Artificial Intelligence (AI) Toolkit Market by Offering (Hardware, Software, Services), Technology (Natural Language Processing, Machine Learning), Vertical (BFSI, Retail & eCommerce, Healthcare & Life Sciences) and Region - Global Forecast to 2028
[286 Pages Report] The AI Toolkit market is estimated at USD 19.5 billion in 2023 to USD 91.6 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 36.2%. The increased accessibility of high-performance hardware components such as GPUs and TPUs has significantly enhanced the efficiency of training and deploying sophisticated AI models. AI toolkits are purposefully engineered to harness this computational power to its fullest potential, facilitating faster model development and improved performance. This alignment of AI toolkits with potent hardware resources is a pivotal factor driving the expansion of the AI toolkit market, as it empowers developers and organizations to leverage cutting-edge AI capabilities for a broad spectrum of applications.
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AI Toolkit Market Dynamics
Driver: Growing adoption of AutoML to train high-quality models
AI technology has witnessed tremendous growth over the years. Hence, the demand for AI models and applications has also hiked. For developing accurate AI tool, it is important to use correct model architecture, collect proper data, and tune the model accordingly to fulfil desired key performance indicators (KPIs). Automated machine learning (AutoML) helps to automate the manual task of finding the best models and hyperparameters for the desired KPI. It can automatically find the best AI model for a specific goal and hide a lot of the complicated steps involved in creating and optimizing AI models. Various AI toolkits such as NVIDIA TAO offer AutoML feature that automatically optimizes the hyperparameters of a model, reducing the need for manual tuning. This contributes to the increasing adoption of AutoML for training and deploying high-quality models.
Restraint: Lack of standardization in AI toolkit market
The need for more standardization in the AI toolkit market poses a major challenge for businesses and developers. Each AI toolkit available in the market has its strengths and weaknesses. This makes it difficult for businesses to choose the right toolkit for their needs and for developers to learn and use different toolkits. Various factors contribute to the need for more standardization in the AI toolkits, including the rapid pace of innovation in AI, the diversity of AI applications, and the open-source nature of many AI toolkits. AI is constantly evolving, and new toolkits are always emerging. This makes it difficult for standards to be developed and adopted. AI is being used in various industries and applications, which has led to the development of various specialized AI toolkits. Many AI toolkits are open source, meaning they are developed and maintained by a community of volunteers. This makes it challenging to coordinate development and ensure compatibility between different toolkits. The lack of standardization in the AI toolkit market can have several negative consequences for businesses and developers, including increased costs, reduced productivity, and increased risk of errors.
Opportunity: Growth in data generated by IoT devices creating new opportunities
The automated power of AI is contributing to the adoption of intelligent IoT technologies, as organizations can extract insights from massive datasets collected by these devices. These insights enable organizations to create a holistic view of operations and business performance and use that data for launching new products and services in the market. IoT generates heaps of data, and this data offers new insights into organizational performance and health. AI helps businesses use the power of IoT by enabling prescriptive and predictive analytics to interpret data collected by sensors, trackers, and other input devices. These intelligent insights support preventive maintenance, improved decision-making, and forecasting leading to better customer service. For instance, in remote manufacturing sensors track production processes at different locations and send status updates to centralized facility that uses ML for monitoring machine health and reducing downtime occurring through failure prediction. AI plays an important role in addressing security issues faced during IoT implementations.
Challenge: Concerns related to AI transparency, explainability, and biases
The number of organizations adopting AI systems has increased. However, there have been ethical issues due to the black-box nature of AI systems. There are various interest groups across the world, including IEEE and ACM that have defined comprehensive ethical guidelines and principles to ensure responsible AI usage. Various established groups have developed AI ethical guidelines emphasizing transparency and explainability for developing AI systems. Organizations utilize different ML models and algorithms in the decision-making processes. Moreover, AI systems' outputs and decisions are usually difficult to understand and lack transparency. Even if an AI system is transparent, explaining how it reached a particular decision may not be easy. This makes it difficult to trust the system's decisions and identify and address potential biases. Sometimes, AI systems can be biased, reflecting the biases of the data they are trained on or the people who design them. This can lead to unfair and discriminatory outcomes. For instance, a facial recognition system biased against certain racial groups could lead to false arrests or other negative consequences. A medical diagnosis system that is biased against certain diseases or populations could lead to misdiagnoses and delays in treatment. It is important to address these concerns to ensure that AI systems are used responsibly and ethically.
AI Toolkit Market Ecosystem
Prominent players in this market include well-established, financially stable AI toolkit solutions, services providers, and regulatory bodies. These companies have been operating in the market for several years and possess a diversified product portfolio and state-of-the-art technologies. Prominent companies in this market include Microsoft (US), Google (US), and Meta (US) and so on.
"By technology, Natural Language Processing (NLP) segment to hold the largest market size during the forecast period.
NLP serves as a driving force behind popular voice assistants such as Google assistant and Amazon Alexa contributing to the adoption of the AI toolkit market. These voice-activated services have become integral to homes and businesses, enhancing human-computer interaction, and providing voice-activated solutions for an array of tasks. As these voice assistants gain widespread adoption, the demand for AI toolkits equipped with robust NLP capabilities continues to surge. This trend not only expands the AI toolkit market but also promotes innovation in NLP technology, enabling more versatile and sophisticated voice-activated applications across various sectors, from smart homes to healthcare and customer service.
“Based on vertical, the Healthcare & Life Sciences segment is expected to register the fastest growth rate during the forecast period. “
AI toolkits play a pivotal role in advancing healthcare AI research by enabling the analysis of large-scale healthcare datasets, and this function serves as a significant driver for the AI toolkit market. In recent healthcare institutions and researchers are overwhelmed with an unprecedented volume of patient records, medical imaging, genomic data, and clinical notes due to inclusion of big data. AI toolkits empower healthcare AI research by efficiently processing and deciphering this vast pool of information. By leveraging machine learning algorithms and natural language processing, AI toolkits uncover hidden patterns, correlations, and insights that might elude human analysts. This not only expedites the pace of medical discoveries but also supports the development of more accurate diagnostics, treatment recommendations, and predictive healthcare models. As a result, the demand for AI toolkits in healthcare AI research continues to grow, fostering innovation and driving the expansion of the AI toolkit market.
North America is expected to hold the largest market size during the forecast period
Government support and funding play a crucial role in driving the AI toolkit market in North America. The commitment of governments in the region to AI research and development initiatives not only fosters innovation but also enhances competitiveness. Public investments in AI projects, research centers, and infrastructure create an ecosystem encouraging collaboration between academia, industry, and startups. This, in turn, fuels the development and adoption of AI toolkits, as they are the fundamental building blocks for AI innovation. The availability of resources and funding facilitates the exploration of new AI applications and the expansion of AI capabilities, making North America a global leader in AI technology and driving the growth of the AI toolkit market in the region.
Market Players:
The major players in the AI Toolkit market are Microsoft (US), Google (US), IBM (US), Oracle (US), Thales Group (France), Salesforce (US), Intel (US), Adobe (US), Meta Platforms (US), AWS (US), NVIDIA Corporation (US), H2O.ai (US), Alteryx (US), Altair (US), KNIME (Switzerland), DataRobot (US), Jasper (US), Rasa (US), SuperAnnotate (US), OpenAI (US), Obviously AI (US), Fiddler AI (US), Determined AI (US), Snorkel AI (US), Levity AI (Germany), Union AI (US), Attri AI (US), Regie.ai (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their AI Toolkit market footprint.
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Report Metrics |
Details |
Market size available for years |
2017-2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD) Billion |
Segments covered |
Offering (Hardware, Software, Services), Technology, Vertical, and Region |
Region covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. |
Companies covered |
Microsoft (US), Google (US), IBM (US), Oracle (US), Thales Group (France), Salesforce (US), Intel (US), Adobe (US), Meta Platforms (US), AWS (US), NVIDIA Corporation (US), H2O.ai (US), Alteryx (US), Altair (US), KNIME (Switzerland), DataRobot (US), Jasper (US), Rasa (US), SuperAnnotate (US), OpenAI (US), Obviously AI (US), Fiddler AI (US), Determined AI (US), Snorkel AI (US), Levity AI (Germany), Union AI (US), Attri AI (US), Regie.ai (US) |
This research report categorizes the AI Toolkit market to forecast revenues and analyze trends in each of the following submarkets:
Based on Offering:
- Software
-
Hardware
- Processors
- Accelerators
- Others (Memory and Networking Equipment)
-
Services
- Professional Services
- Managed Services
Based on Technology:
- Natural Language Processing
- Machine Learning
- Computer Vision
- Robotic Process Automation
Based on Vertical:
- Banking, Financial Services, & Insurance (BFSI)
- Retail & eCommerce
- Healthcare & Life Sciences
- Manufacturing
- Telecom
- IT & ITeS
- Media & Entertainment
- Energy & Utilities
- Government & Defense
- Automotive, Transportation, & Logistics
- Other Verticals (Education, Travel & Hospitality, Construction & Real Estate, and Agriculture)
By Region:
-
North America
- United States (US)
- Canada
-
Europe
- United Kingdom (UK)
- Germany
- France
- Italy
- Spain
- Nordics
- Rest of Europe
-
Asia Pacific
- China
- Japan
- India
- South Korea
- Australia & New Zealand
- Southeast Asia
- Rest of Asia Pacific
-
Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments
- In September 2023, Infosys and NVIDIA expanded their existing collaboration to develop a generative AI platform to help enterprises increase productivity. The partnership offers a scalable platform using NVIDIA technology to enhance Infosys’ Responsible AI Toolkit.
- In August 2023, IBM and Salesforce collaborated to assist businesses across various sectors in expediting their integration of AI into Customer Relationship Management. This collaboration empowers organizations to transform customer, partner, and employee interactions while ensuring the security of their data.
- In July 2023, Microsoft and Meta partnered to support Large Language Models on Azure and Windows.
Frequently Asked Questions (FAQ):
What is the definition of the AI Toolkit market?
AI toolkit is a software package or framework designed to simplify and streamline the development, deployment, and management of artificial intelligence models and applications. It provides a set of tools, libraries, and resources that eases the development and integration of machine learning and deep learning algorithms, harnessing the power of AI for a wide range of tasks, from data analysis and natural language processing to computer vision and robotics. AI toolkits aim to accelerate AI development, promote efficiency, and facilitate the creation of intelligent systems by offering pre-built components, training workflows, and other resources that simplify the AI development process.
What is the market size of the AI Toolkit market?
The AI Toolkit market is estimated at USD 19.5 billion in 2023 to USD 91.6 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 36.2% from 2023 to 2028.
What are the major drivers in the AI Toolkit market?
The major drivers in the AI toolkit market are the evolution of language model concept in AI and growing adoption of AutoML to train high-quality models.
Who are the key players operating in the AI Toolkit market?
The key market players profiled in the AI Toolkit market are include Microsoft (US), Google (US), IBM (US), Oracle (US), Thales Group (France), Salesforce (US), Intel (US), Adobe (US), Meta Platforms (US), NVIDIA Corporation (US), H2O.ai (US), Alteryx (US), Altair (US), KNIME (Switzerland), DataRobot (US), Jasper (US), Rasa (US), SuperAnnotate (US), OpenAI (US), Obviously AI (US), Fiddler AI (US), Determined AI (US), Union AI (US), Attri AI (US), Regie.ai (US).
What are the key technology trends prevailing in AI Toolkit market?
The key technology trends in AI Toolkit include Machine Learning, Deep Learning, and Natural Language Processing.
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This research study involved the extensive use of secondary sources, directories, and databases, such as Dun & Bradstreet (D&B) Hoovers and Bloomberg BusinessWeek, to identify and collect information useful for a technical, market-oriented, and commercial study of the AI Toolkit market. The primary sources have been mainly industry experts from the core and related industries and preferred suppliers, manufacturers, distributors, service providers, technology developers, alliances, and organizations related to all segments of the value chain of this market. In-depth interviews have been conducted with various primary respondents, including key industry participants, subject matter experts, C-level executives of key market players, and industry consultants to obtain and verify critical qualitative and quantitative information.
Secondary Research
The market for companies offering AI Toolkit solutions and services to different verticals has been estimated and projected based on the secondary data made available through paid and unpaid sources and by analyzing their product portfolios in the ecosystem of the AI Toolkit market. It also involved rating company products based on their performance and quality. In the secondary research process, various sources such as Journal of Artificial Intelligence Research, the Journal of Artificial Intelligence (AIJ), Association for the Advancement of Artificial Intelligence (AAAI) have been referred to for identifying and collecting information for this study on the AI Toolkit market. The secondary sources included annual reports, press releases and investor presentations of companies, white papers, journals, and certified publications and articles by recognized authors, directories, and databases. Secondary research has been mainly used to obtain key information about the supply chain of the market, the total pool of key players, market classification, segmentation according to industry trends to the bottommost level, regional markets, and key developments from both market- and technology-oriented perspectives that primary sources have further validated.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and product development/innovation teams; related key executives from AI Toolkit solution vendors, SIs, professional service providers, and industry associations; and key opinion leaders. Primary interviews were conducted to gather insights, such as market statistics, revenue data collected from solutions and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped in understanding various trends related to technologies, applications, deployments, and regions. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and end users using AI Toolkit solutions, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of AI Toolkit solutions which would impact the overall AI Toolkit market.
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Market Size Estimation
Multiple approaches were adopted to estimate and forecast the size of the AI Toolkit market. The first approach involves estimating market size by summing up the revenue generated by companies through the sale of AI Toolkit offerings.
Both top-down and bottom-up approaches were used to estimate and validate the total size of the AI Toolkit market. These methods were extensively used to estimate the size of various segments in the market. The research methodology used to estimate the market size includes the following:
- Key players in the market have been identified through extensive secondary research.
- In terms of value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakups have been determined using secondary sources and verified through primary sources.
AI Toolkit Market Size: Bottom-Up Approach
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AI Toolkit Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size, the AI Toolkit market was divided into several segments and subsegments. A data triangulation procedure was used to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with data triangulation and market breakdown, the market size was validated by the top-down and bottom-up approaches.
Market Definition
An AI toolkit, often referred to as an AI framework or AI development platform is a set of software tools, libraries, and resources that are designed to facilitate the development, deployment, and management of AI and ML applications. These toolkits provide developers with a structured environment for building and training AI models, handling data processing, and deploying AI solutions. AI toolkits typically include pre-built algorithms and data manipulation functions and often support deep learning and neural networks. They are essential for streamlining the development of AI applications across various domains, from natural language processing and computer vision to recommendation systems and predictive analytics. AI toolkits make AI technology more accessible and practical for various industries and applications.
Key Stakeholders
- AI Toolkit providers
- Government organizations, forums, alliances, and associations
- Consulting service providers
- Value-added resellers (VARs)
- End users
- System integrators
- Research organizations
- Consulting companies
Report Objectives
- To determine and forecast the global AI toolkit market by offering (hardware, software, services), application, vertical, and region from 2023 to 2038, and analyze the various macroeconomic and microeconomic factors affecting market growth.
- To forecast the size of the market segments with respect to five main regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market.
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall market.
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the AI toolkit market.
- To profile the key market players; provide a comparative analysis based on business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the market's competitive landscape.
- Track and analyze competitive developments in the market, such as mergers and acquisitions, product developments, partnerships and collaborations, and research and development (R&D) activities.
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Growth opportunities and latent adjacency in Artificial Intelligence (AI) Toolkit Market