Artificial Intelligence Engineering Market Size, Share, Opportunities, And Trends By Technology (Deep Learning, Machine Learning, Natural Language Processing, Computer Vision), By Deployment (Cloud, On-premise), By Solution (Software, Services, Hardware), By End-user (Automotives, Communications, Manufacturing, Healthcare, Others), And By Geography - Forecasts From 2023 To 2028

Artificial intelligence engineering is an interdisciplinary field that customizes and integrates computer science concepts and information technology infrastructure to develop new software solutions and tools of artificial intelligence that can be applied across various industries in a real-world context. As per the requirements of their target client or industry, AI engineers develop diversified AI products using deep learning concepts, machine learning models, natural language processing abilities, neural networking system algorithms, and computer vision technology. Companies in a variety of industrial verticals, including the automotive, healthcare, retail, communications, and other manufacturing sectors, are incorporating AI-based software, hardware, and service components in their business operations because of the multitude of benefits linked with the use of AI technology. Hence, the extensive embracement of AI technology and the increase in demand for AI-powered technological solutions across the majority of the sectors in an economy will encourage the further expansion of the artificial intelligence engineering market over the forecast period.

Market Drivers

• Growing adoption of AI technology across different sectors

The extensive adoption of AI technology across a wide range of industries including the fashion and retail sector, transportation sector, healthcare sector, and other manufacturing sectors is fueling the demand for AI engineers and AI-based applications and services. For instance, in February 2023, Beunique Integrated Global Concept, a Nigerian fashion garment company announced the launch of a new AI application that will help its online customers take a skin diagnosis to identify any skin allergies of the customers. This dermatologist-verified diagnosis procedure will prevent the customers from purchasing any fabric that they might be allergic to. In addition, the automotive sector is actively investing in the adoption of AI technology in vehicles to manufacture autonomous driving features and other driver assistance applications. Other than these industries, AI technology is being engineered to meet the requirements of several other sectors due to the convenience and flexibility of adopting AI software in the business operations of companies.

• The need for business automation

The maximization of operational productivity of business tasks and the enhancement in accuracy levels due to the reduction in human errors are promoting the automation of business operations. The Global AI Adoption Index report released by IBM in 2022 established that approximately more than 37% of AI software is being employed to automate IT operations whereas 27% of AI software applications are utilized to automate business workflow processes and customer care services by large companies. Therefore, the increasing demand for business automation and the adoption of AI technology by various industries are impelling the demand for the artificial intelligence engineering market.

The shortage of skilled AI engineers could slow down the expansion speed of the AI engineering market.

The constant evolution in the software and technology field is driving a large amount of demand for AI engineers and AI-based products. However, there is a shortage in the availability of AI experts and engineers to meet this demand. For instance, a report published by a Chinese Tech giant, Tencent revealed that there are only around 300,000 AI experts and engineers in the world while the international demand for AI engineers is in millions of number. The sparse distribution of AI engineers is resulting in high salary demand for the existing engineers which is resulting in an increase in the operating expenses of companies operating in the AI technology field. In addition, AI engineers must be updated with the recent developments in the AI division to prevent their skills from becoming obsolete. Therefore, the lack of appropriate skills and the shortage in the supply of AI engineers has the potential to hinder the rapid growth of the AI engineering market over the forecast period.

Key Developments

• In March 2023, Civilengineering.ai, a newly founded AI tech company in the year 2021, launched a new AI-assisted robot to be used in the planning processes of the construction industry in addition to offering new projects to different companies.
• In March 2023, Google Cloud announced its collaboration with StarHub, a Singaporean telecom company, and released a new product line consisting of three telecom products created by integrating AI software and other IT infrastructure which are intended to be used by telecom product manufacturers.
• In March 2023, Mach9, a company specializing in the production of geospatial technologies introduced a new product that applies AI computer vision technology to generate GIS mapping and data deliverables, 2D and 3D computer-aided design, and other geospatial products.

North America holds a significant portion of the artificial intelligence engineering market and is expected to grow in the forecast period.

The gradual shift of leading companies and brands in North America towards digitalization is promoting the automation of business operations and other related activities. Consequentially, this is generating a high demand for products engineered using artificial intelligence. The presence of international technology conglomerates such as Google and Amazon and the emergence of new AI software startups in the last few years such as Cruise Automation, Palantir Technologies, and Tempus Labs in the US are further creating more demand in the market for AI engineering in North America. In addition, the US Bureau of Labor Statistics reported that the demand for AI jobs and experts will increase to more than 30% by the end of 2030. Hence, it can be anticipated that the North American AI engineering market will expand prominently over the forecast period.

Artificial Intelligence Engineering Market Scope:

Key Market Segments:

• By Technology
  • Deep Learning
  • Machine Learning
  • Natural Language Processing
  • Computer Vision
• By Deployment
  • Cloud
  • On-premise
• By Solution
  • Software 
  • Services
  • Hardware
• By End-User
  • Automotives
  • Communications
  • Manufacturing
  • Healthcare
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Singapore
    • Indonesia
    • Others