Press release
Artificial Intelligence (AI) Software Market Forecast 2025-2034: Analysing Major Trends, Opportunities, and Growth Drivers
Artificial Intelligence AI Software Market
The artificial intelligence (AI) software market is projected to grow, fueled by increasing investments in AI startups. These startups focus on utilizing artificial intelligence technologies to address specific issues or fulfill industry needs. The surge in investments in AI startups is primarily attributed to the rising industrial demand for AI solutions and its ability to cut costs and scale efficiently. These investments are also crucial for boosting marketing and sales campaigns, thereby allowing AI firms to broaden their market reach and promote software solution adoption. For example, as per the International Trade Administration, a US-based government agency, in March 2023, the UK's AI market is presently worth more than $21 billion, with predictions to cross $1 trillion by 2035. Hence, the rise in investments in AI startups is a significant factor propelling the artificial intelligence (AI) software market's growth.
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What growth opportunities are expected to drive the artificial intelligence (ai) software market's CAGR through 2034?
The market size of artificial intelligence (AI) software has seen substantial expansion in the past few years. Present forecasts predict a growth from $222.57 billion in 2024 to $294.71 billion in 2025, indicating a compound annual growth rate (CAGR) of 32.4%. This progression during the historic phase can be credited to factors such as image comprehension and evaluation, recommendation engine gadgets, robotic process automation (RPA) implements, healthcare AI resolutions, and regulatory backing coupled with ethical directions.
In the upcoming years, substantial expansion is predicted for the artificial intelligence (AI) software market, with it expected to swell to a value of $896.32 billion in 2029, maintaining a compound annual growth rate (CAGR) of 32.1%. This growth during the forecast period is largely due to factors such as the broadening applications of AI across various industries, the rise of edge AI and IoT amalgamation, growing utilization of AI in the healthcare sector, and the broadening scope of autonomous systems and robotics. In the predicted period, some of the major trends to watch out for include AI that is explainable, democratization of AI, AI-enabled automation and augmentation, conversion of healthcare through AI, AI's role in cybersecurity, and AI's contribution towards climate and sustainability.
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How are the latest trends influencing the growth of the artificial intelligence (ai) software market?
In the artificial intelligence (AI) software industry, leading companies are striving to design cutting-edge solutions like Security Copilot to improve their clients' cybersecurity abilities. Security Copilot is an innovative tool that employs artificial intelligence for strengthening cybersecurity measures by examining extensive data and automating various cybersecurity pursuits. Microsoft Corporation, an American technology firm, released Security Copilot, an AI-powered tool crafted to equip security personnel with the capability to detect and respond to cyber threats promptly in March 2024. This solution merges a unique language model with security-focused features, drawing on worldwide threat intelligence to deliver bespoke insights and guidance for handling cybersecurity tasks. The primary goal is to distill enormous data signals into crucial insights, enable early detection of cyber threats, and fortify security stances effectively.
Which growth-oriented segments of the artificial intelligence (ai) software market are leading the industry's development?
The artificial intelligence (AI) software market covered in this report is segmented -
1) By Deployment Model: On-Premises, Cloud
2) By Technology: Computer Vision, Data Analytics, Machine Learning, Natural Language Processing, Other Technologies
3) By Application: Voice Processing, Text Processing, Image Processing
4) By End-User: Law, Retail, Healthcare, Banking, Financial Services, And Insurance, Advertising And Media, Automotive And Transportation, Agriculture, Manufacturing, Others End-Users
Subsegments:
1) By On-Premises: Enterprise AI Solutions, Edge AI Solutions, AI For Data Centers, AI For Manufacturing And Industrial Applications
2) By Cloud: Cloud-Based AI Platforms, AI-As-A-Service (AIaaS), Cloud Machine Learning Services, Cloud AI Analytics Services, Cloud AI Integration Tools
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What regions are leading the charge in the artificial intelligence (ai) software market?
North America was the largest region in the artificial intelligence (AI) software market in 2024. The regions covered in the artificial intelligence (AI) software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
What companies are at the forefront of innovation in the artificial intelligence (ai) software market?
Major companies operating in the artificial intelligence (AI) software market are Amazon.com Inc., Apple Inc., Google Plc, Meta Platforms Inc., Tencent Holdings Limited, Intel Corporation, accenture* plc, International Business Machines Corporation, Deloitte Touche Tohmatsu Limited, Oracle Corporation, SAP SE, Salesforce.com Inc., NVIDIA Corporation, Cognizant Technology Solutions Corporation, Adobe Inc., Baidu Inc., Infosys Limited, Wipro Limited, Micro Focus International plc, Palantir Technologies Inc., OpenAI, Nuance Communications Inc., UiPath Inc., Automation Anywhere Inc., CognitiveScale Inc.
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What Is Covered In The Artificial Intelligence (AI) Software Global Market Report?
• Market Size Forecast: Examine the artificial intelligence (ai) software market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the artificial intelligence (ai) software market for a structured understanding.
• Key Players Overview: Analyze major players in the artificial intelligence (ai) software market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the artificial intelligence (ai) software market.
• Segment Contributions: Evaluate how different segments drive overall growth in the artificial intelligence (ai) software market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the artificial intelligence (ai) software market.
• Industry Challenges: Identify potential risks and obstacles affecting the artificial intelligence (ai) software market.
• Competitive Landscape: Review strategic developments in the artificial intelligence (ai) software market, including expansions, agreements, and new product launches.
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