Artificial Intelligence (AI) is growing at a breakneck speed. Its applications are being increasingly used across various industries including healthcare, media and advertising, retail, and automotive. Researchers from ‘Variant Market Research’ recently predicted the future of artificial intelligence, and reported that it might reach $43.2 billion by 2024; exhibiting a CAGR of 59.8% during 2016-2024.
The key factors behind the growth in global AI market are the increased need for aerial vehicles, autonomous cars, civil aviation for vehicle tracking, etc.
The researchers also pointed to the rapid adoption of intelligent tutoring systems (ITS) in learning process, for enhancing the demand of AI. ITS is a system that provides instructions and feedback to learners, without the need of any human teacher.
The Variant Market Research reported the data by segmenting the AI market into three parts- Technology, End-User, and Geography.
From the technology point of view, AI covers-
The image recognition and speech recognition technologies also fall under this segment of AI.
In 2016, the natural language processing (NLP) dominated the AI market, because of its demand in developing consumer services including AI-enabled smartphones and car-infotainment systems etc. NLP is expected to continue its dominance during 2016 to 2024.
For developing AI systems, the technology firms are not only using the engineering, but also the computer science, mathematics, biology, and psychology as well.
The end-use segment comprises-
- BFSI (Banking, Financial services and Insurance)
- Retail and manufacturing
- Media and advertising
- Automotive and transportation
The use of artificial intelligence in healthcare industry is predicted to grow at the fastest CAGR during the forecast period- 2016 to 2024.
Now one must be wondering how artificial intelligence works in medicine and healthcare. It has been designed to accurately diagnose diseases like cancer, malignant melanoma, and many other life-taking diseases. It is also used for drug delivery and patient care. These factors have driven the AI growth in healthcare segment.
Following the healthcare, the usage of AI in the automotive and transportation industry too will grow at a significant growth rate. 3. Geography
The geographical segment for the purpose of this study was divided into North America, Europe, Asia Pacific, and Rest of the World (RoW).
Among them, North America accounted for the maximum AI market share, and is predicted to do the same during 2016 to 2024.
North America has completely influenced the growth of AI market with the strong presence of companies that produce domestic and multinational AI products in the region.
What are the barriers to artificial intelligence adoption?
Even though the AI market size is growing rapidly, the deficiency of economic and energy-efficient hardware is still the barrier to AI adoption for small and medium size businesses.
The Variant Market Research report also highlighted that the adoption of ITS in learning process will open more opportunities for AI market in future.
Images source- Variant Market Research