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Citizen Services AI Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 117 Pages
  • January 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5239392

The citizen service AI Market is expected to witness a growth at a CAGR of 43.5% over the forecast period (2021-2026). The government across the world is increasingly adopting advanced technology such as Artificial Intelligence (AI) to offer better service to people and reduce the workforce required to do the analysis.

Key Highlights

  • The citizens across the world have been demanding enhanced experience from the government service to the par of the commercial sector. According to the recently published statistics by Accenture, a vendor for citizen service AI solutions, over 85% of the population in the United States are citizens expect government digital services to be equal to or better than those they receive from commercial organizations. This creates a greater demand for the studied market.
  • Additionally, Cisco Systems has mentioned that over 22% of the population in the United Kingdom regularly uses digital government services. It also mentioned that the citizens are looking forward to using these solutions if they are accessible from the single portal. Hence, there is an opportunity for advanced technolgies like AI, ML, face recognition, etc. in the government service sector.
  • Amid the COVID-19 outbreak across the world, most of the governments worldwide have relied on AI and ML to monitor infants closely and spreading clusters. For instance, in India, the government developed an Aarogta Setu mobile app for monitoring individuals, clusters as well as offering updates related to the COVID-19 spread locally. Till May 2020, the application has received 100 million do

Key Market Trends

Adoption of Cloud-based AI for Citizen Service to Expected to Drive the Market

  • The cloud AIs are also enhancing cloud-based service and applications; It is a significant factor for the growing demand for cloud AI services and solutions in the citizen service sector. In 2019, Bank of America turned to the Microsoft Cloud, as a part of its digital transformation to help deliver new business efficiencies, support digital culture change, and better meet customer needs.
  • According to SAP, nearly 60% of companies and 75% of digital leaders in the MENA region plan to invest in the cloud by 2019. In addition, most of the companies are shifting to cloud from on-premise AI, due to faster delivery time with low latency and real-time tracking. This is likely to foster the studied market growth during the forecast period.
  • In March 2019, SwiftStack, a provider of multi-cloud data storage and management, launched a customer-proven edge-to-core-to-cloud solution that supports large-scale Artificial Intelligence/Machine and Deep Learning (AI/ML/DL) workflows. Recently, the company also deployed the new solution stack in two autonomous vehicle use cases.

North America is Expected to Dominate the Market

  • North America is expected to dominate the global citizen service AI market, owing to its status as one of the early adopters of the technology. The other factor is that most of the major players in the market are US-based. The cloud adoption among the regional end-user is also quite high. Hence, the investment in the studied market is too high.
  • Many of the studied market vendors in the region are also investing in innovating additional and unique features to their offering, mainly to gain a competitive advantage as well as to expand their customer target base. This is also expected to bring advancement in the regional and global markets. This factor expands the market scope further.
  • For instance, US-based SoundHound Inc. offers Houndify, an independent AI platform that enables developers and business owners to deploy a conversational interface anywhere to retain control of their brand and users, while differentiating and innovating. The company recently added SoundHound music recognition technology to its Houndify voice AI platform. It also made a strategic partnership with the US government to accelerate development.

Competitive Landscape

The citizen service AI market inclined towards consolidation with the presence of many established players competing in the market. Additionally, the market is experiencing continuous new entrants in the market. Hence, the established are looking forward to making active M&A activities, while new players are more focused on product innovations to gain more market share. Some of the recent developments are mentioned below.

  • June 2019 - Amazon Web Service announced to partner with the Canadian government for the development of Citizen Care Pod, a smart screening and testing pod that integrates intelligent technology within a modular design to support a safe, responsible recovery for governments, businesses, and communities.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for IT Modernization and Automation
4.2.2 Integration of AI and Analytics With Citizen Services
4.3 Market Restraints
4.3.1 Lack of Awareness Among Government Organizations About New Technologies
4.4 Industry Value Chain Analysis
4.5 Porters FIve Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment on the Impact of COVID-19 on the market
6.1 By Technology**
6.1.1 Machine Learning
6.1.2 Natural Language Processing
6.1.3 Image Processing
6.1.4 Face Recognition
6.2 By Application
6.2.1 Traffic and Transportation Management
6.2.2 Healthcare
6.2.3 Public Safety
6.2.4 Utilities
6.2.5 Other Applications
6.3 Geography
6.3.1 North America
6.3.2 Europe
6.3.3 Asia-Pacific
6.3.4 Rest of the World
7.1 Company Profiles*
7.1.1 ServiceNow Inc
7.1.2 Microsoft Corporation
7.1.3 IBM Corporation
7.1.4 Accenture PLC
7.1.5 Nvidia Corporation
7.1.6 Intel Corporation
7.1.7 Alibaba Group Holding Limited
7.1.8 Tencent Holdings Ltd.
7.1.9 Pegasystems Inc.
7.1.10 Baidu, Inc.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • ServiceNow Inc
  • Microsoft Corporation
  • IBM Corporation
  • Accenture PLC
  • Nvidia Corporation
  • Intel Corporation
  • Alibaba Group Holding Limited
  • Tencent Holdings Ltd.
  • Pegasystems Inc.
  • Baidu, Inc.