AI and Machine Learning in Business Market

Global AI and Machine Learning in Business Market Size, Share & Trends Analysis Report By Component (Solution and Services), By Enterprise Size, By Industry Vertical, By Application, By Regional Outlook and Forecast, 2024 - 2031

Report Id: KBV-22947 Publication Date: June-2024 Number of Pages: 351
2023
USD 141.2 Billion
2031
USD 1198.4 Billion
CAGR
30.9%
Historical Data
2020 to 2022

Market Report Description

The Global AI and Machine Learning in Business Market size is expected to reach $1198.4 billion by 2031, rising at a market growth of 30.9% CAGR during the forecast period.  

Algorithms utilizing AI and ML can detect and simultaneously respond to cybersecurity threats by analyzing network traffic patterns. These technologies can help IT and telecom companies protect their networks, data, and systems from cyber-attacks. Hence, the IT & telecom segment captured 1/4th revenue share in the market in 2023. In the telecom sector, AI and machine learning implement network slicing, allowing operators to create virtualized networks tailored to specific use cases or customer requirements. This facilitates enhanced utilization of network resources and improved assistance for a wide range of applications and services.

AI and Machine Learning in Business Market Size - Global Opportunities and Trends Analysis Report 2020-2031

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In September, 2023, NVIDIA Corporation partnered with Reliance Industries Limited. The partnership is being done to boost India's artificial intelligence and semiconductor chip ambitions. Additionally, In November, 2023, Google LLC is collaborating with Symphony Limited, to ramp up its voice analytics offering to banks and investment firms. This collaboration will enhance the portfolio of the company.

KBV Cardinal Matrix - Market Competition Analysis

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the AI and Machine Learning in Business Market. In April, 2024, Microsoft Corporation collaborated with Abu Dhabi Bank (FAB), to develop new AI-based banking capabilities. Companies such as NVIDIA Corporation, Amazon.com, Inc., IBM Corporation are some of the key innovators in the Market.

AI and Machine Learning in Business Market - Competitive Landscape and Trends by Forecast 2031

Market Growth Factors

The rise of AI-enabled tools and platforms is significantly transforming the landscape of business operations, offering companies unprecedented opportunities to leverage AI without the need for extensive technical knowledge. By democratizing AI, these platforms and tools enable organizations of any size and in any industry to create and implement AI solutions that enhance customer experiences, drive innovation, and increase efficiency. Thus, the progression of these tools and platforms will support the growth of the market throughout the forecast period.

AI and machine learning technologies are experiencing widespread adoption across many industries, including healthcare, finance, retail, and manufacturing. This increasing adoption is fueled by the recognition of AI's transformative potential in optimizing operations, enhancing customer experiences, and driving innovation across diverse sectors. Similarly, in finance, AI and machine learning enhance fraud detection, risk management, and customer service. Therefore, the increasing adoption of AI and machine learning across industries is driving market growth and transforming businesses' operations.

Market Restraining Factors

The shortage of skilled professionals in artificial intelligence (AI) and machine learning (ML) presents a significant challenge for businesses looking to leverage these technologies. The rapid advancement of AI and ML has created a demand for specialized talent that is far exceeding the current supply. As a result, recruiting and retaining skilled professionals in this field can be extremely challenging for organizations, particularly smaller businesses with limited resources. Thus, the dire lack of skilled professionals may significantly hamper the market's growth.

Driving and Restraining Factors
AI and Machine Learning in Business Market
  • Rise Of AI-Enabled Tools and Platforms
  • Increasing Adoption of AI And ML Across Industries
  • Rapidly Increasing Volume of Data
  • Lack Of Professionals with Expertise in AI and ML
  • High Costs of Implementing AI and ML Solutions
  • Growing Regulatory Support for AI and ML Worldwide
  • Rapid Advancements in Technology
  • Hurdles in Data Quality and Availability
  • Interoperability And Integration Challenges

Component Outlook

Based on component, the market is bifurcated into solution and services. The services segment procured 42% revenue share in the market in 2023. AI and ML services often include consulting and advisory services to help businesses identify opportunities for AI implementation, develop a strategy, and navigate the complexities of AI adoption. These services can also involve developing and integrating AI solutions into existing systems. This can include building custom AI models, integrating third-party AI tools, and ensuring compatibility with existing infrastructure.

Enterprise Size Outlook

On the basis of enterprise size, the market is classified into large enterprises and small & middle-sized enterprises. The small & middle-sized enterprises segment recorded 42% revenue share in the market in 2023. Tools utilizing AI and machine learning are becoming more accessible and affordable to SMBs. Cloud computing and software-as-a-service (SaaS) models allow SMEs to access AI and machine learning tools without significant upfront investment in hardware or software. SMEs often have limited resources and need to be as efficient as possible.

AI and Machine Learning in Business Market Share and Industry Analysis Report 2023

Application Outlook

By application, the market is divided into predictive analytics, cyber security, supply chain & inventory management, data analytics, and others. The supply chain & inventory management segment garnered 15% revenue share in the market in 2023. The integration of AI and machine learning with Internet of Things (IoT) devices and other technologies is becoming more prevalent in order to augment supply chain and inventory management.

Industry Vertical Outlook

Based on industry vertical, the market is segmented into BFSI, IT & telecom, retail, manufacturing & logistics, energy sector & utilities, healthcare, and others. The retail segment garnered 15% revenue share in the Market in 2023. By analyzing in-store data such as customer behavior and foot traffic patterns, AI and machine learning can optimize store layouts and enhance the shopping experience. Moreover, AI and machine learning algorithms can analyze customer data to provide personalized product recommendations.

Free Valuable Insights: Global AI and Machine Learning in Business Market size to reach USD 1198.4 Billion by 2031

By Regional Analysis

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 39% revenue share in the market in 2023. Leading technology companies, as well as academic institutions, are located in North America, which drives innovation in AI and machine learning. These advancements fuel the adoption of AI and machine learning technologies across various regional industries.

Market Competition and Attributes

AI and Machine Learning in Business Market Competition and Attributes

Competition in the AI and machine learning business market is fierce, driven by tech giants like Google, Microsoft, IBM, and Amazon Web Services, alongside agile startups and niche solution providers. Consulting firms and system integrators also play a significant role, offering expertise in implementation and integration. With increasing demand for data-driven insights and automation, companies compete through innovation, customization, and strategic partnerships. Success hinges on differentiation, delivering value, and staying adaptable in an evolving landscape.

AI and Machine Learning in Business Market Report Coverage
Report Attribute Details
Market size value in 2023 USD 141.2 Billion
Market size forecast in 2031 USD 1198.4 Billion
Base Year 2023
Historical Period 2020 to 2022
Forecast Period 2024 to 2031
Revenue Growth Rate CAGR of 30.9% from 2024 to 2031
Number of Pages 351
Number of Tables 483
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives
Segments covered Component, Enterprise Size, Application, Industry Vertical, Region
Country scope
  • North America (US, Canada, Mexico, and Rest of North America)
  • Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific)
  • LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)
Companies Included NVIDIA Corporation, Baidu, Inc., SAP SE, Hewlett Packard Enterprise Company, Microsoft Corporation, IBM Corporation, Intel Corporation, Salesforce, Inc., Google LLC (Alphabet Inc.), and Amazon.com, Inc.
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Recent Strategies Deployed in the Market

  • Apr-2024: Nvidia entered into an agreement to acquire Run:ai, a Kubernetes-based workload management and orchestration software provider. With this acquisition, the company aims to enable its clients to use artificial intelligence (AI) computing resources effiiciently.
  • Apr-2024: Microsoft Corporation collaborated with Abu Dhabi Bank (FAB), offering personal and private banking services, to develop new AI-based banking capabilities. Through this collaboration the company will accelerate advances in generative AI, intelligent automation, and machine learning for financial services.
  • Mar-2024: Hewlett Packard Enterprise Company revealed two generative AI solutions that provide all the necessary compute, storage, software, networking, and consulting services. These solutions are designed to expedite an organization’s AI projects, facilitating the implementation of generative AI (GenAI), deep learning, and machine learning (ML) applications.
  • Nov-2023: Google LLC is collaborating with Symphony Limited, the market infrastructure and tech firm, to ramp up its voice analytics offering to banks and investment firms. This collaboration will enhance the portfolio of the company.
  • Nov-2023: Hewlett Packard Enterprise Company teamed up with NVIDIA Corporation, an American multinational corporation and technology company. Under this collaboration, the companies developed an enterprise computing solution tailored for generative AI (GenAI). The new product jointly engineered, pre-configured solution for AI tuning and inferencing facilitates enterprises, regardless of size, in swiftly tailoring foundational models using proprietary data.

List of Key Companies Profiled

  • NVIDIA Corporation
  • Baidu, Inc.
  • SAP SE
  • Hewlett Packard Enterprise Company
  • Microsoft Corporation
  • IBM Corporation
  • Intel Corporation
  • Salesforce, Inc.
  • Google LLC (Alphabet Inc.)
  • Amazon.com, Inc.

AI and Machine Learning in Business Market Report Segmentation

By Component

  • Solution
  • Services

By Enterprise Size

  • Large Enterprise
  • Small & Middle-sized Enterprise

By Industry Vertical

  • BFSI
  • IT & Telecom
  • Retail
  • Energy Sector & Utilities
  • Manufacturing & Logistics
  • Healthcare
  • Others

By Application

  • Data Analytics
  • Predictive Analytics
  • Cyber Security
  • Supply Chain & Inventory Management
  • Others

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Singapore
    • Malaysia
    • Rest of Asia Pacific
  • LAMEA
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA
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