The global artificial intelligence (AI) market is set to explode in the coming years, jumping from less than $22 billion today to nearly $191 billion by 2025.
That’s according to a new report by MarketsandMarkets, which expects a compound annual growth rate (CAGR) of almost 37 percent.
Major drivers for the market are growing big data, the increasing adoption of cloud-based applications and services, and increasing demand for intelligent virtual assistants. However, the limited number of AI technology experts is a major market barrier.
The AI services sector is expected to have the largest annual growth between 2018 and 2025. AI-based systems require deployment and integration, and support and maintenance services. Also, most companies that manufacture and develop AI-based systems and related software provide both online and offline support, depending on the application, according to MarketsandMarkets.
Of all the verticals, AI in manufacturing is expected to grow at the highest CAGR during the forecast period. Increasing data volume derived from the manufacturing value chain has led to the involvement of AI-enabled data analytics in the manufacturing sector. In addition, several industry initiatives have accelerated the growth of AI-enabled devices in manufacturing.
Among regions, North America is expected to hold the largest AI market share through 2025, MarketsandMarkets said. Businesses in the U.S. and Canada are adopting the latest technologies earlier than their counterparts in other parts of the world. Basic awareness of AI in North America also exceeds what’s being seen in other regions.
Asia Pacific is expected to grow the most annually during the forecast period, with increasing adoption in finance, agriculture, marketing and law.