AI market forecast to grow fivefold in 5 years
Omega Server
Spread the love

According to recent research published by Amsterdam based ASDReports, the global AI market size is to grow from USD 58.3 billion in 2021 to USD 309.6 billion by 2026, at 39.7% per year.

The report highlights the impact of COVID-19 on AI technology adoption. The COVID-19 pandemic has encouraged new applications and technological developments within the sector. It has accelerated the adoption of AI in sectors such as healthcare. AI-based tools and solutions are being deployed at scale for responding to the crisis. Technology giants such as Microsoft, Google, Apple, Amazon, and Facebook are taking initiatives related to remote communications between patients and clinicians, contact tracing, and drug development.

Besides the healthcare sector, AI has been revolutionizing various industries to uphold business resilience. The education sector started using AI, enabling educators in several ways, such as tracking student performances, identifying gaps in teaching techniques, and automating mundane administrative tasks.

The highest growth is expected in software used by large enterprises in the USA.

Based on components, the AI market is segmented into hardware, software, and services. The software segment is expected to account for largest market size during the next 5 years. The software integrated into computer systems carries out complex operations. It synthesizes the data received from the hardware systems and processes it in an AI system to generate an intelligent response.

The AI market has been segmented by organization size into large enterprises and SMEs. The market share of large enterprises is higher; however, the market for SMEs is expected to register a higher growth rate in the next 5 years. AI helps data management realize which of their practices are ineffective and what all are working best, leading to the adoption of AI solutions in large enterprises.

North America is expected to hold the largest market size in the global AI market. In contrast, the Asia-Pacific region is expected to grow at the highest rate during the next 5 years. The presence of global vendors such as IBM, Google, Microsoft, and AWS would play a vital role in the adoption of AI solutions in the region.

Another report shows that the extended reality market is expected to grow almost fourfold from USD 33.0 billion in 2021 to USD 125.2 billion by 2026, at an annual rate of 30.6%. The market growth can be attributed to several factors, such as surging deployment of extended reality in education sector and industrial training, rising demand for extended reality devices and technology in global automotive industry, surging adoption of extended reality in healthcare sector, and increasing demand for extended reality in entertainment and gaming industry.

Hand in hand with AI, the software segment of the sector is the one with the highest projected growth, with AR the most popular application (as opposed to VR and MR), especially in the automotive industry. Again, the Asia-Pacific region is expected to register the highest annual growth rate.

One particular niche AI application market is also expected to grow, albeit a modest 4% per year. The global queue management system (QMS) market size is set to grow from USD 0.5 billion in 2020 to USD 0.6 billion by 2026, according to a third report.

ADSReports also published a comprehensive 10 year report on the prospects of AI in the drug discovery market up to 2031, providing details about the commercial trends, market shares, industrial activities, revenues, economic and social landscapes and other factors, and showing the potential revenue streams up to 2031, assessing data, trends, opportunities and business prospects.