Artificial Intelligence - Canada

Canada

The market size in the Artificial Intelligence market is projected to reach US$4.13bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.39%, resulting in a market volume of US$18.50bn 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 Canada is experiencing rapid growth due to the increasing adoption of digital technologies, rising health awareness among consumers, and the convenience of online health services. The market's substantial growth rate can be attributed to advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. Factors such as government support, investments in research and development, and the growing demand for AI in various industries are driving this growth.

Customer preferences: With the growing adoption of Artificial Intelligence in various industries, consumers in Canada are seeking advanced AI-enabled solutions to enhance productivity and efficiency. This trend is driven by a shift towards automation and digitalization, as well as an increasing demand for personalized and tailored experiences. As a result, companies in the AI market are focusing on developing innovative and cutting-edge technologies to meet the evolving needs of consumers.

Trends in the market: In Canada, the Artificial Intelligence market is experiencing a surge in the adoption of AI-powered chatbots and virtual assistants in various industries. This trend is expected to continue as companies seek to improve customer experience and streamline processes. Additionally, there is a growing focus on ethical and responsible AI, with companies investing in AI governance and diversity initiatives. These trends signal a shift towards more widespread integration of AI technology in Canadian businesses, with potential implications for job displacement and increased efficiency.

Local special circumstances: In Canada, the Artificial Intelligence market is flourishing due to the country's highly educated workforce and strong research and development infrastructure. The government has also invested in AI initiatives, such as the Pan-Canadian Artificial Intelligence Strategy, to support the growth of this industry. Additionally, Canada's diversity and multiculturalism have fostered a collaborative and innovative environment for AI development. Privacy and data protection regulations, such as the Personal Information Protection and Electronic Documents Act, have also played a crucial role in shaping the AI market in Canada.

Underlying macroeconomic factors: The growth of the Artificial Intelligence market in Canada is largely influenced by macroeconomic factors such as technological advancements, government support, and investment in AI infrastructure. As a leader in AI research and development, Canada has a strong regulatory environment and provides significant funding for AI initiatives. This has resulted in a thriving ecosystem for AI startups and companies, driving market growth. Additionally, the increasing adoption of AI technologies across various industries, such as healthcare, finance, and retail, is further propelling the market forward. With a growing demand for efficient and innovative solutions, the AI market in Canada is expected to continue its upward trend.

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.