Adaptive AI Market

Adaptive AI Market Size by Component (Platform and Services), Technology (Computer Vision, Deep Learning, Machine Learning, Natural Language Processing (NLP) and Reinforcement Learning), Application (Autonomous Decision-Making, Context-aware Adaptation, Offline Learning and Adaptation, Real-time Adaptive AI and Others), End-use (Aerospace & Defense, BFSI, Healthcare & Life Sciences, IT & Telecommunications, Manufacturing, Media & Entertainment, Retail & E-commerce and Others), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14164
  • Published Date: Mar, 2024
  • Pages: 239
  • Category: Information Technology & Semiconductors
  • Format: PDF
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The global Adaptive AI market generated USD 1.75 billion revenue in 2023 and is projected to grow at a CAGR of 42.51% from 2024 to 2033. The market is expected to reach USD 36.66 billion by 2033. The rising need for more advanced AI systems is driving market expansion. Furthermore, the market has seen substantial growth propelled by the widespread adoption of AI technologies across various industries.

Market Introduction:

Adaptive AI refers to a subset of artificial intelligence systems designed to continuously learn, evolve, and adapt their behaviour in response to changing environments, new data, or evolving objectives. Unlike traditional AI systems with fixed rules or structures, adaptive AI systems can dynamically adjust their strategies, models, or algorithms over time. These systems typically incorporate machine learning algorithms, deep learning techniques, and sometimes reinforcement learning methods to enable learning from data and interactions. They refine their models through iterative processes, improve performance, and enhance decision-making abilities. One of the key features of adaptive AI is its capability to adapt to new circumstances or unexpected changes without requiring explicit programming. This adaptability makes adaptive AI well-suited for dynamic and uncertain environments where traditional, static AI approaches may struggle to perform effectively. Adaptive AI finds applications across various domains. In finance, for example, adaptive AI algorithms can study market data, adapt trading strategies, and identify emerging trends in real-time. In healthcare, adaptive AI systems can personalize treatment plans based on individual patient data and responses. Overall, adaptive AI represents a powerful paradigm in artificial intelligence. It enables systems to continuously learn, evolve, and improve performance, leading to more intelligent and effective solutions across various applications.

Adaptive AI Market

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Recent Development
  • In January 2024: ABB has agreed to purchase a controlling stake in software service provider Meshmind. This strategic move aims to bolster ABB's research and development capacities in artificial intelligence (AI), Industrial Internet of Things (IoT), and machine vision. With this acquisition, ABB intends to amalgamate engineering expertise, AI proficiency, and software acumen to establish a fresh global research and development center. This initiative aims to expedite the advancement of pioneering automation solutions within its Machine Automation division (B&R).
  • In January 2024: To cater to the needs of both SMBs and large enterprises seeking Generative AI capabilities, Adaptive Computing Enterprises, Inc. has unveiled its latest offering: adaptive.ai-as-a-service. This comprehensive product is an end-to-end platform for developing AI and ML applications. The package includes robust web-browser management software, a comprehensive selection of over 120 high-performance computing (HPC) and AI/ML application packages and tools and streamlined GPU infrastructure deployment capabilities. These services are bundled into an all-inclusive monthly fee and are notably more cost-effective than alternative generative AI delivery options.
  • In July 2023: Workday, Inc., renowned for its enterprise cloud applications catering to finance and human resources, has introduced fresh AI capabilities within Workday Adaptive Planning. Additionally, the company has announced a series of innovations to enhance and simplify enterprise planning procedures across finance and human resources domains. These advancements are being presented at Workday Rising, the company's annual customer conference.
  • In June 2023: Oracle Corporation enhances its business human resources software by incorporating generative artificial intelligence (AI) functionalities. These features are designed to assist in various tasks, including drafting job descriptions and setting employee performance objectives.

Market Dynamics:

Drivers

Increasing Data Complexity - With the exponential growth of data from diverse origins, such as IoT devices, online channels, and sensors, there's a growing need for adaptive AI systems that can efficiently and effectively manage and process large volumes of diverse data types.

Demand for Personalization - Consumers increasingly expect personalized experiences across various domains, including e-commerce, entertainment, healthcare, and more. Adaptive AI technologies enable businesses to tailor products, services, and recommendations to individual preferences and behaviours, driving customer satisfaction and loyalty.

Emergence of Edge Computing - The proliferation of edge computing infrastructure allows for deploying adaptive AI systems next to the data source or end-user device. This factor enables real-time processing and decision-making, reducing latency and improving system responsiveness.

Restraints:

Data Privacy Concerns - The use of large amounts of data in adaptive AI systems raises concerns about privacy, particularly with regulations like GDPR imposing strict requirements on data handling. Ensuring compliance while leveraging data for adaptive learning can be challenging for businesses.

Lack of Skilled Talent - Building and maintaining adaptive AI systems requires machine learning, data science, and software engineering expertise. The need for skilled professionals in these domains can hinder the development and deployment of adaptive AI solutions.

Opportunities:

Personalized Healthcare - Adaptive AI can revolutionize healthcare by offering personalized/customized treatment programs based on individual patient data, genetic information, and real-time monitoring. It can support healthcare professionals in diagnosing diseases, predicting treatment outcomes, and recommending personalized interventions, ultimately improving patient outcomes and reducing healthcare costs.

Smart Manufacturing and Industry 4.0 - Adaptive AI enables predictive maintenance, process optimization, and real-time monitoring in manufacturing, leading to improved productivity, reduced downtime, and lower maintenance costs. It facilitates the transition to Industry 4.0 by enabling autonomous and adaptive manufacturing processes that respond dynamically to changing conditions and customer demands.

Enhanced Customer Experience - Adaptive AI allows businesses to deliver hyper-personalized customer experiences across various touchpoints, such as e-commerce platforms, mobile apps, and customer service interactions. By analyzing customer behaviour, preferences, and feedback in real-time, businesses can tailor products, services, and marketing messages to individual needs, driving customer satisfaction and loyalty.

Challenges:

Algorithmic Bias and Fairness - Adaptive AI systems may unintentionally perpetuate biases in the training data, leading to unfair results or discrimination. Addressing algorithmic bias and ensuring fairness and equity in AI decision-making poses a significant challenge for developers and organizations.

Interpretability and Explainability - Adaptive AI models are usually complex and opaque, making understanding how they arrive at decisions or recommendations difficult. Ensuring interpretability and explainability in AI algorithms is essential for building trust, transparency, and accountability, particularly in critical areas such as healthcare and finance.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most prominent global Adaptive AI market, with a 39.16% market revenue share in 2023.

North America, particularly the United States, is home to some of the world's leading technology companies, research institutions, and innovation hubs. The region benefits from a strong ecosystem that encourages industry, academia, and government collaboration, driving technological advancement and innovation in AI. Furthermore, North America attracts significant investment and funding in AI research, development, and commercialization. Venture capital firms, corporate investors, and government agencies allocate substantial resources to support startups and companies working on Adaptive AI technologies, fueling growth and expansion in the market. Additionally, North America boasts a large and diverse talent pool of data scientists, AI researchers, software engineers, and other professionals proficient in ML, deep learning, and related fields. Top universities and research institutions in the region produce excellent graduates and perform cutting-edge research in AI, attracting talent worldwide. Moreover, North America has a mature market with high demand for Adaptive AI solutions across various sectors, including healthcare, finance, retail, manufacturing, and technology. Businesses in the region recognize the potential of Adaptive AI to drive innovation, improve efficiency, and gain a competitive edge, leading to widespread adoption of AI technologies. Besides, the region has a favourable regulatory environment that encourages innovation and entrepreneurship in AI. Clear guidelines and frameworks for AI development and deployment provide certainty and stability for businesses, fostering investment and growth in the Adaptive AI market.

North America Region Adaptive AI Market Share in 2023 - 39.16%

 

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Component Segment Analysis

The component segment is divided into platform and services. The platform segment dominated the market, with a share of around 53.61% in 2023. The platform is a centralized infrastructure that provides the foundation for developing, deploying, and managing Adaptive AI solutions. These platforms offer comprehensive tools, frameworks, and services for data processing, model training, deployment, monitoring, and maintenance, streamlining the entire AI lifecycle. Platforms often include integrated development environments (IDEs) that provide developers with a unified interface for building, testing, and debugging Adaptive AI models. These IDEs offer features such as code editors, version control, collaboration tools, and model visualization, enhancing productivity and collaboration among development teams. Furthermore, platforms are designed to scale horizontally and vertically to accommodate growing data volumes, user traffic, and computational demands. They offer flexibility regarding deployment options (on-premises, cloud, hybrid) and support for diverse workloads, enabling organizations to adjust and develop their AI capabilities as needed.

Technology Segment Analysis

The technology segment is classified into computer vision, deep learning, machine learning, natural language processing (NLP) and reinforcement learning. The deep learning segment dominated the market, with a share of around 35.29%. Deep learning excels at processing and extracting insights from complex and unstructured data types such as images, videos, text, and audio. Its hierarchical feature representation allows it to understand intricate patterns and connections in data, making it well-suited for applications with high-dimensional data and diverse modalities. In addition, deep learning models can scale to handle large datasets and complex computational tasks efficiently. Advances in hardware acceleration, distributed computing, and parallel processing have further improved the scalability of deep learning algorithms, enabling them to train and deploy models on massive datasets and high-performance computing infrastructures. Besides, deep learning frameworks and architectures support transfer learning, which leverages pre-trained models and fine-tunes them on domain-specific tasks. This approach reduces the need for large, annotated datasets and accelerates model development and deployment, making deep learning more accessible and practical for many applications.

Application Segment Analysis

The application segment is split into autonomous decision-making, context-aware adaptation, offline learning and adaptation, real-time adaptive AI and others. The offline learning and adaptation segment dominated the market, with a share of around 30.14%. Offline learning and adaptation enable Adaptive AI systems to learn and adapt from data without requiring continuous access to sensitive or proprietary data sources. This approach addresses privacy and security concerns associated with real-time data processing and ensures that sensitive information remains protected within organizational boundaries. Additionally, offline learning and adaptation allow Adaptive AI systems to operate autonomously without relying on constant internet connectivity. This aspect is particularly beneficial in environments with limited or intermittent network access, such as remote locations, edge devices, or IoT deployments, where real-time communication may not be feasible or reliable. Moreover, offline learning and adaptation can be more scalable and efficient than online approaches, especially when dealing with large datasets or resource-constrained environments. By pre-processing data offline and training models locally, Adaptive AI systems can reduce latency, bandwidth usage, and computational overhead, leading to faster inference and lower operational costs.

End-use Segment Analysis

The end-use segment includes aerospace & defense, BFSI, healthcare & life sciences, IT & telecommunications, manufacturing, media & entertainment, retail & e-commerce and others. The BFSI segment dominated the market, with a share of around 23.18% in 2023. BFSI organizations deal with vast amounts of data, including customer transactions, financial records, market data, and risk profiles. Adaptive AI enables these organizations to harness the power of data for informed decision-making, such as customer segmentation, personalized marketing, credit scoring, fraud detection, and risk management. BFSI organizations also face significant fraud detection and prevention challenges, including identity theft, credit card fraud, and money laundering. Adaptive AI enables these organizations to detect suspicious patterns, anomalies, and fraudulent activities in real time, mitigating financial losses and protecting customer assets. Furthermore, adaptive AI allows BFSI companies to deliver personalized customer experiences based on their preferences, behaviour, and financial needs. By analyzing customer data in real-time, adaptive AI systems can offer tailored product recommendations, customized financial advice, and proactive support, enhancing customer satisfaction and loyalty.

Some of the Key Market Players:
  • Apexon
  • ABB Ltd.
  • Aclara Technologies LLC
  • Adaptive Computing Enterprises, Inc.
  • Cygnus Software
  • Cisco Systems, Inc.
  • Dynam.AI
  • Eaton Corporation
  • General Electric
  • Honeywell International Inc.
  • Huawei Technologies Co., Ltd.
  • IBM Corporation
  • Itron, Inc.
  • Leewayhertz
  • Landis+Gyr AG
  • Markovate
  • Ness Digital Engineering
  • Oracle Corporation
  • Risingmax
  • Softura
  • Suffescom Solutions
  • Siemens AG
  • Schneider Electric SE
  • Sensus (Xylem Inc.)
  • Toshiba Corporation
  • Workday, Inc.

Report Description:

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2023 USD 1.75 Billion
Market size value in 2033 USD 36.66 Billion
CAGR (2024 to 2033) 42.51%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Segments Component, Technology, Application and End-use

Frequesntly Asked Questions

As per The Brainy Insights, the size of the adaptive AI market was valued at USD 1.75 billion in 2023 to USD 36.66 billion by 2033.

The global adaptive AI market is growing at a CAGR of 42.51% during the forecast period 2024-2033.

North America became the largest market for adaptive AI.

increasing data complexity and emergence of edge computing drive the market's growth.

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This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global Adaptive AI market based on below-mentioned segments:

Global Adaptive AI Market by Component:

  • Platform         
  • Services

Global Adaptive AI Market by Technology:

  • Computer Vision
  • Deep Learning            
  • Machine Learning
  • Natural Language Processing (NLP)
  • Reinforcement Learning   

Global Adaptive AI Market by Application:

  • Autonomous Decision-Making
  • Context-aware Adaptation
  • Offline Learning and Adaptation    
  • Real-time Adaptive AI
  • Others

Global Adaptive AI Market by End-use:

  • Aerospace & Defense
  • BFSI                       
  • Healthcare & Life Sciences
  • IT & Telecommunications
  • Manufacturing
  • Media & Entertainment
  • Retail & E-commerce
  • Others

Global Adaptive AI Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa

Methodology

Research has its special purpose to undertake marketing efficiently. In this competitive scenario, businesses need information across all industry verticals; the information about customer wants, market demand, competition, industry trends, distribution channels etc. This information needs to be updated regularly because businesses operate in a dynamic environment. Our organization, The Brainy Insights incorporates scientific and systematic research procedures in order to get proper market insights and industry analysis for overall business success. The analysis consists of studying the market from a miniscule level wherein we implement statistical tools which helps us in examining the data with accuracy and precision. 

Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

The Brainy Insights offers comprehensive research and analysis, based on a wide assortment of factual insights gained through interviews with CXOs and global experts and secondary data from reliable sources. Our analysts and industry specialist assume vital roles in building up statistical tools and analysis models, which are used to analyse the data and arrive at accurate insights with exceedingly informative research discoveries. The data provided by our organization have proven precious to a diverse range of companies, facilitating them to address issues such as determining which products/services are the most appealing, whether or not customers use the product in the manner anticipated, the purchasing intentions of the market and many others.

Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:

MARKET RESEARCH PROCESS

Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

  • The organizational databases such as D&B Hoovers, and Bloomberg that helps us to identify the competitive scenario of the key market players/organizations along with the financial information.
  • Industry/Market databases such as Statista, and Factiva provides market/industry insights and deduce certain formulations. 
  • We also have contractual agreements with various reputed data providers and third party vendors who provide information which are not limited to:
    • Import & Export Data
    • Business Trade Information
    • Usage rates of a particular product/service on certain demographics mainly focusing on the unmet prerequisites

Primary Research: The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. Primary research mainly involves in telephonic interviews, E-mail interactions and face-to-face interviews with the raw material providers, manufacturers/producers, distributors, & independent consultants. The interviews that we conduct provides valuable data on market size and industry growth trends prevailing in the market. Our organization also conducts surveys with the various industry experts in order to gain overall insights of the industry/market. For instance, in healthcare industry we conduct surveys with the pharmacists, doctors, surgeons and nurses in order to gain insights and key information of a medical product/device/equipment which the customers are going to usage. Surveys are conducted in the form of questionnaire designed by our own analyst team. Surveys plays an important role in primary research because surveys helps us to identify the key target audiences of the market. Additionally, surveys helps to identify the key target audience engaged with the market. Our survey team conducts the survey by targeting the key audience, thus gaining insights from them. Based on the perspectives of the customers, this information is utilized to formulate market strategies. Moreover, market surveys helps us to understand the current competitive situation of the industry. To be precise, our survey process typically involve with the 360 analysis of the market. This analytical process begins by identifying the prospective customers for a product or service related to the market/industry to obtain data on how a product/service could fit into customers’ lives.

Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.

The supply side for a domain specific market is analysed by:

  • Estimating and projecting penetration rates through analysing product attributes, availability of internal and external substitutes, followed by pricing analysis of the product.
  • Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

  • Evaluating the penetration level and usage rates of the product.
  • Referring to the historical data to determine the growth rate and evaluate the industry trends

In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.

Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:

  • Applying demographic along with psychographic segmentation for market evaluation
  • Determining the Micro and Macro-economic indicators for each region 
  • Examining the industry indicators prevailing in the market. 

Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:

  • Data Screening: Data screening is the process of scrutinising data/information collected from primary research for errors and amending those collected data before data integration method. The screening involves in examining raw data, identifying errors and dealing with missing data. The purpose of the data screening is to ensure data is correctly entered or not. The Brainy Insights employs objective and systematic data screening grades involving repeated cycles of quality checks, screening and suspect analysis.
  • Data Integration: Integrating multiple data streams is necessary to produce research studies that provide in-depth picture to the clients. These data streams come from multiple research studies and our in house database. After screening of the data, our analysts conduct creative integration of data sets, optimizing connections between integrated surveys and syndicated data sources. There are mainly 2 research approaches that we follow in order to integrate our data; top down approach and bottom up approach.

Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.

This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.

Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.

The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. The data validation interview and discussion panels are typically composed of the most experienced industry members. The participants include, however, are not limited to:

  • CXOs and VPs of leading companies’ specific to sector
  • Purchasing managers, technical personnel, end-users
  • Key opinion leaders such as investment bankers, and industry consultants

Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.

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