Artificial Intelligence - United Arab Emirates

United Arab Emirates

The market size in the Artificial Intelligence market is projected to reach US$949.80m in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.54%, resulting in a market volume of US$4,285.00m 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 United Arab Emirates is experiencing rapid growth due to the increasing adoption of digital technologies, rising awareness about the benefits of AI, and the convenience of online services. This elevated growth rate can be attributed to the advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. Factors such as government initiatives, investments in research and development, and the presence of tech-savvy consumers are driving the growth of this market.

Customer preferences: The demand for AI-powered virtual assistants is rapidly increasing in the United Arab Emirates, as consumers seek more convenient and personalized services. This trend is driven by the country's high smartphone penetration and tech-savvy population. Additionally, there is a growing preference for contactless interactions, leading to an uptick in the adoption of voice-controlled devices and chatbots. As such, businesses are increasingly incorporating AI technologies to enhance customer experiences and streamline operations.

Trends in the market: In the United Arab Emirates, there is a growing trend of integrating Artificial Intelligence (AI) into various industries, including healthcare, finance, and transportation. This has been driven by the government's focus on becoming a hub for AI research and development in the Middle East. Additionally, there is a rise in AI-powered chatbots and virtual assistants in customer service and a growing demand for AI-driven analytics and decision-making tools. These trends indicate the increasing adoption of AI technologies and their potential to transform business operations and enhance efficiency. However, this also raises concerns about job displacement and the need for regulations to ensure ethical and responsible use of AI.

Local special circumstances: In the United Arab Emirates, the Artificial Intelligence market is experiencing significant growth due to the country's strong focus on technology and innovation. With the government's initiatives such as the UAE Artificial Intelligence Strategy, there is a growing demand for AI solutions in various industries including healthcare, transportation, and finance. Additionally, the country's strategic location and international business hub status make it an ideal market for AI companies to establish a presence and expand their reach in the Middle East region.

Underlying macroeconomic factors: The Artificial Intelligence market in the United Arab Emirates is largely influenced by macroeconomic factors such as government initiatives to promote digital transformation, the country's strong investment in AI research and development, and the increasing demand for AI solutions across various industries. Additionally, the UAE's stable economic growth and favorable business environment have attracted significant foreign investment, further driving the growth of the AI market. Furthermore, the country's increasing focus on smart cities and the adoption of AI in government services are expected to propel the market's growth in the coming years.

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.