“Global Neural Network Market to reach a market value of USD 160.37 Billion by 2031 growing at a CAGR of 26.1%”
The Global Neural Network Market size is expected to reach $160.37 billion by 2031, rising at a market growth of 26.1% CAGR during the forecast period.
Neural networks enable telecom providers to analyze massive volumes of data for predictive maintenance, network optimization, and anomaly detection. Additionally, the growing emphasis on cybersecurity solutions powered by neural networks helps identify and respond to threats efficiently, driving adoption in this segment. The IT & telecom segment garnered 12% revenue share in the market in 2023. The IT & telecom segment benefits from the rising demand for AI-driven solutions to optimize network operations and enhance customer service. The adoption of 5G technology and IoT applications has created a need for real-time data processing, where neural networks play a critical role.
The influence of neural networks extends further into transformative technologies like autonomous vehicles and robotics. Autonomous vehicles rely on neural networks for object detection, environment mapping, and decision-making in dynamic traffic scenarios. These networks process data from sensors, cameras, and radar to navigate safely and efficiently. Similarly, in robotic systems, neural networks enable advanced functionalities like adaptive learning, task precision, and autonomous navigation in unstructured environments. Additionally, the symbiotic relationship between growing data volumes and neural networks' capabilities ensures their growing importance in the modern digital economy. As more data becomes available, neural networks’ performance and accuracy continue to improve, fostering advancements in areas like autonomous systems, smart cities, and precision healthcare. This dynamic place neural networks as a cornerstone technology for deriving value from data, shaping the future of innovation and decision-making across industries. Thus, these factors have propelled the expansion of the market.
However, the operational costs of running these systems add to the challenge. Neural networks are computationally intensive, leading to high energy consumption and increased cooling requirements to ensure optimal hardware performance. These ongoing costs impact the financial bottom line and raise concerns about environmental sustainability. Consequently, the substantial computational expenses associated with neural networks present a significant barrier to entry for numerous organizations, particularly those situated in developing markets or operating within industries characterized by narrower profit margins. This limitation hinders their widespread adoption and overall impact.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
The software segment is further divided into analytical software, optimization software, visualization software, data mining & archiving, and others. The analytical software segment acquired 44% revenue share in the market in 2023. As businesses increasingly rely on data-driven decision-making, analytical software has become indispensable for predictive modeling, trend analysis, and forecasting across healthcare, finance, and retail industries. The integration of advanced AI capabilities into analytical software, such as real-time processing and natural language understanding, further enhances its value. Additionally, the rising adoption of cloud-based platforms has made analytical tools more accessible and scalable, accelerating their adoption.
On the basis of vertical, the market is classified into BFSI, business function, IT & telecom, aerospace & defense, public sector, retail, healthcare, manufacturing, and others. The aerospace & defense segment procured 9% revenue share in the market in 2023. The aerospace & defense segment is propelled by the critical need for advanced technologies to ensure safety, efficiency, and operational precision. Neural networks are increasingly used in threat detection, autonomous systems, and mission planning applications. These technologies enhance situational awareness, support real-time decision-making, and improve reliability in high-stakes environments. Increased government investments in AI research and the growing adoption of unmanned systems have further driven the integration of neural networks in aerospace and defense applications.
Based on component, the market is bifurcated into software and services. The services segment procured 46% revenue share in the market in 2023. Organizations rely heavily on consulting and system integration services to design custom neural network architectures tailored to their needs. The rising adoption of managed services for regular maintenance, scalability, and performance optimization has expanded the segment. Additionally, the lack of skilled professionals in many industries has boosted the demand for expert training and support services to bridge the talent gap. These factors, coupled with the growing need for technical assistance in deploying cutting-edge AI technologies, have propelled the growth of the services segment within the neural network market.
Free Valuable Insights: Global Neural Network Market size to reach USD 160.37 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 38% revenue share in the market in 2023. The North America segment is propelled by its status as a global frontrunner in technological innovation and the adoption of artificial intelligence. The presence of prominent technology corporations, including Google, Microsoft, and IBM, coupled with substantial financial investment in artificial intelligence research and development, has significantly expedited the expansion of the neural network market in this region.
Report Attribute | Details |
---|---|
Market size value in 2023 | USD 26.01 Billion |
Market size forecast in 2031 | USD 160.37 Billion |
Base Year | 2023 |
Historical Period | 2020 to 2022 |
Forecast Period | 2024 to 2031 |
Revenue Growth Rate | CAGR of 26.1% from 2024 to 2031 |
Number of Pages | 283 |
Number of Tables | 420 |
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, Vertical, Region |
Country scope |
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Companies Included | Intel Corporation, SAP SE, NVIDIA Corporation, nDimensional, Inc., OLSOFT LLC, Oracle Corporation, Microsoft Corporation, Ward Systems Group, Inc., IBM Corporation, Google LLC (Alphabet Inc.) |
By Component
By Vertical
By Geography
This Market size is expected to reach $160.37 billion by 2031.
Rising Adoption of Artificial Intelligence and Machine Learning are driving the Market in coming years, however, High Computational Costs Required to Develop and Deploy restraints the growth of the Market.
Intel Corporation, SAP SE, NVIDIA Corporation, nDimensional, Inc., OLSOFT LLC, Oracle Corporation, Microsoft Corporation, Ward Systems Group, Inc., IBM Corporation, Google LLC (Alphabet Inc.)
The expected CAGR of this Market is 26.1% from 2023 to 2031.
The Software segment is leading the Market by Component in 2023; thereby, achieving a market value of $82.96 billion by 2031.
The North America region dominated the Market by Region in 2023; thereby, achieving a market value of $58.63 billion by 2031.
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