Artificial Intelligence - Southern Africa

Southern Africa

The market size in the Artificial Intelligence market is projected to reach US$0.90bn 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$4.00bn 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.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Artificial Intelligence market in Southern Africa is experiencing rapid growth, driven by factors such as increasing adoption of digital technologies, growing awareness of the benefits of AI, and the convenience of online services. The market's elevated growth rate can be attributed to factors such as advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. These sub-markets are fueling the overall market's growth and are expected to continue driving its expansion in the coming years.

Customer preferences: The use of Artificial Intelligence (AI) in various industries has seen a significant rise in Southern Africa. With the increasing availability of AI-powered products and services, consumers are now opting for more efficient and personalized solutions. This trend is driven by the growing need for data-driven decision making and improved customer experiences. Additionally, the rise of AI has paved the way for the development of virtual assistants and chatbots, catering to the region's diverse linguistic and cultural landscape.

Trends in the market: In Southern Africa, the Artificial Intelligence market is experiencing a surge in the adoption of AI-powered solutions across various industries, including healthcare, finance, and agriculture. This trend is driven by the region's growing investment in digital transformation and the need for more efficient and effective business processes. With the rise of AI, there is a significant focus on upskilling and reskilling the workforce to meet the demands of this technology. This has led to the emergence of numerous AI training programs and partnerships between government, academia, and industry players. As AI continues to evolve, it is expected to play a crucial role in driving economic growth and addressing societal challenges in the region.

Local special circumstances: In Southern Africa, the Artificial Intelligence market is still in its nascent stage, with limited adoption compared to other regions. This can be attributed to factors such as limited access to digital infrastructure, low levels of digital literacy, and regulatory challenges. However, with the increasing investment in technology and the growing need for automation and efficiency in various industries, the market is expected to witness significant growth in the coming years. Additionally, the region's diverse cultural landscape and varying levels of economic development may also impact the adoption and application of AI solutions.

Underlying macroeconomic factors: The rising adoption of Artificial Intelligence (AI) in Southern Africa is largely driven by macroeconomic factors such as government initiatives, technological advancements, and increasing investments in AI research and development. Countries with favorable business environments and government support for AI are experiencing faster market growth compared to regions with limited resources and infrastructure. Additionally, the growing demand for AI solutions in various industries, such as healthcare, finance, and retail, is also fueling market growth. Moreover, the increasing focus on digital transformation and automation in the region is further propelling the demand for AI technologies.

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.