The global sales of AI platform is projected to be worth USD 19.8 billion in 2024 and expected to reach a value of USD 136.5 billion by 2034. Sales are estimated to rise at a CAGR of 21.3% over the forecast period between 2024 and 2034. The income created by AI platform in 2023 was USD 16.3 billion. The industry is projected to register a Y-o-Y growth of 21.1% in 2024.
The AI platform market states to the sector involving software and services that allows companies to develop, deploy, and manage AI applications. This market includes various tools, frameworks, and environments which simplify the creation of AI models & systems, driving the AI platform market growth. Main elements of AI platforms include machine learning frameworks, deep learning tools, natural language processing (NLP) services, and data analytics solutions.
AI platforms provides several important benefits. Firstly, they provide strong infrastructure for handling huge amounts of data, which is vital for training AI models. These models incorporates various tools into an interconnected environment.
These simplifies the process of data collection, preparation, and analysis, making it easier for organizations to gain actionable insights. This efficacy is mainly beneficial for businesses looking to utilize AI for data-driven decision-making, supporting the growth of AI platform market.
Also, AI platforms augment throughput by automating difficult tasks. For instance, they can automate data entry, process optimization, and customer service interactions through chatbots & virtual assistants. This automation lessens the need for manual intervention, cuts operational costs, and lets employees to emphasis on higher-value activities.
Furthermore, AI platforms support scalability and flexibility. They provide cloud-based solutions that can easily scale up or down based on demand. This provides an organizations with the ability to handle unstable workloads and expand their AI capabilities without large investment. This adaptability is essential for companies of all sizes, from small startups to major conglomerates.
Global AI Platform Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 16.3 billion |
| Estimated Size, 2024 | USD 19.8 billion |
| Projected Size, 2034 | USD 136.5 billion |
| Value-based CAGR (2024 to 2034) | 21.3% |
AI platforms simplify revolution by providing access to innovative algorithms and pre-built models. The companies can use these resources to create custom solutions as per their definite needs. This quickens the development process and helps companies stay competitive by swiftly adjusting to new technologies and market drifts.
Automation in manufacturing is considerably driving the growth of the AI platform market by augmenting operational efficacy, and productivity. As manufacturing processes become increasingly automated, the demand for AI platforms grows. These platforms provide the advanced abilities needed to augment and manage automation systems.
AI platforms are essential for incorporating and managing various automation technologies in manufacturing. They provide advanced analytics and machine learning solutions that allows predictive maintenance, real-time process optimization, and quality control.
By evaluating data from sensors and equipment, AI platforms can forecast potential failures, optimize machine performance, and safeguard product quality. These reduces downtime and operational costs, supporting AI platform growth in manufacturing sector.
Various engineering companies are partnering with technology company to develop AI-powered solutions for manufacturing industry. For instance, in July 2024, engineering company, Sandvik announced the incorporation of artificial intelligence into its CAD/CAM software, collaborating with technology company, Microsoft Corporation.
Using Microsoft Azure's cloud and AI services, it offers 24/7 intelligent customer support and real-time updates, easing informed decision-making.
The below table presents the anticipated CAGR for the global AI platform market over several semi-annual periods spanning from 2024 to 2034. This assessment outlines changes in the AI platform industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 symbolizes first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2023 to 2033, the business is expected to grow at a CAGR of 20.8%, followed by an increased growth rate of 21.6% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 20.8% (2023 to 2033) |
| H2, 2023 | 21.6% (2023 to 2033) |
| H1, 2024 | 20.4% (2024 to 2034) |
| H2, 2024 | 21.9% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 20.4% in the first half and remain higher at 21.9% in the second half. In the first half (H1) the market witnessed a decrease of 40 BPS while in the second half (H2), the market witnessed an increase of 30 BPS.
Integration with Ai with Edge Computing is an Escalating Trend in AI Platform Market
Real-time data management and analysis are changing as a result of edge computing's incorporation of artificial intelligence. Instead of sending data to a centralized cloud server, edge computing involves processing data closer to its source, such as on local servers or Internet of Things devices. When combined with AI, this process provides several key advantages.
Firstly, it lessens latency. AI computations can be carried out locally, saving data from having to travel great distances to a central server before processing. This leads to faster reaction times, which is important for applications that need to make decisions in real time, driving the AI platform market growth. These applications includes autonomous vehicles, industrial automation, and smart cities.
Moreover, it improves data confidentiality and security. Keeping data processing local reduces the amount of critical information transferred over networks. This reduces the risk of data breaches and safeguarding obedience with privacy regulations. This localized approach allows for more secure handling of personal and sensitive data, creating positive outlook for AI platform market.
Additionally, incorporating AI with edge computing cuts bandwidth costs. Large-scale data transfers to the cloud can be overpriced mainly for places with poor connectivity. Companies can reduce operational costs by processing data locally. This also minimizes the quantity of data that needs to be transferred over the network.
A growing number of players are launching AI-powered edge computing platforms due to the significance of AI-based edge computing. For instance, in July 2024, IT company, NTT DATA launched an AI Edge Computing solution to speed up IT/OT convergence by bringing AI processing to the edge. This fully managed platform allows real-time decisions, improved operational efficacies, and secure AI application deployment across industries.
Growing Volume of Data is necessitating the need for Sophisticated Solutions, fueling the AI Platform Market Growth
The growing volume of data is a one of the important driver for the AI platform market. As digital transformation quickens, the amount of data generated by devices, applications, and systems expands remarkably. This spike in data includes information from social media, IoT devices, enterprise systems, and other digital sources. This creates a need to process and analyze vast datasets.
AI platforms are important in managing and leveraging this data. They provide progressive tools and technologies to handle large-scale data processing, storage, and analysis. Machine learning algorithms and data analytics capabilities by AI platforms aid companies uncover valuable insights from complex and voluminous data. This drives informed decision-making and strategic planning, supporting the expansion of AI platform market.
The challenge of managing and extracting value from big data requires the use of AI. Traditional data processing methods majorly fall short in handling the scale and complication of modern data. AI platforms address this by providing accessible solutions that can analyze massive datasets competently in real-time.
This capability is important for industries such as finance, healthcare, and retail, where timely and accurate data analysis can notably influence business outcomes.
Furthermore, advancements like personalized customer experiences, predictive maintenance, and increased operational efficiency are made possible by AI platforms' large-scale data processing and analysis capabilities. The need for AI platforms that can efficiently handle and use this data is anticipated to rise as data volume increases.
Development of Industry-wise automated Platforms is Creating Ample Opportunities for AI Platform Market
The development of industry-specific AI solutions is the creation of tailored artificial intelligence platforms and tools. These are designed to address the exclusive needs and challenges of specific sectors. This AI solutions are developed with specific capabilities and features, whereas general AI solutions cater to a wide range of applications. This caters to various requirements of specific sectors such as manufacturing, BFSI, healthcare, and retail, among others.
For instance, AI solutions in the healthcare industry may emphasis on patient diagnoses, customized treatment regimens, or medical imaging analysis. These technologies use data analytics and machine learning to improve disease detection accuracy.
These aid in enhancing operational workflows in healthcare facilities and increasing patient outcomes. In July 2024, city health department, San Mateo County Health (SMCH) has partnered with Innovaccer, a healthcare AI platform, to enhance patient care services.
Innovaccer's platform will provide SMCH with a unified patient record system, combining data from various sources. These sources contains electronic health records (EHRs) and community data. This incorporation will allow medical professionals a holistic view of patient health. This will facilitate improved decision-making and population health management.
Moreover, retail-focused AI solutions could contain tailored recommendation systems, inventory management, and customer sentiment analysis. These platforms use AI to understand consumer behavior, and augment shopping experiences, & supply chains.
The key advantage of industry-specific AI solutions is their capability to provide more precise and relevant insights. They also provide automation personalized to the specific operational and regulatory conditions of each sector.
By addressing unique industry challenges, these solutions enhance productivity, improve decision-making, and drive innovation. As industries increasingly seek to use AI for competitive benefit, the demand for customized solutions that cater to their distinct needs continues to grow, fueling the expansion of the AI platform market.
Data Privacy and Security may affect AI Platform Market Growth in the Projected Timeframe
While the incorporation of AI platform is increasing worldwide, it is also becoming exposed to cyberattacks. As AI platforms collect and process huge amounts of complex data, safeguarding strong data protection methods is important.
Growing data breaches and cyber incidents have amplified concerns about personal data misuse, driving demand for data privacy software. Lack of skilled professionals and security issues like data privacy and unreliability may hamper AI platform market growth.
Stringent data protection regulations like GDPR and CCPA have improved compliance necessities for companies handling personal data. Failure to follow to these laws can result in heavy fines. Incorporating AI and ML into data confidentiality solutions can help pinpoint risks & protect data more efficiently. However, safeguarding the responsible development and deployment of AI is critical to maintain user trust.
To lessen these challenges, AI platform providers should prioritize data privacy and security in their solution portfolios. This includes incorporating strong data governance frameworks, utilizing encryption & access controls, and allowing users with transparency & control over their data. By addressing these concerns actively, the AI platform market can continue its growth trajectory while maintaining the trust of businesses and consumers alike.
The global AI platform market registered a CAGR of 20.1% during the historic period between 2019 and 2023. The growth of AI platform industry was progressive as it reached a value of USD 16.3 billion in 2023 from USD 7.5 billion in 2019.
The AI platform market grew from 2019 to 2023. Companies started to recognize how AI could enhance their data analysis, customer service, and operational effectiveness. Because of this, the year witnessed a big jump in growth. To gain an edge over their rivals early adopters in sectors like banking and retail began to put AI technologies into action.
The COVID-19 pandemic in 2020 played a big role in growing the market. Companies worldwide stepped up their efforts to go digital. AI technologies improved supply chain management, customer service automation, and remote work solutions. The outbreak showed the need for flexible and easy-to-access tech, which led to more demand for AI solutions.
Progress in machine learning and natural language processing, along with the growth of cloud-based AI services also drove market demand. More and more businesses in different fields, like manufacturing and healthcare, are using AI to boost productivity, streamline workflows, and make smarter choices.
After the pandemic, AI technology progress more money for AI research, and wider use in different fields helped the increase. Making better AI for specific industries and adding AI to other digital changes played a big part in this strong growth.
The top tier includes leading companies like Microsoft Corporation, Google, Amazon Web Services (AWS), IBM Corporation, Salesforce, Oracle Corporation, and SAP SE. These firms stand out in AI innovation providing full platforms that combine cutting-edge AI and machine learning features with their wide-ranging cloud and business solutions.
Microsoft, Google, and AWS stand out for their wide AI offerings, including machine learning tools and AI services built into their cloud systems. IBM is known for its AI products such as IBM Watson, which finds use across many fields. Salesforce uses its Einstein AI to boost customer relationship management, while Oracle and SAP build AI functions into their business software to make business processes work better.
Tier 2 includes businesses such as Infosys Limited, Avenga, and Infogain Corporation. These firms excel at AI and data analytics, and they specialize in building tailored AI tools and offering guidance to boost business operations. Infosys Limited has developed the Infosys Nia platform, which uses AI to provide insights and automate processes for many different industries.
Avenga and Infogain Corporation also offer specialized AI services and solutions meeting the specific needs of their clients and the requirements of various industries.
Tier 3 includes up-and-coming players like Vital AI, LLC, Receptiviti Inc., Kasisto, Premonition, and Rainbird Decision Intelligence. These companies stand out for their specific AI uses and fresh ideas. Vital AI develops cutting-edge AI tools for healthcare and life sciences, while Receptiviti Inc. offers AI-based insights on how people behave and communicate.
Kasisto creates AI answers for online banking, and Premonition specializes in AI-powered legal data analysis. Rainbird Decision Intelligence provides AI solutions to help with decision-making and automation catering to specific markets with custom-made technology.
The section below covers the industry analysis for the AI platform market for different countries. Market demand analysis on key countries in several regions of the globe, including the USA, Germany, China, India, Brazil, and UK is provided. The United States is anticipated to remain at the forefront in North America, with a value share of 76.32% through 2034. In East Asia, South Korea is projected to witness a CAGR of 10.8% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 19.1% |
| Germany | 18.5% |
| China | 22.1% |
| India | 21.6% |
| UK | 17.4% |
North America, spearheaded by the USA which currently holds around 80.2% share of the North America AI platform industry in 2023. USA AI platform market is anticipated to grow at a CAGR of 19.1% throughout the forecast period.
In the USA retail sector, AI has an influence on improving customer experience. Majority of retailers use AI to give customers personalized shopping and automated service. This trend leads to fast AI adoption. As per FMI, almost 80% of USA retailers will use AI-driven plans by 2025 to keep up with rivals and give customers what they want.
China’s AI platform market is poised to exhibit a CAGR of 22.1% between 2024 and 2034. Currently, it holds the significant market share in the East Asia market, and the dominance is expected to continue through the forecast period.
In China, AI platforms are becoming a big part of industrial manufacturing to boost productivity. FMI predict that using AI in factories will bump up production by 10-15% come 2026. Companies are bringing in AI to fine-tune their operations, cut down on machine downtime, and get more done overall. This makes AI a key player in China's drive towards high-tech manufacturing.
India’s AI platform market is expected to witness a CAGR of 21.6% in the forecast period and hold considerable market share in South Asia & Pacific region through 2034.
In India's banking and finance sector, companies are using AI and ML notably to fight fraud. This change is shown by the expected big growth in the AI platform market. AI and ML tools help spot fraud better by looking at huge amounts of data right away finding odd things, and guessing possible risks. This trend has an influence on the need to make security and rule-following better as more people use digital money.
The section contains information about the leading segments in the industry. By component, AI natural language processing platforms segment is estimated to grow at a CAGR of 21.9% throughout 2034. Additionally, the by industry, healthcare and life sciences segment is projected to expand at 22.0% till 2034.
| Component | AI Tools |
|---|---|
| Value Share (2024) | 33.2% |
AI Tools segment is expected to acquire share of 33.2% in the market in terms of component in 2024. Large enterprises mostly prefers on-premises solutions owing to enhanced data security. With on-premises solutions, organizations have complete control over their data, as it resides within their own infrastructure.
Since the company doesn’t need to share the data to third party vendors, there is less changes of data leakage in on-premises solutions. However, emergence of cost-effective and flexible cloud-based solutions may restrict the market growth in forecast period.
| Industry | IT and Telecom |
|---|---|
| Value Share (2024) | 29.6% |
The IT and telecom segment is expected to capture share of 29.6% in 2024. This sector's top spot comes from its quick adoption of AI tech to boost operations, improve customer service, and handle big data loads. The industry's push for new ideas, along with its need for cutting-edge AI tools to stay ahead, has cemented its top position in the market.
Key players operating in the AI platform market are investing in advanced technologies and also entering into partnerships. Key AI platform providers have also been acquiring smaller players to grow their presence to further penetrate the market across multiple regions.
Recent Industry Developments in AI Platform Market
In terms of component, the industry is divided into AI tools, AI machine learning platforms, AI natural language processing platforms, and AI services.
In terms of deployment, the industry is divided into cloud-based and on-premises.
The industry is classified by industry as retail and e-commerce, IT and telecom, BFSI, healthcare and life sciences, manufacturing, robotics, and others.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and Middle East & Africa (MEA) have been covered in the report.
The global AI platform industry is projected to witness CAGR of 21.3% between 2024 and 2034.
The global AI platform industry stood at USD 16.3 billion in 2023.
The global AI platform industry is anticipated to reach USD 136.5 billion by 2034 end.
East Asia is set to record the highest CAGR of 21.8% in the assessment period.
The key players operating in the global AI platform industry include Microsoft Corporation, Google, Amazon Web Services, IBM Corporation, Salesforce, Oracle Corporation, and SAP SE.
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