Analytics Insight estimates the global market of Artificial Intelligence is estimated to grow at a CAGR of 29.0 percent from US$42.8 billion in 2019 to US$152.9 billion in 2023.

The simulation of human intelligence that tends to mimic the actions of humans is a driving force for many industries today. What we call as Artificial Intelligence (AI) exhibits significant traits that make it more relatable to humanly activities, per se, Learning, and Problem Solving. Moreover, as technology is evolving at a great pace, the prior benchmarks are being far exceeded by new intelligent norms and abilities.

For instance, the current AI mechanism can carry out various innovative tasks like catalyzing drug discovery, helping doctors diagnose and treat with efficiency, facial recognition, enable better efficiency for self-driving cars, emotion recognition, and significant others. Though its each subsets market is growing immensely, some applications are yet to be rationalized and regulated in regard to privacy concerns.

One of the most ambitious projects of the technology known as AGI or Artificial General Intelligence is yet to be explored in its full capacity. AGI is said to narrow down the gap between humans and AI more effectively in the coming years. Many companies are investing huge sum to foster this market. For example, the tech giant Microsoft, last year, invested US$ 1 billion in a research firm OpenAI which is working on AGI developments.

Besides, by further application-wise segmentation, the AI market is bifurcated into Machine Learning (ML), Deep Learning, Natural Language Processing (NLP), Computer Vision, and others.

The Prospective Rise in Machine Learning

Analytics Insight predicts that owing to its extensive deployment for data analysis that automates analytical model building, Machine Learning with a share of 44% is leading the Artificial Intelligence market during the forecast period 2019-2023. AI market led by Machine Learning is expected to grow from US$18.8 billion in 2019 to US$80.3 billion at a CAGR of 33.6% in 2023.

Moreover, being the broader family of ML methods, Deep Learning stands second in the row to drive AI's futuristic market with an 18% market share. It is forecast to surge at a CAGR of 27.8% from US$7.7 billion in 2019 to US$26.4 billion in 2023.

Computer Vision is projected to grow at a CAGR of 24.0% from US$6.3 billion in 2019 to US$18.3 billion in 2023. The technology is set to expand with a market share of 15% owing to the wide-scale adoption of its capabilities popularly known as Facial Recognition and Image Recognition.

Further, thriving ahead with the linguistic innovations, NLP is expected to flourish at a CAGR of 28.5% with 13% market share, rising from US$5.8 billion in 2019 to US$20.2 billion in 2023. And others are predicted to grow at a CAGR 12.8% from US$4.2 billion to US$7.8 billion during the forecast period.

North America to Lead Others in AI Market

North America with a share of 47% is the leading region for the Artificial Intelligence market worldwide. The market in the region is projected to grow from US$20 billion in 2019 to US$71.9 billion in 2023 at a CAGR of 29.2%.

Asia Pacific with a projected market share of 30% from US$12.7 billion in 2019 to US$48.9 billion in 2023 stands at second, surging at CAGR of 31.0%. In the European region, the AI market is forecast to soar at a CAGR of 26.7% from US$7.3 billion in 2019 to US$23.9 billion in 2023. The market in Rest of the World is predicted to surge at a CAGR of 23.8% from US$2.8 billion in 2019 to US$8.2 billion in 2023.

Industry-wise Growth of AI and Impact of COVID-19

Evaluating industry-wise data, we observed that the AI market caters to the significant industries including BFSI, Telecommunications and IT, Transport and Logistics, Media and Entertainment, Retail, Manufacturing, Healthcare, and others. Considering Analytics Insight's estimates, it has been found that BFSI with a market share of 48% is the largest sector in the AI market. The BFSI sector is expected reach US$55.7 billion in 2023 up from US$20.6 billion in 2019 growing at a CAGR of 22.0%.

Moreover, the AI in the Healthcare market is set to reach US$49.9 billion up from US$8.9 billion, growing at a CAGR of 41.3%. The current pandemic situation caused by novel coronavirus has been one of the greatest catalysts in the proliferation of the AI market in Healthcare. The extensive use cases of the technology that are emerging across arenas including drug discovery, illness diagnosis, virus tracking, and many more will drive the ever-growing market of AI even in the post-pandemic future. This subsequently makes Healthcare, the second-largest sector after BFSI that will contribute immensely to the progress of the AI market with 21% market share.

Furthermore, growing at a CAGR of 36.2%, the Telecommunications and IT industry holds a 5% market share, rising from US$2.3 billion in 2019 to US$10.7 billion in 2023.

Where in Transport and Logistics, the AI market is forecast to grow from US$3.2 billion in 2019 to US$9.2 billion in 2023 at a CAGR of 23.2%, in Retail, the market is projected to reach from US$2.9 billion in 2019 to US$10.5 billion in 2023 at 29.1% growth rate. Moreover, the Media and Entertainment sectors are expected to grow at a CAGR of 30.0% from US$2.3 billion in 2019 to US$8.4 billion in 2023.

Additionally, the Artificial Intelligence market for Manufacturing is expected to accelerate with a 5% market share, surging from US$2.3 billion in 2019 to US$8.0 billion in 2023, at a CAGR of 28.9%. Furthermore, the market for other industries is anticipated to grow at a CAGR of 5.0% from US$0.4 billion in 2019 to US$0.5 billion in 2023.

"Despite the economic recession caused by the novel coronavirus outbreak worldwide, the AI market is expected to grow by 24% this year against an average growth of 42% during the forecast period. The market will witness extensive use of artificial intelligence and related technologies to track, analyze and prevent the spread of the virus. We would be able to see a slow rebound in the market in the next six months as businesses reopen after a complete lockdown, leading to economic recovery", says Ashish Sukhadeve, CEO, Analytics Insight.