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Worldwide Artificial Intelligence (AI) Market to Cross USD 1,394.30 Billion by 2029; Automation, AIoT, and 5G among Pivotal Trends Augmenting AI Applications

April 05, 2022 | Information & Technology

The global Artificial Intelligence (AI) market size was estimated to be worth USD 328.34 billion in 2021. The market valuation is projected to rise from USD 387.45 billion in 2022 to USD 1,394.30 billion by 2029, registering a robust 20.1% CAGR during the forecast duration. This information is provided by Fortune Business Insights™, in its report titled, “Artificial Intelligence  (AI ) Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Function (Human Resources, Marketing & Sales, Product/Service Deployment, Service Operation, Risk, Supply-Chain Management and Others), By Deployment (Cloud, On-premises), By Industry (Healthcare, Retail, IT & Telecom, BFSI, Automotive, Advertising & Media, Manufacturing, and Others), and Regional Forecast, 2022-2029”.  

Based on our analysis, the market is set to gain enormous traction over the forthcoming years, powered by increasing investment in the technology by enterprises of all sizes across industries. AI is being rapidly integrated into corporate processes globally to boost business operations and enhance customer experience. Future developments in this technology will be influenced by rise of automation, cloud computing, 5G, and expanding databases.    

AI Deployment Surged 150% during COVID-19 due to Increased Demand from Healthcare   

Artificial Intelligence market growth experienced promising uptick during the COVID-19 pandemic, mainly due to growing adoption across healthcare. A monumental 150% rise in market growth was observed in 2020, compared with the previous year. From tackling pandemic-related challenges to providing efficient and reliable models for improved outcomes, AI has emerged as a highly sought-after technology. Drug discovery is an important area of application for AI technology. Tech leaders such as Facebook AI and Tata Consultancy Services are leveraging the power of AI to better understand coronavirus infections and identify potential molecules against the same. Besides healthcare, retail, ecommerce, logistics, and transportation have been among the leading adopters of the technology.

To get a detailed report summary and research scope of this market, click here:


Microsoft Takes Over AI Software Provider Nuance to Accelerate Cloud Strategy for Healthcare  

Microsoft Corporation, the American multinational tech giant, completed the acquisition of Nuance, a leading provider of cloud and AI software, in April 2021. With this acquisition, Microsoft aims to leverage Nuance’s decades of experience in healthcare and enterprise AI. As per terms of the agreement, the two companies intend to combine their expertise and resources to deliver new AI and cloud capabilities across healthcare and other sectors. The takeover of Nuance is part of Microsoft’s strategy to accelerate its efforts to deliver industry-specific cloud offerings to support clients and partners as they explore new opportunities and respond to disruption.

Increased Adoption of Hyper-Personalized Services to Augment the Market Growth

The market share is expanding rapidly due to the rapid adoption of AI to deliver personalized and devoted services in real-time. Enterprises are leveraging the technology to develop tailored marketing strategies based on industry-specific customer insights. Industries including ecommerce, retail, BFSI, healthcare, and others adopting the technology to collaborate with customers personally. Further rise in the adoption of AI across key end-use verticals will propel the market forward during the projected timeframe.

Key Players Emphasize R&D and Acquisitions to Deliver Customized Solutions

The booming AI market is witnessing rapid emergence of new startups that are collaborating with different industries to deliver customized solutions. Leading market players are investing in R&D to cater to the evolving needs of various industrial applications. A key strategy adopted by several companies is the acquisition of AI startups and emerging players. Highlighting a recent instance, Apple Inc. Expanded its smart products offerings with the takeover of emerging startups in the market.

Notable Industry Development:

  • February 2021 – IBM Corporation formed a strategic alliance with Palantir Technologies to deliver AI to businesses over IBM's hybrid cloud. With this partnership, the two companies aim to deliver new solutions to help businesses implement AI solutions integrated with IBM Watson.

List of Key Players Profiled in this Market Report

  • Amazon, Inc. (Washington, U.S.)

  • IBM Corporation (New York, U.S.)

  • Microsoft Corporation (Washington, U.S.)

  • Salesforce.com Inc. (California, U.S.)

  • Alphabet Inc. (Google LLC) (California, U.S.)

  • NVIDIA Corporation (California, U.S.)

  • Baidu, Inc. (Beijing, China)

  • SAP SE (Walldorf, Germany)

  • Oracle Corporation (Texas, U.S.)

  • Hewlett Packard Enterprise Company (Texas, U.S.)

  • SAS Institute Inc. (North Carolina, U.S.)

Further Findings

  • North America dominated the global Artificial Intelligence market share in 2020 with, recording USD 143.49 billion in annual revenue. Led by the U.S., the region is slated to show similar trends over the forthcoming years. The presence of established companies and emergence of new startups will strengthen the regional outlook.

  • In terms of industry, healthcare segment is expected to witness the highest CAGR during 2022-2029. Growth is attributable to the rapid adoption of AI-based solutions to enhance patient care. The COVID-19 pandemic has augmented AI deployment across healthcare significantly.

Table of Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD billion)


Component; Function; Deployment; Industry; and Region

By Component

  • Hardware

  • Software

  • Services

By Function

  • Human Resources

  • Marketing & Sales

  • Product/Service Deployment

  • Service Operation

  • Risk

  • Supply-Chain Management

  • Others (Strategy and Corporate Finance)

By Deployment

  • Cloud

  • On-premises

By Industry

  • Healthcare

  • Retail

  • IT & Telecom

  • BFSI

  • Automotive

  • Advertising & Media

  • Manufacturing

  • Others

By Region

  • North America (By Component, By Function, By Deployment, By Industry, and By Country)

    • U.S. (By Component)

    • Canada (By Component)

  • Europe (By Component, By Function, By Deployment, By Industry, and By Country)

    • U.K. (By Component)

    • Germany (By Component)

    • France (By Component)

    • Scandinavia (By Component)

    • Rest of Europe

  • Asia Pacific (By Component, By Function, By Deployment, By Industry, and By Country)

    • China (By Component)

    • Japan (By Component)

    • India (By Component)

    • Southeast Asia (By Component)

    • Rest of Asia Pacific

  • The Middle East & Africa (By Component, By Function, By Deployment, By Industry, and By Country)

    • GCC (By Component)

    • South Africa (By Component)

    • Rest of the Middle East & Africa

  • Latin America (By Component, By Function, By Deployment, By Industry, and By Country)

    • Brazil (By Component)

    • Mexico (By Component)

    • Rest of Latin America

Artificial Intelligence Market
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  • 2021
  • 2018-2020
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  • 4850

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