Home > ICT Sector

Unlocking India’s AI potential: Market Analysis by The India Watch

The Artificial Intelligence (AI) market in India is growing at a staggering pace. the market Size of AI Market in.....

October 6, 2024
Posted by: Admin
Categories: ICT Sector

Unlocking India’s AI potential: Market Analysis by The India Watch

The Artificial Intelligence (AI) market in India is growing at a staggering pace. the market Size of AI Market in India for 2023 was valued at USD 4.62 billion. Multiple factors like government initiatives, demand for AI-based solutions, digital infrastructure, rich data sources, increasing PE investments are forefront in driving the market expansion. Consequently, India is emerging as a significant player in global AI landscape and ranks fifth among top 5 global leaders.

Overall, the future of AI in India is looking promising as the market is projected to reach at USD 28.37 billion by 2030 growing at a CAGR of 28.6% between 2024 to 2030. AI is poised to drive economic growth and technological innovation in the country. AI sub-markets, such as AI Robotics, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI are also witnessing rapid growth. They offer features like task automation, decision-making and content creation. Expansion of this lucrative sub-market is extremely crucial as it holds potential to improve efficiency and solve complex problems.

Market Growth Drivers:

Growth of the AI market in India is primarily driven by healthcare, banking, and retail sectors. These domains have started incorporating AI solutions to improve operation efficiency, develop customer relations and render better results.
As Artificial Intelligence (AI) grew in India, consumers are looking to embrace AI to make their day-to-day activities and their businesses better and also taking the help of Feasibility Analysis for AI Startups in India. This has increased the focus on AI based products and services such as chatbots, virtual assistants and predictive analytics.
There are several factors dominating the AI Market in India. This includes macroeconomic factors like government policies, advancement in technologies, investment in R&D, robust IT sector.
In recent years, there have been some major investments towards AI start-ups, indicative of high investor confidence & flourishing prospect. As per reports from NASSCOM, the total amount raised by Indian AI startups stood above USD 1 billion in 2023.
Growth in cloud technologies has enabled the provision of cloud and other supporting norms to AI applications. Cloud technology makes it easier for individuals to access data storage, processing, and analytic tools.

The AI Landscape of India:

The AI market of India is expanding with diverse range of products, services and tools in the pocket. The services are designed to cater needs of various industries and consumers. The increasing adaptation of Edge AI, AI-as-a-Service and Ethical AI is driving growth and innovation in the segment and also bringing up the need for Market research for AI Companies in India. These solutions offer flexibility and cost-effectiveness to the consumers. There is a wide selection of tools that developers can make use of for the creation and delivery of AI models. This includes popular cloud solutions like Google Cloud AI Platform or Amazon SageMaker, to freely available platforms such as TensorFlow or PyTorch. Furthermore, companies in nearly all sectors can purchase AI tools like virtual assistants, image processing applications and market forecasting. Such tools and services are enabling businesses to eliminate repetitive work processes, derive useful information from data and optimize the interactions with consumers.

Generative AI:

Generative AI is a branch of artificial intelligence that can produce content in a form of text, images, music, and even computer programs. Patterns and structures are deciphered by computers in massive datasets and then applied knowledge is to come up with new and more advanced ideas or works. Generative AI is mainly classified into two types: GANs and VAEs. For instance, Stable Diffusion is one of the most widely spread models that uses GAN for image generation. In this context, the market of India on the generative AI technologies is on a growth trajectory as companies like DeepTek and Latent AI are creating new solutions in this sector. The generative AI market of India is expected to reach at USD 6.28 billion by 2029.

Major Companies/ Ventures in the Segment:

Indian tech giants such as Infosys Technologies, TCS, Wipro, HCL Technologies are some of the major players in the segment. These companies provide comprehensive services ranging from AI-based IT transformation, automation, and analysis solutions tailored for industries such as healthcare, finance and manufacturing. IT automation experts are helping many businesses all over India to utilize the capabilities of AI technology for efficiency, better customer engagement and innovations. Contact India Watch to get Market research for IT Companies in India those who are providing the AI support.

Indian startup and unicorn space had also made some robust advancements utilizing the AI technology. Companies such as Nykaa, Ola, Flipkart, Zomato are using AI to improve business and customer engagement. Thus, there rises the need for Feasibility study for Start ups. These platforms are using AI for inventory management, route optimization, SCM, food recommendations etc. Innov8 is a co-working platform that leverage AI for space optimization and community building. Another innovative AI-based healthcare platform, Veda.ai is an effective initiative towards improving patient outcomes and reducing healthcare costs. Vernacular.ai is a voice technology space that provides voice-based interactions in Indian languages with help of Artificial Intelligence.

Also, International players like Google, Microsoft, Amazon, and IBM are making a considerable impact on India’s AI sphere. These companies provide bundle of AI tools and services, starting from cloud-based platforms to multifaceted AI software. Their footprint in India is accelerating and their positive ramification is felt across sectors and verticals.

Challenges Faced in the segment:

In conclusion, despite the robust growth of Indian AI industry it faces a confluence of challenges. One major concern is shortage of skilled talent, particularly the ones specialized in areas like machine learning and data science. According to a report by NASSCOM, Indian AI talent shortage is on the current level of around 100,000 professionals. More insightful information can be gathered through Feasibility study solutions for AI Startups in India.

Besides, the consideration of data privacy and data security issues are a barrier to the deployment of AI, as businesses have to comply with GDPR and the other local data protection laws.

Other obstacles to the advancement of AI include infrastructural deficiencies, such as inadequate computing power and limited access to high-quality data.

How The India Watch can Help?

The India Watch is an India-centric business research, market intelligence, Market intelligence on AI Market in India and feasibility analysis provider. If you are looking for custom market intelligence solutions for youir AI Start-up/ Venture, we can help. With our detailed research we can offer valuable perspectives on Indian markets and offer actionable data on market size, growth drivers, competitive landscape, emergent technological trends, risks, value chain, etc.

Likewise, can also render actionable insights and perspectives on customer demand, segmentation, positioning, growth drivers, success factors, etc. Start-ups and business owners, who are planning to enter the lucrative space can also get feasibility study reports prepared by us. For any further assistance on Market research and feasibility analysis for startups feel free to drop us a mail at info@theindiawatch.com.

Raed Also- India’s EV Sector 2030: Plenty of Opportunities Abound for Indigenous Manufacturers