Enterprise AI Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Enterprise AI Software Market Analysis

The Enterprise AI Market is valued at USD 25.10 billion in the current year and is expected to register a CAGR of 52.17% during the forecast period to reach USD 204.79 billion by the next five years. Enterprises recognize the value of incorporating artificial intelligence into their business processes, improving efficiency and reducing costs by automating process flows. Most importantly, it has helped enterprises predict business outcomes, driving profitability.

• The digitalization of enterprises is the most dominant trend in the market. The fourth industrial revolution (Industry 4.0) is characterized by physical and advanced digital technologies, such as the Internet of Things, artificial intelligence, intelligent robots, ubiquitous mobile supercomputing, information management, and analytics, which significantly impact various industries. The boom of industrial automation, with the widespread adoption of Industry 4.0, is driving the adoption of robots and automated technologies to enhance the efficiency of manufacturing processes. For instance, according to Bank of America, the industrial robot segment of robotics and AI is expected to be valued at about USD 24 billion by 2025. This trend has augmented robotic process automation (RPA) among enterprises, a significant aspect of AI.
• Additionally, in June 2022, Critical Manufacturing, a provider of an Industry 4.0-focused Manufacturing Execution System (MES), announced that it was selected by SwissSEM to optimize its production processes. This decision is made to move towards greater digital automation based on minimizing operating costs and enhancing operating efficiency for its highly complex production line. The new Manufacturing Execution System (MES) from Critical Manufacturing will facilitate accurate, real-time information about production processes, establishing a basis for continuous process improvement, enhanced quality, and reduced costs.
• Various manufacturing industries have experienced tremendous development due to new technologies, including edge computing, augmented and virtual reality, industrial robots, self-driving cars, digital manufacturing, IIOT, and digital manufacturing. These solutions enhance production processes' personalization, adaptability, and agility, which may further drive market growth.
• In February 2022, United States Steel and Carnegie Foundry, a robotics and AI studio, announced a strategic investment and relationship. The two Pittsburgh-based startups will work together to accelerate and expand industrial automation using cutting-edge robotics and artificial intelligence. Carnegie Foundry will use this funding to market and scale its industrial automation portfolio of robotics and AI technologies in advanced manufacturing, industrial robots, integrated systems, autonomous mobility, speech analytics, and other areas. According to US Steel, the collaboration keeps the company at the forefront of growing innovation in robotics and independent solutions for the industry. According to the steelmaker, highly advanced technology will be required to meet its client's expectations for a robust and resilient supply chain.
• Furthermore, Enterprise AI is a significant enabler of digital transformation. Nearly every enterprise software application will be AI-enabled in the years to come. Developing competencies in the capability to build, deploy, and operate enterprise AI applications at scale, therefore, is becoming imperative for business survival. According to O'Reilly's 2022 report on enterprise AI adoption (based on the answers given by recipients of its newsletters to a questionnaire on enterprise AI adoption), 31% of companies report not using AI (up from 13% recently), 43% are evaluating adoption, and 26% have implemented AI applications. The immediate increase, from 18% to 31%, in manufacturing respondents with AI was in Oceania. A considerable number of organizations lack AI governance. Of the 26% of respondents with AI products in production, only 49% have a governance plan to oversee how projects are created, measured, and observed (versus 51% for those without).
• Furthermore, enterprise AI is a significant enabler of digital transformation. Nearly every enterprise software application will be AI-enabled in the years to come. Developing competencies in the capability to build, deploy, and operate enterprise AI applications at scale, therefore, is becoming imperative for business survival. According to O'Reilly's 2022 report on enterprise AI adoption (based on the answers given by recipients of its newsletters to a questionnaire on enterprise AI adoption), 31% of companies report not using AI (up from 13% recently), 43% are evaluating adoption, and 26% have implemented AI applications. The immediate increase, from 18% to 31%, in manufacturing respondents with AI was in Oceania. A considerable number of organizations lack AI governance. Of the 26% of respondents with AI products in production, only 49% have a governance plan to oversee how projects are created, measured, and observed (versus 51% for those without).
• In recent years, various partnerships focused on solutions related to Industry 4.0 have further accelerated the studied market's growth. For instance, in January 2022, Telefónica Tech, the digital services arm of Telefónica, signed a deal with Spanish engineering services company Grupo Álava to introduce a predictive analytics solution for the Industry 4.0 market that also leverages private 5G, big-data 'AI' analytics, and cloud and edge computing from the Spanish operator.

The COVID-19 pandemic caused many organizations to accelerate their migrations to the public cloud since cloud service elasticity can satisfy unexpected spikes in service demand. Migrations to the cloud helped associations reinvent how they conduct their businesses during COVID-19. Furthermore, the studied market is expected to grow in the forecasted period primarily due to rapidly growing industries such as IT and Telecommunications, manufacturing, and many others in the reviewed market.

Enterprise AI Software Market Trends

Cloud Deployment is Expected to Experience a Significant Market Growth

Enterprise AI Software Industry Segmentation

Enterprise AI is the combination of artificial intelligence, the ability of a machine to learn, interact, and understand in a very human form with software designed to meet organizational needs. In recent years, AI has moved on to become a key component for enterprise applications and has posed an essential factor for successful business strategies. The studied market is segmented by Solutions and Services types among On-premise and Cloud developments. The market is further segmented by various end-user industries such as Manufacturing, Automotive, BFSI, IT and Telecommunications, Media and Advertising in multiple geographies (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The impact of COVID-19 on the market and impacted segments are also covered under the scope of the study. Further, the disturbance of the factors affecting the market's expansion in the near future has been covered in the study regarding drivers and restraints. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.