Artificial Intelligence - ASEAN

ASEAN

The market size in the Artificial Intelligence market is projected to reach US$6.72bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.53%, resulting in a market volume of US$30.30bn by 2030.
In global comparison, the largest market size will be in the United States (US$50.16bn in 2024).

Definition:
Artificial intelligence (AI) is a branch of computer science that focuses on creating machines able to perform tasks traditionally requiring human intelligence, such as perception, reasoning, and learning. The Artificial Intelligence (AI) market includes a wide range of applications, such as speech recognition, image processing, and autonomous vehicles and has seen rapid growth in recent years due to advancements in technology and increased investment. The Artificial Intelligence (AI) market includes software, hardware, and services that enable organizations to develop and deploy AI applications.

Structure:

The Artificial Intelligence (AI) market is structured into six markets based on the technology:

The Computer Vision market covers applications that enable computers to interpret and understand digital images and video data.
The Machine Learning market covers the use of algorithms to enable computer systems to learn from data.
The Natural Language Processing market covers applications that enable computers to understand, interpret, and generate human language.
The Artificial Intelligence Robotics market covers the combination of AI, machine learning, and engineering to create intelligent machines that can perform tasks autonomously.
The Autonomous & Sensor Technology market covers machines and systems that operate independently by using sensors, AI, and machine learning to respond to changes in their environment.
The Generative AI market covers artificial intelligence that involves creating models capable of generating new content, such as images, videos, and text, which are indistinguishable from content created by humans.

Additional Information:

The Artificial Intelligence (AI) market comprises three key performance indicators: market sizes, market sizes by industry, and users of AI tools. Market sizes are generated by the funding amount of Artificial Intelligence (AI) companies. Key players of the Artificial Intelligence (AI) market include companies such as Google, Open AI, IBM, and Microsoft.

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Analyst Opinion

The Artificial Intelligence market in ASEAN is experiencing rapid growth, driven by factors such as the increasing adoption of digital technologies, rising awareness about AI, and the convenience of online services. This growth is further fueled by the elevated growth rate of sub-markets such as AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. Factors such as government initiatives, investments in research and development, and the demand for advanced healthcare solutions are also contributing to the market's growth.

Customer preferences: As technology continues to advance in the ASEAN region, consumers are increasingly turning to Artificial Intelligence to enhance their daily lives. This has led to a growing demand for AI-powered virtual assistants, smart home devices, and personalized recommendations. Additionally, with the rising adoption of smart devices and internet connectivity, there is a growing interest in AI-driven solutions for managing household tasks and improving overall efficiency. This trend is further supported by the cultural value placed on convenience and efficiency in the region.

Trends in the market: In the ASEAN region, the Artificial Intelligence market is experiencing significant growth, with a projected CAGR of 49.6% from 2021 to 2026. This growth is driven by the increasing adoption of AI technologies in various industries, such as healthcare, finance, and manufacturing. Additionally, there is a growing trend of using AI-powered chatbots for customer service and virtual assistants for improved efficiency in daily tasks. This trajectory indicates a shift towards automation and digitalization, which can lead to increased productivity and cost savings for businesses. However, it also raises concerns about job displacement and the need for upskilling to keep up with the rapidly evolving technology.

Local special circumstances: In the ASEAN region, the Artificial Intelligence market is experiencing rapid growth due to increasing investment in technology and the push for digital transformation. In Indonesia, the market is heavily influenced by the government's focus on developing smart cities, driving the adoption of AI-powered solutions in various sectors. In Malaysia, the rise of e-commerce and digital payments has led to the implementation of AI in fraud detection and customer service. In Thailand, the market is driven by the country's aging population and the need for AI-powered healthcare solutions to improve efficiency and reduce costs.

Underlying macroeconomic factors: The Artificial Intelligence Market in ASEAN is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in infrastructure. Countries with favorable regulatory environments and strong investment in AI technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Moreover, the rising demand for AI solutions in various industries, such as healthcare, finance, and manufacturing, is driving the market growth. Additionally, the increasing focus on digital transformation and the need for automation to improve efficiency and productivity are also contributing to the growth of the AI market in ASEAN.

Methodology

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.