Artificial Intelligence (AI) in Computer Vision Market - Forecasts from 2023 to 2028

The AI in computer vision market is projected to grow at a CAGR of 25.06% to reach US$79.678 billion in 2028 from US$16.656 billion in 2021.

Computer vision AI is a sub-category of artificial intelligence (AI) field which utilizes AI technology, deep machine learning, and complex interconnected neural networks to process a digital visual input to arrive to obtain crucial insights or to achieve a targeted result. In an AI-assisted computer vision system, visual input is scanned through a sensing device to produce an output after passing it through an inferring device. AI in computer vision can be operated to facilitate several functions such as facial recognition, image and moving object detection, image grouping, object segmentation, future prediction based on past trends, and observation of moving targets. The convenience and versatility of computer vision in AI are resulting in its application in different sectors such as healthcare, agriculture, transportation, finance, cybersecurity, and retail. Hence, after considering the potential of AI in computer vision to evolve and increase its applications in different sectors, it can be anticipated that the AI in computer vision market will experience a rapid expansion in the forecast period.

Market Drivers

Growing demand for AI in computer vision from the agricultural sector.

The developments in the computer vision AI field help improve the agricultural technology software innovated to assist and enhance the overall productivity of the agricultural sector. Computer vision AI technology is employed by agricultural enterprises to predict weather patterns, and harvest levels, and detect any agricultural concerns. The digital inputs from drones and satellites can be accessed to analyze the weather patterns and predict the occurrence of any natural calamities like hurricanes. In addition to this, computer vision AI can assist in improving the yield and productivity of the crops by detecting the presence of any harmful weeds or any issues with the health of the crops. The computer vision AI applications can further analyze the colour, texture, and quality of new hybrid crops to check their compatibility with the soil. For instance, companies like Descartes Labs and Blue River Technology are actively involved in providing computer vision AI services to agricultural companies and investing in expanding their product portfolio in this field.

Need for computer vision AI in the automotive sector for automation.

Another market driver increasing the demand for AI in computer vision is the development of automated cars in the automotive sector. These automated cars can be driven either manually or through auto-drive mode. The development and improvement of the auto-drive mode feature in self-driving cars requires the adoption of computer vision AI in their vehicles. The auto-drive mode in automated cars requires gathering and interpretation of visual data from neighboring sensors and cameras to respond to the car's surroundings. The adoption of computer vision AI technology helps the automated car engine to detect and identify traffic light signals and pedestrians, analyze and respond to traffic patterns, sense vacancies in parking lots, and investigate road health. Therefore, the multifunctional utility of computer vision AI in the automotive sector is a key factor driving the market expansion of AI in the computer vision market.

The heavy investment and resources required by a company to adopt computer vision AI have the potential to hinder the growth of the computer vision AI market.

The heavy hardware components and a team of specially trained experts to maintain the computer vision AI system in the consumer’s enterprise result in additional expenses to the enterprise. It might not be an economical decision for small-sized companies to invest such heavy money into computer vision AI systems. Some of the most common difficulties experienced by companies while employing computer vision AI systems in their operations are insufficient hardware components, poor management of the AI technology by untrained staff, and inadequate budgets.

Market Developments:

In February 2023, TechSee, an IT company in Israel, launched a new application named Open Integration which integrates AI in computer vision technology and augmented reality features to enhance customer experience.

In February 2023, Niricson, a Canadian start-up company specializing in computer vision AI and robotics, signed a partnership deal with Arcadis to innovate new solutions for international asset management trials.

In October 2022, Google’s computer vision AI, Vertex AI vision released a new no-code feature that enables its users, who do not possess coding and programming skills, to access pre-customized machine learning models to create inference.

North America has a significant potential for expansion in artificial intelligence in the computer vision market.

The rise in the launch of AI startup companies in North America targeting to provide AI computer vision services to its clients demonstrates the market potential for AI in the computer vision field in North America. For instance, Ocrolus Company in New York adopts AI computer vision technology and machine learning to offer financial data analysis and consultancy services to its customers. Another AI startup, Orbital Insight uses AI in computer vision to offer suggestions to the energy and farming sector based on the visual data recorded in satellites and other sources. In addition to this, giant technology companies like Google, Microsoft, and IBM are actively investing in developing new AI software including computer vision AI. The adoption of these computer vision AI across various sectors such as agriculture, manufacturing, automotive, and information technology in North America will result in an increase in the market size of the North American computer vision AI market over the forecast period.

Market Segmentation:

By Type

• Hardware
• Software

By Product

• Smart Camera-based
• PC-based

By Function

• Image Classification
• Object Detection
• Visual Inspection
• Others

By Applications

• Automotive
• Consumer Electronics
• Healthcare
• Manufacturing
• Retail
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Singapore
• Indonesia
• Others