The global enterprise artificial intelligence market is estimated to be valued at US$ 21.48 Bn in 2023 and is expected to exhibit a CAGR of 34% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Enterprise artificial intelligence refers to artificial intelligence technologies that are developed to help businesses enhance performance and improve their business workflows and processes. These include predictive analytics, natural language processing, deep learning, robotics, among others. These technologies analyze huge volumes of structured and unstructured data to help businesses make smarter decisions, automate manual tasks and enhance customer experience. The growing adoption of cloud platforms, advancements in AI technologies and increasing focus of organizations to gain insights from data are driving the demand for enterprise AI solutions.
Market key trends:
One of the major trends in the enterprise artificial intelligence market is growing adoption of AI technologies across verticals. Almost every industry verticals such as retail, healthcare, BFSI, manufacturing are implementing AI solutions to gain competitive advantage. BFSI, for example, is leveraging AI for predictive analytics, risk management, fraud detection and customer service. Healthcare sector is using AI for medical imaging, genomic sequencing, vaccine development and drug discovery. Rapid advancements in deep learning, machine learning and natural language processing techniques are also boosting the application of AI across various business processes. Moreover, integration of AI with IoT is expected to open new growth avenues as connected devices generate huge volumes of data which can be analyzed using AI to enable optimization of operations.
Porter’s Analysis
Threat of new entrants: Low-to-medium. Artificial intelligence technologies require significant investments in R&D, machinery, skilled workforce, etc., which create entry barriers for new players. However, the market is growing rapidly attracting new startups.
Bargaining power of buyers: Medium. Large enterprises have stronger bargaining power due to their ability to influence market dynamics but smaller firms have limited influence.
Bargaining power of suppliers: Medium-to-high. Key AI technology providers and cloud service providers possess specialized expertise and infrastructure giving them strong bargaining power.
Threat of new substitutes: Medium. Emerging next-gen technologies pose potential threats to certain AI applications but complete substitution is unlikely in the near future due to AI's diverse use cases.
Competitive rivalry: High. The market landscape is dynamic with intense competition among existing as well as new players to gain market share through innovation.
Key Takeaways
The Global Enterprise Artificial Intelligence (AI) Market Demand is expected to witness high growth, exhibiting 34% CAGR over the forecast period, due to increasing adoption across industries to gain competitive advantage.
Regional analysis: North America dominates the market currently owing to significant technological advancements and presence of major players in the US and Canada. However, Asia Pacific is expected to grow at the fastest pace during the forecast period with increasing investments by Chinese and Indian companies in AI technologies.
Key players: Key players operating in the Enterprise Artificial Intelligence (AI) market are Alphabet Inc., Apple Inc., Amazon Web Services, Inc., International Business Machines Corporation, IPsoft Inc., MicroStrategy Incorporated, NVIDIA Corporation, SAP SE, Verint Systems Inc., and Wipro Limited. These players are focusing on developing innovative solutions and adopting organic growth strategies such as mergers & acquisitions to enhance their market reach.
