Artificial Intelligence (AI) Software Platform Market Overview
Artificial Intelligence (AI) Software Platform Market Size was valued at USD 22.5 Billion in 2021. The Artificial Intelligence (AI) Software Platform market industry is projected to grow from USD 31.4 Billion in 2022 to USD 279.3 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 31.41% during the forecast period (2022 - 2030). New business formation, Intelligent automation enablement in the BFSI sector for employees and customers, changing dynamics of the transportation sector, rising demand for AI-based solutions for better data generation, and increasing usage to cater to language barriers positively boost the market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Artificial Intelligence (AI) Software Platform Market Trends
New business formation boosts market growth
According to World Economic Forum (WEF), 32% more SMBs were launched ly in 2020; a disrupted job market, pent-up savings, and changing consumer behaviors drove new entrepreneurship ly. From Canada to Japan, the U.K., and Brazil, countries saw unprecedented new business formation growth across the world, with the top 10 countries seeing a growth of 30% increase or more. The top 10 countries with the most enormous new business formation growth year-over-year in 2020 are the U.K., Thailand, the U.S., Australia, Germany, Canada, Italy, France, Japan, and Brazil.
This new business formation has boosted the Artificial Intelligence market to grow at a much faster pace when compared to last year. From 2020, most of the population ly found themselves opting or required to eat, work, exercise, and entertain themselves restricted to the home, narrowing the focus to living life online. By the end of 2020, many individuals explored opportunities for entrepreneurship which they were hesitant to do before.
Figure 1: Growth of new business formation in top 10 countries, 2020 and 2021
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
As seen from the figure above, The UK is the leading country with SME growth in 2020. This growth is maximum from digitally enabled platforms requiring artificial intelligence software platforms to research, analyze market trends, solve customer or business problems by providing optimal analysis from data gathered, and many more. AI helps push people, processes, and services online in the private and public sectors and compels national, regional, and local governments to use AI. In a few months after COVID, governments have explored the usage of AI to educate children, fight against the virus, and screen patients to trace and track contacts.
The increasing need for cloud-based services and the growing trend of multi-cloud functioning bolster AI demand in the market. The present AI-integrated tools provide computing solutions with innovative value and are subject to customized according to the need of the industry. AI software also bridges the gap between cloud-based data and contemporary advancements.
Artificial Intelligence (AI) Software Platform Market Segment Insights
Artificial Intelligence (AI) Software Platform by Application Type Insights
Based on application type, the Artificial Intelligence (AI) Software Platform market segmentation includes automation, remote sensing, medical diagnosis, speech recognition, and text recognition. The automation segment held the largest revenue share of 36.3% in 2021 and is expected to remain dominant through the forecast period. The primary reason for this segment’s growth is the emergence of digital transformation across all industries. The increasing need for speed and accurate results and analysis is helping the market of AI software platforms in the automation sector. In addition, increasing demand for hydrogen and electric vehicles with intelligent features such as autonomous functions drive growth in this market.
Intelligent and automated systems positively impact business decisions by turning silo data chunks into meaningful recommendations for seeking product mix. For instance, Levi Strauss used Amazon Web Services (AWS) and Dataiku to create and manage a recommendation system that can help them to understand buying patterns by region and spending across different age groups.
Figure 2: Artificial Intelligence (AI) Software Market, by Application Type, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The medical diagnosis segment is the second-largest application area for the market. The market is expected to show revenue growth at a CAGR of 32.43% through the forecast period. The increasing digital datasets of patient health-related records, proliferating demand for accessible route medication, and the rising demand for reducing overall hospital expenses drive the market for this application. Artificial intelligence and machine learning software are adopted and embedded into healthcare systems to predict diseases precisely at the early stage based on historical digital health records. Artificial intelligence is also employed in the research and development department in the life sciences industry. AI software deployment is nascent in the life sciences industry, and early adopters can gain a competitive edge over their competitors in forming medicines for complex disease or emergency cases.
However, speech recognition is expected to grow at the fastest CAGR of 36.5% through the forecast period. The major factors driving the AI for speech recognitions are increasing demand in the healthcare sector for better communication and digital routing, usage of ai based software systems in intelligent appliances, and usage in banking systems for authenticating.
July 2022- Mulesoft, a Salesforce firm, had done agreement with HDFC. Due to Mulesoft low code integration capabilities, and creative API-led integration methodology, HDFC can innovate in system connectivity and can create new experiences.
June 2022-Siemens had expanded its Xcelerator technology into hardware, software, and digital services. At the same time, it had collaborated with Nvidia for building industrial metaverse.
Artificial Intelligence (AI) Software Platform by Technology Insights
Based on technology type, the Artificial Intelligence (AI) Software Platform market segmentation includes Computer Vision, Data Analytics, Machine Learning, Natural Language Processing, and Others. The machine learning segment held the largest revenue share of 36.7% in 2021 and is expected to remain dominant through the forecast period. Machine learning (ML) is a subset of artificial intelligence (AI) training algorithms making predictions through defined statistical methods, uncovering meaningful insights from datasets.
These insights help in future decision-making as per the line of business or products, ideally affecting key growth metrics. In 2021, Amazon launched SageMaker Studio, the first machine-learning IDE. It is a web-based interface or software through which customers can run ML model training tests in a single platform. SageMaker Studio provides all development tools and methods, including debugging tools, notebooks, data modeling, and automatic creation. Since it is based on algorithms, computational complexity, and model complexity, it requires highly trained and skilled professionals to develop the overall structure, creating a restraining impact on the market growth.
Artificial Intelligence (AI) Software Platform by deployment model Insights
Based on deployment model type, the Artificial Intelligence (AI) Software Platform market segmentation includes On-premises and Cloud deployments. The cloud based segment held the largest revenue share of 54.97% in 2021 and is expected to grow at the fastest rate through the forecast period. The major reason deploying the cloud-based software is its cheaper cost and easily integration. In addition to this it doesn’t require any manual updates and can update automatically as per the provider company standards.
Artificial Intelligence (AI) Software Platform by Enterprise Insights
Based on enterprise type, the Artificial Intelligence (AI) Software Platform market segmentation includes Large and Small and Medium enterprise (SME). The SME segment held the largest revenue share of 63.3% in 2021 and is expected to grow at the fastest rate through the forecast period. Increasing number of new startups, digital innovation demand in the old SME’s and better monetary management drives market of AI software platform in SMEs. In the past, only large manufacturing or services or BFSI companies integrate these software market, but with increasing small base SME will be the driving enterprise sector through the forecast period.
Artificial Intelligence (AI) Software Platform Industry Verticals Insights
Based on industry verticals, the Artificial Intelligence (AI) Software Platform market segmentation includes BFSI, Manufacturing, Healthcare, Transportation, Retail and Others. The BFSI segment dominated the market with a share of 33.58% in 2021 and is projected to remain in its position through the forecast period.
Figure 3: Artificial Intelligence (AI) Software Platform Market, by Industry Vertical, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The growing penetration of AI software platforms in healthcare applications leads to technological collaborations and product innovation by leading companies. For example, in 2022, Apollo Hospitals collaborated with ConnectedLife to integrate an AI heart disease risk tool into Apollo systems. Due to this feature, doctors may create individual care regimens for patients. With the help of this AI tool, Apollo Hospitals Group can identify a patient's risk of cardiovascular disease. This analysis is based on respiration rate, patient's lifestyle factors, diabetes, and blood pressure reading.
Artificial Intelligence (AI) Software Platform Regional Insights
By Region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. The North America Artificial Intelligence (AI) Software Platform market accounted for USD 8 Billion in 2021 and is expected to exhibit a 29.32% CAGR during the study period. This demand is attributed to the increasing deployment of AI software platform for every industry in the U.S. According to MRFR study, till now, the penetration rate has been highest when compared to other industries.
Figure 3: ARTIFICIAL INTELLIGENCE (AI) SOFTWARE PLATFORM MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In April 2022, the US Department of Commerce and the National Institute on Standards (NIST) announced members of the inaugural National Artificial Intelligence Advisory Committee (NAIAC), which would advise the Biden administration on how to proceed with the national AI governance efforts.
In 2021, the US Congress passed the omnibus appropriations bill, specifically for military AI initiatives. With the help of artificial intelligence, the Department of Defense had planned to improve the effectiveness of military operations. As per the 2021 National Defense Authorization Act, this bill also has a budget of USD 137 million for the Joint Artificial Intelligence Center to develop new paradigms.
Asia Pacific will be the third-largest regional Artificial Intelligence (AI) Software Platform market in 2021. However, at the end of the forecast period, Asia-Pacific is expected to become the second-largest market and is also anticipated to grow at the fastest growth rate. The United States' robust innovation ecosystem, supported by the presence of visionary entrepreneurs and highly skilled scientist, strategically help the artificial intelligence software platforms market to grow in the North American region.
Artificial Intelligence (AI) Software Platform Key Market Players & Competitive Insights
Major market players are spending money on marketing activities, which will help the Artificial Intelligence (AI) Software Platform market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new technology integrations, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Artificial Intelligence (AI) Software Platform industry must offer cost-effective solutions to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by Artificial Intelligence (AI) Software Platform industry solution providers is to make clients knowledgeable about this software potential. Many companies are providing their software demo for their products to cater to potential clients. The Artificial Intelligence (AI) Software Platform market is fragmented, with the presence of big players having nearly 25% share in 2021. The major companies in the market are Amazon.com Inc., Google LLC, Microsoft Corporation, and IBM.
Key Companies in the Artificial Intelligence (AI) Software Platform market includes
Artificial Intelligence (AI) Software Platform Industry Developments
March 2022 - Google launched a Cloud Contact Center for AI Platform. This platform integrates cloud and AI scalability integrated with customer relationship management software, support marketing and customer support teams and unify sales.
March 2022 - Baidu AI Cloud's digital avatar platform XiLing had launched an new AI platform to enable on-device feature, generate digital avatars for translating sign language, real-time translation from hand to speech gestures and live interpretation in few minutes.
Artificial Intelligence (AI) Software Platform Market Segmentation
Artificial Intelligence (AI) Software Platform Application Outlook
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Automation
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Remote Sensing
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Medical Diagnosis
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Speech Recognition
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Text Recognition
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Others
Artificial Intelligence (AI) Software Platform Industry Vertical Outlook
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BFSI
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Manufacturing
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Healthcare
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Transportation
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Retail
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Others
Artificial Intelligence (AI) Software Platform Technology Outlook
Artificial Intelligence (AI) Software Platform Deployment Outlook
Artificial Intelligence (AI) Software Platform Enterprise Outlook
Artificial Intelligence (AI) Software Platform Regional Outlook
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World
- Middle East
- Africa
- Latin America
| Report Attribute/Metric |
Details |
| Market Size 2021 |
USD 22.5 Billion |
| Market Size 2022 |
USD 31.4 Billion |
| Market Size 2030 |
USD 279.3 Billion |
| Compound Annual Growth Rate (CAGR) |
31.41% (2022-2030) |
| Base Year |
2022 |
| Forecast Period |
2022-2030 |
| Historical Data |
2020 & 2021 |
| Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Deployment Model Type, Enterprise, Technology, Application Type, Industry Verticals and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Microsoft Corporation, Salesforce Inc., Samsung International Business Machines Corporation, Intel Corporation, Amazon Web Services, Qualcomm Inc., Baidu Inc., Wipro Ltd. and Google LLC |
| Key Market Opportunities |
Government focus on digital transformation |
| Key Market Dynamics |
New business formation Intelligent automation enablement in the BFSI sector for employees and customers Changing dynamics of the transportation sector Rising demand for AI-based solutions for better data generation Increasing usage to cater to language barriers |
Artificial Intelligence Software Platform Market Highlights:
Frequently Asked Questions (FAQ) :
The AI software platform market can thrive at 39.35% CAGR by 2030.
The AI software platform market can value at USD 11.3 Bn by 2030.
In 2022, the AI software platform market was valued at 2.7 Bn.
Salesforce (US), Qualcomm (US), and Playment (US) are some reputed names in the AI software platform market.
The Europe AI software platform market can valuation can escalate in the years to come.
