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The enterprise AI market size is forecast to increase by USD 48.96 billion at a CAGR of 46.52% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing integration of cutting-edge robotics and advanced manufacturing processes. Autonomous mobility solutions and digital transformation are key trends, with steelmakers and other industries adopting AI at an accelerating rate to optimize operations and enhance productivity. Integrated systems that combine AI capabilities with enterprise software applications are becoming increasingly popular, enabling businesses to streamline processes and make data-driven decisions. However, challenges remain, including the lack of AI professionals and the need for effective AI governance to ensure ethical and secure implementation. These factors are shaping the future of the market and driving innovation in this dynamic and evolving field.
Artificial Intelligence (AI) is revolutionizing business processes across industries by enhancing efficiency and reducing costs. AI solutions are being integrated into various process flows to achieve better business outcomes and profitability. Digitalization is a key driver for AI adoption in critical manufacturing sectors such as Swisssem, where operating costs and operating efficiency are paramount. AI is being used to optimize production processes in digital manufacturing through predictive analytics solutions and IIOT integration. Strategic investment in AI governance and advanced manufacturing technologies, including Pittsburgh-based startups specializing in cutting-edge robotics, is essential for staying competitive. AI is also transforming industries like autonomous mobility and enterprise software applications.
Moreover, the private 5G networks and big-data AI analytics in public cloud are enabling scalable AI implementation. AI is a game-changer in digital transformation, offering significant benefits in cost savings, improved efficiency, and enhanced productivity.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The on-premises segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth in the context of the Fourth Industrial Revolution, driven by advancements in technologies such as the Internet of Things (IoT), Intelligent robots, and ubiquitous mobile supercomputing. These technologies are revolutionizing industrial automation and information management in manufacturing processes. On-premises deployment of AI infrastructure is gaining popularity due to the increasing need for security and control over hardware and software. This model involves installing AI infrastructure within a company's premises, which often requires substantial space due to the use of high-performance computing (HPC) systems. Major clients across various industries prefer on-premises AI infrastructure to ensure data security and maintain complete control over their automated technologies. Several firms are adhering to this trend to enhance the security level of their industrial processes.
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The on-premises segment was valued at USD 900.00 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market experienced significant growth during the Fourth Industrial Revolution, driven by technological advancements such as the Internet of Things, Intelligent robots, and ubiquitous mobile supercomputing. In North America, this market holds a dominant position due to the extensive adoption of AI by various industries, particularly in the US. Key players like IBM, Intel, and Microsoft are driving the market's growth by integrating AI into their business functions and offering AI tools and solutions. Collaboration among industry participants is also on the rise, with a focus on developing advanced AI systems. The presence of numerous BFSI firms in the region, which have incorporated AI into their operations, further fuels the market's expansion.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing interest in chatbot AI is the key driver of the market. Artificial Intelligence (AI) is revolutionizing business processes by enhancing efficiency and reducing costs through the automation of various tasks. One significant application of AI is in the form of Chatbot AI, which enables businesses to engage with customers using robot applications instead of human agents. These AI-powered chatbots process and learn from large volumes of data to provide accurate and personalized responses to customer queries. By automating repetitive tasks, businesses can improve process flows, leading to better business outcomes and increased profitability. The integration of AI, particularly Chatbot AI, is a dominant trend in the digitalization of businesses and is expected to continue driving growth in the market.
Moreover, Chatbot AI is a cost-effective solution for firms seeking to incorporate AI into their applications, making it an essential tool for enhancing customer engagement and streamlining business operations.
The adoption of enterprise AI by SMEs is the upcoming trend in the market. Artificial Intelligence (AI) is becoming an essential component of business processes for both Multinational Corporations (MNCs) and Small and Medium-sized Enterprises (SMEs). MNCs, with their substantial resources and technical expertise, are integrating AI into various aspects of their enterprises to enhance efficiency and profitability. In contrast, SMEs are strategically employing AI for select business processes to gain a competitive edge. The adoption of AI by SMEs enables them to challenge larger companies and level the playing field. Historically, SMEs have been hesitant to adopt new technologies due to costs. However, the advantages of AI, such as improved process flows and better business outcomes, are compelling.
Moreover, AI's integration into business operations can lead to significant cost savings and increased profitability. Digitalization, a dominant trend in today's business landscape, necessitates the use of advanced technologies like AI to remain competitive.
The lack of AI professionals is a key challenge affecting the market growth. The integration of Artificial Intelligence (AI) into business processes is a dominant trend in the corporate world, driven by the desire for increased Efficiency and Profitability. However, The market faces a significant challenge due to the scarcity of technical expertise in AI. Enterprises grapple with the complexities of implementing AI systems, as there is a lack of comprehensive documentation for reference. Consequently, firms must conduct thorough analyses before integrating AI, given its substantial Costs.
However, the shortage of professionals with in-depth knowledge of AI technology poses a significant barrier to entry for many businesses. This skills gap hampers the Digitalization of business operations and the realization of desirable business outcomes.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc.: The company offers Enterprise-AI through Google Cloud services, along with AI and machine learning solutions that can leverage the built-in AI power for various infrastructures.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth as businesses seek to enhance efficiency, reduce costs, and improve business outcomes through the implementation of AI technologies. The dominant trend in this space is the integration of AI into various business processes, from industrial automation and manufacturing processes to information management and banking services. The fourth industrial revolution, characterized by digitalization, IoT, intelligent robots, and ubiquitous mobile supercomputing, is driving the adoption of AI in industries such as manufacturing and robotics and AI. The industrial robot segment is a key area of focus, with companies investing strategically in AI governance and predictive analytics solutions to optimize operating costs and efficiency.
Moreover, the critical manufacturing industries like steelmaking are leveraging AI to improve production processes, ensure quality, and enable continuous process improvement. Edge computing, augmented reality, and virtual reality are also gaining traction in the market, enabling real-time data processing and analysis. The market is witnessing significant investment from Pittsburgh-based startups and global players alike, with a focus on cutting-edge robotics, advanced manufacturing, and integrated systems. The use of AI in digital manufacturing, autonomous mobility, and IIoT is expected to drive further growth in the market. The adoption of AI in enterprise software applications, big-data AI analytics, and public cloud services is also a key trend, with IT and telecommunications companies playing a crucial role in enabling AI adoption through cloud service elasticity and private 5G networks. IEEE's data triangulation and AI research are also contributing to the development of new AI technologies and applications.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 46.52% |
Market growth 2024-2028 |
USD 48.96 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
42.8 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 37% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abacus.AI, Alphabet Inc., Alteryx Inc., C3.ai Inc., Databricks Inc., Dataiku Inc., DataRobot Inc., H2O.ai Inc., Hewlett Packard Enterprise Co., Hypersonix Inc., Intel Corp., International Business Machines Corp., Microsoft Corp., Oracle Corp., Salesforce Inc., SAP SE, SAS Institute Inc., Sentient.io, Snowflake Inc., and Wipro Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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