Artificial Intelligence Market to Reach $309.6 Billion by 2026

Strategic Insights -

The global Artificial Intelligence (AI) market is expected to grow from $58.3 billion in 2021 to $309.6 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 39.7% during the forecast period. The AI market has been driven by the growth of data-based AI and advancements in deep learning, which have led to increased adoption of AI solutions and services. The services segment is expected to account for a higher CAGR during the forecast period due to the growing use of AI and analytics for policymaking, environmental analysis, and real-time decision-making.

Key Takeaways:

  • The AI market is segmented into hardware, software, and services, with services accounting for a higher CAGR during the forecast period.
  • The services segment is expected to account for a higher CAGR due to the growing use of AI and analytics for policymaking, environmental analysis, and real-time decision-making.
  • The Machine Learning (ML) segment is expected to have a larger market size during the forecast period due to the enormous availability of data and increasing adoption of ML by enterprises and federal agencies.
  • AI vendors such as Alphabet Inc., Microsoft Corporation, IBM Corporation, Baidu, Inc., and Intel Corporation have adopted various organic and inorganic strategies to sustain their positions and increase their market shares in the global AI market.
  • Google, a publicly held company, has a significant presence in the AI market with its offerings including Google AI Platform, TensorFlow, Conversational AI, Recommendation AI, and Cloud Tensor Processing Units.
  • Microsoft offers a strong portfolio of AI consisting of NLP and ML-based solutions and has strengthened its presence in the AI market across the globe.

Statistics:

  • The global AI market size is expected to grow from $58.3 billion in 2021 to $309.6 billion by 2026, at a CAGR of 39.7% during the forecast period.
  • The services segment is expected to account for a higher CAGR of 40.6% during the forecast period.
  • The ML segment is expected to have a larger market size of $140.4 billion by 2026, at a CAGR of 41.1% during the forecast period.
  • Google offers a range of AI products, including Google AI Platform, TensorFlow, Conversational AI, Recommendation AI, and Cloud Tensor Processing Units.
  • Microsoft offers a strong portfolio of AI consisting of NLP and ML-based solutions.

Sources:

  • MarketsandMarkets, Artificial Intelligence Market by Offering (Hardware, Software, Services), Technology (Machine Learning, Natural Language Processing), Deployment Mode, Organization Size, Business Function (Law, Security), Vertical, and Region - Global Forecast to 2026.
  • MarketsandMarkets, Artificial Intelligence Market 2021-2026.
  • Google, Google AI Platform.
  • Microsoft, Microsoft AI.