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December 2025
The artificial intelligence (AI) market size is expected to be worth around USD 5,734.98 billion by 2035, from USD 391.25 billion in 2025, growing at a CAGR of 30.8% during the forecast period from 2026 to 2035. The rising demand for advanced security solutions from the BFSI sector is expected to foster the growth of the Artificial Intelligence (AI) market.
The artificial intelligence (AI) market has been developing rapidly in recent times. There are several types of AI solutions available in the market, consisting of hardware, software and services. These solutions are used for enhancing numerous functions, including cybersecurity, finance and accounting, human resource management, legal and compliance, operations, sales and marketing, supply chain management and others. The end-users of AI platforms comprise healthcare, BFSI, automotive, agriculture, manufacturing and some others. This market is expected to grow significantly with the rise of the ICT sector in different parts of the world.
The AI sector is witnessing drastic technological shifts in the modern era. The growing adoption of generative AI for generating human-centric objects, as well as advancements in research and development of NLP, is shaping the industry in a positive direction. Moreover, the surging popularity of AI copilots and AI assistants, coupled with the integration of computer vision technology in autonomous cars, is an ongoing trend in the industry.
| Report Coverage | Details |
| Market Size in 2026 | USD 511.76 Billion |
| Market Size by 2035 | USD 5,734.98 Billion |
| Growth Rate From 2026 to 2035 | CAGR of 30.8% |
| Base Year | 2025 |
| Forecast Period | 2026-2035 |
| Segments Covered | By Solution Insights, By Technology Insights, By Function Insights, By End-Use Insights |
| Market Analysis | Value (USD Million/Billion) or (Volume/Units) |
| Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
| Key Companies Profiled | Micro Devices, AiCure, Arm Limited, Atomwise, Inc., Ayasdi AI LLC, Baidu, Inc., Lifegraph, Microsoft, NVIDIA Corporation, Clarifai, Inc., Cyrcadia Health, Enlitic, Inc., Google LLC, and H2O.ai.; HyperVerge, Inc.; International Business Machines Corporation; IBM Watson Health; Intel Corporation; Iris.ai AS |
Numerous AI brands have started partnering with healthcare companies to develop advanced AI solutions for the healthcare sector. For instance, in December 2025, AWS collaborated with IQVIA. This collaboration is aimed at developing an AI-enabled platform for the healthcare industry.
Market players are engaged in launching various types of AI platforms to cater for the needs of the end-users. For instance, in December 2025, PTC launched the Arena product lifecycle management (PLM) solution. This PLM solution is based on the Arena AI Engine, which helps in enhancing the supply-chain capabilities in the logistics sector.
Tech companies are investing heavily in developing the AI infrastructure in different parts of the world. For instance, in December 2025, Microsoft invested around USD 17.5 billion. This investment is made for developing the AI infrastructure in India.
The growing sales of autonomous vehicles in developed nations are expected to create ample growth opportunities for the market players in the upcoming years.
The integration of generative AI in the pharmaceutical industry for accelerating drug discovery is likely to reshape the industry in the future.
Why did the software solutions segment lead the Artificial Intelligence (AI) Industry?
The software solutions segment held a dominant share in the industry. The growing demand for AI-enabled software from the healthcare sector has boosted the market expansion. Additionally, partnerships among software developers and AI framework designers to develop advanced software solutions for the end-users are expected to accelerate the growth of the artificial intelligence (AI) market.
The services segment is expected to grow with a notable CAGR during the forecast period. The rising adoption of AI-based services from the logistics sector in several nations, including China, Australia, the UK and some others, has driven the market growth. Moreover, rapid investment by market players for providing AI-enabled services to the end-users is expected to propel the growth of the artificial intelligence (AI) market.
How did the deep learning segment dominate the Artificial Intelligence (AI) Market in 2025?
The deep learning segment led the market. The growing emphasis of healthcare companies on analysing complex data and delivering accurate diagnostics has driven the market expansion. Moreover, numerous advantages of deep learning technology, including high accuracy, speech recognition, enhanced scalability, handling unstructured data and others, are expected to foster the growth of the artificial intelligence (AI) market.
The machine vision segment is expected to rise with the highest CAGR during the forecast period. The increasing adoption of machine vision technology in the automotive sector for detecting defects and enhancing assembly verification has boosted the market growth. Additionally, several advantages of machine vision technology, such as superior quality and accuracy, enhanced safety and efficiency, versatility and others, are expected to propel the growth of the artificial intelligence (AI) market.
What made the operations systems segment dominate the Artificial Intelligence (AI) Market in 2025?
The operating systems segment dominated the industry. The rising focus of corporations to deploy AI software for enhancing numerous operations has boosted the market expansion. Also, the increasing demand for AI-enabled operations systems from the BFSI and manufacturing sectors is expected to propel the growth of the artificial intelligence (AI) market.
The sales and marketing segment is expected to rise with a considerable CAGR during the forecast period. The growing emphasis of the retail sector to deploy AI-enabled solutions for enhancing sales and marketing of products has driven the market growth. Moreover, rapid investment by market players for developing AI-based marketing solutions is expected to foster the growth of the artificial intelligence (AI) market.
Why did the healthcare sector segment lead the Artificial Intelligence (AI) Market?
The healthcare sector segment held the largest share of the market. The rapid expansion of the healthcare sector in several nations, including Japan, the U.S., France and some others, has boosted the market expansion. Also, a rise in the number of healthcare startups, coupled with technological advancements in the healthcare industry, is expected to propel the growth of the artificial intelligence (AI) market.
The automotive & transportation segment is expected to grow with a significant CAGR during the forecast period. The integration of AI-enabled software solutions in the automotive sector for enhancing the design and development of automotive components has driven the market growth. Additionally, rapid investment by automotive brands for opening research and development centres to enhance the capabilities of automotive AI, coupled with increasing sales of passenger cars globally, is expected to foster the growth of the artificial intelligence (AI) market.
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North America dominated the artificial intelligence (AI) market. The growing demand for advanced AI solutions from the healthcare and automotive sectors has driven the market expansion. Also, numerous government initiatives aimed at developing the AI infrastructure, coupled with the presence of several market players such as Google, IBM, Microsoft and some others, are expected to drive the growth of the artificial intelligence (AI) market in this region.
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The U.S. led the market in the North America region. The rising demand for AI processors from the electronics industry, coupled with technological advancements in the logistics sector, has boosted the market expansion. Additionally, the rapid adoption of AI-based HR management solutions in the corporate sector is contributing positively to this industry.
Asia Pacific is expected to grow with the highest CAGR during the forecast period. The increasing adoption of AI-enabled solutions from the manufacturing sector in several nations, including China, India, Japan and some others, has boosted the market growth. Moreover, technological advancements in the telecom sector, as well as rapid investment by market players for opening AI R&D centres, are expected to foster the growth of the artificial intelligence (AI) market in this region.
China held the dominant position in the market in this region. The surging focus of automotive companies to deploy AI-based solutions in the vehicle manufacturing sector has boosted the market expansion. Additionally, the integration of AI-enabled platforms in the electronics industry for enhancing the design of components is driving industrial growth.
Europe is expected to rise with a significant CAGR during the forecast period. The surging popularity of generative AI solutions in numerous countries such as Germany, France, Italy, the UK and some others has driven the market expansion. Moreover, the rise in the number of AI startups, coupled with partnerships among AI companies and BFSI brands for deploying AI in the banking sector, is expected to propel the growth of the artificial intelligence (AI) market in this region.
Germany dominated the industry in the European region. The increasing sales of AI-enabled medical devices, coupled with the rapid deployment of generative AI solutions in the heavy industries, have boosted the market growth. Moreover, numerous government initiatives aimed at deploying AI in the manufacturing sector have played a vital role in shaping the industrial landscape.
| Company | Headquarters | Offerings |
| Advanced Micro Devices | California, USA | Advanced Micro Devices (AMD) is a leading semiconductor company designing high-performance CPUs, GPUs, FPGAs, and SoCs for data centres, PCs, gaming, and AI. This company has evolved from second-source manufacturing to a key innovator, focusing on adaptive and high-performance computing to solve complex challenges in modern technology. |
| AiCure | New York, USA | AiCure is an artificial intelligence (AI) and advanced data analytics company that provides a patient engagement platform, called H.Code, to improve the predictability, efficiency, and data quality of clinical trials. AiCure developed its technology using funding from the National Institutes of Health (NIH) and institutional investors. |
| Arm Limited | Cambridge, United Kingdom | Arm Limited (Arm) is a UK-based semiconductor and software design company that specialises in developing and licensing intellectual property (IP) for energy-efficient microprocessors. Its technology is the foundation for over 325 billion chips shipped to date, powering more than 99% of the worlds smartphones and an expanding range of devices from tiny IoT sensors to AI-enabled supercomputers. |
| Atomwise, Inc. | California, USA | Atomwise, Inc. is a leading AI drug discovery company that uses deep learning (specifically convolutional neural networks) and its proprietary AtomNet® technology to rapidly find small molecule medicines for various diseases, partnering with pharma, biotech, and universities globally to accelerate drug development. |
| Ayasdi AI LLC | California, USA | Ayasdi AI LLC was founded in 2008. It developed an artificial intelligence platform that used topological data analysis (TDA) to automate the discovery of insights in large, complex datasets. |
| Baidu, Inc. | Beijing, China | Baidu, Inc. is Chinas leading internet search engine and an AI powerhouse, providing information access, mobile ecosystem services (like Baidu App, Maps, iQIYI video platform), and advanced AI solutions, including AI Cloud, autonomous driving (Apollo Go robotaxis), and ERNIE Bot (a ChatGPT-like chatbot) |
| Clarifai, Inc | Wilmington, USA | Clarifai, Inc. is an AI company offering a comprehensive platform for building, deploying, and managing AI models, specialising in computer vision, NLP, and audio recognition for unstructured data like images, videos, and text, helping businesses automate tasks, gain insights, and scale operations across cloud, on-prem, or hybrid environments. |
| Cyrcadia Health | Reno, NV, USA | Cyrcadia Health develops a wearable, non-invasive system using temperature sensors to detect early signs of breast cancer by analysing circadian temperature fluctuations in breast tissue, using AI and machine learning for analysis. |
| Enlitic, Inc. | Colorado, USA | Enlitic, Inc. is a medical intelligence software company using AI to transform healthcare data, particularly medical imaging (DICOM), by standardising, managing, and orchestrating it for better workflows, increased efficiency, and improved patient care, helping healthcare systems create real-world evidence databases and overcome data migration challenges. |
| Google LLC | California, USA | Google LLC, a subsidiary of Alphabet Inc., is a global tech giant known for its dominant search engine, online advertising, and a vast ecosystem of products like Android, YouTube, Chrome, Maps, and AI services, providing internet-related services, software, hardware, and cloud computing from its Mountain View, CA headquarters, impacting billions with technology for information, communication, and commerce. |
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December 2025
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December 2025