Artificial Intelligence - United Kingdom

United Kingdom

The market size in the Artificial Intelligence market is projected to reach US$6.03bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.30%, resulting in a market volume of US$26.89bn 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 United Kingdom's Artificial Intelligence market is experiencing substantial growth, driven by increasing adoption of digital technologies, rising health awareness among consumers, and the convenience of online health services. Factors such as advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI are contributing to the market's rapid growth rate.

Customer preferences: As technological advancements continue to reshape industries, the Artificial Intelligence Market in the United Kingdom is experiencing a growing demand for AI-powered solutions. This is driven by the increasing preference for personalized and efficient services, as well as the need for automation and data-driven decision-making. Furthermore, the adoption of AI technology is also influenced by the UK's strong digital infrastructure and tech-savvy consumer base.

Trends in the market: In the United Kingdom, the Artificial Intelligence market is experiencing a surge in the use of AI-powered chatbots in customer service and support. This trend is expected to continue as companies seek to improve efficiency and reduce costs. Additionally, there is a growing adoption of AI in healthcare, with the potential to improve patient outcomes and reduce healthcare costs. Furthermore, the UK government has invested in AI research and development, signaling a strong commitment to the growth of the industry. These trends are significant as they pave the way for increased automation and innovation in various industries, while also posing potential implications for workforce displacement and ethical concerns surrounding the use of AI.

Local special circumstances: In the United Kingdom, the Artificial Intelligence market is experiencing growth due to the country's strong technological infrastructure and supportive government policies. With a highly skilled workforce and advanced research institutions, the UK is a hub for AI development and innovation. Additionally, the country's strict data privacy regulations and ethical considerations play a significant role in shaping the AI market. The UK's business-friendly environment and collaborative approach to AI research also contribute to its unique market dynamics.

Underlying macroeconomic factors: The Artificial Intelligence market in United Kingdom is impacted by various macroeconomic factors, such as technological advancements, government policies, and investment in research and development. With the increasing global demand for AI solutions, countries with a strong focus on innovation and supportive regulatory environments are experiencing rapid market growth. Additionally, the UK's strong economy and high investment in AI infrastructure are contributing to the growth of the market. Furthermore, the rising adoption of AI in various industries and the growing need for automation are driving the demand for AI solutions in the country.

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.