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New report from Transforma Insights predicts ten-fold growth in AI use over the next decade

MAY 05, 2022
 
region: ALL sector: ALL Artificial Intelligence

Transforma Insights today published the report ‘Artificial Intelligence Market Forecast Report 2020-2030’ detailing the results of its recently completed forecast of the Artificial Intelligence market.

Key findings

The report, based on highly granular analysis of 42 use cases in AI provided the following key findings:

  • The total number of deployed AI instances will grow from 1.8 million in 2021 to 21 billion in 2030 at a CAGR of 45%. The growth, and the key use cases are illustrated in the chart, below. The single biggest use case is Natural Language Processing, followed by Chatbots & Digital Assistance and Customer Behaviour Analysis.
  • 99% of Artificial Intelligence instances will be deployed on IoT devices, particularly consumer-facing products such as Audio Visual equipment (including smart speakers) and cars.
  • North America accounts for 30% of the global instances, China is 27% and Europe 23%. The bigger economies are generally over-indexing, compared to labour intensive markets.
  • Cloud-based AI will be heavily focused on use cases related to cybersecurity and business process optimisation such as Repetitive Process Automation, HR and Workflow Optimisation. The manufacturing and retail account for almost half of all cloud-AI deployments, reflecting the fact that these sectors are highly competitive and are dominated by large organisations, which tend to be the earliest adopters of IoT.
  • Edge AI deployments will be dominated by the manufacturing sector, including use cases such as Computer Assisted Diagnostics and System Optimisation.

Global AI Instances.png

Report author Matt Arnott, Principal Analyst, said of the findings: “Everyone is aware that AI is set for rapid adoption by enterprises, but it’s not always clear where and how it will be deployed. With this report and the associated ultra-granular bottom-up forecast we provide clarity on the use cases, device types sectors and geographies where AI will be deployed.

For instance, from a geographical angle, there are three dominant regions in AI. North America accounts for 30% of the global instances, China is 27% and Europe 23%. Japan is the next biggest with 6% and the rest of the world accounts for 14%. Looked at on a country basis (below), we can also see which countries might be over-performing or under-performing in AI relative to their economic importance.

Global AI instances geog.png

The forecast takes a unique perspective on the AI market, looking at the number instances of AI deployment, i.e. the count of independent machines (real or virtual) running machine learning algorithms of a particular type. Transforma Insights took the active decision not to forecast the dollar value of the market. There are numerous ways to value AI including the total sum of software licence fees, the value of services that have an AI component, enterprise investment in AI, or the value of cost savings. All of those elements are individually limited in terms of reflecting the value of AI, which may just be focused on maintaining market share, and collectively they represent significant double-counting.

Commenting on the results, Founding Partner Matt Hatton said: “Artificial Intelligence is a critical strand for any organisation’s technology strategy and everyone involved in the space, either as user or vendor wants to understand who is doing what and where with AI. With this report we provide a detailed analysis of the use cases and associated opportunity for enterprises to deploy AI. Understanding what is possible and what the competition is set to deploy is critical for any organisation wanting to maintain its competitive positioning.

About the report

The full report ‘‘Artificial Intelligence Market Forecast Report 2020-2030’ comprises detailed analysis of each of the 42 use cases that comprise applied AI as it may be implemented by enterprises around the world. The use cases include Autonomous Systems, Image Processing & Analysis, Natural Language Processing, Repetitive Process Automation, Risk Analysis and System Optimisation. The report includes a section on each, explaining its dynamics and the highlights of the full highly granular Transforma Insights Artificial Intelligence forecast, which provides metrics on AI instances by host device type, use case, country and sector.

About Transforma Insights

Transforma Insights is a leading research firm focused on the world of Digital Transformation (DX). Led by seasoned technology industry analysts we provide advice, recommendations and decision support tools for organisations seeking to understand how new technologies will change the markets in which they operate.

For more information about Transforma Insights, please see our website transformainsights.com or contact us at enquiries@transformainsights.com. Follow us on Twitter: @transformatweet.

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