The Enterprise Artificial Intelligence (AI) Market is estimated to be valued at US$ 21.48 Bn in 2023 and is expected to exhibit a CAGR of 34. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Enterprise artificial intelligence solutions facilitate automation of various tasks that were traditionally performed by human workforce. By leveraging technologies such as deep learning and predictive analytics, enterprise AI solutions enable automation of repetitive tasks, streamline business processes and enhance efficiency. They help organizations in analyzing large volumes of data and gaining valuable insights to identify growth opportunities and emerging trends.
Market key trends:
Rising adoption of AI solutions for enhancing customer experience and operational efficiency across industries is a major trend fueling growth of the enterprise AI market. Organizations are increasingly leveraging predictive analytics and automated intelligence to gain a deeper understanding of customer behavior and purchasing patterns. This is enabling them to offer highly personalized products and services to customers. AI solutions are also helping companies automate core business processes and streamline operations to reduce costs and improve productivity. For instance, AI-powered chatbots are being utilized to automate customer queries and handles repetitive tasks. Companies are also utilizing deep learning and computer vision for predictive maintenance of equipment and assets.
Porter’s Analysis
Threat of new entrants: The enterprise artificial intelligence market requires huge investments for technology development and infrastructure building which poses high entry barriers for new players. Significant data requirements and expertise also poses challenges for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power given the availability of alternatives in the market and price sensitivity for AI solutions. However, switching costs are considered substantial after deployment.
Bargaining power of suppliers: Technology giants who develop the core AI platforms and solutions have significant bargaining power over buyers as they can influence pricing and product development roadmaps.
Threat of new substitutes: Emerging technologies like machine learning, deep learning, and IoT pose threats of substitution. However, artificial intelligence provides enhanced capabilities with suitable integration of these technologies.
Competitive rivalry: Intense competition prevails among technology majors to offer advanced capabilities and customized solutions.
SWOT Analysis
Strength: AI's ability to automate tasks, provide enhanced personalization and improve decision making. Growing adoption across verticals like healthcare, BFSI, manufacturing etc.
Weakness: Lack of skilled workforce, data privacy and security challenges, high initial investments requirements. Overdependence on few technology giants for core AI platforms.
Opportunity: Expanding applications of AI like predictive analytics, virtual agents, computer vision etc. Across both developed and developing markets present significant growth opportunities.
Threats: Regulatory uncertainties around data usage and governance. Slow pace of infrastructure modernization in few regions hinders wider adoption.
Key Takeaways
The global Enterprise Artificial Intelligence (AI) Market Demand is expected to witness high growth, exhibiting CAGR of 34.% over the forecast period, due to increasing digital transformation initiatives across industries. North America dominated the market in 2023 attributed to large technology investments and early adoption by enterprises in the region.
Regional analysis- The Asia Pacific region is expected to be the fastest growing market for enterprise artificial intelligence during the forecast period. This is attributed to increasing government initiatives for smart infrastructure development and growing technology expertise in major countries like China and India.
Key players operating in the enterprise artificial intelligence market are Alphabet Inc., Apple Inc., Amazon Web Services, Inc., International Business Machines Corporation, IPsoft Inc., MicroStrategy Incorporated, NVIDIA Corporation, SAP SE, Verint Systems Inc., Wipro Limited, and Others. Major players are focusing on partnerships and acquisitions for talent consolidation and to expand product portfolios.
For more insights, Read-
https://www.insightprobing.com/enterprise-artificial-intelligence-ai-market/
