BOULDER, Colo.--(BUSINESS WIRE)--Even as research and investment into artificial intelligence (AI) have gone through some 60 years of booms and busts, consumers’ fascination with the technology persists. But it is with the recent rise of digitization, Big Data, improved algorithms, and processing speed that consumer applications of AI have begun to emerge into the mainstream. From movie recommendations to search engine queries, AI and, more specifically, deep learning are powering a range of applications that have recalibrated consumer expectations for the digital lifestyle.
According to a new report from Tractica, consumer AI now accounts for the largest portion of AI software, hardware, and services revenue, reaching $1.9 billion in 2016 and rising to $2.7 billion by the end of 2017, which is greater than any other industry segment. Although the entire market, including consumer AI, remains in its infancy, Tractica forecasts strong growth ahead, with the market for consumer AI hardware, software, and services increasing to $42.1 billion by 2025.
“The consumer AI market is being led by the internet giants of our time, and consumer AI use cases are among the most advanced proof points for commercially available AI to date,” says principal analyst Jessica Groopman. “Companies like Google, Amazon, Facebook, Baidu, Apple, and others are pioneering the use of AI in consumer interactions, both to mimic and to empower human capabilities.”
Groopman adds, however, that the growth of this market is not limited to internet companies. As brands and suppliers across consumer-facing industries incorporate AI into their products and processes, consumer AI will replace the current standards for consumer interactions.
Tractica’s report, “Artificial Intelligence for Consumer Applications”, provides a detailed examination of the market opportunity for AI hardware, software, and services in the consumer sector during the period from 2016 to 2025. Technologies covered include machine learning, deep learning, natural language processing, computer vision, machine reasoning, and strong AI. The forecasts in this report cover the top 23 use cases for consumer AI based on revenue, investment, and market activity. Profiles are also included for 20 key participants in the emerging consumer AI market ecosystem. An Executive Summary of the report is available for free download on the firm’s website.
Tractica is a market intelligence firm that focuses on human interaction with technology. Tractica’s global market research and consulting services combine qualitative and quantitative research methodologies to provide a comprehensive view of the emerging market opportunities surrounding Artificial Intelligence, Robotics, User Interface Technologies, Wearable Devices, and Digital Health. For more information, visit www.tractica.com or call +1.303.248.3000.