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Redding, California - April 17, 2024

Enterprise AI Market to be Worth $171.2 Billion by 2031

Enterprise AI Market by Offering (Solutions, Services), Deployment Mode, Organization Size, Technology (ML, NLP), End-use Industry (IT & Telecom, Healthcare, Retail & E-commerce, Media & Advertisement) and Geography - Global Forecast to 2031

Meticulous Research^®—leading global market research company, published a research report titled, ‘Enterprise AI Market by Offering (Solutions, Services), Deployment Mode, Organization Size, Technology (ML, NLP), End-use Industry (IT & Telecom, Healthcare, Retail & E-commerce, Media & Advertisement) and Geography - Global Forecast to 2031.’

According to this latest publication from Meticulous Research^®, the global enterprise AI market is projected to reach $ 171.2 billion by 2031, at a CAGR of 32.9% from 2024–2031. The growth of the enterprise AI market is driven by enterprises’ increasing need to enhance customer satisfaction and the growing implementation of enterprise AI solutions in the IT & telecom sectors. However, the high costs of enterprise AI solutions restrain the growth of this market. Furthermore, the increasing need for conversational AI solutions for optimized sales & marketing management and the growing need to automate business processes are expected to generate growth opportunities for the players operating in this market. However, data privacy & security concerns are a major challenge impacting market growth. Additionally, the growing adoption of AI chatbots for customer interaction and the increasing integration of Machine Learning (ML) technology into enterprise AI solutions are prominent trends in this market.

The global enterprise AI market is segmented by offering (solutions and services [professional services and managed services]), deployment mode (cloud-based deployment and on-premise deployment), organization size (large enterprises and small & medium-sized enterprises), technology (machine learning, image processing, natural language processing, and speech recognition), end-use industry (media & advertising, healthcare, retail & e-commerce, BFSI, government, automotive, IT & telecom, and other end-use industries), and geography. The study also evaluates industry competitors and analyses the market at the country and regional levels.

Based on offering, the global enterprise AI market is segmented into solutions and services. In 2024, the solutions segment is expected to account for the larger share of the global enterprise AI market. The segment's large market share is attributed to the growing adoption of enterprise AI solutions to solve specific business challenges or streamline business processes, the rising need to improve productivity and customer experience, and the growing implementation of these solutions to automate tasks, analyze data, and provide insights. As more organizations leverage enterprise AI to drive efficiency and innovation across multiple business functions, several companies are increasingly offering and launching AI solutions tailored to these specific needs. For instance, in February 2024, Wipro Limited (India) partnered with International Business Machines Corporation (U.S.) to launch the Wipro Enterprise Artificial Intelligence (AI)-Ready Platform. This new service will allow clients to create their enterprise-level, fully integrated, and customized AI environments. The Wipro Enterprise AI-Ready Platform leverages IBM's Watsonx AI and data platforms such as watsonx.ai, watsonx.data, and watsonx.governance and AI assistants to deliver clients an interoperable service that helps accelerate AI adoption.

However, the services segment is expected to register a higher CAGR during the forecast period. The growth of this segment is driven by the growing need for AI consulting, data analysis, and enterprise-grade AI solution development, maintenance, and support and the rising adoption of services to automate tasks and help improve business operations efficiently.

Based on deployment mode, the global enterprise AI market is segmented into cloud-based deployment and on-premise deployment. In 2024, the on-premise deployment segment is expected to account for the larger share of the global enterprise AI market. The segment’s large market share is attributed to the increasing on-premise deployment of enterprise AI solutions by large enterprises and the growing demand for service flexibility, enhanced customer experience, and efficiency in managing risks and compliance.

However, the cloud-based deployment segment is expected to register a higher CAGR during the forecast period. The growth of this segment is driven by benefits associated with cloud-based deployment, including easy maintenance of customer data, cost-effectiveness, and scalability, and the increasing demand for enterprise AI solutions that support multi-cloud deployments. Several providers are also developing enterprise AI offerings tailored for private cloud environments and providing end-to-end solutions for multi-cloud deployments. For instance, in March 2023, NVIDIA Corporation (U.S.) launched NVIDIA DGX Cloud. This AI supercomputing service offers enterprises immediate access to infrastructure and software essential for training advanced models, including generative AI and other groundbreaking applications.

Based on organization size, the global enterprise AI market is segmented into large enterprises and small & medium-sized enterprises. In 2024, the large enterprises segment is expected to account for the larger share of the global enterprise AI market. The segment's large market share is attributed to the growing emphasis on developing strategic IT initiatives among large enterprises, the increasing need to manage large volumes of customer-level data, the early adoption of advanced technologies across various sectors such as retail, manufacturing, healthcare, and automotive, and the rising need for deeper insights into customer responses.

However, the small & medium-sized enterprises segment is expected to register a higher CAGR during the forecast period. The growth of this segment is driven by the increasing need for chatbots and digital assistants among small & medium-sized enterprises, the notable benefits offered by chatbots for small & medium-sized enterprises, and the increasing need to improve performance, quality management, and customer satisfaction in call centers.

Based on technology, the global enterprise AI market is segmented into machine learning, image processing, natural language processing, and speech recognition. In 2024, the machine learning segment is expected to account for the largest share of the global enterprise AI market. The segment's large market share is attributed to the growing adoption of enterprise AI solutions with machine learning capabilities to analyze historical data and identify patterns, the rising need for threat detection, anomaly detection, and malware analysis, and the increasing use of these solutions in e-commerce, streaming platforms, and content websites. These systems are extensively utilized in e-commerce, streaming platforms, and content websites. Thus, several companies are partnering to provide enterprise AI solutions with machine learning capabilities. For instance, In May 2023, NVIDIA Corporation (U.S.) collaborated with Microsoft Corporation (U.S.) to accelerate enterprise-ready generative AI. NVIDIA AI Enterprise is integrating with Azure machine learning that provides an end-to-end cloud platform for developers to build, deploy, and manage AI applications for large language models.

However, the natural language processing segment is expected to register the highest CAGR during the forecast period. The growth of this segment is driven by the growing need to understand, interpret, and generate human language data and the rising adoption of NLP to analyze user preferences, behaviors, and interactions to deliver personalized content.

Based on end-use industry, the global enterprise AI market is segmented into media & advertisement, healthcare, retail & E-commerce, BFSI, government, automotive, IT & telecom, and other end-use industries. In 2024, the IT & telecom segment is expected to account for the largest share of the global enterprise AI market. The segment’s large market share is attributed to the increasing demand for personalized customer experiences enabled by AI technologies, the rising adoption of AI for analyzing data from network sensors to optimize operations, and the growing utilization of AI to enhance network performance and deliver customized services. As AI adoption continues to rise in the IT & telecom industry, numerous AI solution providers are forming partnerships and introducing AI solutions. For instance, In February 2024, ServiceNow, Inc. (U.S.) partnered with NVIDIA Corporation (U.S.) to launch telco-specific generative AI solutions to elevate service experiences. The Now Assist solution for Telecommunications Service Management (TSM) is built on the Now Platform and uses NVIDIA AI to boost agent productivity, speed time to resolution, and enhance customer experiences.

Moreover, the IT & telecom segment is expected to register the highest CAGR during the forecast period.

Based on geography, the global enterprise AI market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the global enterprise AI market. North America’s significant market share can be attributed to the growing adoption of enterprise AI in retail, healthcare, and finance sectors, the rising implementation of AI to enhance customer engagement, inventory management, and personalized shopping experience, and the increasing use of chatbots on websites, social media platforms, and messaging apps to respond customer inquiries. Several companies are launching enterprise AI solutions for the healthcare industry in North America. For instance, in November 2021, Pegasystems Inc. (U.S.) collaborated with Google LLC (U.S.) to help improve healthcare experiences with better data insights and personalization. This partnership with Google Cloud will allow Pegasystems’s clients to configure their applications on Google Cloud’s Healthcare Data Engine. It will also enable the implementation of advanced analytics and AI in a secure, compliant, and scalable cloud environment and seamlessly work with Pega’s healthcare solutions.

However, Asia-Pacific is expected to register the highest CAGR during the forecast period. The growth of this regional market is driven by the growing emphasis by companies to launch chatbots and virtual assistants, growing demand for chatbots and voice assistant solutions, and increasing demand for AI-powered customer support services.

Key Players

The key players operating in the enterprise AI market are NVIDIA Corporation (U.S.), Google LLC (A subsidiary of Alphabet Inc.) (U.S.), Amazon Web Services, Inc. (A Subsidiary of Amazon.com, Inc.) (U.S.), International Business Machines Corporation (U.S.), Microsoft Corporation (U.S.), Verint Systems Inc. (U.S.), SAP SE (Germany), Pegasystems Inc. (U.S.), Wipro Limited (India), Intel Corporation (U.S.), Oracle Corporation (U.S.), Hewlett Packard Enterprise (U.S.), MicroStrategy Incorporated (U.S.), Amelia US LLC (U.S.), Sentient.io (Singapore).

Download Sample Report Here @ https://www.meticulousresearch.com/download-sample-report/cp_id=5806

Key Questions Answered in the Report:

Which are the high-growth market segments in terms of offering, deployment mode, organization size, technology, and end-use industry?
What is the historical market size for the global enterprise AI market?
What are the market forecasts and estimates for 2024–2031?
What are the major drivers, restraints, opportunities, challenges, and trends in the global enterprise AI market?
Who are the major players in the global enterprise AI market, and what are their market shares?
What is the competitive landscape like?
What are the recent developments in the global enterprise AI market?
What are the different strategies adopted by major market players?
What are the trends and high-growth countries?
Who are the local emerging players in the global enterprise AI market, and how do they compete with other players?

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Redding, California - April 17, 2024

Enterprise AI Market to be Worth $171.2 Billion by 2031

Enterprise AI Market by Offering (Solutions, Services), Deployment Mode, Organization Size, Technology (ML, NLP), End-use Industry (IT & Telecom, Healthcare, Retail & E-commerce, Media & Advertisement) and Geography - Global Forecast to 2031

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