ChatGPT has everyone talking, but the wider impact of artificial intelligence (AI) will expand far beyond any one tool, function, company, or industry. Market research analysts have calculated the market potential for AI across various industries, and the growth rates are astonishing. The global market for AI is expected to increase by hundreds of billions of dollars in just a few short years.
For a more detailed look at AI industry growth statistics, this article sources data from recent AI market reports by Global Industry Analysts, one of the world’s largest and most reputed market research firms. First, we'll touch on growth projections for AI as a global market, and then we'll dive into specific AI market segments that are expected to take off in the near future and companies that have been identified as leading competitors.
Global Artificial Intelligence Market Forecast
So just how fast is the AI market growing? The global market for artificial intelligence was an estimated $46.9 billion in 2020 and is projected to reach a staggering $341.4 billion by 2027, expanding at a compound annual growth rate (CAGR) of 32.8% over the forecast period, according to Global Industry Analysts.
It may come as no surprise that the U.S. market is predicted to grow at a fast CAGR, but many other geographic markets will also expand at a rapid pace between 2020 and 2027, including China at 39.1%, Germany at 31.2%, Japan at 27.6%, and Canada at 29%.
Global Industry Analysts identifies 865 competitors in the AI market including well-known tech companies like Amazon, Baidu, Cisco Systems, Google, Intel Corporation, Meta, Microsoft, and Oracle, as well as diversified conglomerates such as General Electric and Siemens.
Artificial Intelligence Chipsets
Alongside the rise of AI, the demand for chipsets designed for AI is also predicted to accelerate quickly. The global market for artificial intelligence chipsets was an estimated $13.4 billion in 2020 and is expected to reach $125 billion by 2027, rising at a CAGR of 37.5%.
Within this market, the processor segment is expected to record a 36.1% CAGR, while the memory segment is predicted to grow even faster with a 39.4% CAGR. A report on AI chipsets highlights 37 competitors to watch including Advanced Micro Devices, Fujitsu, Huawei Technologies, and Qualcomm Technologies, among many others.
AI in Healthcare Market
Healthcare is another area that offers vast potential for artificial intelligence. The global market for artificial intelligence in healthcare was an estimated $14 billion in 2020 and is projected to hit $119.8 billion by 2027, increasing at a CAGR of 35.9%.
The artificial intelligence in healthcare market in China is forecast to grow at a CAGR of 34.7%. Other fast-growing markets include Japan at 32.6%, Canada at 30.7%, and Germany at 25.1%. A total of 222 companies are featured in a report on this market by Global Industry Analysts, including Johnson & Johnson Services, Koninklijke Philips, Medtronic, and Siemens Healthineers, among others.
Artificial Intelligence in Marketing
Marketing is massive growth opportunity for AI as well. The global market for artificial intelligence in marketing was an estimated $17.8 billion in 2020 and is forecast to reach $93.5 billion by 2027, growing at a CAGR of 26.8%.
Top geographic markets for AI in marketing include the U.S., China, Japan, Canada, and Europe. The Global Industry Analysts report on AI in marketing mentions 268 different companies in this market, including InsideSales, Oculus360, Persado, Salesforce, Sentient Technologies, Zensed, and many others.
AI in Computer Vision
In addition, AI in computer vision is expected to evolve rapidly and create vast new market opportunities. The global market for artificial intelligence in computer vision was an estimated $19.5 billion in 2020 and is expected to reach $84.1 billion by 2027, accelerating at a CAGR of 23.3%.
According to Global Industry Analysts, the software market segment is expected to rise at a CAGR of 23.9%, while the hardware segment is projected to grow at 21.8%. In the report, analysts highlight 407 companies in this market, including Allied Vision Technologies, Alphabet, Apple, Omron, Sony, and Teledyne Technologies, plus many more.
Artificial Intelligence in Security
Artificial intelligence will also play an increasing role in security, impacting a wide range of scenarios from home security systems to border control to credit card fraud detection and beyond. The global market for artificial intelligence in security was an estimated $16 billion in 2020 and is projected to hit $57.6 billion by 2027, rising at a CAGR of 20.1%.
The U.S. is the leading market for AI in security, and the world’s second largest economy, China, is expected to trail at a 19.7% annual growth rate. Other noteworthy markets include Japan and Canada, which are forecast to increase at 17.9% and 17.1% respectively over the 2020-2027 period.
A report by Global Industry Analysts features 277 companies in this market, including Acalvio Technologies, Fortinet, Securonix, ThreatMetrix, and Xilinx, among others.
Artificial Intelligence in Manufacturing
Artificial intelligence solutions can help reduce labor costs and improve efficiency and productivity in manufacturing, which will be a huge growth sector for AI. The global market for artificial intelligence in manufacturing was an estimated $2.6 billion in 2020 but is predicted to reach $48.9 billion by 2027, increasing at a CAGR of 51.9%.
The machine learning segment is projected to rise at a CAGR of 56.5%, while the natural language processing segment is forecast to grow at a 49.2% CAGR. The report features 152 select competitors in its report on AI in manufacturing, including Bright Machines, Mitsubishi Electric, Rethink Robotics, Sight Machine, and UBTECH Robotics, as well as many others.
Other Growth Opportunities for AI
This article shines a spotlight on a few AI industries with the highest growth rates and market sizes, but there are many other markets that could be impacted by AI as well.
Market researchers at Global Industry Analysts have also analyzed how AI will expand in automotive, robotics, fintech, accounting, construction, fashion, power storage, military, education, IoT, retail, aviation, genomics, telecommunications, agriculture, social media, supply chain, call centers, oil & gas, and drug discovery, just to name a few. Based on the list, you might be left wondering if there are any industries that will not be touched by AI in the future.
Find Additional AI Market Research
If you need additional information on artificial intelligence industry growth, AI industry trends, or AI market sizing, be sure to check out MarketResearch.com, which offers research from hundreds of respected firms. Search our reports on artificial intelligence, and get in touch with a research specialist who can help you find what you need at no additional cost.
About the Author: Sarah Schmidt is a Managing Editor at MarketResearch.com, a leading provider of global market intelligence products and services.