Artificial Intelligence - GCC

The Artificial Intelligence market in GCC is experiencing rapid growth due to the increasing adoption of digital technologies, rising awareness about AI applications, and the convenience of online services. The market's elevated growth rate can be attributed to advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI, which are driving demand in various industries.

Customer preferences: As the adoption of Artificial Intelligence continues to rise in the GCC market, consumers are showing a growing interest in personalized and efficient solutions. This is leading to a surge in demand for AI-based virtual assistants and chatbots, as well as AI-powered customer service and recommendation systems. Additionally, there is a growing preference for AI-driven smart home devices and automation systems, as consumers seek convenience and time-saving solutions in their daily lives. This shift towards AI-driven technologies is driven by the increasing digitalization and connectivity in the region, as well as the desire for personalized and efficient experiences.

Trends in the market: In the GCC region, there is a growing trend of incorporating AI into various industries, including healthcare, finance, and retail. This is driven by the increasing demand for efficient and personalized services, as well as the advancements in AI technology. For instance, in the healthcare sector, AI is being used for diagnosis and treatment recommendations, leading to improved patient outcomes. In finance, AI-powered tools are being utilized for fraud detection and risk management. This trend is expected to continue, with the GCC AI market projected to reach $320 million by 2025. This presents significant opportunities for industry stakeholders to enhance their operations and services, but also raises concerns about job displacement and ethical implications of AI. As the use of AI becomes more widespread, it will be crucial for regulators and businesses to work together to ensure responsible and ethical practices.

Local special circumstances: In the GCC region, the Artificial Intelligence market is driven by the increasing investments in AI technologies by governments and private companies. This is due to the region's push towards digital transformation and the adoption of AI in various industries such as healthcare, finance, and transportation. The cultural acceptance of advanced technology and the supportive regulatory environment also contribute to the growth of the AI market in GCC, making it a key player in the global AI market.

Underlying macroeconomic factors: The Artificial Intelligence (AI) market in the GCC is heavily influenced by macroeconomic factors such as government initiatives, technological advancements, and investment in digital infrastructure. Countries with supportive regulatory frameworks and significant investments in AI are experiencing strong market growth, as they are able to leverage AI technologies to improve efficiency and productivity across various industries. Moreover, the increasing demand for AI-driven solutions in areas such as transportation, healthcare, and finance is fueling the market growth in the GCC. Additionally, the region's young and tech-savvy population is driving the adoption of AI technologies, further propelling the market growth.

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.