The worldwide artificial intelligence market is expected to expand by a factor of nearly 60 by 2025, propelled partly by the adoption of artificial narrow intelligence technologies, according to a report from market intelligence firm Grand View Research Inc.
AI revenue—including hardware, software, and associated service solutions, will increase to $35.9 billion in 2025, up from $641.9 million in 2016.
“Artificial Intelligence has witnessed tremendous growth in the recent past due to the necessity for advancement in the areas of machine translation, object perception, and object recognition,” Grand View stated. “The landscape of tools and infrastructure for training and deploying of neural networks via ‘Machine Learning’ is further evolving rapidly. The rapid uptake of artificial intelligence in end-use industries such as retail and business analytics is expected to augment growth over the next few years.”
Among the forms of AI tracked by Grand View are artificial narrow intelligence technologies, such as natural language processing and machine vision.
Artificial narrow intelligence represents a class of AI technology designed to perform a specific task. This narrow approach is expected to dominate the AI market in the coming years while artificial general intelligence solutions that approximate human capabilities remain under development.
A flood of artificial narrow intelligence technologies is entering the market, including cognitive engines that can conduct transcription, translation and object-recognition tasks. These technologies often target specific uses.
“The growing prominence of artificial intelligence is enabling new players to venture into the market by offering niche application-specific solutions,” Grand View observed.
Among the end-use markets driving the adoption of AI are health care; banking, financial services and insurance; law; retail and advertising and media.
“The advertising & media segment dominated the overall market and accounted for over 20% of the total market share in 2016,” Grand View observed.
Beyond the direct revenue generated by the sales of AI technology, Grand View has forecasted the indirect market for areas enabled by artificial technology. This larger AI-enabled market is expected to expand to more than $58 billion in 2025, up from about $5.9 billion in 2016.
North America in 2016 led the world in terms of AI market revenue, due to the availability of extensive government funding, the leading players in the region and the strong technical-adoption base. Grand View anticipates North America will continue to dominate the market through 2025. However, Asia-Pacific will lead in terms of growth, with revenue expanding at a compound annual growth rate of more than 68.5 percent from 2016 through 2025.
Tyler Schulze is vice president, strategy & development at Veritone. He serves as general manager for developer partnerships, cognitive engine ecosystem, and media ingestion for the Veritone platform. Learn more about our platform and join the Veritone developer ecosystem today.