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Artificial Intelligence (AI) Engineering Market Size By Solution (Hardware [Graphics Processing Unit (GPU), Application Specific Integrated Circuit (ASIC), Central Processing Unit (CPU), Field-Programmable Gate Array (FPGA)], Software, Services), By Technology (Deep Learning, Machine Learning [Supervised Learning, Unsupervised Learning, Reinforcement Learning], Natural Language Processing (NLP) [Speech Recognition, Optical Character Recognition (OCR), Semantic Search, Sentiment Analysis]), By End-use (Retail, BFSI, IT and Telecommunication, Government and Public Sector, Manufacturing, Healthcare, Education and Research), By Deployment (On-Cloud, On-Premise), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2023 – 2032

  • Report ID: GMI5383
  • Published Date: Oct 2022
  • Report Format: PDF

Industry Statistics

AI Engineering Market size valued at USD 8 billion in 2022 and is anticipated to grow at around 35% CAGR from 2023 to 2032. The growing focus of market players on eliminating loopholes in AI technology will be a key driver for business expansion.
 

Artificial Intelligence Engineering Market

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Support from governments of varied developing countries towards promoting AI technology to strengthen the IT infrastructure has also played a crucial role in supporting industry expansion. Heavy investment to improve public welfare areas, including predictive healthcare, adaptive education, and optimized crisis response, by investing in long-term research projects is propelling the artificial intelligence engineering market. For instance, in June 2022, the government of Canada granted approximately USD 370 million to the country's researchers for AI and computer science research projects.
 

The rising preference for cloud-based applications will generate lucrative growth opportunities for AI engineering solution provider. Artificial intelligence improves cloud computing in terms of productivity, data management, errors and cost, and security, which has encouraged organizations to adopt AI to automate such routine tasks and functions. As per a survey published in February 2022, 67% large enterprises expedited cloud adoption while 39% medium-sized companies and 38% small companies began their cloud journey.
 

Snowballing cyber threats may restrain industry progression

The growing risk of cyberattacks is likely to hamper AI engineering market size. The surging adoption of AI in the government sector and end-user industries have boosted their susceptibility to cyberattacks that can have malicious end goals. This has empowered attackers to corrupt sophisticated and intelligent technology solutions and find loopholes in corporate IT networks. Nevertheless, many developed nations have implemented strict regulations for the integration of artificial intelligence, which is expected to help operators overcome this issue.
 

Programmability for different workloads to help FPGA gain traction

The FPGA hardware segment is estimated to expand at above 33.5% growth rate through 2032, on account of the flexibility of FPGAs that enables it to be programmed for various kinds of workloads, from signal processing to deep learning & big data analytics.
 

Introduction of innovative products to complement hardware market

The hardware segment captured over 30% of the AI engineering market share in 2022 and is slated to attain tremendous growth in coming years. Consistent efforts by industry players to introduce innovative products may increase segmental revenues.
 

Growing penetration of IoT and M2M devices to fuel machine learning segment expansion

Global AI Engineering Market Size By Technology

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The machine learning segment held more than 48.5% of the industry revenue share in 2022. The mounting uptake of IoT and M2M-based devices has amplified the demand for machine learning technology. Moreover, IoT connected devices penetration is set to reach 29.4 billion by 2030.
 

Benefits in fraud detection to accelerate IT & telecom sector

The IT & telecom segment is poised to record nearly 34.5% growth between 2023 and 2032. AI is widely utilized in the telecom industry for predictive maintenance and fraud detection, which is boosting product penetration.
 

Advancements in cloud-based software to define the on-cloud industry landscape

The on-cloud segment is predicted to exhibit 37% growth rate till 2032. The segment growth is attributed to developments in the cloud infrastructure of companies, along with enhanced AI capabilities.
 

Significant investments in AI-based software to aid Europe Market

Europe AI Engineering Market Size, By Country

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Regionally, the Europe artificial intelligence engineering market is showcase 36.5% gains through 2032. Top automobile players, including Audi, Mercedes, Ford, and others, are investing heavily in autonomous mobility, thereby facilitating the extensive use of AI in the region.
 

Product development to define the competitive landscape

Some of the major key players operating in the AI engineering market include Alphabet Inc., IBM Corp., Intel Corp., Baidu Inc., Oracle Corp., Salesforce.com Inc., Cisco Systems, Inc., Meta Platforms Inc., Siemens AG, Nvidia Corp., Microsoft Corp., SAP SE, Dolbey Systems, Netbase Solutions, Verint Systems, Lexalytics, and People.ai. These companies are majorly focusing on advancing product operational skills and innovating reliable AI services.
 

Impact of COVID-19 on the business outlook

During the COVID-19 pandemic, the industry witnessed a huge surge in demand as AI technology aided public and private companies in managing the crisis. Machine learning technology allowed enterprises to scale up and adjust to the new remote working environment while healthcare and government institutions adopted ML software to enable contactless screening of COVID-19 symptoms. For instance, in May 2020, Clevy.io, a French AI-based technology start-up, launched an AWS chatbot for customers to easily find official government communications regarding the coronavirus. These factors are foreseen to positively influence the demand for AI engineering solutions.
 

This artificial intelligence (AI) engineering market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2018 to 2032 for the following segments:

Market, By Solution

  • Hardware
    • Central Processing Unit (CPU)
    • Graphics Processing Unit (GPU)
    • Application Specific Integrated Circuit (ASIC)
    • Field-Programmable Gate Array (FPGA)
  • Software
  • Services

Market, By Technology

  • Deep Learning
  • Machine Learning
    • Supervised Learning
    • Unsupervised Learning
    • Reinforcement Learning
  • Natural Language Processing (NLP)
    • Speech Recognition
    • Optical Character Recognition (OCR)
    • Semantic Search
    • Sentiment Analysis
  • Computer Vision

Market, By End-use

  • Retail
  • BFSI
  • IT and Telecommunication
  • Government and Public Sector
  • Manufacturing
  • Healthcare
  • Education and Research
  • Others

Market, By Deployment

  • On-cloud
  • On-premise

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Southeast Asia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • UAE
    • Saudi Arabia
    • South Africa

 

Authors: Preeti Wadhwani, Smriti Loomba

Frequently Asked Questions (FAQ) :

The market size of artificial intelligence (AI) engineering surpassed USD 8 billion in 2022 and is set to progress at above 35% CAGR from 2023 to 2032, owing to prominent government efforts to improve autonomous mobility.

The hardware segment captured over 30% of the market share in 2022, due to consistent efforts by industry players to introduce innovative products.

The machine learning segment dominated the AI engineering market with more than 48.5% share in 2022 backed by the mounting uptake of IoT and M2M-based devices.

The Europe AI engineering industry is slated to grow at more than 36.5% gains from 2023 to 2032 as a result of heavy investments by key automotive companies to advance autonomous mobility.

Some of the leading companies in the global industry include Alphabet Inc., IBM Corp., Intel Corp., Baidu Inc., Oracle Corp., Salesforce.com Inc., Cisco Systems, Inc., Meta Platforms Inc., Siemens AG, Nvidia Corp., Microsoft Corp., SAP SE, Dolbey Systems, Netbase Solutions, Verint Systems, Lexalytics, and People.ai.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 20
  • Tables & Figures: 451
  • Countries covered: 21
  • Pages: 220

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