The artificial intelligence (AI) market share is expected to increase by $76.44 billion from 2020 to 2025, with an accelerated CAGR of 21%, according to the recent market study by Technavio.
Regional market outlook
56% of the market’s growth will originate from North America during the forecast period. The US is the key market for artificial intelligence (AI) in North America. Market growth in this region will be slower than the growth of the market in other regions.
The heavy investments in R&D facilities for AI will facilitate the artificial intelligence (AI) market growth in North America over the forecast period.
Artificial intelligence (AI) market driver
Increasing need to prevent fraud and malicious attacks
The cybersecurity industry has recorded a growing number of fraud and malicious attacks, ranging from stealing personal data to important organizational information, in the past few years. AI technology help in threat detection, pattern recognition, and response time reduction. It also helps in combating threats such as distributed denial-of-service (DDoS) attacks.
Organizations need to protect their internal as well as users’ data against these digital security threats. The network activity can be analyzed while also comparing data samples using predictive analytics algorithms. Prevention of fraud and malicious attacks is one of the factors driving the growth of the market during the forecast period.
Artificial intelligence (AI) market trend
Rise in cloud-based AI services
There is an increase in the demand for cloud-based AI products and services as the adoption of Al technologies in the on-premises data center is expensive. The demand for cloud-based AI products and services is inducing major public cloud players to leverage their technical expertise to offer different cloud-based AI products and services.
AI-powered applications are used in a wide variety of use cases including recommendation engines, pricing optimization, lead generation, chatbots, and supply chain optimization.