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AI platform market set to reach US$254 billion by 2032
Fri, 4th Nov 2022
FYI, this story is more than a year old

The global AI platform market is expected to be worth US$10 billion in 2022, growing at a CAGR of 38.2% to be worth US$254.14 billion by the end of the forecast period of 2022-2032, according to Future Market Insights. 

The market was worth $9.6 billion in 2021, and it is expected to grow by 4.2% year on year between 2021 and 2022.

According FMI, because decision-making is a critical point for service providers and various manufacturers in the market, the AI platform market has grown. The AI platform market has boomed as players are now focusing on the creation of AI platforms and targeting niche solutions for solving specific enterprise problems, which has led to its growth.

The process that the AI platform goes through is learning, which includes the acquisition of information for using the information, the other is reasoning, which includes using rules to reach approximate or definite conclusions, and the last is self-correction.

AI Platform Market: Drivers and Challenges

One of the drivers for the AI platform market is the increase in the demand of AI-based solutions and products in the market. Another driver for the AI platform market include the surplus amount of data available and developed using the hardware or such other sources.

This helps the AI platform to work with full efficiency and reach out to the best possible results. Also, as there are technological advancements all round the world, there are growing innovation in the AI technology which would lead to the growth of AI platform market.

The ease of doing work is also a factor that is driving the market for AI platforms as these platforms would help in the formation of intelligent business processes.

The factor which has been the major restraint for the AI Platform market is the skill gap that prevails in the market, and the use of AI platforms mostly for popular applications which keeps the other applications underdeveloped.

On the basis of geography, the global AI platform market can be segmented into North America, Latin America, Europe, CIS & Russia, Asia Pacific excluding Japan, Japan, and the Middle East & Africa.

Among all these regions, North America is expected to hold a major market share of the global AI platform market during the forecast period, due to the early adoption of AI platform-based applications, and also due to the increased number of established players in the region regarding the AI platform market.

Some of the key participants present in the global AI Platform Cloud Service market include Oracle Corporation, Microsoft Corporation, IBM, Google LLC, Infosys Limited, Amazon Web Services, Wipro Limited, Baidu Inc., Cloudera Inc., Informatica LLC, among others.

Attributed to the presence of a such high number of participants, the market is highly competitive. While global players such as Oracle Corporation, Microsoft Corporation, IBM, and Google LLC., account for a considerable market size, several regional-level players are also operating across key growth regions, particularly in North America.

In August 2020, Google Cloud extended its partnership with Best Buy in a multi-year agreement for Best Buy’s Enterprise Data Platform. The partnership is expected to deliver an enhanced technological experience, by using Artificial Intelligence (AI), and analytics to create more personalised shopping experiences for customers of the latter.

In April 2020, Siemens announced the availability of its MindSphere on Alibaba Cloud. The successful deployment and operation are expected to foster the industrial Internet of Things (IoT) in China.