Market Size of AI: How Big Is the AI Market?

Report highlights. By the end of 2024, the market size of AI surpassed US$184.04 billion. 

• The size of the artificial intelligence market is projected to reach US$243.72 billion by the end of 2025.
• It’s estimated that AI will reach a market size of US$826.73 billion by 2030.
• AI will have a compound annual growth rate (CAGR) of 27.78% through 2030.
• The United States has the largest AI market size (US$66.21 billion in 2025).
• The second largest AI market will be in China (US$45.45 billion in 2025).

Growth rate of AI: How fast is AI growing? 

AI is growing at a CAGR of 27.78% from 2024 through 2030, reaching a market size of US$826.73 billion.

• The AI hardware market is set to grow from US$25.96 billion in 2024 to US$58.61 billion by 2028, growing at a CAGR of 22.6%. 
• The AI hardware market comprises design, manufacturing, and sales of hardware components optimized for AI applications.
• The AI software market was valued at US$59.97 billion in 2023 and is forecast to grow to US$862.14 billion in 2033, reflecting a CAGR of 30.5%. 
• AI software refers to applications that include computer vision software, data analytics software, machine learning algorithms, and natural language processing tools. 
• The AI services market is set to grow to US$197.68 billion in 2029, at a CAGR of 51%. 
• The AI wearables market was valued at US$38.85 billion in 2024 and is forecasted to grow to US$260.29 billion in 2032, growing at a CAGR of 27%. 
• Wearable AI devices include smartwatches such as the Apple Watch, fitness bands such as Fitbit, and earwear. 
• The global AI chip market had an estimated size of US$73.27 billion and is expected to reach US$927.76 billion by 2034, growing at a CAGR of 28.9%.

Market size by region

The size of the AI market varies significantly by region; North America leads at US$235.63 billion, followed by Europe (US$66.4 billion), the Asia-Pacific (US$33.7 billion), and the Middle East & North Africa (US$18.03 billion).

North America

North America dominates the global AI landscape with a market size of US$235.63 billion in 2024; the United States accounted for the majority of the regional total at US$146.09 billion.

• The AI market share of North America was US$235.63 billion in 2024 and is expected to grow at a CAGR of 19.22%.
• In 2024, North America earned a revenue share of 36.92%—the largest in the global AI market. 
• The US AI market alone accounted for US$146.09 billion in 2024 and is expected to reach around US$851.46 billion by 2034, reflecting a robust CAGR of 19.28%.
• Looking ahead, the US is predicted to maintain global leadership with a projected market size of US$851.46 billion by 2034.
• Canada is also experiencing significant AI growth, with its AI market valued at US$61.69 billion in 2024. It is expected to reach US$360.57 billion by 2034, growing at a CAGR of 19.31%.

Europe

The AI market in Europe reached US$66.4 billion in 2024 and is poised to expand more than fivefold by 2030, fueled by robust growth in the UK, Germany, and other countries across the region.

• The European AI market is projected to grow at a CAGR of 33.2%, from US$66.4 billion in 2024 to US$370.3 billion in 2030.
• Within Europe, the United Kingdom stands out as the world's third-largest AI market, valued at US$21 billion in 2023, behind only the US and China, and is expected to reach US$1 trillion by 2035, by some calculations.
• Another major European player, Germany, had an AI market size of US$5.45 billion in 2023 and is expected to reach US$106.4 billion by 2030, growing at a CAGR of 31.7%.
• In 2024, Europe earned 25.97% of global AI market revenue. 

Asia-Pacific

The market size of AI in the Asia-Pacific (APAC) reached US$33.7 billion in 2024, representing nearly one-third of global AI revenue.

• The market size of AI in APAC was US$33.7 billion in 2024 and is expected to grow at a CAGR of 20.3% to US$177 billion in 2030.
• Generative AI earned a revenue of US$5.56 billion in 2024 and is projected to reach US$37.55 billion in 2030, growing at a CAGR of 31.2%.
• Investments in AI throughout the region are expected to grow to US$110 billion by 2028 at a CAGR of 24% from 2023 numbers.
• Nearly one-third (32.9%) of global AI market revenue came from the Asia-Pacific during 2024. 
• The AI market in the Asia-Pacific is expanding mainly due to rapid digital transformation across finance, healthcare, and telecom, coupled with advancements in 5G and growing demand for virtual assistants and smart technologies.
• Within APAC, China had an estimated AI market size of US$29.02 billion in 2023 and is expected to grow to US$104.7 billion in 2030, reflecting a CAGR of 20.12%.
• While India’s market size is low compared to China (US$8.58 billion in 2024), it is expected to grow to US$45.72 billion by 2034 at a CAGR of 18.20%. 

Middle East & North Africa

The AI market in the Middle East and North Africa (MENA) is experiencing rapid growth, with projections indicating substantial increases in market size over the coming years.

• The size of the AI market in the Middle East & North Africa (MENA) is expected to grow at a CAGR of 44.8% from US$18.03 billion in 2024 to US$166.33 billion in 2030.
• In 2023, software solutions accounted for 35.9% of the AI market share in the MENA region. 
• Saudi Arabia had an AI market size of US$6.76 billion in 2024 and is expected to grow at a CAGR of 44.1% to US$60.57 billion in 2030.
• Similarly, the UAE had an AI market size of US$5.22 billion in 2024. It is expected to grow at a CAGR of 43.9% to US$46.33 billion in 2030. 

Market size by industry and sector

The AI market continues to experience significant growth across sectors, with North America maintaining leadership positions in all major industries.

Education

AI in education is projected to grow more than fivefold to US$32.27 billion by 2030, fueled by the widespread adoption of personalized learning systems.

• The global size of the AI market in the education sector was US$5.88 billion in 2024. It is expected to grow to US$32.27 billion in 2030, displaying a CAGR of 31.2%. 
• North America had the largest share of revenue, at 38% of the AI in the education market in 2024.
• The US is forecast to maintain its global leadership position in AI education revenue through 2030, exhibiting the highest CAGR in the sector.
• AI-powered personalized learning platforms can improve student performance by as much as 51% compared to conventional classroom learning. 
• Using AI for grading purposes could enhance evaluation efficiency by up to 90%.

Healthcare

With nearly 79% of healthcare organizations already implementing AI solutions, the healthcare sector represents one of the fastest-growing AI markets with projections to reach US$187.7 billion by 2030.

• AI in the healthcare market was US$26.6 billion in 2024 and is forecast to grow to US$187.7 billion in 2030, reflecting a CAGR of 38.5%.
• AI solutions have been implemented by 79% of healthcare organizations in 2024.
• North America had the largest share of revenue, at 45% of the market in 2023. 
• Software AI solutions comprised the largest component of AI in healthcare at 41%, followed by hardware (35%) and services (24%). 
• 70.4% of the funding for AI-based healthcare startups came from the US.
• Medical imaging and diagnosis commanded the largest market share of AI in healthcare in 2023, reaching a valuation exceeding US$7.4 billion.

Finance

Financial institutions are rapidly embracing AI, with projections to reach US$190.33 billion by 2030 through sustained double-digit growth.

• AI in finance was valued at US$38.36 billion in 2024. It is predicted to hit US$190.33 billion in 2030, growing at a CAGR of 30.6%.
• 70% of financial institutions reported operational efficiency improvements following AI implementation in 2024.
• North America has the largest market share of AI in finance. It is projected to grow at a CAGR of 28.3% to reach US$73.83 billion in 2030.
• Canada represents the fastest-growing market for AI in finance within the North American region.

Law

Though smaller than other sectors at US$1.45 billion in 2024, the legal AI market demonstrates steady expansion toward US$3.9 billion by 2030.

• The size of the AI market in the legal sector was US$1.45 billion in 2024. It is expected to grow to US$3.9 billion in 2030, reflecting a CAGR of 17.3%.
• North America has the largest share of the legal AI market, accounting for 46% of revenue. 
• In terms of technology, machine learning and deep learning dominated the market with a share of 63% in 2024.

Marketing

The marketing sector's AI adoption continues to accelerate, projected to quadruple to US$82.23 billion by 2030.

• AI in marketing was valued at US$20.44 billion in 2024 and is forecast to grow to 82.23 billion in 2030, reflecting a CAGR of 25%.
• The services segment led AI in marketing with a substantial 59.3% revenue share in 2024. This segment focuses on using AI to improve customer service and support functions.
• North America has the largest market share in AI in marketing, at 32.4% in 2024.