Artificial Intelligence Market to Grow at 36.6% CAGR to Garner $1,811.75 Billion by 2030 - Grand View Research, Inc.

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Mar 05, 2025, 10:01 ET

SAN FRANCISCO, March 5, 2025 /PRNewswire/ -- The global artificial intelligence market size is expected to reach USD 1811.75 billion by 2030, growing at a CAGR of 36.6% between 2024 and 2030, according to a new report by Grand View Research, Inc. The market growth in recent years has witnessed an upward curve, which is attributed to breakthrough innovations, bullish investments and increasing adoption across industries, including logistics, automotive, healthcare, consumer electronics, and retail. These industries have hugely adopted AI and leveraged its capabilities to optimize operations, enhance user experiences, and increase cost savings.

The rate of innovations in artificial intelligence has been significantly propelled by the increasing availability and accessibility of historical datasets. The advent of cloud computing has fueled the availability of more unstructured datasets for researchers. Besides, the capability of next-generation computing power has driven innovation as each iteration of AI becomes more advanced than the previous ones.

Generative AI, once a niche concept, has now become an essential tool in various industries, including healthcare. In essence, the healthcare sector has been a leader in AI adoption, with emerging technologies enhancing efficiency and patient outcomes. In March 2025, Microsoft released Dragon Copilot, an AI-driven assistant for medical professionals, which automates documentation, produces multilingual notes, and delivers real-time medical insights, enabling doctors and nurses to enhance patient care.

In addition, the advancements in artificial neural networks (ANN) have significantly increased the adoption and applications of AI in the automotive, healthcare, aerospace, and manufacturing sectors. The various applications of ANNs, including image recognition, natural language processing, predictive modeling, autonomous driving, and healthcare diagnostics, have been fueling the market growth. For instance, Tesla, the leader in autonomous electric vehicles, uses ANN to improve its autonomous driving capabilities with object detection, path planning, and decision-making.

Read full market research report on AI Market with TOC - Artificial Intelligence Market Size, Share & Trends Analysis Report by Solution, By Technology (Deep Learning, Machine Learning, NLP, Machine Vision, Generative AI), By Function, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Similarly, the development of specialized AI hardware is accelerating computational capabilities, which are helping leading companies boost AI implementation. To illustrate, in March 2024, NVIDIA launched cutting-edge graphics processing units (GPUs), which are designed to accelerate artificial intelligence and machine learning tasks. It powers applications such as generative AI, autonomous vehicles, and high-performance computing. The specialized hardware has been a boost to market growth and resulted in the rapid adoption of AI across industries.

Contrary to the high-performing GPUs, the release of open-source AI models by companies such as DeepSeek has provided democratized access to more advanced AI capabilities. These models have been a part of global debates regarding AI infrastructure and have gained traction in various markets, influencing AI chip demand and development strategies and, in a way have expanded the AI industry.

AI-powered logistics have leveraged advanced technologies to enhance and automate supply chain operations. Leading logistics companies have already started to utilize the capabilities of AI in their daily operations. Through predictive analytics, AI aids companies in forecasting demand, managing inventory, and planning efficient delivery routes, thereby reducing delays and costs. For example, Uber Freight has employed machine learning to tackle vehicle routing, a challenging task that entails identifying the most efficient path for a vehicle to deliver goods to multiple destinations.

The rapid growth of AI and its applications across industries has been disruptive to many sectors in terms of operations and technology. However, instances of AI showing algorithmic bias and incorrect output due to its training on an incomplete or lesser number of datasets are some of the shortcomings encountered by the artificial intelligence market.

Artificial Intelligence Market Report Highlights

In terms of end-use, the healthcare segment is expected to depict a notable growth over the forecast period. The adoption of AI in medical image processing, diagnostics, and surgical procedures has resulted in a more efficient approach with improved patient outcomes. There has been huge progress in precise and personalized treatments through the implementation of AI in healthcare.
Based on technology, the deep learning segment spearheaded the market in terms of the largest revenue share in 2023. This growth is attributed to the increasing importance of data-driven applications based on deep learning that includes content or speech recognition.
Based on solution, the software segment dominated the market with the largest revenue share in 2023. The surge is associated with its continuous technological advancements in information storage capacity, parallel computing and processing, and computing power.
In terms of function, the sales and marketing segment is projected to grow at the fastest CAGR over the assessment period. The ability of AI to analyze vast amounts of customer data and identify potential leads for client conversion has been a primary factor in the segment growth.
On the regional front, the North America region led the market in 2023 in terms of revenue share due to governments encouraging investments in AI-related R&D projects and establishing research institutes and centers for the development of AI.

Artificial Intelligence Market Segmentation

Grand View Research has segmented the global artificial intelligence market based on solution, technology, end-use, and region:

Artificial Intelligence Market - Solution Outlook (Revenue, USD Billion, 2017 - 2030)

Hardware
Software
Services

Artificial Intelligence Market - Technology Outlook (Revenue, USD Billion, 2017 - 2030)

Deep Learning
Machine Learning
Natural Language Processing (NLP)
Machine Vision
Generative AI

Artificial Intelligence Market - End-use Outlook (Revenue, USD Billion, 2017 - 2030)

Healthcare

Robot-Assisted Surgery
Virtual Nursing Assistants
Hospital Workflow Management
Dosage Error Reduction
Clinical Trial Participant Identifier
Preliminary Diagnosis
Automated Image Diagnosis

BFSI

Risk Assessment
Financial Analysis/Research
Investment/Portfolio Management
Others

Law
Retail
Advertising & Media
Automotive & Transportation
Agriculture
Manufacturing
Others

Artificial Intelligence Market - Regional Outlook (Revenue, USD Billion, 2017 - 2030)

North America

U.S.
Canada
Mexico

Europe

U.K.
Germany

Asia Pacific

China
Japan
India

South America

Brazil

Middle East and Africa (MEA)

List of Key Players in the Artificial Intelligence Market

Advanced Micro Devices
AiCure
Arm Limited
Atomwise, Inc.
Ayasdi AI LLC
Baidu, Inc.
Clarifai, Inc
Cyrcadia Health
Enlitic, Inc.
Google LLC
H2O.ai.
HyperVerge, Inc.
International Business Machines Corporation
IBM Watson Health
Intel Corporation
Iris.ai AS
Lifegraph
Microsoft
NVIDIA Corporation
Sensely, Inc.
Zebra Medical Vision, Inc.

Check out more related studies published by Grand View Research:

Generative AI Market - The global generative AI market size is anticipated to reach USD 109.37 billion by 2030, according to a new report by Grand View Research, Inc., registering a CAGR of 37.6% from 2025 to 2030. Growing demand to modernize workflow across industries is expected to drive the demand for generative AI applications among industries.
Artificial Intelligence As A Service Market - The global artificial intelligence as a service market size is estimated to reach USD 105.04 billion by 2030, registering to grow at a CAGR of 36.1% from 2025 to 2030 according to a new report by Grand View Research, Inc.
AI In Cybersecurity Market - The global AI in cybersecurity market size is expected to reach USD 93.75 billion by 2030, registering a CAGR of 24.4% from 2025 to 2030, as per the new report by Grand View Research, Inc. Some factors, such as high internet penetration, growing footfall of connected devices, and escalating data protection concerns, have triggered the need for advanced cybersecurity solutions. AI in cybersecurity has leveraged a faster response to breaches and propelled the efficiency of cyber analysts.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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SOURCE Grand View Research, Inc.