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Artificial Intelligence Market to Reach $407 Billion by 2027

Strategic Insights

— 2 min read

The artificial intelligence market is anticipated to expand significantly in the coming years, driven by the growth of data-based AI and advancements in deep learning. The market, currently valued at $86.9 billion, is expected to reach $407 billion by 2027, with a compound annual growth rate (CAGR) of 36.2%. The healthcare and life sciences segment is projected to grow at the highest CAGR, with applications including patient data and risk analysis, medical imaging and diagnostics, precision medicine, and drug discovery. The cloud segment is also expected to grow at the highest CAGR, driven by the benefits of lower operational expenses, hassle-free deployment, and increased operational flexibility.

Key Takeaways:

  • The artificial intelligence market size is expected to grow from $86.9 billion in 2022 to $407.0 billion by 2027, with a CAGR of 36.2%.
  • The healthcare and life sciences segment is expected to grow at the highest CAGR, with applications including patient data and risk analysis, medical imaging and diagnostics, precision medicine, and drug discovery.
  • The cloud segment is expected to grow at the highest CAGR, driven by the benefits of lower operational expenses, hassle-free deployment, and increased operational flexibility.
  • Major players in the artificial intelligence market include Google Inc., Microsoft Corporation, NVIDIA Corporation, Intel Corporation, Samsung Electronics Co., Ltd., IBM Corporation, Amazon Web Services, Inc., Oracle, Meta, Salesforce, Cisco, Siemens, SAP SE, Alibaba Cloud, and Hewlett Packard Enterprise Development LP.
  • These players have adopted various organic and inorganic growth strategies, including new product launches, partnerships and collaborations, and mergers and acquisitions, to expand their presence in the global artificial intelligence market.
  • Google offers a range of products in the artificial intelligence sector, including the Google AI Platform, TensorFlow, Conversational AI, Recommendation AI, and more.
  • Microsoft has bolstered its position in the global artificial intelligence industry with the development of new Azure Machine Learning, new Visual Studio tools for AI, Cognitive services, and enterprise AI solutions.
  • IBM offers solutions for various industry sectors through Watson, an AI-powered chatbot platform which can be used in a cloud or on-premises environment.

Statistics:

  • Market size: $86.9 billion (2022) - $407.0 billion (2027), CAGR: 36.2%.
  • Healthcare and life sciences segment growth rate: 37.5%.
  • Cloud segment growth rate: 38.2%.
  • Artificial intelligence market size by vertical:

+ BFSI: 24.2%

+ IT/ITES: 17.1%

+ Telecommunication: 15.6%

+ Healthcare and Life Sciences: 14.5%

+ Manufacturing: 12.2%

+ Retail and eCommerce: 8.5%

+ Government and Defense: 6.3%

+ Automotive Transportation and Logistics: 5.1%

+ Energy and Utilities: 4.2%

+ Other verticals: 2.9%

  • Number of players in the artificial intelligence market: 20.
  • Regional growth rates:

+ North America: 35.1%

+ Europe: 31.4%

+ Asia Pacific: 40.5%

+ South America: 28.1%

+ Middle East and Africa: 25.6%

Sources:

  • MarketsandMarkets Research Private Ltd., "Artificial Intelligence Market by Offering, Technology, Deployment Mode, Organization Size, Business Function, Vertical, and Region - Global Forecast to 2027" (2022) - https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-market-74851580.html
  • Google Inc., "Google AI Platform" (2022) - https://cloud.google.com/ai-platform
  • Microsoft Corporation, "Azure Machine Learning" (2022) - https://azure.microsoft.com/en-us/services/machine-learning/
  • IBM Corporation, "Watson" (2022) - https://www.ibm.com/watson/

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