Enterprise AI Market Size to Grow by USD 48.96 billion from 2024 to 2028, Analyzing market growth in On-Premises Segment, Technavio

NEW YORK, March 20, 2024 /PRNewswire/ -- The Enterprise Artificial Intelligence (AI) Market size is projected to increase by USD 48.96 billion, at a CAGR of 46.52% between 2023 and 2028. 

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Vendor Analysis
Vendor Landscape - The global enterprise ai market is fragmented, with the presence of several global as well as regional vendors. A few prominent vendors that offer enterprise ai in the market are Abacus.AI, Alphabet Inc., Alteryx Inc., C3.ai Inc., Databricks Inc., Dataiku Inc., DataRobot Inc., H2O.ai Inc., Hewlett Packard Enterprise Co., Hypersonix Inc., Intel Corp., International Business Machines Corp., Microsoft Corp., Oracle Corp., Salesforce Inc., SAP SE, SAS Institute Inc., Sentient.io, Snowflake Inc., and Wipro Ltd. and others.

What's New? -

• Special coverage on the Russia-Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession
• Global competitiveness and key competitor positions
• Market presence across multiple geographical footprints - Strong

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Vendor Offerings -

• Abacus.AI: The company offers Enterprise AI which enterprises make use of artificial intelligence AI by empowering developers to build custom models from data sets. They also use LLM Ops and ML Ops.
• Alphabet Inc.: The company offers Enterprise AI through Google Cloud services, along with AI and machine learning solutions that can leverage the built-in AI power for various infrastructures.
• C3.ai Inc.: The company offers Enterprise AI such as the C3 AI Platform that provides comprehensive service enterprise-scales to build enterprise-scale AI applications more efficiently and cost-effectively than alternative approaches.

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Segment Overview
Technavio has segmented the market based on type, Deployment (On-premises and Cloud), End-user (Advertising and media and entertainment, Retail and e-commerce, Medical and life sciences, BFSI, and Government and defense and others), and Geography (North America, Europe, APAC, Middle East and Africa, and South America). 

• The on-premises AI segment is poised for significant growth due to heightened security demands, with clients preferring full control over hardware and software. While witnessing market share growth to USD 900 million in 2018, high upfront costs deter widespread adoption, despite increasing investments in AI infrastructure.
• AI is gaining traction in advertising, media, and entertainment, leveraging anomaly detection and personalized content creation. Enterprises adopt AI to lower costs and boost efficiency. The media sector undergoes digital transformation, with AI applied in filmmaking, gaming, and music. Such trends drive market growth as companies integrate AI solutions for improved operations.

Geography Overview
By geography, the global enterprise ai market is segmented into North America, Europe, APAC, Middle East and Africa, and South America. The report provides actionable insights and estimates the contribution of all regions to the growth of the global enterprise ai market.

• North America is projected to contribute 37% to global market growth. Technavio's analysis highlights regional trends and drivers, showcasing widespread AI adoption by leading companies like IBM and Microsoft. Collaborations in AI development, particularly in BFSI sectors like Wells Fargo and Bank of America, enhance operational efficiency. Government emphasis on AI's impact across sectors and IBM's strategic acquisitions bolster market growth, facilitating personalized campaigns and revenue expansion in the booming e-commerce landscape.

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Market Dynamics

The rising demand for automation among enterprises is the key factor driving market growth:

Rising enterprise demand for automation propels market growth. Recognizing AI's transformative potential, businesses automate tasks, streamline processes, and enhance operational efficiency. AI minimizes errors, boosts productivity, and cuts costs. Versatile AI solutions cater to diverse business needs, driving the global enterprise AI market amid ongoing digital transformations, where automation is pivotal.

• Increasing adoption of AI-ready solutions empowers businesses to integrate AI into their strategies seamlessly. These tools, ranging from sentiment analysis to prediction algorithms, enable insights from vast data volumes. Especially beneficial for SMEs, user-friendly third-party tools streamline data management, fostering competitiveness in the data-driven economy, and fueling market growth.
• The challenge lies in the complexity of data comprehension for AI technologies like IBM Watson. Unlike humans, AI processes data spatially, lacking contextual understanding crucial for decision-making. Without overcoming language, contextual, and reasoning hurdles, enterprise AI may struggle to analyze vast data volumes effectively, hindering market growth.

Driver, Trend & Challenges are the factor of market dynamics which states about consequences & sustainability of the businesses, find some insights from a 

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What are the key data covered in this Enterprise AI Market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the Enterprise AI Market between 2024 and 2028
• Precise estimation of the size of the Enterprise AI Market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the Enterprise AI Market industry across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of Enterprise AI Market vendors

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Analyst Review:

The Enterprise AI market is at the forefront of revolutionizing business processes and driving digitalization across industries. As businesses seek to enhance process flows and achieve better business outcomes, the adoption of AI technologies becomes imperative. This trend is particularly prominent in the context of the Fourth Industrial Revolution, where the convergence of physical and advanced digital technologies, including the Internet of Things, intelligent robots, and ubiquitous mobile supercomputing, reshapes industry landscapes.

Key players such as Bank of America are investing significantly in the industrial robot segment, leveraging Robotics Process Automation (RPA) and critical manufacturing solutions to optimize operating costs and improve operating efficiency. Companies like SwissSEM are pioneering advancements in industrial automation, digital manufacturing, and integrated systems, ushering in an era of autonomous mobility and cutting-edge robotics.

The integration of AI into enterprise software applications facilitates AI adoption and governance, enabling predictive analytics solutions and driving efficiency and cost savings across various industries. Additionally, advancements in edge computing, augmented reality, virtual reality, and speech analytics further bolster the capabilities of AI-driven solutions, providing organizations with innovative tools to drive digital transformation and achieve business success in the era of the Fourth Industrial Revolution.

Market Overview:

The Enterprise AI Market is experiencing a transformative wave driven by digitalization and the Fourth Industrial Revolution. Businesses are optimizing efficiency and profitability through the integration of artificial intelligence, robotics, and predictive analytics solutions. Industrial automation, coupled with advanced manufacturing processes, is revolutionizing traditional industries. Cloud and edge computing are facilitating seamless AI adoption across sectors, while IoT connectivity is enabling ubiquitous data collection for informed decision-making. Enterprises are prioritizing digital transformation, leveraging AI governance and analytics to enhance operating efficiency and drive business outcomes. With a focus on innovation and strategic investment, industries are embracing AI-driven solutions to navigate the evolving landscape of global markets.

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About US
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio