AI in Computer Vision Market Size, Share, and Trends 2024 to 2033

AI in Computer Vision Market Size and Manufacturers

The global AI in computer vision market size was estimated at USD 17.40 billion in 2023 and is predicted to hit around USD 274.80 billion by 2033 with a CAGR of 31.77% from 2024 to 2033. Increasing demand for automation with AI assistance in various industries propelling market growth.

Key Takeaways

• North America held the largest revenue share of 38% in 2023.
• Asia Pacific is observed to be the fastest-growing region in the market during the forecast period.
• Based on the component, the software segment has garnered 58% revenue share in 2023.
• Based on function, the training segment held the largest share of the market in 2023.
• By application, the non-industrial segment held the largest share of the market in 2023.
• By end user, the consumer electronics segment dominated the AI in computer vision market in 2023 with revenue share of around 37%.
• By end user, the automotive segment is projected to grow fastest in the forecast period.

AI in Computer Vision Market Size in the U.S. 2024 To 2033

The U.S. AI in computer vision market size was valued at USD 5.88 billion in 2023 and is anticipated to reach around USD 92.94 billion by 2033, poised to grow at a CAGR of 32% from 2024 to 2033.

North America held the largest share of AI in the computer vision market in 2023. This dominance in the global market is owed to the presence of leading global market players in the North American region. Increased investments in research and development to establish cutting-edge technologies due to the growing demand for intelligent automation technologies are set to hold its leading position in the forecast period continuously. Rapid-growing innovations in the healthcare sector with AI-based solutions are also among the leading factors that dominate the market in North America.

• In March 2022, cognac, an AI computer vision platform, partnered with an American technology company named Cisco Systems Inc. This partnership will offer a cloud-based platform of Cogniac and MV smart cameras of Cisco Systems Inc. Both enterprises can build machine learning models that use videos and images as data input and track the activities without the interference of AI expertise.
• In March 2022, Intel Corporation, a U.S.-based company, offered cloud computing, data center, and IoT solutions. They announced that computer vision, Machine learning techniques, and predictive analytics are transforming patient rooms and critical care environments in the healthcare industry.

Asia Pacific is the fastest-growing region in the global AI in computer vision market. During the forecast period, the region is expected to witness a considerable expansion rate, specifically in countries like China, India, and Japan. The region is witnessing huge investments in developing AI-based solutions owing to the engagement of tech giants in the research and development areas. Artificial intelligence-based solutions are incorporated by many sectors in the Asian Pacific region, such as manufacturing and automotive. Healthcare firms mostly use them as it has a wide range of applications for AI. Smart automation solutions are rapidly adopted in these sectors, propelling growth in the market.

• In August 2022, a computer vision technology provider, Visual Cortex Pvt Ltd partnered with I-PRO, which provides security surveillance for public safety. This collaboration helps the end-to-end implementation of the Enterprise's comprehensive video analytics system in Asia Pacific.

AI in Computer Vision Market Overview

Computer vision is a subfield of artificial intelligence (AI). It has seen significant advancements in recent years. It involves the development of algorithms and systems that enable computers to analyze and understand visual data, such as images and videos. With the proliferation of image and video data in various industries, computer vision has emerged as a crucial technology with numerous applications. One of the primary reasons behind the growth of AI in computer vision is the increasing demand for automation and efficiency across industries.

Computer vision technology presents significant opportunities for improving safety and security measures. For instance, surveillance systems equipped with computer vision algorithms can automatically detect and respond to security threats, such as unauthorized access or suspicious activities. This can be applied in various settings, including airports, public spaces, and critical infrastructure facilities.

The AI in computer vision market offers services that can automate various tasks that were previously performed manually, leading to significant time and cost savings. For instance, in manufacturing, computer vision can be used to inspect products for defects, which in turn reduces the need for human intervention. Similarly, in the retail sector, computer vision technology enables cashier-less systems, which is helpful in enhancing the shopping experience for customers and improving overall efficiency for retailers.

Growth Factors

• The AI in computer vision market is driven by increasing demand for automation, advances in deep learning, and growing adoption in healthcare.
• Opportunities in the market arise in the form of enhanced safety and security, augmented reality and virtual reality, autonomous vehicles, and robotics present lucrative prospects for AI in computer vision.
• The development of autonomous vehicles and robotics heavily relies on computer vision for perception and decision-making, driving the AI in computer vision market.
• AI-powered healthcare application systems can detect abnormalities in medical images and provide more accurate and in-time diagnoses.

AI in Computer Vision Market Scope

AI in Computer Vision Market Dynamics

Driver: Deep learning and neural networks

Advancements in deep learning techniques, such as convolutional neural networks (CNNs), have revolutionized the field of computer vision. CNNs have demonstrated remarkable performance in tasks such as image classification, object detection, and semantic segmentation. These algorithms have greatly improved the accuracy and reliability of computer vision systems, making them more practical and effective than ever before.

The availability of powerful computing hardware and large datasets have been instrumental in training complex deep learning models, further driving the progress of the AI in computer vision market worldwide.

Restraint: Data availability and quality

Computer vision algorithms rely heavily on high-quality annotated data for training and validation. However, acquiring such datasets can be challenging, particularly for niche or specialized applications. Additionally, manual explanations of datasets can be time-consuming and hectic.

The lack of diverse and representative datasets can limit the performance and generalized ability of computer vision systems. Data quality also poses a challenge, as incorrect or biased explanations can result in flawed AI models. Efforts should be made to address these challenges, including the development of synthetic datasets and techniques for data augmentation, but further advancements are needed to ensure access to diverse and reliable data sources. Thereby, the data availability and quality issues are observed to create a major restraint for the AI in computer vision market.

Opportunity: Augmented reality and virtual reality

Computer vision is crucial in enabling augmented reality and virtual reality experiences. AR technologies overlay digital information onto the user's real-world view, while VR immerses users in entirely virtual environments. Computer vision allows for real-time tracking of the user's position and movement, enabling seamless integration of virtual objects into the real world. This creates various opportunities in gaming, entertainment, training simulations, and various other industries. Companies like Apple, Google, and Microsoft are investing heavily in AR and VR technologies, driving innovation and creating new prospects for the AI in computer vision market.

Component Insights

The software segment held the largest share in 2023 the AI in the computer vision market. Several sectors like healthcare, retail, and automotive are incorporating deep learning algorithms and computer vision software.  Due to the surge in such software, this segment of the AI in computer vision market is exponentially growing and dominating the market on a global scale. Specialized computer vision software is needed to accomplish certain requirements of the corporate field, which is increasing the software demand in the market.

AI-based computer vision systems are used in the healthcare sector for medical imaging, diagnosis of various diseases, and medication discovery. Computer vision systems are finely utilized in the retail sector to improve customer services and management of inventories with product recommendations to consumers.

Function Insights

The AI in the computer vision market is segmented into training and interference. Among these two, the training function dominated the AI in computer vision market in 2023. The availability of precise training data is necessary due to the rising demand for computer vision app locations facilitated by AI in the market. The advancement in deep learning algorithms requires specific training to achieve optimal outcomes. Hence, major tech companies are investing in creating efficient training datasets to improve their computer vision models in terms of accuracy and performance.

Application Insights

The nonindustrial segment held the largest market share in 2023. Retailers are adopting computer vision technology to enhance customer experiences, optimize inventory management, and streamline operations. AI-powered visual search, product recommendation systems, cashierless checkout, and inventory tracking solutions are revolutionizing the retail industry and driving business growth. The entertainment and media sector is utilizing computer vision technology for content creation, video analysis, virtual reality (VR), and personalized content delivery. AI algorithms enable content creators to automate video editing tasks, analyze audience engagement, and deliver immersive experiences to consumers.

The industrial segment is a notable segment of the market. Several industries like healthcare, manufacturing, and automotive are rapidly adopting AI-based technologies to enhance their efficiency and production rate. This factor is attributed to the growth of the industrial segment, which in turn fuels AI in the computer vision market. Computer vision assists industrial processes with automated inspection without human interference, fault detection in machines, real-time monitoring, etc., which helps in cost savings and improves productivity. The industrial segment has recognized the potential of AI in computer vision, which drives the industrial segments and, thus, AI in the computer vision market on a global level.

End-use Insights

The consumer electronic segment dominated the market. New features are made possible using AI-powered computer vision systems in electronic products such as smartphones, tablets, and smart TVs. Furthermore, due to the growing demand for sophisticated security systems, artificial intelligence in computer vision is likely to become more widely used in the security and surveillance segment.

The automotive segment is projected to grow fastest in the AI in computer vision market during the forecast period. The surge in demand for advanced driver assistance systems, and self-driving cars has been associated with artificial intelligence and computer vision in the automotive sector. Such a rise in demand for advanced vehicles leads to the automotive segment being a frontier in the market and drives AI in the computer vision market at a higher rate. AI has the capability to guide a vehicle on the decided route and assist them in recognizing obstacles on the road to avoid collisions with other vehicles. It increases its efficiency in terms of safety and lowers the rate of unfortunate accidents on the road.

According to the recent data published by WHO, approximately 1.19 million people die each year because of road traffic crashes. Road traffic injuries are the leading cause of death for children and young adults aged 5–29 years. 92%t of the world's fatalities on the roads occur in low- and middle-income countries, even though these countries have around 60% of the world's vehicles. More than half of all road traffic deaths are among vulnerable road users, including pedestrians, cyclists and motorcyclists.

The notable segment in the AI in computer vision market is the healthcare segment. It helps in generating higher revenue for the market. AI in healthcare has led to drastic changes, including AI's capacity to evaluate images derived from MRI and X-rays, which assist a physician in diagnosing diseases and abnormalities. Moreover, computer vision assists doctors in finding out the exact target on which surgery needs to be performed.

The robotics and machine vision segment are also expected to fuel the growth of the AI in computer vision market. Robots and machines can complete tasks that were previously difficult with the use of artificial intelligence and computer vision.

Recent Developments

• In March 2023, Red Cat Holdings, a military technology company that integrates robotic software and hardware, partnered with Athena Artificial Intelligence Pvt Ltd, a technology company specializing in AI and computer vision. The partnership aims to enhance the capabilities of Red Cat's latest military drone, by integrating advanced AI and computer vision technologies developed by Athena AI.
• In August 2022, TachyHealth, Inc, a Dubai-based artificial intelligence solution provider for medical centers and hospitals, collaborated with Medical Refill, which provides remote medical consultation for their patients. The collaboration aims to provide technology solutions such as computer vision, artificial intelligence, and big data analytics to the clinical team.
•  In July 2022, IDEMIA, a multinational technology company that offers facial recognition and other computer vision software & products to government and private companies, partnered with the U.S. Department of Homeland Security which takes care of public security in the U.S. The partnership is expected to improve U.S. Department of Homeland Security activities, such as identifying suspects during criminal investigations & travelers at the airports and streamlining security at the checkpoints after deploying facial recognition tools.
• In June 2022, Visionary.ai, a software provider of image signal processors (ISP), partnered with Innovize Technologies Ltd, a manufacturer of LIDAR sensors. The partnership aims to provide a combined service of ISP software and LiDAR sensors to improve the performance of 3D computer vision for various applications, including drones, robotics, and smart cities.
• In January 2022, Drishti Technologies, Inc., an AI-driven video traceability and video analytics provider, incorporated computer vision and deep learning to automate the analysis of manufacturing units with the videos.

AI in Computer Vision Market Companies

• Baummer
• Cognex Corporation
• Intel Corporation
• KEYENCE CORPORATION
• Matterport, Inc.
• NATIONAL INSTRUMENTS CORP
• Omron Corporation
• Sony Semiconductor Solutions Corporation
• Teledyne Technologies Incorporated
• Texas Instruments Incorporated
• Amazon Web Services, Inc.
• Alphabet, Inc.
• Microsoft Corporation
• Nvidia Corporation
• IBM Corporation
• Facebook, Inc.
• Qualcomm Technologies, Inc.
• Apple, Inc.
• Baidu, Inc.

Segments Covered in the Report

By Component

• Hardware
  • Processor
    • CPU
    • GPU
    • ASIC
    • FPGA
  • Memory
  • Storage
• Software

By Application

• Industrial
• Non-industrial

By Function

• Training
• Interference

By End-use

• Automotive
• Healthcare
• Retail
• Security And Surveillance
• Robotics And Machines
• Consumer Electronics

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa