Artificial Intelligence - Kenya

Kenya

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 Kenya is experiencing rapid growth, fueled by factors like increasing adoption of digital technologies, growing health awareness, and the convenience of online health services. The elevated growth rate can be attributed to advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI, all of which contribute to the overall market expansion.

Customer preferences: With the rise of digital transformation in Kenya, consumers are increasingly looking towards Artificial Intelligence (AI) solutions to improve their daily lives. This includes the use of virtual assistants, smart home devices, and AI-powered personalization tools for shopping and entertainment. This trend is further fueled by the growing tech-savvy younger generation and the increasing availability of affordable smartphones and internet connectivity. As a result, the demand for AI-driven products and services is expected to continue growing in the Kenyan market.

Trends in the market: In Kenya, the Artificial Intelligence market is experiencing a surge in demand for AI-based solutions in various sectors, such as healthcare, finance, and agriculture. With the government's push towards digital transformation, there is a growing trend of using AI to streamline processes and improve efficiency. This is significant as it has the potential to boost economic growth and create job opportunities in the AI industry. Furthermore, the trajectory of these trends indicates a shift towards more advanced AI technologies, such as machine learning and natural language processing, which can greatly benefit industry stakeholders by providing more accurate and personalized solutions. However, there may also be potential implications, such as job displacement and ethical concerns, which need to be addressed by industry stakeholders and policymakers.

Local special circumstances: In Kenya, the Artificial Intelligence market is gaining traction due to the country's strong focus on technological innovation and its positioning as a regional technology hub. The government's investment in infrastructure and digital literacy programs has created a conducive environment for the growth of AI. Additionally, Kenya's diverse population and its role as a key player in East Africa's economy make it an attractive market for AI solutions in sectors such as agriculture, healthcare, and finance.

Underlying macroeconomic factors: The Artificial Intelligence market in Kenya is greatly influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with supportive regulatory environments and significant investments in AI technologies are experiencing rapid market growth, while those with regulatory challenges and limited funding are lagging behind. Furthermore, the increasing demand for AI solutions to improve efficiency and productivity, coupled with the rising adoption of digital technologies in various industries, is accelerating the growth of the market in Kenya.

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.