Artificial Intelligence or AI is a field of data science that trains computers to understand from observation, adapt to inputs, and accomplish tasks at certain levels of intelligence. Over the last few years, AI has originated as a major data science function and, by using advanced algorithms and computing power, AI has transformed the functional, operational, and strategic environment of various businesses. Most AI technologies rely on a variety of deep learning models. By using these sophisticated models, AI professionals can train computers to perform complex jobs by recognizing data patterns.
AI Market in India
As part of the broad field of data science, the function of artificial intelligence technology has so far been categorized as a fast-developing technology segment. Moreover, until now, the AI market in India has been controlled by MNC Technology as well as GIC or Captive companies.
Domestic producers, Indian start-ups, and even global technology start-ups across different sectors have still not made substantial investments in the Indian AI market in terms of operations and scale. Besides, IT services and Boutique AI & Analytics companies did not develop full-fledged AI packages for their clients in India until a few years ago.
However, the AI market has begun to change. As disclosed in the Computer Vision Market study and the AI and Analytics start-up investment study, data science space in India, in particular, the AI function, is developing into an advanced enterprise segment. MNC Technology, Domestic, Advanced Engineering, Healthcare, and Semi-Director Firms are a few of the organizations developing advanced Artificial Intelligence functionality in India and offering top-notch AI solutions to businesses across industries and geographies.
Artificial Intelligence Market Size by Company Type
The volume of the Artificial Intelligence market in India embraces companies providing Artificial intelligence facilities from the Indian geography, irrespective of the geographical market and the type of services offered. The Indian Artificial Intelligence market was valued at $6.4 billion.
MNC IT | Technology | Semi-conductor | Electronics
MNC IT Services companies, such as Accenture, IBM, and Capgemini, among others, which provide AI services to their international and domestic customers as part of the larger Analytics & Digital service providers. MNC IT Services firms, such as Accenture, IBM, and Capgemini, and few others provide AI services, as part of the larger Analytics & Digital service offerings.
Software Technology firms, such as Microsoft, Google, SAP, Oracle, and AWS are pioneering AI across all technology including Intelligent cloud, AI-as-a-service, etc.MNC Hardware Technology, Networking Equipment, and MNC Telecom firms, including Cisco, Juniper, Nokia, Verizon, and AT&T, and few others are pioneering next-generation 5G Networks. Electronics and High-end Semi-conductor firms, such as Samsung, Intel, Nvidia, Qualcomm, and AMD develop AI technologies for Smart Phones, Processing Units, Chips, etc.
The Domestic IT company has a 25.4 percent AI market share of $1619.3 million. This category covers domestic IT and ITES companies, including TCS, Infosys, Wipro, HCL Tech, Tech Mahindra, among others. Like MNC IT Services, these companies provide AI services to international and domestic clients within the wider range of Analytics and Digital services. Within this category, TCS has the highest market share AI contribution across all Domestic IT and ITES companies, just as it did in the CV market.
The Domestic IT classification is followed by a broad category of captive companies. The captive has an AI market penetration of 8.8 percent with a value of 564.1 Mn. Both Captive Banking and Healthcare companies fall within this category. This category includes MNC Banking and Pharma & Healthcare corporations with Global In-House Operations (GIC) in India.
Domestic companies have an AI market share of 7.1 percent at a market value of 451.9 Mn. The Reliance Group has the largest market share contribution in this category, with AI operations across its Oil & Gas, Retail, Jio InfoCom, and other segments. Other companies in this segment include industry leaders such as Airtel, ICICI Bank, HDFC Bank, Tata Motors, Tata Communications, Mahindra & Mahindra.
The MNC Engineering category has a market contribution of $371.6 million, with a market share of 5.8 percent. This category includes multinational engineering, industrial and automotive companies. These companies include Bosch, Siemens, Honeywell, ABB, GE, and a few others.
The eCommerce segment has a market share of 4.8 percent and a market value of $305.1 million. The companies defined in this segment include Flipkart and Amazon, which serve the eCommerce and retail markets through AI services.
Boutique AI & Analytics
The type of eCommerce company is followed by a broad category of Boutique Analytics & AI companies with a market share of 3.4 percent and a market value of $215.1 million. This category of large domestic companies incorporates Analytics firms that provide AI services as part of the larger Analytics service and specialized AI firms that use AI, Machine Learning, and Robotics services as part of their Data Science.
PSU & Government Research
The major class of public sector enterprises and government research institute has a market share of 3.4% at a market value of $214.4 million. The PSU firms include the Maharatna corporations of ONGC, Indian Oil, HPCL, and BPCL to name some of them.
The market share of Consulting firms is next in the list at 2.1 percent at a market value of $132.6 million. The AI market of these firms is limited to specialized AI services as part of the wider IT consulting services provided by some of these firms to their clients.
The remaining market share is taken by other sectors like MNC Other (1.8%) and Aggregator Startups (1.3%). By investing in AI technologies, platforms, and services, NITI Aayog, Nasscom, Educational Institutions, Indian IT companies, and various Technology & Engineering companies are transforming India into a hub for AI research and development and could potentially take the market from $6.4 billion in 2020 to more than the forecasted level of $11.4 billion by 2025.