Artificial Intelligence - Western Asia

Western Asia

The market size in the Artificial Intelligence market is projected to reach US$4.43bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.56%, resulting in a market volume of US$20.00bn 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.

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Analyst Opinion

The Artificial Intelligence market in Western Asia is witnessing significant growth, driven by factors such as increasing adoption of AI technologies, rising demand for AI-powered solutions, and the convenience of online services. The market's elevated growth rate can be attributed to the advancements in sub-markets such as AI Robotics, Autonomous & Sensor Technology, and Computer Vision. Additionally, the high demand for Machine Learning, Natural Language Processing, and Generative AI is also contributing to the market's rapid growth.

Customer preferences: The growing adoption of Artificial Intelligence (AI) in Western Asia is driven by consumer demand for more efficient and personalized solutions. This trend is particularly evident in the healthcare sector, where AI-powered technologies are being used for accurate diagnosis, remote monitoring, and personalized treatment plans. Additionally, the increasing use of AI in customer service and e-commerce is reflective of consumers' desire for seamless and personalized experiences. This shift towards AI-driven solutions is also fueled by the region's young and tech-savvy population, as well as the growing importance of data-driven decision making in various industries.

Trends in the market: In Western Asia, the Artificial Intelligence market is experiencing a surge in the use of AI-powered chatbots for customer service and support. This trend is driven by the need for businesses to improve their customer experience and reduce costs through automation. Additionally, there is a growing demand for AI solutions in healthcare, with hospitals and clinics adopting AI for medical diagnosis and treatment planning. These trends are expected to continue, with AI being increasingly integrated into various industries across the region. This presents significant opportunities for industry stakeholders to innovate and capitalize on the potential benefits of AI.

Local special circumstances: In Western Asia, the Artificial Intelligence market is growing due to the region's focus on innovation and technological advancements. With countries like Israel and the United Arab Emirates investing heavily in AI research and development, the market is expected to witness significant growth in the coming years. Additionally, the region's diverse population and growing demand for advanced solutions in industries like healthcare and finance are also driving the adoption of AI technologies. However, the region's conservative cultural norms and strict regulatory policies may pose challenges for companies looking to enter the market.

Underlying macroeconomic factors: The growth of the Artificial Intelligence Market is also influenced by macroeconomic factors such as technological advancements, government support, and investment in research and development. Countries with a strong focus on promoting AI innovation and implementing supportive policies are experiencing faster market growth compared to regions with limited government support and resources. Additionally, the increasing demand for AI-driven solutions in various industries, such as healthcare, finance, and retail, is driving the global market expansion. Moreover, the rising adoption of AI-powered technologies in emerging economies is further propelling market growth.

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.