In the primary research process, a diverse range of stakeholders from both the supply and demand sides of the artificial intelligence ecosystem were interviewed to gather qualitative and quantitative insights specific to this market. From the supply side, key industry experts, such as chief executive officers (CEOs), vice presidents (VPs), marketing directors, technology & innovation directors, and technical leads from vendor companies offering artificial intelligence infrastructure, software & services were consulted. Additionally, system integrators, service providers, and IT service firms that implement and support artificial intelligence were included in the study. On the demand side, input from IT decision-makers, infrastructure managers, and business heads of prominent enterprise end users was collected to understand the user perspectives and adoption challenges within targeted industries.
The primary research ensured that all crucial parameters affecting the artificial intelligence market—from technological advancements and evolving use cases (predictive maintenance, fraud detection, customer service automation, content generation, personalized recommendations, etc.) to regulatory and compliance needs (GDPR, CCPA, Europe AI Act, AIDA, etc.) were considered. Each factor was thoroughly analyzed, verified through primary research, and evaluated to obtain precise quantitative and qualitative data for this market.
Secondary Research
Once the initial phase of market engineering was completed, including detailed calculations for market statistics, segment-specific growth forecasts, and data triangulation, an additional round of primary research was undertaken. This step was crucial for refining and validating critical data points, such as AI offerings (artificial intelligence infrastructure, software & services), industry adoption trends, the competitive landscape, and key market dynamics like demand drivers (growth in adoption of autonomous artificial intelligence, rise of deep learning and machine learning technologies, advancements in computing power and availability of large databases), challenges (lack of transparency and explainability in decision-making process of AI, concerns related to bias and inaccurately generated output, integration challenges and lack of understanding of state-of-the-art systems), and opportunities (advancements in AI-native infrastructure enhancing scalability and performance, expansion of edge AI capabilities for real-time data processing and decision-making, advancements in generative AI to open new avenues for AI-powered content creation).
Primary Research
In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods were extensively used to perform the market estimation and market forecast for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed on the complete market engineering process to record the critical information/insights throughout the report.
Note: Three tiers of companies are defined based on their total revenue as of 2024; tier 1 = revenue
more than USD 1 billion, tier 2 = revenue between USD 1 billion and 500 million, tier 3 = revenue less than USD 500 million
Source: MarketsandMarkets Analysis
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
To estimate and forecast the artificial intelligence market and its dependent submarkets, both top-down and bottom-up approaches were employed. This multi-layered analysis was further reinforced through data triangulation, incorporating primary and secondary research inputs. The market figures were also validated against the existing MarketsandMarkets repository for accuracy. The following research methodology has been used to estimate the market size:
Artificial Intelligence (AI) Market : Top-Down and Bottom-Up Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.
Market Definition
Many theoretical definitions of artificial intelligence center on a machine's capacity to mimic human behavior or carry out tasks that call for intelligence, but given the majority of current applications, artificial intelligence can be described as “systems that employ methods that can gather data and use it to predict, suggest, or make decisions with varying degrees of autonomy and select the best course of action to accomplish particular objectives”. AI systems leverage advanced techniques such as deep learning, reinforcement learning, and probabilistic reasoning to process data, recognize patterns, and make autonomous decisions or provide predictive analytics. These systems are designed to improve over time through iterative training and adaptation, often utilizing large-scale data and high-performance computing infrastructure to optimize performance and accuracy.
Stakeholders
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AI software developers
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AI infrastructure providers
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AI-integrated service providers
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AI training dataset providers
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Core data service providers
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Business analysts
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Cloud service providers
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Consulting service providers
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Enterprise end users
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Distributors and Value-added Resellers (VARs)
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Government agencies
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Independent Software Vendors (ISVs)
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Managed service providers
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Market research and consulting firms
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Support & maintenance service providers
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System Integrators (SIs)/Migration service providers
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Language service providers
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Technology providers
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Academia & research institutions
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Investors & venture capital firms
Report Objectives
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To define, describe, and forecast the artificial intelligence market, by offering, business function, technology, enterprise application, and end user
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To provide detailed information related to major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the market growth
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To analyze the micro markets with respect to individual growth trends, prospects, and their contribution to the total market
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To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the artificial intelligence market
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To analyze opportunities in the market and provide details of the competitive landscape for stakeholders and market leaders
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To forecast the market size of segments for five main regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
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To profile the key players and comprehensively analyze their market ranking and core competencies
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To analyze competitive developments, such as partnerships, product launches, and mergers and acquisitions, in the artificial intelligence market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Product Analysis
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Product matrix provides a detailed comparison of the product portfolio of each company
Geographic Analysis as per Feasibility
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Further breakup of the North American market for artificial intelligence
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Further breakup of the European market for artificial intelligence
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Further breakup of the Asia Pacific market for artificial intelligence
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Further breakup of the Middle Eastern & African market for artificial intelligence
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Further breakup of the Latin American market for artificial intelligence
Company Information
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Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Artificial Intelligence (AI) Market