Manufacturing sector continuously needs adaptation and innovation in a sustainable manner using new technologies. As such, smart manufacturing requires the use of smart production application technology to promote sustainability. With intensive R&D efforts in the field of artificial intelligence (AI), a number of AI-based techniques such as machine learning have been continuously deployed across various industries for different applications. With rapid move towards Industry 4.0, artificial intelligence (AI) is considered as the driving force of smart factory automation.
High proliferation rate of connected devices and growing penetration of high-speed internet connectivity has resulted in a significant rise in data volume. With the growing volume of data, there has been a constant requirement for more efficient systems and solutions to solve complex mathematical and computational problems. Thus, booming volume of big data is the major driver of artificial intelligence (AI) solutions market.
Artificial Intelligence (Ai) Solutions Market Size, in US$ Billion,
2019 and 2025
Source: Knowledge Sourcing Intelligence Analysis
The above figure shows the market size of artificial intelligence (AI) solution market. According to the Knowledge Sourcing Intelligence analysis, the artificial intelligence (AI) solutions market is projected to grow at a CAGR of 17.26%, reaching a total market size of US$150.204 billion in 20205 from US$57.767 billion in 2019.
From autonomous cars to chatbots, more and more widespread implementation of artificial intelligence (AI) applications across different industry verticals is transforming industry as well as society, offering fewer repetitive tasks and increased efficiencies. For instance, in the automotive and transportation sector, artificial intelligence (AI) solutions are committed to improve road safety; use of artificial intelligence (AI) in the healthcare sector hold promising future to provide solutions for many incurable diseases while allowing remote care. Artificial intelligence (AI) technology is also helping to combat the adverse impact of climate change with smart technology and sensors reducing greenhouse gas emissions. High level of investment in research and development in each application field is boosting the rate of adoption of artificial intelligence (AI) solutions, thus positively impacting the market growth. Artificial intelligence solutions are also being integrated into video surveillance. As such, with rising government spending for cybersecurity solutions integrated with real-time analytics also propels the artificial intelligence (AI) solutions market growth.
Other factors that are bolstering the growth of artificial intelligence (AI) solutions market include rising popularity of quantum computing and growing robotics industry.
Estimated Annual Global Supply of Industrial Robots, in Thousand of Units
Source: International Federation of Robotics (IFR)
According to the International Federation of Robotics (IFR) future outlook, the annual number of robots supplied to factories around the world is projected to reach 630,000 units in 2021 from 381,000 units in 2017. Robots are helping to improve the manufacturing productivity across different end-use industries while utilizing artificial intelligence (AI) technology among several other cutting-edge technologies for various applications. Increasing investments, both public and private, in smart city projects across various regions also provides a great opportunity for artificial intelligence (AI) solutions market players thereby driving the overall market growth during the forecast period.
Furthermore, AI startups are continuously being backed by various venture capitalists which will also bolster the artificial intelligence (AI) solutions market growth during the next five years.
Market Segment Overview
Artificial Intelligence (AI) solutions market has been segmented by deployment model, technology, enterprise size, end-user industry, and geography. By deployment model, the market segmentation has been done as on-premise and cloud. Artificial Intelligence (AI) solutions market has been classified by technology as machine learning, deep learning, machine vision, and natural process learning. BY enterprise size, the market has been segmented as small, medium, and large, BY end-user industry, the market segmentation has been done as healthcare, manufacturing, BFSI, communication and technology, education, and others. Geographically, the major regional Artificial Intelligence (AI) solutions market are North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC).
Impact of COVID-19
The recent COVID-19 pandemic outbreak has further accelerated the growth of AI solutions market and will continue as companies shift their focus to recovery. With a large number of people working remotely while consumers purchasing goods online due to nationwide lockdowns and mandatory social distancing measures in order to curtail the transmission of coronavirus, there has been a sudden spike in the demand for AI solutions. For instance, AI-enabled platforms are helping enterprises better stimulate live work environments and creating on-demand labor forces. AI is also helping companies detect new consumption patterns and deliver personalized products to online customers. In the post-COVID situation, the application of artificial intelligence is likely to be very important and valuable in helping companies to adapt to these changed trends. Recession caused by coronavirus is driving more adoption of new business models supported by AI technology and solutions. The pandemic has already started replacing human center workers with AI chatbots. Although call center have been continuously automating the workplace, this pandemic has accelerated the process.
Even governments in various countries are planning to implement programs and policies to further support the deployment of AI technology and solutions. For example, in 2017, the Chinese government announced its plans to ‘lead the world’ in AI technology and solutions by 2030. Taiwan’s Ministry of Science and Technology (MOST) also has plans to build an AI innovation ecosystem which involves different aspects of the artificial intelligence such as technologies, talents, field domains, and industries, aiming to become a key players in the global AI value chain. In 2019, South Korean president also launched a National Strategy for Artificial Intelligence, focusing on the country’s industrial and educational efforts on the potential opportunities in this technology.
ABOUT THE AUTHOR:
Anjali Joshi is a senior market research analyst at Knowledge Sourcing Intelligence. She oversees a team of analysts and is known for the quality of market intelligence she delivers to the clients which range from start-ups and Non-profit Organizations to Fortune 500 companies. Anjali’s keen understanding of international business and market dynamics, coupled with her years of experience working in this industry, allows her to analyse current and future trends across both global and clients’ target markets and help them in making informed decisions.