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Impact Of Growing Cloud Services Adoption On The AI In Digital Transformation Market: A Key Catalyst Accelerating Artificial Intelligence (AI) In Digital Transformation Market Growth in 2025
Artificial Intelligence (AI) In Digital Transformation
Artificial Intelligence (AI) In Digital Transformation Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The market size of artificial intelligence (AI) applied in digital transformation has witnessed massive expansion in the past few years. The market, which was valued at $321.89 billion in 2024, is projected to rise to $424.75 billion in 2025, registering a compound annual growth rate (CAGR) of 32.0%. The historical growth has been attributed to factors such as improved risk management practices, a surge in data growth, widespread use of IoT devices, enhanced fraud detection mechanisms, and better customer insights and interactions.
Artificial Intelligence (AI) In Digital Transformation Market Size Forecast: What's the Projected Valuation by 2029?
In the coming years, the artificial intelligence (AI) market within the digital transformation sector is anticipated to witness substantial growth, with a projected market size of $1275.99 billion by 2029 at a compound annual growth rate (CAGR) of 31.7%. This anticipated surge during the forecast period can be credited to factors such as the intensification of cybersecurity, the necessity for decreasing operational expenses, advancements in healthcare, smart city development, and the scarcity of adept professionals. Key trends emerging in this forecast period are progression in natural language processing, the introduction of AI-as-a-service, the implementation of AI-driven autonomous vehicles, AI chatbots, and integration with blockchain technology.
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What Are the Drivers Transforming the Artificial Intelligence (AI) In Digital Transformation Market?
The anticipated surge in the use of cloud services is predicted to push forward the expansion of the AI in digital transformation market. Cloud services provide various computing resources like servers, storage, databases, networking, software, and analytics via the internet for user access. They offer scalable and flexible computing resources, storage, and applications through the internet, enabling corporations and individuals to utilise and control these resources on demand, without needing a physical infrastructure. AI in digital transformation boosts the uptake of cloud services by underscoring the advantages of AI tools based in the cloud. These tools enhance operational efficiency, data analysis, and overall digital transformation initiatives. For example, in December 2023, the European Commission reported that a government administration based in Belgium indicated that 42.5% of European Union (EU) enterprises adopted cloud computing services in 2023, which is a 4.2% growth compared to 2021. Thus, the increasing use of cloud services fuels the expansion of the AI in digital transformation market.
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What Long-Term Trends Will Define the Future of the Artificial Intelligence (AI) In Digital Transformation Market?
Leading corporations in the AI in digital transformation market are creating DevSecOps platforms powered by AI to improve security, smoothen out development procedures, and maintain compliance. These AI-fueled DevSecOps platforms utilize AI for automated security testing, uncovering vulnerabilities, and enabling consistent threat detection throughout the development life span. For instance, Digital.ai, a tech firm based in the United States, unveiled Denali in October 2023 - an accessible, AI-fueled DevSecOps platform developed to boost enterprise software distribution. This platform bolsters web applications' security and automates the software delivery chain, thus increasing developer productivity and aligning results with business objectives. The platform also consists of sophisticated features like ARM safeguards for iOS applications and expanded test coverage, thus empowering teams to produce high-quality, secure applications on a large scale.
Which Segments in the Artificial Intelligence (AI) In Digital Transformation Market Offer the Most Profit Potential?
The artificial intelligence (AI) in digital transformation market covered in this report is segmented -
1) By Component: Solution, Services
2) By Technology: Machine Learning (ML), Natural Language Processing (NLP), Computer Vision, Other Technologies
3) By Deployment Mode: Cloud-Based, On-Premise
4) By Industry Vertical: Banking Financial Services And Insurance (BFSI), Information Technology (IT) And Telecommunications, Government And Public Sector, Healthcare, Manufacturing, Retail, Other End-Use Industries
Subsegments:
1) By Solution: AI-Powered Cloud Computing Solutions, AI-Based Automation Tools, AI-Driven Data Analytics Platforms, Predictive Analytics And Forecasting Tools, AI-Based Business Intelligence Solutions, Natural Language Processing (NLP) Solutions, AI For Cybersecurity Solutions, AI-Enabled Customer Relationship Management (CRM) Systems, AI-Powered Enterprise Resource Planning (ERP) Solutions
2) By Services: AI Integration And Implementation Services, Consulting Services For Digital Transformation Strategy, AI And Data Analytics Training Services, Cloud Migration And Integration Services, AI-Powered Process Automation Services, AI-Driven IT Infrastructure Management, Managed AI Services, Post-Implementation Support And Maintenance Services
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Which Firms Dominate the Artificial Intelligence (AI) In Digital Transformation Market by Market Share and Revenue in 2025?
Major companies operating in the artificial intelligence (AI) in digital transformation market are Amazon.com Inc., Google LLC, Microsoft Corporation, Dell Technologies Inc., Huawei Technologies Co. Ltd., Siemens AG, General Electric Company, accenture* plc, Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Qualcomm Incorporated, Oracle Corporation, Fujitsu Limited, SAP SE, Salesforce Inc., ABB Ltd., Tata Consultancy Services Limited, Hewlett Packard Enterprise Company, Nvidia Corporation, Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, Adobe Inc., VMware LLC, Wipro Limited, Hitachi Vantara Corporation
Which Regions Offer the Highest Growth Potential in the Artificial Intelligence (AI) In Digital Transformation Market?
North America was the largest region in the AI in digital transformation market in 2024. The regions covered in the artificial intelligence (AI) in digital transformation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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