Consumer AI Market

Market Definition:

The Consumer AI Market size was valued at USD 17.04 billion in 2023 and is predicted to reach USD 140.67 billion by 2030 with a CAGR of 35.2% from 2024-2030. 

Consumer Artificial Intelligence (AI) is a sub-category of artificial intelligence. AI is known as machine intelligence and it is an area of computer science that aims at developing and managing technology including natural language processing (NLP), speech recognition, and machine vision. It is a cognitive feature in assessment of natural intelligence shown by human beings. AI algorithms are tested against intelligence standards that are far beyond human comprehension including applications of AI in quantum computers and supercomputers. 

In addition, consumer AI gives the power to boost customer engagement, encourage brand loyalty, and improve retention. AI is further applicable in the sectors that include healthcare, manufacturing, automotive, security, human resource, marketing, and fintech.

Market Dynamics and Trends:

Increasing integration of artificial intelligence (AI) in corporate industry across the globe such as Chabot’s, spam filters, voice-to-text features, and security surveillance has been driving the growth of consumer AI market. Also, rapid development and growing focus on 5G technology, automation & managing databases, and cloud computing to improve cloud performance and efficiency while driving digital transformation in enterprises is expected to propel the growth of consumer AI market.

Moreover, the rise in bug data, fast processing of large amount of data to improve decision-making processes, and big data analytics leverage consumer AI for better data analysis are further expected to drive the growth of consumer AI market during the forecast period.

On the other hand, high installation cost of AI technology coupled with limited technical expertise is the factors restraining the growth of market during the forecast period. On the contrary, growing uses of AI in IT to manage the multi-based platform that can analyse the vast amount of data efficiently is expected to create ample growth opportunities for the market in the coming years.

Market Segmentations and Scope of the Study:

The consumer AI market is segmented on the basis of component, technology, end-user, and geography. On the basis of component, the market is classified into hardware, software, and services. On the basis of technology, the market is divided into machine learning, deep learning, natural language processing, computer vision, machine reasoning, and strong AI. On the basis of end-user, the market is segmented into healthcare, manufacturing, automotive, agriculture, retail, security, human resource, marketing, law, and fintech. Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis:

North America holds the lion share of consumer AI market size during the forecast period. This is attributed to factors such as rapidly increasing government initiatives in artificial intelligence for better efficiency and productivity. For instance, in May 2021, the government of U.S. launched AI.gov website that aims at widening access to Federal Artificial Intelligence innovation efforts to encourage the use of AI. This portal is dedicated to connect the American people with information on federal government activities that contributes in advancing the design, development, and responsible use of trustworthy AI. Also, rising concerns in data security coupled with a growing number of data breach incidents in the healthcare sector boost the market growth in this region. 

For instance, in July 2022, according to Healthcare Information and Management Systems Society (HIMSS) around 45% of healthcare organizations reported that they experienced a phishing attack in the last 12 months, which makes it by far the most common cyber security incident reported in the US. It further shares of 17% experienced ransomware attacks and 7% saw data breaches or leakage.

On the other hand, Asia Pacific is expected to show a steady rise in the consumer AI market due to high adoption rate of AI in start-ups such as fintech and telecommunication in the countries such as China, India, and Vietnam drive the Consumer AI market.

For instance, China has by far the greatest number of unicorns, followed by India. Moreover, Indian telecommunication enterprise Reliance Jio has highest disclosed investment in the Asia-Pacific region. Also, increasing healthcare and fintech infrastructure comprised of AI technology is expected to drive the consumer AI market growth in this region.

Competitive Landscape:

The consumer AI market includes various major market players such as OpenAI, Inc., Microsoft Corporation, Amazon.com, Inc., Alphabet Inc., Meta Platforms, Inc.,IBM Corporation, NVIDIA Corporation,Oracle Corporation,Midjourney, Inc. and Anthropic PBC. These market players are adopting various joint venture strategies and planning expansion of business across various regions to maintain their dominance in the consumer AI market. 

For instance, in November 2021, Wordtune Read launched commercial AI tool to summarise text that can help people to read long, complex documents way faster. Moreover, in February 2021, IBM   entered in partnership with Palantir Technologies which consists hybrid cloud data platform designed to deliver AI for business and operations platform for building applications.

Key Benefits

• The consumer AI market report provides the quantitative analysis of the current market and estimations through 2022-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the consumer AI market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints and opportunities and their impact on the consumer AI market is provided in the report.

• The competitive analysis of the market players along with their market share in the consumer AI market

• The SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Key Market Segments

By Component

• Hardware

• Software

• Services

By Technology

• Machine Learning

• Deep Learning

• Natural Language Processing

• Computer vision

• Machine Reasoning

• Strong AI

By End-Users

• Healthcare

• Manufacturing

• Automotive

• Agriculture

• Retail

• Security

• Human Resource

• Marketing

• Law

• Fintech

By Geography

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Rest of Europe

• Asia-Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• RoW

  • UAE

  • Saudi Arabia

  • South Africa

  • Brazil

  • Remaining countries

KEY PLAYERS

• OpenAI, Inc.

• Microsoft Corporation

• Amazon.com, Inc.

• Alphabet Inc.

• Meta Platforms, Inc.

• IBM Corporation 

• NVIDIA Corporation

• Oracle Corporation

• Midjourney, Inc.

• Anthropic PBC

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Market Segmentation	By Component (Hardware, Software, and Services), by Technology (Machine Learning, Deep Learning, Natural Language Processing, Computer vision, Machine Reasoning, and Strong AI), and by End-Users (Healthcare, Manufacturing, Automotive, Agriculture, Retail, Security, Human Resource, Marketing, Law, and Fintech)
Geographical Segmentation	North America (U.S., Canada, Mexico) Europe (UK, Germany, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, Rest of Asia-Pacific), Rest of the World (UAE, Saudi Arabia, South Africa, Brazil, Remaining countries)
Companies Profiled	Wordtune Read, IBM, Alphabet, Baidu, Facebook, Amazon, Indico, NVIDIA, Clarifai, and Microsoft.