Artificial Intelligence - India

India

The market size in the Artificial Intelligence market is projected to reach US$6.26bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.63%, resulting in a market volume of US$28.36bn by 2030.
In global comparison, the largest market size will be in the United States (US$50.16bn in 2024).

Definition:
Artificial intelligence (AI) is a branch of computer science that focuses on creating machines able to perform tasks traditionally requiring human intelligence, such as perception, reasoning, and learning. The Artificial Intelligence (AI) market includes a wide range of applications, such as speech recognition, image processing, and autonomous vehicles and has seen rapid growth in recent years due to advancements in technology and increased investment. The Artificial Intelligence (AI) market includes software, hardware, and services that enable organizations to develop and deploy AI applications.

Structure:

The Artificial Intelligence (AI) market is structured into six markets based on the technology:

The Computer Vision market covers applications that enable computers to interpret and understand digital images and video data.
The Machine Learning market covers the use of algorithms to enable computer systems to learn from data.
The Natural Language Processing market covers applications that enable computers to understand, interpret, and generate human language.
The Artificial Intelligence Robotics market covers the combination of AI, machine learning, and engineering to create intelligent machines that can perform tasks autonomously.
The Autonomous & Sensor Technology market covers machines and systems that operate independently by using sensors, AI, and machine learning to respond to changes in their environment.
The Generative AI market covers artificial intelligence that involves creating models capable of generating new content, such as images, videos, and text, which are indistinguishable from content created by humans.

Additional Information:

The Artificial Intelligence (AI) market comprises three key performance indicators: market sizes, market sizes by industry, and users of AI tools. Market sizes are generated by the funding amount of Artificial Intelligence (AI) companies. Key players of the Artificial Intelligence (AI) market include companies such as Google, Open AI, IBM, and Microsoft.

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Analyst Opinion

The Artificial Intelligence market in India is witnessing remarkable growth, propelled by factors such as increasing adoption of digital technologies, growing awareness about health, and the convenience of online health services. This growth is also driven by the rapid development and integration of AI sub-markets, such as AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. The market's elevated growth rate is influenced by the country's strong focus on innovation and investment in AI research and development, as well as the increasing demand for AI-based solutions across various industries.

Customer preferences: With the rise of Artificial Intelligence (AI) technology in India, consumers are increasingly looking for AI-powered solutions to enhance their daily lives and businesses. This has led to a growing demand for AI-based products and services, such as chatbots, virtual assistants, and predictive analytics tools. Additionally, there has been a notable shift towards incorporating AI technology in traditional industries like healthcare, banking, and retail. This trend is driven by the need for efficient and accurate decision-making, as well as the desire for personalized and seamless experiences. As AI continues to evolve and become more widely accessible, it is expected to play a significant role in shaping consumer preferences and driving market growth in India.

Trends in the market: In India, the Artificial Intelligence market is experiencing a surge in demand for AI-powered chatbots, virtual assistants, and automated customer service solutions across various industries. This trend is expected to continue as businesses seek to streamline operations and enhance customer experience. Additionally, there is a growing focus on developing AI solutions for specific sectors such as healthcare, retail, and banking, which has the potential to transform the way these industries operate. This trajectory of AI adoption in India highlights the immense potential and significance of this technology, not just in terms of efficiency and cost savings, but also in driving innovation and improving overall business outcomes. With India being a major player in the global AI market, this trend has significant implications for industry stakeholders, who must keep up with the pace of technological advancements to stay competitive in the market.

Local special circumstances: In India, the Artificial Intelligence market is flourishing due to the country's large pool of tech talent and the government's focus on promoting AI adoption. Additionally, India's diverse population and unique cultural and linguistic landscape provide a rich source of data for AI training and development. However, the market is also affected by regulatory challenges, such as data privacy laws and concerns over job displacement. These factors contribute to a dynamic and rapidly evolving AI market in India, setting it apart from other markets around the world.

Underlying macroeconomic factors: The Artificial Intelligence Market in India is greatly impacted by macroeconomic factors such as government initiatives, technological advancements, and investments in research and development. India's strong IT infrastructure, coupled with favorable regulatory policies and a growing tech-savvy population, has led to significant growth in the adoption of AI technologies. Additionally, the increasing demand for automation and efficiency in various industries, along with the rise of digital transformation, is driving the growth of the AI market in India. Furthermore, with the country's focus on becoming a global leader in AI, the Indian government has increased its investments in the sector, creating a conducive environment for market growth.

Methodology

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.