Artificial Intelligence - Eastern Africa

Eastern Africa

The market size in the Artificial Intelligence market is projected to reach US$240.80m in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.22%, resulting in a market volume of US$1,070.00m 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 Eastern Africa is witnessing rapid growth, propelled by the increasing adoption of digital technologies and the convenience of online services. Rising health awareness among consumers is also a key factor driving the market's growth, along with advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. The market's elevated growth rate can be attributed to a combination of these factors, making it a promising landscape for AI development and innovation.

Customer preferences: As the usage of Artificial Intelligence continues to expand in Eastern Africa, there is a noticeable shift towards AI-powered solutions in various industries. This is driven by the growing demand for efficient and automated processes, as well as the need to keep up with global technological advancements. Additionally, there is a surge in preference for personalized and data-driven experiences, leading to an increased adoption of AI-powered virtual assistants, chatbots, and recommendation engines by consumers. This trend is expected to continue as the region embraces the benefits of AI in improving efficiency and enhancing customer experiences.

Trends in the market: In Eastern Africa, the Artificial Intelligence market is experiencing a surge in demand for AI-powered solutions in various industries, such as healthcare, finance, and agriculture. This trend is driven by the region's increasing adoption of technology and the need for efficient and cost-effective solutions. The trajectory of this trend is expected to continue upwards, with AI technology being integrated into more businesses and processes. This presents significant opportunities for industry stakeholders, such as AI developers and service providers. However, it also raises concerns about job displacement and the need for proper regulation and ethical considerations.

Local special circumstances: In Eastern Africa, the Artificial Intelligence market is rapidly growing due to the region's increasing internet connectivity and investment in technology infrastructure. The market is also influenced by the cultural emphasis on education and innovation, leading to a highly skilled workforce in the field of AI. Additionally, the regulatory environment is favorable for AI development, with governments creating policies and initiatives to support the growth of the industry. This unique combination of factors has positioned Eastern Africa as a prominent player in the global AI market.

Underlying macroeconomic factors: The Artificial Intelligence market in Eastern Africa is heavily impacted by macroeconomic factors such as technological advancements, government policies, and investment in the digital sector. Countries with supportive regulatory environments and robust investment in AI technologies are experiencing significant growth in the market, while those with regulatory challenges and limited funding are lagging behind. Moreover, the rising demand for AI solutions in various industries, coupled with the increasing adoption of automation to improve efficiency and productivity, is driving the market growth. Additionally, the region's growing population and increasing urbanization are creating a conducive environment for the growth of the Artificial Intelligence 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.