ID: MRFR/ICT/5842-HCR | February 2021 | Region: Global | 100 pages
The global artificial intelligence (AI) software platform market is growing at a CAGR of 28.1% for the forecast period of 2020 to 2027. Various new applications in different industries for artificial intelligence technology are creating new avenues for the market. Different countries in the world are adopting the technology for enhancement in their business enterprises, workforces, etc. The massive use of AI software can be observed in the retail, automotive, and IT industries. The rapid growth of smart devices in the global market is a steady factor behind the expansion of the AI software market.
The artificial intelligence software platform (AISP) is created for entering artificially developed intelligence to execute learning, analyzing, problem-solving, decision-making, etc tasks. This kind of intelligence is considered equivalent to human intelligence which can increase over time and the constant flow of data. Innovation in Big Data technology is supporting the growth of AI-driven software platforms in the global market. Applications like machine learning (ML), natural language processing (NLP), etc are capable of running complex simulations, identifying patterns, recognize user requirements, analyzing, and much more. The AISP market is estimated to experience tremendous growth in the coming years.
The emergence of the COVID-19 pandemic is considered a once-in-a-century disaster by experts. Several Governments of the world have recognized the pandemic as the biggest global crisis and tragedy of all times. The fatality of the situation did not allow the lives of normal people to stay normal. Forced implementation of nationwide lockdowns in almost all countries was a needful measure to curb the spread of the disease. On the other hand, these lockdowns have stopped the markets completely for months. It is anticipated that the global artificial intelligence (AI) software platform market has faced implications of the pandemic too.
During the lockdowns, the manufacturing units were interrupted as the workers and staff were unavailable during the period. Cross-border transportation and travel have become more restricted in several parts of the world. These disruptions in the business scenario have brutal effects on the economy. The situation forced the market to reduce investments in research and development (R&D) in technological sectors. The artificial intelligence (AI) software platform industry is highly dependent on the ongoing R&D functions in the market. Although, during the lockdown, several companies have turned the business operations into complete remote settings. This trend is expected to increase the usage of AI facilities more in the future.
There is a growing trend of adopting AI capabilities in the workstream of several industries. The need for automation, speed, and smart application is a crucial reason behind the market demand for AI technology. AI software platforms enable multiple facilities that improve the user experience, enhances business operations, and communication. The artificial intelligence (AI) software platform market is increasing based on rapid modernization and development in operational methods of the world. Repetitive human jobs can be taken care of in cost-effective methods with the help of artificial intelligence software platforms. The AI software is capable of predicting various key insights, detecting errors, automate the functionality in the workflow. The use of AI is cost-effective for end-user industries to operate different functionalities within the business stream.
AI software assistants are capable of handling customer communication and robotics functions in the industry to enhance the work process. There is a steady demand for AI software platforms for automation and customer assistance capabilities over the years. The AI market is expected to grow further with help of new technologies.
Two of the major influences on AI software platforms are cloud computing and big data. The AI software needs and generates huge amounts of data for analyzing and creating suggestions. In this arena, improvements in the cloud-storage services and industries are going to create new options for the market. Also, big data management is expected to grow in the future too. Innovation in the internet of things (IoT) has been a boon for the AI software platforms market. Current market statistics show there are over 8.74 billion IoT devices in the market in 2020, which is going to be triple in number in the next ten years. The artificial intelligence (AI) software platform market size is going to increase with the support of a huge number of connected devices in the market.
Additionally, the improvements of 5G technology are going to present new opportunities for the market. The majority of the AI software platform is connected with cloud services and uses the internet to execute operational tasks. High-speed internet availability in the market will create new possibilities for virtual assistance and robotics as well. The artificial intelligence (AI) software platform market analysis predicts massive growth of the system in the coming ten years.
The AI software platform is dependent on development, maintenance, and servicing. The software is smart and has additional intelligence, but the qualities cannot be called creative or inventive. Hence there will be a constant need for highly qualified robotics and AI software specialists and experts to manage the systems. In the current scenario, there is a significant lack of trained and skilled AI developers and experts in the market. This factor is a major obstacle before the growth of artificial intelligence (AI) software platform market share. The software for AI is considered very complicated in the industry which requires advanced knowledge and skill to operate.
Additionally, the cost of AI software implementation and maintenance is expensive. Various potential markets in the world are not moving forward at the desired pace owing to the affordability issue. The AI software makes the work process easier and enhanced, but the deployment costs are quite high, especially for SMEs. Also, the unavailability of necessary infrastructure in different markets is causing slower growth. Based on current forecasts, this unpreparedness factor is going to persist in a large section of the global Artificial Intelligence (AI) Software Platform market during the forecast period.
The AI software platform presents new and effective solutions, but it is limited in certain areas too. Put aside the cost of custom-creating infrastructure, the system cannot entirely replace the contribution of human employees and intelligence. For instance, AI software is not creative. The intelligence in the system is artificially created and machine learning is an advanced outcome of the system. But the AI software is incapable of executing tasks that require producing something original or something that demands the use of creative faculties.
Also, there is a growing concern over the accuracy of the solutions produced by AI software platforms. This automated program relies on data that is inserted into the system. Although advanced AI algorithms do not make trivial errors, still the program is not 100% accurate all the time. Several factors can cause an errored result out of the system. These factors can be a threat to the global artificial intelligence (AI) software platform business.
In 2017, the global Artificial Intelligence (AI) Software Platform market reached USD 2.45 billion. The overall performance of the AI software platform market has been optimistic for the last couple of years. Current projections state the market is growing at a CAGR of 28.1% for the forecast period 2020 to 2027. The market is going to reach a net valuation of USD 11.3 billion by the end of 2027 according to market estimates.
The distribution channel for AI software platforms relies on the demands of the end-user markets. The developing giant corporations form strategic partnerships, third-party acquisitions, retailing, etc. The system reaches the markets via custom development and online purchases.
Based on component, deployment, industry vertical, region, etc, there are different artificial intelligence (AI) software platform market segments.
By industry vertical
Owing to technological advancements, the North American region occupies the largest market share in the world for AISP. Amongst the major key players in the world, the US captures almost 80% of the developer companies. Although, the European wealthy nations consist of the biggest market size for the forecast period. The APAC region is expected to gain momentum in coming years followed by rapid technological growth in China, Japan, India, etc.
The global artificial intelligence (AI) software platform market top players are –
The report consists of insights on artificial intelligence (AI) software platform market trends, growth statistics, forecasts, segments, etc.
Frequently Asked Questions (FAQ) :
The AI software platform market can thrive at 28.1 % CAGR by 2027.
The AI software platform market can value at USD 11.3 Bn by 2023.
In 2017, 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.