Artificial Intelligence - Australia

Australia

The market size in the Artificial Intelligence market is projected to reach US$3.22bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.55%, resulting in a market volume of US$14.53bn 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 Australia is experiencing rapid growth, fueled by the increasing adoption of digital technologies and the convenience of online health services. Factors such as elevated growth rate, advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI are driving this trend. Rising health awareness among consumers also plays a significant role in this growth.

Customer preferences: As more businesses and industries in Australia embrace the potential of Artificial Intelligence (AI), consumers are becoming more open to using AI-powered products and services. This trend reflects a growing trust in technology and a desire for efficiency and convenience. Additionally, there is a greater focus on using AI for personalized experiences and tailored recommendations, catering to the diverse cultural and demographic backgrounds of Australian consumers. This trend is expected to continue as AI technology becomes more advanced and accessible.

Trends in the market: In Australia, the Artificial Intelligence (AI) market is experiencing significant growth, with a focus on developing AI technologies for various industries. One major trend is the increasing adoption of AI in the healthcare sector, where AI-powered systems are being used for medical diagnosis and treatment planning. This trend is expected to continue, as more healthcare providers invest in AI technologies to improve patient outcomes and reduce costs. Another trend is the rise of AI-powered chatbots in customer service, with companies using them to improve customer interactions and streamline processes. Additionally, the use of AI in the finance and banking sector is expected to grow, with banks leveraging AI to automate processes and improve decision-making. These trends have significant implications for industry stakeholders, as they present opportunities for increased efficiency and improved customer experiences. However, they also raise ethical concerns surrounding data privacy and the potential displacement of human workers. Overall, the trajectory of these trends suggests that AI will continue to play a crucial role in shaping industries in Australia, and businesses must adapt to stay competitive in this rapidly evolving market.

Local special circumstances: In Australia, the Artificial Intelligence market is rapidly growing due to the country's strong focus on innovation and technology. The government has invested heavily in AI research and development, creating a favorable environment for startups and established companies to thrive. Additionally, Australia's highly educated workforce and multicultural society provide a diverse pool of talent for the AI industry. The country's strict data privacy laws also play a significant role in shaping the AI market, with companies having to navigate strict regulations to ensure the ethical and responsible use of AI technologies.

Underlying macroeconomic factors: The growth of the Artificial Intelligence market in Australia is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in research and development. The country's strong economy and favorable regulatory environment have created a conducive environment for the growth of the AI market. Additionally, the increasing adoption of AI technologies across various industries, such as healthcare, finance, and manufacturing, is driving the demand for AI solutions in Australia. Furthermore, the country's high-quality education system and skilled workforce provide a competitive advantage for companies investing in the AI market.

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.