Enterprise AI Market Report

Market Insights

The global enterprise AI market is expected to grow from USD 5.76 billion in 2022 to USD 35.74 billion by 2029 at a CAGR of 29.8% during the forecast period.

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What is Enterprise AI?

Enterprise AI (Artificial Intelligence) refers to the use of AI technologies in large organizations or businesses to improve efficiency, productivity, and decision-making processes. Enterprise AI applications can range from automating routine tasks to providing real-time insights into complex business problems.

AI algorithms can analyze large amounts of data from various sources, such as customer behavior, financial records, and supply chain operations, to provide insights that inform business strategies and decision-making. Some examples of Enterprise AI include chatbots, predictive analytics, and intelligent process automation. By leveraging AI technologies, businesses can reduce costs, improve operational efficiency, and enhance customer experiences.

Key Players

The major players operating in the global enterprise AI market are:

• Microsoft
• AWS
• IBM
• Intel
• Google
• SAP
• Sentient Technologies
• Oracle
• HPE
• Deloitte
• EY
• PwC
• Wipro

Market Dynamics

Businesses are increasingly acknowledging the benefits of integrating artificial intelligence (AI) into their operations. By automating process flows, AI helps enhance operational efficiency and cut down on costs. The most prevalent trend in the market is the digitization of enterprises.

The fourth industrial revolution, also known as Industry 4.0, is distinguished by the amalgamation of physical and cutting-edge digital technologies. These technologies include the Internet of Things, intelligent robots, artificial intelligence, ubiquitous mobile supercomputing, information management, and analytics, and they have a profound impact on different industries.

The surge in industrial automation, fueled by the widespread implementation of Industry 4.0, is propelling the uptake of robots and automated technologies to boost the effectiveness of manufacturing processes. For example, as per the Bank of America, the industrial robot segment of robotics and AI is predicted to reach a worth of approximately USD 24 billion by 2025. This trend has led to a rise in the adoption of robotic process automation (RPA) in enterprises, which is a crucial facet of AI.

AI technology is a significant driver of digital transformation for enterprises, and in the years to come, almost all enterprise software applications are likely to be AI-enabled. Therefore, it is becoming increasingly essential for businesses to develop the expertise to create, deploy, and operate enterprise AI applications at scale to ensure their survival.

According to O'Reilly's 2022 report on enterprise AI adoption, based on responses from its newsletter recipients regarding enterprise AI adoption, 31% of companies do not use AI (an increase from 13% in 2021), 43% are assessing adoption, and 26% have implemented AI applications. The primary increase in manufacturing respondents with AI, from 18% to 31%, occurred in Oceania.

Many organizations are lacking in AI governance. Only 49% of the 26% of respondents with AI products in production have a governance plan to manage how projects are developed, assessed, and monitored, compared to 51% for those without.

Despite its potential benefits, manufacturers in the enterprise AI market face significant intellectual challenges in developing and refining this technology. The growth of the artificial intelligence market is primarily driven by increased productivity, expanded applications, improved customer satisfaction, and the integration of vast amounts of data.

The COVID-19 pandemic prompted many organizations to expedite their transition to public cloud solutions, as the elastic nature of cloud services can accommodate sudden spikes in demand. Migrating to the cloud enabled businesses to revamp their operations in response to the pandemic's challenges.

Segment Analysis

By Component Type

The component segment of the enterprise AI market has been divided into solutions and services. During the forecast period, the services segment is projected to grow at a higher Compound Annual Growth Rate (CAGR). In the enterprise AI market, services are critical to the efficient and effective functioning of Natural Language Processing (NLP) and machine learning applications. Effective integration of AI technologies with business modules and their connection to the existing work environment requires services.

During the forecast period, it is anticipated that the managed services segment will experience a higher compound annual growth rate (CAGR) compared to other services. Managed services are crucial since they directly impact the delivery of an optimal customer experience. As no business can compromise on customer satisfaction, enterprises choose managed services to acquire the necessary technical skills and expertise to maintain and update their solutions.

By Technology Type

The NLP segment is expected to grow at a higher CAGR during the forecast period among technologies. As personal devices and smartphones become more prevalent and internet usage rates increase, the demand for human-to-machine level interaction has significantly increased in enterprises. The use of NLP is expected to increase with the growing demand for Machine-to-Machine (M2M) translation. Many enterprises are implementing AI solutions to benefit from them.

By Application Area Type

The enterprise AI market is categorized into various application areas. During the forecast period, the analytics application segment is projected to have the largest market size. Analytics applications utilize AI to review data and assist with decision-making, thus saving time. AI is proving to be an invaluable tool for aligning an enterprise's business objectives with the technologies that support those objectives.

By Deployment Type

In terms of deployment type, cloud deployment is expected to witness a higher CAGR during the forecast period. This type of deployment is advantageous due to its simplicity and cost-effectiveness in supporting applications such as customer analytics, virtual assistance, and self-diagnostics.

Geographic Analysis

The enterprise AI market is expected to have the largest market size in North America, while the Asia Pacific region is projected to experience the highest compound annual growth rate (CAGR) during the forecast period. The North American region has displayed an increased interest in investing in the enterprise AI market, with numerous vendors adapting to the fast-growing market.

Substantial growth is expected in this region in the forecast period. In North America, enterprise AI technology is utilized effectively in various business applications, including security and risk management, marketing management, customer support and experience, and process automation.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com

Recent Developments

• In January 2023, SymphonyAI, a vendor of high-value enterprise AI SaaS for strategic industries, teamed up with Oracle to offer SymphonyAI solutions on Oracle Cloud Infrastructure (OCI) using important services such as Oracle Exadata Database Service, GPU-accelerated compute, and performance monitoring. Using SymphonyAI's retail and CPG vertical solutions, customers are able to transition to the cloud to shorten technology deployment time and receive improved real-time services with easy scalability and reduced costs.
• In December 2022, EY announced partnerhsip with EXL to support digital transformation initiatives in financial services, insurance, and health care sectors. The objective is to combine industry-leading data analytics, digital transformation , and operations management capabilities to drive growth and reduce costs.
• In October 2022, Deloitte acquired the business of SFL Scientific, a leading, award-winning AI strategy and data science consulting firm.