Press release
Key Factor Supporting Artificial Intelligence (AI) Software Market Development in 2025: Rising Investments Fuel AI Software Market Growth
Artificial Intelligence (AI) Software Market Size
How Large Will the Artificial Intelligence (AI) Software Market Size By 2025?
In recent times, the artificial intelligence (AI) software market has experienced considerable expansion. The market, which is projected to be valued at $222.57 billion in 2024, is expected to escalate to $294.71 billion in 2025, with a compound annual growth rate (CAGR) of 32.4%. The surge during the historical time frame is primarily due to factors such as image recognition and analysis, the use of recommendation engines tools, the implementation of robotic process automation (RPA) tools, the adoption of healare AI solutions, and the guidance of regulatory support and ethical policies.
How Big Is the Artificial Intelligence (AI) Software Market Size Expected to Grow by 2029?
The market size of AI software is predicted to surge impressively in the upcoming years, reaching a value of $896.32 billion by 2029 with a CAGR of 32.1%. This anticipated growth during the prediction period can be credited to the broadening scope of AI applications in various industries, the emergence of edge AI coupled with IoT integration, a rising demand for AI in the healare sector, and the widespread roles of autonomous systems and robotics. Key trends to watch out for include understandable AI, democratisation of AI, augmentation and automation powered by AI, transformation of healare through AI, AI in cybersecurity, and AI's impact on climate and sustainability.
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Which Key Market Drivers Powering Artificial Intelligence (AI) Software Market Expansion and Growth?
The growth of the artificial intelligence (AI) software market is anticipated to be fueled by escalating investments in AI startups. These startups are firms that focus on devising and applying AI technology to address specified issues or fulfill market needs. Given the growing demand for AI solutions across different industries and the advantages of cost reduction and scalability, there is a surge in investments in AI startups. Such investments are likely to bolster marketing and sales ventures, consequently helping AI companies to amplify their market reach and accelerate the adoption of software solutions. For instance, the UK AI market, according to the US-based government agency International Trade Administration, in March 2023 is worth over $21 billion at present and is expected to surpass $1 trillion by 2035. Hence, the uptick in investments in AI startups largely contribute to the expansion of the artificial intelligence (AI) software market.
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Which Fast-Growing Trends Are Poised to Disrupt the Artificial Intelligence (AI) Software Market?
Prominent enterprises in the artificial intelligence (AI) software arena are developing sophisticated solutions like Security Copilot to heighten up the cybersecurity skills for their clients. Security Copilot, an advanced AI solution, amplifies cybersecurity efforts by methodically examining colossal datasets and mechanizing diverse cybersecurity operations. For instance, Microsoft Corporation., a leading technology firm from the US, unveiled Security Copilot in March 2024. This AI solution is intended to arm security squads with enhanced features to spot and address threats swiftly. It blends a distinct language model with security-oriented capabilities, drawing its knowledge from global threat intel to deliver customized insights and guidelines for cybersecurity assignments. Its objective is to distill massive data signals into integral insights, proactively identify cyber threats and fortify security stances efficiently.
What Are the Emerging Segments in the Artificial Intelligence (AI) Software Market?
The artificial intelligence (AI) software market covered in this report is segmented -
1) By Deployment Model: On-Premises, Cloud
2) By Technology: Computer Vision, Data Analytics, Machine Learning, Natural Language Processing, Other Technologies
3) By Application: Voice Processing, Text Processing, Image Processing
4) By End-User: Law, Retail, Healare, Banking, Financial Services, And Insurance, Advertising And Media, Automotive And Transportation, Agriculture, Manufacturing, Others End-Users
Subsegments:
1) By On-Premises: Enterprise AI Solutions, Edge AI Solutions, AI For Data Centers, AI For Manufacturing And Industrial Applications
2) By Cloud: Cloud-Based AI Platforms, AI-As-A-Service (AIaaS), Cloud Machine Learning Services, Cloud AI Analytics Services, Cloud AI Integration Tools
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Who Are the Global Leaders in the Artificial Intelligence (AI) Software Market?
Major companies operating in the artificial intelligence (AI) software market are Amazon.com Inc., Apple Inc., Google Plc, Meta Platforms Inc., Tencent Holdings Limited, Intel Corporation, plc, International Business Machines Corporation, Deloitte Touche Tohmatsu Limited, Oracle Corporation, SAP SE, Salesforce.com Inc., NVIDIA Corporation, Cognizant Technology Solutions Corporation, Adobe Inc., Baidu Inc., Infosys Limited, Wipro Limited, Micro Focus International plc, Palantir Technologies Inc., OpenAI, Nuance Communications Inc., UiPath Inc., Automation Anywhere Inc., CognitiveScale Inc.
Which are the Top Profitable Regional Markets for the Artificial Intelligence (AI) Software Industry?
North America was the largest region in the artificial intelligence (AI) software market in 2024. The regions covered in the artificial intelligence (AI) software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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