Artificial Intelligence - Nigeria

The market size in the Artificial Intelligence market is projected to reach US$1.05bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.03%, resulting in a market volume of US$4.64bn by 2030.
In global comparison, the largest market size will be 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.

For more information on the data displayed, use the info button right next to the boxes.

Natural language processing tools, such as chatbots and speech recognition
Computer vision applications, such as object detection or face recognition
Machine learning tools, such as trained algorithms.

Robotics hardware, such as hardware used to build robots
Enterprise resource planning (ERP) software, such as SAP
Web development services, such as services intended for coding and designing websites.

The Artificial Intelligence market in Nigeria is experiencing rapid growth due to factors such as increasing adoption of technology, rising awareness about healthcare, and convenience of online services. The market's elevated growth rate is driven by advancements in AI sub-markets, which are revolutionizing industries with their innovative solutions. Factors such as government initiatives, investments, and skilled workforce are also impacting the market's growth rate in Nigeria.

Customer preferences: Consumers in Nigeria are increasingly embracing the use of artificial intelligence (AI) technologies in various aspects of their lives, from personal assistants and smart home devices to automated customer service and financial management tools. This growing trend is fueled by the country's young and tech-savvy population, as well as the increasing availability and affordability of AI products and services. Additionally, the need for efficiency and convenience in daily tasks is driving the adoption of AI solutions, with more individuals seeking out intelligent and automated solutions to simplify their lives.

Trends in the market: In Nigeria, the Artificial Intelligence market is experiencing a surge in demand for AI-powered solutions across various industries such as healthcare, finance, and agriculture. This is driven by the increasing adoption of digital technologies and the need for efficient and cost-effective solutions. Additionally, there is a growing trend of using AI for data analytics and predictive modeling, enabling businesses to make data-driven decisions. This trajectory is significant as it presents opportunities for industry stakeholders to improve operational efficiency, reduce costs, and gain a competitive edge. However, it also raises concerns about potential job displacement and the need for upskilling the workforce to keep up with the evolving technology landscape.

Local special circumstances: In Nigeria, the Artificial Intelligence market is rapidly growing due to the country's increasing investment in technology and innovation. This is driven by the government's push for a digital economy to diversify from its reliance on oil. Additionally, the country's large and youthful population, coupled with a growing middle class, presents a significant market for AI solutions. However, challenges such as inadequate infrastructure and a lack of skilled workforce pose barriers to the market's growth. These unique local factors greatly influence the adoption and development of AI in Nigeria.

Underlying macroeconomic factors: The Artificial Intelligence market in Nigeria is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in infrastructure. Countries with favorable regulatory environments and strong investment in AI technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the growing digital transformation and adoption of AI across various industries, coupled with the large population of tech-savvy individuals in Nigeria, are contributing to the market's growth. Furthermore, the government's efforts to diversify the economy and reduce reliance on oil exports are driving investments in the AI sector, creating more opportunities for market expansion.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Artificial intelligence evokes images of supercomputer assistants, machines that can think creatively, and, to some, scenes from their favorite sci-fi movie. The reality, despite not being as futuristic, is not far off from this. AI refers to the ability of a computer or machine to mimic the competencies of the human mind, which often learns from previous experiences to understand and respond to language, decisions, and problems. The market for AI technologies is vast, amounting to around 200 billion U.S. dollars in 2023 and is expected to grow well beyond that to over 1.8 trillion U.S. dollars by 2030.

Artificial intelligence (AI), the technology that allows digital computers or computer-controlled robots to perform tasks more commonly associated with intelligent beings, has been leaping into the limelight following the release of a wide variety of Generative AI models in 2023. The United States, being the largest economy in the world, has a natural advantage. Although human-like androids such as those portrayed in the science fiction movie Blade Runner are still far from reality, applications of AI such as smartphone virtual assistants and industrial robots are already widespread in U.S. society. The industry’s powerful ability to improve efficiency and increase productivity has made it of strategic importance to U.S. industries and government, both of which push the U.S. lead in the AI race.