Artificial intelligence will be a trillion-dollar market by 2030

The generative artificial intelligence (AI) market is defying expectations, anticipating exceptional performance in the coming years.

Sopra Steria Next , the consulting brand of the Sopra Steria Group , has published a study on the future of the artificial intelligence (AI) market , which forecasts that the technology will double in value to $1.27 trillion by 2028 , representing 10% of the global technology market .

The global AI market was valued at $540 billion in 2023, representing 6% of the global IT market. This implies that to reach $1.27 trillion by 2028, the AI market must experience annual growth of 19% over the next five years, three times that of the IT market as a whole.

In which areas will the use of AI grow?

There are several areas where AI will be more widely implemented in the coming years.

AI applied to machines

Industrial AI will enable machines, factories, and entire supply chains to operate increasingly intelligently. This evolution is made possible by the deployment of 5G/6G networks , increased processing capacity, and the vast amount of data from numerous connected sensors . The star technology of industrial AI will undoubtedly be the metaverse , fueled by the deployment of digital twins .

Industrial AI is expected to grow by 13% annually to reach $330 billion by 2028 , representing 26% of the global AI market.

AI applied to processes

Intelligent process automation focuses on management activities that make business results more efficient. This archetype can be found in financial services, utilities, and processes linked to various support functions. New AI tools, for example, can be used to better detect anomalies or fraud .

The global AI market will grow from $540 billion in 2023 to $1.27 trillion five years later, representing 19% annual growth and 10% of the global technology market.

AI applied to business processes will benefit from the competitive convergence between automation players, workflow management, and major ERP vendors to develop integrated intelligent automation platforms. This archetype could reach a peak of $390 billion by 2028, representing 31% of the AI market , thanks to 18% annual growth over this period.

AI applied to humans

AI in the service of humans encompasses both successive generations of decision-making support tools and various types of virtual assistants (Copilot, HuggingFace, and ChatGPT , among others), which enhance the capabilities of the people who use them, helping them perform their work. This archetype is particularly developing in the finance , healthcare , e-commerce , and media sectors.

This archetype is expected to experience the greatest growth in volume, growing from $130 billion to $380 billion in five years and representing 30% of the total AI market.

AI applied to software

AI applied to computing includes all the tools to automate the development process and assist in code generation, and is benefiting from the growing interest in low-code applications .

This archetype of AI applied to IT development is expected to triple in size to reach $170 billion, representing annual growth of 25% . To illustrate this trend, Sopra Steria Next draws on the experience of more than 40,000 developers within the Sopra Steria Group itself. Depending on the type of activity and for certain IT languages, the application of AI currently allows a 10% to 40% reduction in the number of errors and savings of at least two hours per week for developers. This AI applied to software is expected to reach 13% of the total market .

Generative AI Market

As for the generative AI market , referring to this type of AI in particular, it is also exceeding all expectations. According to an analysis by Stocklytics, the generative AI market is projected to reach $1 trillion by 2031 , with a Compound Annual Growth Rate ( CAGR ) of 2031.48%. Leading companies such as Amazon , Microsoft , Google , and Nvidia anticipate making the most profits during this impending growth period.

Edith Reads , a financial analyst at Stocklytics , explains all these trends: “With the development of new AI tools, we have seen a remarkable increase in interest and demand for this technology. Growing curiosity about how it works and its capabilities has driven its phenomenal success. With the launch of innovative technological designs, we can anticipate that the AI domain will continue on an impressive trajectory in the coming years.”

ChatGPT: Market Leader in Generative AI

The progression of the AI market since 2022 reveals that the emergence of tools like ChatGPT has generated significant excitement around automation and chatbot technology . The sector has quickly seen an increase in the diversity of tools, increasing their market share and popularity. To this day, ChatGPT remains the most successful AI tool , with a massive user base exceeding 180.5 million and up to 1.7 billion visits by November 2023. The application continues to receive positive support, with 97% of business owners believing it will contribute to an increase in their profits.

Global AI Dominance: Outlook and Investments

The global AI market is also receiving positive momentum, with China and India accounting for approximately 60% of its consumption worldwide. These two countries stand out as the main markets for this growing technology due to their extensive market bases, supported by their status as the most populous nations in the world. The United States maintains its position as the leader in influence and investment in AI , with $250 million invested in AI startups since 2013.

The generative AI market is projected to reach $1 trillion by 2031.

Overall, the AI market is forecast to experience explosive growth across various industries globally in the coming years. Currently, around 80% of companies are using or exploring artificial intelligence. Of this group, 35% have already incorporated it into their operations, while 42% have plans to implement it. Forecasts indicate the largest economic increases will occur, with a 26% increase in China and a 14.5% increase in North America by 2030. Furthermore, India is expected to experience staggering growth of up to $3,935.5 million by 2028, generating massive benefits for the AI market as a whole.

What are the driving forces behind AI market growth ?

Consumer appeal stands as a central driver of the growing interest in artificial intelligence tools . New technological developments represent a significant entry point for users. For example, the use of AI in the development of autonomous vehicles and the implementation of large language models have captured the attention of many consumers.

The self-driving car market is projected to experience exponential growth, reaching approximately $13.7 billion by 2030, with nearly 10% of vehicles being driverless. Large-scale language models will generate approximately $247.2 billion for the AI field .

Digital advertising

The AI market’s focus on digital advertising has improved its prospects among new consumers. Undoubtedly, digital advertising offers strong opportunities for contextual brand storytelling at scale. With the help of advertising, AI tools will attract more consumers interested in what they offer. The AI space is expected to grow to over $190.2 billion by 2032.