According to a report by Benzinga Research, the global AI market will see a massive 31% CAGR through 2030, with North America and China seeing the greatest gains. The global market for AI-related service sat at a valuation of around $29.9 billion in 2019 but is expected to jump to over $718 billion by 2030.
So what exactly is driving this massive spike in growth? Well, according to the report, due to how quickly AI-related technologies and services have entered multiple industries in a short amount of time, they view this trend to continue for the new future.
Some of the leading players of course are companies such as Google, Microsoft, Meta, Amazon, IBM, and Apple. This report comes to a similar report from Goldman Sachs earlier this year which saw generative AI adding hundreds of billions of dollars of GPD value shortly.
Another market trend sees increased demand for AI semiconductor chips, which is driving the market for AI chips to grow at a similar pace of over 31% through 2028. This is also driven by increases in consumer electronics demand. However this isn’t the only area of demand. Home appliances are fast becoming fresh ground for AI-powered services and hardware.
Unsurprisingly, the banking, financial services, and insurance sectors is driving almost a third of this growth. Much of this is due to the early adoption of AI, and the push to utilize AI to optimize workflows, and identify risk through model predictions and compliance/regulation needs.
The report also points to North America still acting as the leader in the AI market. Currently, this region is contributing to over 29% of the global industry revenue. This is likely why China has been welcoming American AI firms over the last year.
Another growth driver is the healthcare industry. In that sector, AI is finding applications in a diverse range of sectors. This includes drug discovery, administrivia work, documentation, accessibility, security, data governance, and personalized healthcare services.
As one would expect, this has caused an influx of investments which has seen a twofold increase in global AI funding in 2021. A sign of this is that between 2020 and 2022, there was a nearly 5 billion increase in annual cooperate global AI investments in startups.
Key examples of this are Microsoft’s investments in OpenAI and Amazon’s recent partnership with Anthropic. Though other companies and tech leaders have also invested in multiple startups in h hopes of not missing out on the AI race.