95: Chart on Middle East and Africa - Year-over-year growth 2022-2027 (%)
• Exhibit 96: Data Table on Middle East and Africa - Year-over-year growth 2022-2027 (%)

• 9.8 US - Market size and forecast 2022-2027 
• Exhibit 97: Chart on US - Market size and forecast 2022-2027 ($ billion)
• Exhibit 98: Data Table on US - Market size and forecast 2022-2027 ($ billion)
• Exhibit 99: Chart on US - Year-over-year growth 2022-2027 (%)
• Exhibit 100: Data Table on US - Year-over-year growth 2022-2027 (%)

• 9.9 China - Market size and forecast 2022-2027 
• Exhibit 101: Chart on China - Market size and forecast 2022-2027 ($ billion)
• Exhibit 102: Data Table on China - Market size and forecast 2022-2027 ($ billion)
• Exhibit 103: Chart on China - Year-over-year growth 2022-2027 (%)
• Exhibit 104: Data Table on China - Year-over-year growth 2022-2027 (%)

• 9.10 Germany - Market size and forecast 2022-2027 
• Exhibit 105: Chart on Germany - Market size and forecast 2022-2027 ($ billion)
• Exhibit 106: Data Table on Germany - Market size and forecast 2022-2027 ($ billion)
• Exhibit 107: Chart on Germany - Year-over-year growth 2022-2027 (%)
• Exhibit 108: Data Table on Germany - Year-over-year growth 2022-2027 (%)

• 9.11 UK - Market size and forecast 2022-2027 
• Exhibit 109: Chart on UK - Market size and forecast 2022-2027 ($ billion)
• Exhibit 110: Data Table on UK - Market size and forecast 2022-2027 ($ billion)
• Exhibit 111: Chart on UK - Year-over-year growth 2022-2027 (%)
• Exhibit 112: Data Table on UK - Year-over-year growth 2022-2027 (%)

• 9.12 France - Market size and forecast 2022-2027 
• Exhibit 113: Chart on France - Market size and forecast 2022-2027 ($ billion)
• Exhibit 114: Data Table on France - Market size and forecast 2022-2027 ($ billion)
• Exhibit 115: Chart on France - Year-over-year growth 2022-2027 (%)
• Exhibit 116: Data Table on France - Year-over-year growth 2022-2027 (%)

• 9.13 Market opportunity by geography 
• Exhibit 117: Market opportunity by geography ($ billion)

10 Drivers, Challenges, and Trends

• 10.1 Market drivers

• 10.2 Market challenges

• 10.3 Impact of drivers and challenges 
• Exhibit 118: Impact of drivers and challenges in 2022 and 2027

• 10.4 Market trends

11 Vendor Landscape

• 11.1 Overview

• 11.2 Vendor landscape
• Exhibit 119: Overview on Criticality of inputs and Factors of differentiation

• 11.3 Landscape disruption
• Exhibit 120: Overview on factors of disruption

• 11.4 Industry risks
• Exhibit 121: Impact of key risks on business

12 Vendor Analysis

• 12.1 Vendors covered
• Exhibit 122: Vendors covered

• 12.2 Market positioning of vendors 
• Exhibit 123: Matrix on vendor position and classification

• 12.3 Advanced Micro Devices Inc. 
• Exhibit 124: Advanced Micro Devices Inc. - Overview
• Exhibit 125: Advanced Micro Devices Inc. - Business segments
• Exhibit 126: Advanced Micro Devices Inc. - Key news
• Exhibit 127: Advanced Micro Devices Inc. - Key offerings
• Exhibit 128: Advanced Micro Devices Inc. - Segment focus

• 12.4 Alphabet Inc.
• Exhibit 129: Alphabet Inc. - Overview
• Exhibit 130: Alphabet Inc. - Business segments
• Exhibit 131: Alphabet Inc. - Key news
• Exhibit 132: Alphabet Inc. - Key offerings
• Exhibit 133: Alphabet Inc. - Segment focus

• 12.5 Amazon Web Services Inc. 
• Exhibit 134: Amazon Web Services Inc. - Overview
• Exhibit 135: Amazon Web Services Inc. - Product / Service
• Exhibit 136: Amazon Web Services Inc. - Key news
• Exhibit 137: Amazon Web Services Inc. - Key offerings

• 12.6 Apple Inc.
• Exhibit 138: Apple Inc. - Overview
• Exhibit 139: Apple Inc. - Business segments
• Exhibit 140: Apple Inc. - Key news
• Exhibit 141: Apple Inc. - Key offerings
• Exhibit 142: Apple Inc. - Segment focus

• 12.7 Argo AI LLC
• Exhibit 143: Argo AI LLC - Overview
• Exhibit 144: Argo AI LLC - Product / Service
• Exhibit 145: Argo AI LLC - Key offerings

• 12.8 Baidu Inc.
• Exhibit 146: Baidu Inc. - Overview
• Exhibit 147: Baidu Inc. - Business segments
• Exhibit 148: Baidu Inc. - Key offerings
• Exhibit 149: Baidu Inc. - Segment focus

• 12.9 CognitiveScale
• Exhibit 150: CognitiveScale - Overview
• Exhibit 151: CognitiveScale - Product / Service
• Exhibit 152: CognitiveScale - Key news
• Exhibit 153: CognitiveScale - Key offerings

• 12.10 Intel Corp.
• Exhibit 154: Intel Corp. - Overview
• Exhibit 155: Intel Corp. - Business segments
• Exhibit 156: Intel Corp. - Key news
• Exhibit 157: Intel Corp. - Key offerings
• Exhibit 158: Intel Corp. - Segment focus

• 12.11 International Business Machines Corp. 
• Exhibit 159: International Business Machines Corp. - Overview
• Exhibit 160: International Business Machines Corp. - Business segments
• Exhibit 161: International Business Machines Corp. - Key news
• Exhibit 162: International Business Machines Corp. - Key offerings
• Exhibit 163: International Business Machines Corp. - Segment focus

• 12.12 Microsoft Corp.
• Exhibit 164: Microsoft Corp. - Overview
• Exhibit 165: Microsoft Corp. - Business segments
• Exhibit 166: Microsoft Corp. - Key news
• Exhibit 167: Microsoft Corp. - Key offerings
• Exhibit 168: Microsoft Corp. - Segment focus

• 12.13 Nuance Communications Inc. 
• Exhibit 169: Nuance Communications Inc. - Overview
• Exhibit 170: Nuance Communications Inc. - Business segments
• Exhibit 171: Nuance Communications Inc. - Key offerings
• Exhibit 172: Nuance Communications Inc. - Segment focus

• 12.14 NVIDIA Corp.
• Exhibit 173: NVIDIA Corp. - Overview
• Exhibit 174: NVIDIA Corp. - Business segments
• Exhibit 175: NVIDIA Corp. - Key news
• Exhibit 176: NVIDIA Corp. - Key offerings
• Exhibit 177: NVIDIA Corp. - Segment focus

• 12.15 Oracle Corp.
• Exhibit 178: Oracle Corp. - Overview
• Exhibit 179: Oracle Corp. - Business segments
• Exhibit 180: Oracle Corp. - Key news
• Exhibit 181: Oracle Corp. - Key offerings
• Exhibit 182: Oracle Corp. - Segment focus

• 12.16 Tesla Inc.
• Exhibit 183: Tesla Inc. - Overview
• Exhibit 184: Tesla Inc. - Business segments
• Exhibit 185: Tesla Inc. - Key news
• Exhibit 186: Tesla Inc. - Key offerings
• Exhibit 187: Tesla Inc. - Segment focus

• 12.17 Wipro Ltd.
• Exhibit 188: Wipro Ltd. - Overview
• Exhibit 189: Wipro Ltd. - Business segments
• Exhibit 190: Wipro Ltd. - Key news
• Exhibit 191: Wipro Ltd. - Key offerings
• Exhibit 192: Wipro Ltd. - Segment focus

13 Appendix

• 13.1 Scope of the report

• 13.2 Inclusions and exclusions checklist 
• Exhibit 193: Inclusions checklist
• Exhibit 194: Exclusions checklist

• 13.3 Currency conversion rates for US$ 
• Exhibit 195: Currency conversion rates for US$

• 13.4 Research methodology
• Exhibit 196: Research methodology
• Exhibit 197: Validation techniques employed for market sizing
• Exhibit 198: Information sources

• 13.5 List of abbreviations 
• Exhibit 199: List of abbreviations

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Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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