Artificial intelligence (AI) Market Size is Expected to Reach USD 169,411.8 Million in 2025 – Valuates Reports

BANGALORE, India, June 30, 2020 /PRNewswire/ — The global Artificial Intelligence (AI) market size is expected to reach USD 169,411.8 Million in 2025, from USD 4,065.0 Million in 2016, growing at a CAGR of 55.6% from 2018 to 2025. 

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Artificial intelligence enables computers and machines to mimic the perception, learning, problem-solving, and decision-making capabilities of the human mind.

AI is positioned at the core of the next-gen software technologies in the market. AI has several industrial applications where production plants can operate without human supervision. AI-enabled applications in the industries are expected to improve efficiency and aid saving of time.

The study provides Porter’s five forces analysis of the AI industry to understand the impact of various factors such as the bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the artificial intelligence market growth. This AI market report focuses on the growth prospects, restraints, and artificial intelligence market trends.

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  • Growing e-commerce, streaming content, and growing internet penetration has led to growth in the marketing industries. Marketers are now searching for more innovative and state-of-the-art marketing solutions for a consumer base that is constantly growing. This has culminated in the adoption of marketing solutions powered by AI.
  • Organizations are trying to analyze consumer data from CRM systems, product reviews, and media commentaries in order to understand their consumers at a granular level, making their ads more focused and effective. With more data being generated across various industries, analyzing the data to get valuable information becomes crucial in making an organization operate successfully. AI helps analyze the data, gain valuable insights, and detect anomalies. These features of the AI are expected to fuel its adoption and, in turn, increase the AI market size during the forecast period.
  • In the retail industry, the application of AI will enable more sophisticated supply chains, a deeper understanding of consumer preferences, and the ability to customize products and purchase experiences both on- and off-line. Furthermore, AI technology will help retailers focus on trend creation and preference formation/brand building. This adoption of AI in the retail industry will increase the AI market size.
  • Increasing R&D investments by leading players will also play a crucial role in increasing the uptake of artificial intelligence technologies.
  • The increasing adoption of autonomous vehicles and EV’s are expected to increase the AI market size during the forecast period. In the automotive industry, AI has many applications, including Advanced Driver Assistance Systems ( ADAS). Neural networks are widely adopted in lane detection vehicles, which facilitate the replacement of expensive sensors.
  • The rising investments in AI technologies by various private organizations is expected to increase the market size during the forecast period. As AI technology is still in its early stage of the product life cycle, the workforce possessing in-depth knowledge of this technology is limited. Thus, the impact of this restraining factor will likely remain high during the initial years of the forecast period of the AI market.

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  • North America held the largest AI market share. One of the major factors that can be attributed to dominance is the emergence of several small-scale enterprises in this region. Furthermore, with its merger-and-acquisition activities and the presence of big companies like Google, Apple, IBM, Intel, and Salesforce, the North American region is further expected to extend its dominance during the forecast period.
  • The Asia Pacific market is expected to witness the highest growth rate during the forecast period. This growth can be attributed to the increasing adoption of deep learning and NLP technologies in finance, agriculture, marketing, and law applications is also driving the market in this region.
  • The increasing adoption of deep learning and NLP technologies in finance, agriculture, marketing, and law applications is also driving the market in this region.
  • In Europe, cloud-based AI deployment is expected to witness significant growth in the coming years due to increasing consumer demand for faster and on-demand access to data and easy document control.


  • The rising prominence of artificial intelligence is enabling new players to venture into the market by offering niche application-specific solutions. Furthermore, companies are engaging in industry consolidations in a bid to gain competitive advantages.
  • Companies such as Google, IBM, Microsoft, and other leading players have actively implemented AI as a crucial part of their technologies.


By Technology

  • Machine learning
  • Natural language processing
  • Image processing
  • Speech recognition.

By Industry Vertical

  • Media & advertising
  • BFSI
  • IT & Telecom
  • Retail
  • Healthcare
  • Automotive & transportation
  • Others (agriculture, law, educational institutions).

By Geography

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • Rest of Asia-Pacific
    • Latin America
    • Middle East
    • Africa

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Key Players

  • Alphabet (Google Inc.)
  • Apple Inc.
  • Baidu
  • IBM Corporation
  • IPsoft
  • Microsoft Corporation
  • MicroStrategy, Inc.
  • Qlik Technologies Inc
  • Verint Systems Inc (Next IT Corp)
  • Others

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  • Artificial Intelligence & Advanced Machine Learning Market Report

Increasing complex data sets, such as big data in the banking sector, is fueling business development. However, the potential of such tools to detect payment fraud propels market development further. Nonetheless, the industry is hindered by high initial investment and maintenance costs. 

It is anticipated that improvements in data processing speeds and the ability of these AI systems to detect non-standard behavioral trends during auditing financial transactions would make way for business growth.

Key players operating in this market are iCarbonX, Jibo. Inc, Next IT Corp., Prisma Labs, Inc., AIBrain, Quadratic Insights Pvt. Ltd., NVIDIA Corporation, Inbenta Technologies Inc., Numenta, and Intel Corporation.

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  • Natural Language Processing (NLP) Market Report

 In 2018, the global Natural Language Processing (NLP) market size was 486.4 Million USD and it is expected to reach 1.748 Billion USD by the end of 2025, with a CAGR of 20.1% during 2019-2025.

The NLP market’s key growth drivers include increasing the usage of smart apps, increasing the adoption of cloud-based technologies, and NLP-based applications to enhance customer support, as well as growing technical innovation in the healthcare sector.

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  • Artificial Intelligence and Machine Learning Market Report

This report also studies the global market competition landscape, market drivers and trends, opportunities and challenges, risks and entry barriers, sales channels, distributors, and Porter’s Five Forces Analysis.

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  • Artificial Intelligence in Healthcare Market Report

The global AI in the healthcare market size was valued at USD 1,441 Million in 2016 and is estimated to reach USD 22,790 Million by 2023, registering a CAGR of 48.7% from 2017 to 2023.

Global AI growth in the healthcare industry is driven by AI’s potential to enhance patient outcomes, need to increase collaboration between healthcare workers & patients, increase the adoption of precision medicine, and a significant rise in investment in venture capital.

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  • Automotive Artificial Intelligence Market Report

The global automotive artificial intelligence market size is expected to reach at USD 8,887.6 Million by 2025, from USD 445.8 Million in 2017, growing at a CAGR of 45.0% from 2018 to 2025.

The growth of the automotive artificial intelligence market is driven by increasing demand for autonomous vehicles and increased preference for improved user interface and comfort features. The threat from hackers and the increase in cybercrime, however, is expected to curb market growth.

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  • Artificial Intelligence in Security Market Report

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  • COVID-19 Impact on AI in Education Market Report

This report provides a complete quantitative data and qualitative analysis on the global market for AI in Education. Market size is analyzed by country, product type, application, and competitors. Expanded coverage includes additional end-user industry breakdowns and in-depth producer profiles.

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  • AI In Telecommunication Market Report

In 2019, the global AI In Telecommunication market size was US$ 773 million. The increasing adoption of AI for various applications in the telecommunication industry and the utilization of AI-enabled smartphones are expected to drive the growth of the AI in telecommunication market size.

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  • Artificial Intelligence as a Service (AIaaS) Market Report

The global artificial intelligence as a service market size (AIaaS Market size) is expected to reach USD 77,047.7 Million in 2025, from USD 2,397.2 Million in 2017, growing at a CAGR of 56.7% from 2018 to 2025.

The rise in the adoption of cloud-based solutions and a surge in requirement for the artificial intelligence and cognitive computing market are the major factors that boost the growth of the AIaaS market.

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  • Artificial Intelligence in Manufacturing Market 

 The global artificial intelligence in the manufacturing market size was USD 513.6 Million in 2017 and is projected to reach USD 15,273.7 Million in 2025, growing at a CAGR of 55.2%.

Enhancement in automation in the manufacturing industry and the rise in demand for big data integration boost the growth of artificial intelligence in the manufacturing market. In addition, widespread usage of machine vision cameras in manufacturing applications, for machinery inspection, material movement, field service, and quality control drive the growth of artificial intelligence in manufacturing market size during the forecast period.

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  • Enterprise Artificial Intelligence (AI) Market

The global enterprise AI market size was valued at USD 4.68 billion in 2018 and is projected to reach USD 53.06 billion by 2026, registering a CAGR of 35.4% from 2019 to 2026. 

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  • Artificial Intelligence in Medicine Market Report

The global artificial intelligence in the medicines market size was valued at USD 719 Million in 2017 and is estimated to reach USD 18,119 Million at a CAGR of 49.6% from 2018 to 2025.

The development of novel pharmaceuticals and biologicals through clinical trials can take more than a decade and cost billions of dollars during that tenure period. AI technology can help to make this process faster and cheaper, which in turn is expected to help improve the efficiency of pharmaceutical and biotechnology companies. The advantages offered by AI are expected to fuel its adoption and, in turn, increase the Artificial Intelligence in Medicine Market size. 

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