Market Trends of Enterprise AI Industry
Cloud Deployment is Expected to Experience a Significant Market Growth
- The AI cloud, which was previously a concept, has now started to be implemented by enterprises, combining AI with cloud computing. Some significant factors driving it include AI tools and software that deliver new, increased value to cloud computing. It is an economical data storage and computation option and plays a role in AI adoption.
- According to Flexera Software, 75% of enterprise respondents indicated adopting Microsoft Azure for public cloud usage in 2023. AWS, Microsoft Azure, and Google Cloud, or hyper scalers, are among the highest cloud computing platform providers worldwide.
- An AI cloud primarily consists of a shared infrastructure for AI use cases, supporting multiple projects and AI workloads simultaneously on cloud infrastructure at any given time. The AI cloud combines AI hardware and software to deliver AI software-as-a-service on hybrid cloud infrastructure, providing organizations with access to AI and enabling them to harness AI capabilities more.
- One of the most compelling advantages of AI in the cloud is the challenges it addresses. It significantly democratizes AI, making it more accessible. Lowering the adoption costs and facilitating co-creation and innovation drive AI-powered transformation for enterprises.
- Organizations across the world are increasingly adopting cloud solutions. For instance, in July 2022, Cloud Connect Communications, a B2B virtual network operator (VNO), was licensed by the Department of Telecommunications (DoT) to operate in Mumbai and Ahmedabad. CloudConnect would deliver corporate call management systems with Integrated Cloud-based Communication Solutions, CRM (customer relationship management) Integration with telephony through programmable APIs, and calls and administrative access to the forum in local and foreign markets.
- Further, in January 2022, Oracle introduced Oracle Cloud for Telcos. Oracle Cloud for Telcos is a complete suite of cloud solutions built on Oracle Cloud Infrastructure. OCI is a cloud platform that can be utilized in dispersed cloud architecture and has 36 public cloud regions globally. Moreover, with over 60 industry application suites, the OCI platform enables third-party, custom, and Oracle Fusion Cloud Applications Suite workloads.
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Europe to Experience Significant Market Growth
- The European region is witnessing increased demand due to mainstream trends, such as the industrial revolution and automation. The regional firms have been identified to invest in various automation technologies, such as robotics, artificial intelligence, etc., with developments in machine learning.
- Many government fundings also aid the adoption of the latest technologies in the manufacturing industry in the region. For Instance, in October 2022, UK Research and Innovation (UKRI) awarded 12 smart factory projects a share of GBP 13.7 million in funding to develop technologies that improve energy efficiency, productivity, and growth in manufacturing. The budget recipients include companies using AI to spot inefficiencies in steel production and using recycled materials in 3D printing. It is a part of the government's broader GBP 147 million Made Smarter Innovation Challenge that seeks to increase the use of technology within UK manufacturing.
- Moreover, major regional players are investing and expanding their capabilities in the Enterprise AI market. For Instance, in September 2022, to address the country's quickly growing demand for enterprise cloud services, Oracle announced the creation of the first Oracle Cloud Infrastructure (OCI) region in Spain. With the opening of the new territory in Madrid, Oracle's public and private sector clients and partners in Spain will have access to various cloud services that will help them update their applications, experiment with data and analytics, and move mission-critical workloads from their data centers to OCI.
- For Instance, in May 2022, Hewlett Packard Enterprise announced the launch of its new site in the Czech Republic to strengthen Europe's Supercomputer Supply Chain. The new factory will likely manufacture the company's custom-designed solutions to advance scientific research, mature AL/ML initiatives, and accelerate innovation.
- Moreover, in May 2022, one of the top three suppliers of fireplaces in Europe, Jotul, and Infor, the business cloud provider, established a partnership. Jotul supplies the markets through one of the largest industry-wide global networks of its sales organizations and distributors. Jotul will upgrade to Infor M3 CloudSuite, a standardized industrial manufacturing solution, and Infor Consulting Services from its present ERP solution.
- This rise in cognitive computing is expected to enable the replication of human sensory perception, deduction, thinking, learning, and decision-making capabilities across regional enterprises. The ability to harness considerable amounts of computing power is poised to take this paradigm beyond human replication, both in terms of speed and capacity, to distinguish patterns and provide potential solutions that individuals may not be equipped to perceive, thus augmenting the use of AI solutions.
- Furthermore, a rise in the penetration of automation in the manufacturing sector, the rising need to mitigate manufacturing costs, and the penetration of machine-to-machine (M2M) technologies are encouraging the adoption of automation in the region, which is anticipated to propel the demand for industrial control systems. In addition, Germany is the fifth largest digital economy in the world, and Industry 4.0 for the digitalization of industrial production is being widely implemented in the country (as per GTAI). Also, 62% of companies utilize Industrie 4.0-related technologies and solutions (software, IT services, and hardware) in Germany, according to a Bitkom digital association study.
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