Artificial intelligence to become a half-a-trillion dollar industry by 2027, report
In just three years, the global AI industry has more than doubled, reaching a $240bn value and a quarter of a billion users worldwide. From healthcare and retail to manufacturing, stock trading, and social media, companies continue adopting AI solutions to improve their efficiency, decision-making, and user experience and gain a competitive edge. At the same time, a surge in investments in AI technologies and startups by both private and public sectors shows the interest in the industry remains strong.
According to data presented by AltIndex.com, the global AI market is set to continue growing by a CAGR of 17% in the next four years and hit more than $500bn in value by 2027.
Generative AI Will Make One-Quarter of Total Market Value in 2027
A decade ago, it was hard to imagine companies and consumers worldwide using generative artificial intelligence daily to automate tasks, write documents, do market research, or even basic coding. However, the rise of large language models and generative AI is just a showcase of this still-developing market's enormous potential. According to PwC's 2023 Global Artificial Intelligence Study, AI could contribute $15.7trn to the global economy by 2030. At the same time, the Statista survey shows most of that value will come from machine learning and natural language processing, the market's two largest segments.
According to a Statista survey, the global AI industry has grown by a massive 80% year-over-year and hit a $241bn value in 2023. With businesses and users worldwide embracing AI technologies and solutions, this figure is expected to more than double to $511.3bn by 2027. Machine learning, the largest segment of the AI market, will grow by 122% in this period and hit a $355bn value, up from $158bn this year. Its subset, generative AI, is expected to make one-quarter of the total market value in 2027, up from 18% this year.
The natural language processing (NLP) segment, the second-largest revenue stream in the AI industry, will grow by 94% in four years and hit a $45.7bn value. Autonomous and sensor technology, computer vision, and AI robotics follow, with $42.5bn, $38.2bn, and $30.2bn valuations by 2027, respectively.
More than Half a Billion People to Use AI Tools
The surging demand for automation and optimization across industries, increasing use of AI in consumer-facing applications, and growing investments in AI research and development are expected to continue driving market growth, helping it reach more users than ever.
According to Statista, around 254 million people have used AI tools in 2023, 2.5 times more than just three years ago. With roughly 60 million people embracing AI solutions and tools per year, the entire market is set to reach more than half a billion users by 2027. One-third of all users, or 181 million, will come from the United States, the world's largest AI market, followed by 52 million Chinese, who are also expected to embrace AI tools by 2027.
