Generative AI - India

The Artificial Intelligence market in India is witnessing an extraordinary growth rate due to factors like rising adoption of AI technologies, growing awareness about its potential in improving healthcare outcomes, and the convenience of online services.

Customer preferences: The Indian Generative AI market is witnessing a growing demand for AI-powered virtual assistants and chatbots, with businesses and consumers looking for more efficient and personalized customer service solutions. This trend is influenced by the country's large and diverse population, which values convenience and quick resolution of queries. Additionally, the rise of e-commerce and online shopping in India has led to an increased need for AI-driven recommendation engines and personalized shopping experiences. This reflects a shift towards more technology-driven and data-powered decision-making processes in the Indian consumer market.

Trends in the market: In India, the Generative AI market is experiencing a surge in demand, with the country's tech-savvy workforce and government initiatives promoting the adoption of AI technology. The market is also witnessing a trend towards AI-powered virtual assistants and chatbots, particularly in the healthcare and banking sectors. This trend is expected to continue as companies increasingly recognize the potential of AI in improving efficiency and customer service. Furthermore, the rise of AI startups and investments in AI research and development are signaling a promising future for the Generative AI market in India.

Local special circumstances: In India, the Generative AI market is experiencing significant growth due to the country's large pool of skilled AI professionals and government initiatives promoting the adoption of AI technology. Furthermore, India's unique cultural emphasis on education and technology has created a fertile ground for the development of AI solutions. However, the market is also facing challenges due to regulatory barriers and infrastructural limitations, which are being addressed through government policies and partnerships with international players.

Underlying macroeconomic factors: The Generative AI Market within the Artificial Intelligence Market in India is heavily influenced by macroeconomic factors such as economic growth, government policies, and technological advancements. With the Indian government's initiatives to promote AI and the country's growing economy, there is a favorable environment for the growth of the Generative AI Market. Moreover, the increasing adoption of AI in various industries, such as healthcare, banking, and retail, is also driving the demand for Generative AI solutions in India. Additionally, the presence of a large talent pool and the availability of cost-effective resources make India an attractive market for AI companies.

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.