Artificial Intelligence - Hong Kong

Hong Kong

The market size in the Artificial Intelligence market is projected to reach US$0.77bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.27%, resulting in a market volume of US$3.43bn 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 Hong Kong is experiencing rapid growth, driven by factors like increasing adoption of digital technologies, growing awareness of AI in healthcare, and the convenience of online AI 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. These sub-markets are continuously evolving and pushing the overall market forward.

Customer preferences: As the use of Artificial Intelligence technology continues to expand in Hong Kong, there has been a noticeable shift in consumer preferences towards personalized and efficient services. This has led to a rise in demand for AI-powered chatbots and virtual assistants, as well as for AI-based customer service and e-commerce solutions. Additionally, cultural values of efficiency and convenience have also played a role in driving the adoption of AI in daily life, from smart home devices to transportation services. This trend is likely to continue as the city's population becomes more tech-savvy and embraces the benefits of AI in their daily routines.

Trends in the market: In Hong Kong, the Artificial Intelligence market is experiencing a surge in demand for AI-enabled solutions in various industries, such as finance, healthcare, and retail. This trend is driven by the government's push for digital transformation and the adoption of AI technologies by major companies. The trajectory of this trend shows no signs of slowing down, with an expected annual growth rate of 37% in the next five years. This has significant implications for industry stakeholders, as it presents opportunities for cost savings, increased efficiency, and improved customer experience. However, it also raises concerns about privacy, job displacement, and the need for upskilling the workforce to keep up with AI advancements. Overall, the current trend towards AI adoption in Hong Kong presents both challenges and opportunities for businesses and society as a whole.

Local special circumstances: In Hong Kong, the Artificial Intelligence market is rapidly growing due to the city's highly developed technology infrastructure and strong government support. The local culture of innovation and entrepreneurship has also played a significant role in the market's development. Additionally, Hong Kong's strategic location as a gateway to China's vast market has attracted international AI companies to establish a presence in the city. The regulatory environment, which is relatively open and business-friendly, has also contributed to the market's growth.

Underlying macroeconomic factors: The growth of the Artificial Intelligence market in Hong Kong is heavily influenced by macroeconomic factors such as government initiatives, technological advancements, and investment in research and development. Hong Kong's robust economy and stable political environment have encouraged foreign investment and created a favorable market for AI companies. Additionally, the government's efforts to promote smart city development and the increasing demand for AI-based solutions in various industries, such as finance and healthcare, are driving the growth of the market. The rise of the digital economy and the need for efficient and cost-effective solutions are also contributing to the demand for AI technologies in Hong Kong.

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.