AI and Automation Software Market to Hit $86 Billion in 2024 - 24% CAGR Expected in Coming Years | Valuates Reports

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Mar 20, 2025, 12:45 ET

BANGALORE, India, March 20, 2025 /PRNewswire/ -- AI and Automation Software Market is Segmented by Type (Marketing Automation, Manufacturing Automation, Business Automation), by Application (Industry, Business).

The market size of AI and Automation Software in 2024 is about 86,000 million, and the compound annual growth rate in the next few years is about 24%.

In order to maintain its leading position, the United States will increase its investment in artificial intelligence research and development in non-defense fields, from USD 1.6 billion to USD 1.7 billion in 2022.

The Digital Europe plan adopted by the European Union will allocate €9.2 billion on high-tech investments, such as supercomputing, artificial intelligence, and network security. According to the latest data released by IDC, global artificial intelligence revenue was USD 432.8 billion in 2022, a year-on-year increase of 19.44%, including software, hardware and services.

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Major Factors Driving the Growth of Artificial Intelligence (AI) and Automation Software Market:

The A.I. and automation software market is poised for ongoing growth as more industries embrace data-driven methodologies and machine intelligence. From manufacturing automation that enhances productivity to sophisticated marketing solutions that optimize consumer engagement, these tools streamline processes and generate tangible results. Over time, improvements in algorithmic capabilities and infrastructure availability further amplify the potential of such software. Emerging players bring fresh ideas, fostering competition and spurring technical innovation. As skill gaps narrow and deployment costs become more manageable, businesses of all sizes integrate A.I. and automation across their operations. In turn, this widespread adoption transforms entire value chains, driving efficiency, reducing errors, and encouraging sustainable expansion for organizations in diverse markets worldwide.

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TRENDS INFLUENCING THE GROWTH OF THE AI AND AUTOMATION SOFTWARE MARKET:

Marketing automation is a key driver of growth within the A.I. and automation software market, as businesses seek data-driven insights to streamline their promotional strategies. Automated tools help organizations manage campaigns, analyze consumer behavior, and personalize outreach with minimal manual intervention. By integrating machine learning algorithms, these systems generate predictive analytics, enabling teams to anticipate trends and optimize marketing spend. Consequently, faster decision-making and improved resource allocation become possible, enhancing overall campaign performance. As companies grow more reliant on digital engagement, the ability to automate repetitive tasks frees marketers to focus on creative and strategic efforts. This synergy between marketing automation and advanced A.I. capabilities continues to expand adoption across various sectors worldwide, fueling market expansion.

Manufacturing automation significantly propels the A.I. and automation software market by optimizing production lines, reducing errors, and minimizing downtime. Automated systems employing robotics, computer vision, and machine learning can perform tasks that previously required manual labor or were prone to errors. This leads to consistent quality, higher throughput, and better safety for workers. Real-time analytics also enable predictive maintenance, helping organizations address equipment issues before they escalate into costly shutdowns. By leveraging automation software, manufacturers boost efficiency, control costs, and respond rapidly to market demands. As technology advances, the ability to integrate data from sensors, supply chains, and end-user feedback becomes a critical advantage. Thus, manufacturing automation remains a core factor spurring A.I. and automation software growth.

Consumer habits change rapidly in the digital age, with people expecting near-instant gratification, personalized interactions, and seamless online experiences. A.I. and automation solutions help organizations meet these growing demands by analyzing large data sets, predicting trends, and automating customer touchpoints. The ability to deliver timely, tailored services fosters customer loyalty and boosts overall satisfaction. As markets grow more saturated, standing out requires accurate insights into consumer behavior. A.I. algorithms identify emerging preferences, enabling brands to refine offerings and marketing strategies in real time. Furthermore, automated tools coordinate activities across multiple channels, improving response times and service consistency. These benefits collectively reinforce the importance of A.I. and automation software for companies determined to exceed consumer expectations.

Many businesses prioritize operational efficiency, aiming to reduce unnecessary expenditures and streamline processes. A.I. and automation software solutions tackle this goal by automating routine tasks, integrating workflow systems, and analyzing large data sets for actionable insights. Consequently, managers gain improved visibility over resource allocation and can make data-driven decisions to enhance productivity. This heightened efficiency often translates to faster project completion, lower labor costs, and better financial performance. Moreover, automated systems are less prone to human error, contributing to quality control and risk reduction. As a result, companies across industries adopt these technologies to maximize output while minimizing operating overhead. The perpetual pursuit of higher efficiency ensures ongoing investment in A.I. and automation software solutions.

With the expanding volume of information generated daily, organizations must adopt sophisticated tools to extract meaningful insights swiftly. A.I. and automation platforms use machine learning algorithms to process data from diverse sources, uncovering hidden patterns and predictive trends. These insights guide strategic choices, from product development to supply chain optimization, boosting revenue and sustaining market relevance. Automated dashboards offer real-time analytics, allowing decision-makers to respond to emerging issues promptly. By eliminating guesswork, businesses can allocate resources more effectively and target their objectives with precision. This data-centric approach underpins innovation across multiple sectors, including finance, retail, and healthcare. Consequently, the shift to data-driven decision making amplifies the need for reliable A.I. and automation software, solidifying its market growth.

In certain industries, labor shortages or high turnover rates can hinder productivity and inflate operational costs. A.I. and automation software solutions address this issue by handling repetitive tasks, freeing human talent for roles requiring creativity or complex problem-solving. By supplementing or replacing manual labor, businesses can maintain consistent output despite workforce fluctuations. Automated systems also reduce training requirements, as fewer workers are needed for repetitive functions. This shift to software-driven workflows promotes stability and scalability, enabling growth even in tight labor markets. Moreover, employees can focus on tasks that add greater value, improving job satisfaction and retention. As labor challenges persist in many regions, the demand for A.I. and automation solutions continues to climb.

The ability of modern A.I. and automation software to integrate seamlessly with legacy systems is a major selling point for organizations. Rather than overhauling their entire infrastructure, companies can overlay automation solutions onto existing processes, gradually modernizing operations. This modular approach reduces downtime and project costs while allowing a phased transition that lowers disruptions. Many software providers now offer application programming interfaces (APIs) and customizable connectors, simplifying data exchange between old and new platforms. As a result, businesses avoid the inefficiencies of siloed systems and harness real-time collaboration across departments. Such streamlined integration drives wider adoption of automation technologies, ensuring ongoing investments from companies seeking to improve functionality without discarding prior investments.

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AI AND AUTOMATION SOFTWARE MARKET SHARE

North America remains a prominent hub, with a large presence of technology firms pioneering machine learning research and rapid enterprise adoption.

Europe follows closely, influenced by strong privacy regulations and a focus on ethical A.I. development.

In Asia-Pacific, especially China and India, swift digital transformation and growing startup ecosystems fuel impressive market expansion.

Key Companies:

General Electric
IBM
Honeywell
Bytedance
ORACLE CORPORATION
Appier
Emerson Electric
SenseTime
Salesforce
Rockwell Automation
SAS Institute
HubSpot
AIBrain
OrCam Technologies
Preferred Networks
Prospera
Cambricon
Element AI

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