Cloud Artificial Intelligence Market Size is Growing with a CAGR of 35.8% and to Garner $887 Billion

• 08 Apr 2024
• TM Team
• 0 Comments

According to the report, the Cloud artificial intelligence industry generated $42.7 billion in 2022, and is anticipated to generate $887 billion by 2032, witnessing a CAGR of 35.8% from 2023 to 2032.

Cloud artificial intelligence offers technology solutions for every stage of the AI lifecycle, encompassing the development of features, models, and applications, their deployment, ongoing maintenance, and internal distribution within an organization. AI platforms form a comprehensive category of technologies that assist in all facets of the AI lifecycle.

Additionally, users have the flexibility to operate cloud artificial intelligence solutions on their preferred infrastructure, whether it's on-premises, in a private cloud, a hybrid cloud, or a public cloud. Users are responsible for managing the infrastructure, ensuring scalability, elasticity, reliability, and security within their chosen environment.

The increasing availability of cloud-based AI services, the growing usage of mobile devices, and the surge in technological advancements are the major factors that drive the growth of the global cloud artificial intelligence market. However, data privacy, security concerns and costs and budget constraints hamper the growth of the market. Furthermore, the rise in integration of industry 4.0, creates opportunities for Cloud Artificial Intelligence solutions to optimize business operations.

Covid-19 Scenario:

• The cloud artificial intelligence market witnessed stable growth during the COVID-19 pandemic, owing to the dramatically increased dependence on digital devices. The surge in online presence of people during the period of COVID-19-induced lockdowns and social distancing policies fueled the need for cloud artificial intelligence solutions.

• In addition, with the majority of the population confined in homes during the early stages of the COVID-19 pandemic, businesses needed to optimize their business operations and offerings to maximize their revenue opportunities while optimizing their operations to support the rapidly evolving business environment post the outbreak of the COVID-19 pandemic.

Based on components, the solution segment held the highest market share in 2022, accounting for more than two-thirds of the cloud artificial intelligence market revenue and is estimated to maintain its leadership status throughout the forecast period. This is attributed to the high level of security and cost efficiency provided by cloud AI solutions. However, the service segment is projected to manifest the highest CAGR of 38.3% from 2023 to 2032, as businesses intending to implement cloud artificial intelligence technologies find cloud computing's benefits, such as scalability, flexibility, and lower infrastructure costs, compelling.

Based on technology, the deep learning segment accounted for the largest share in 2022, contributing for more than two-fifths of the cloud artificial intelligence market revenue, owing to growth in the usage of deep learning solutions in several industries. However, the others segment is expected to portray the largest CAGR of 41.3% from 2023 to 2032 and is projected to maintain its lead position during the forecast period. It provides several advantages such as reducing costs, supporting business, and effectively controlling the business environment in the organization.