Report Overview

China Artificial Intelligence (AI) Market – Industry Trends & Forecast Report, 2030

China Artificial Intelligence (AI) Market size was estimated at USD 29.02 billion in 2023. During the forecast period between 2024 and 2029, the size of China Artificial Intelligence (AI) Market is projected to grow at a CAGR of 20.12% reaching a value of USD 104.7 billion by 2030. The driving factors of the China Artificial Intelligence (AI) (AI) Market include robust government support, substantial investments in AI research and development, a burgeoning tech ecosystem, and a vast pool of skilled workforce. The country's emphasis on AI as a strategic industry, coupled with favorable policies, fuels innovations and adoption across various sectors. Rising demand for AI applications in healthcare, finance, and manufacturing, coupled with a growing consumer base for smart devices and services, further propels market growth. China's competitive edge in data availability and its commitment to AI as a key economic driver contribute to the market's rapid expansion.

Artificial Intelligence (AI) – Overview

Artificial Intelligence (AI) refers to the development of computer systems capable of performing tasks that typically require human intelligence. It encompasses machine learning, where algorithms enable machines to learn from data and make decisions. AI applications range from natural language processing (NLP) and image recognition to autonomous vehicles. Ethical considerations, privacy concerns, and the potential for job displacement accompany its rapid advancement. As a transformative technology, AI holds promise in revolutionizing industries, enhancing efficiency, and addressing complex problems, while also prompting ongoing discussions about responsible development and deployment.

China Artificial Intelligence (AI) Market

Growth Drivers

Potential R&D Boost

The surge in research and development activities within the AI sector propels China's position as a global leader. With significant investments in innovative technologies, innovative solutions, and talent development, the country fosters rapid advancements. This strategic focus on AI R&D not only fuels technological breakthroughs but also attracts international collaborations and investments. As China solidifies its position at the forefront of AI innovation, the market experiences sustained growth, offering businesses and investors unparalleled opportunities in a dynamic and evolving landscape.

Challenges

Limited Number of AI Experts

The rapid growth of the China Artificial Intelligence (AI) market is constrained by a limited number of AI experts. Despite the nation's significant strides in AI development, the shortage of skilled professionals poses a challenge to sustaining the momentum. The demand for AI talent outpaces the available workforce, hindering the full realization of the market's potential. This scarcity of experts not only affects the speed of innovations but also raises concerns about the quality of AI implementations. To address the limited experienced talent pool, efforts are underway to enhance education and training programs, aiming to cultivate a larger pool of proficient AI specialists in China.

Impact of Escalating Geopolitical Tensions on China Artificial Intelligence (AI) Market

Escalating geopolitical tensions have significantly impacted China's Artificial Intelligence (AI) market. Amid trade disputes and technology decoupling, Chinese AI companies face challenges accessing global markets, affecting their growth and collaborations. Restrictions on exports of AI-related technologies and increased scrutiny on Chinese tech firms, like Huawei, have hindered international partnerships. Furthermore, geopolitical uncertainties have led to a more cautious global investment environment for Chinese AI startups. The United States sanctions on Chinese tech companies and the ban on certain AI-related exports add complexity. These factors contribute to a volatile landscape for China's AI industry, influencing research, development, and global competitiveness, as exemplified by limitations on AI exports to certain entities, heightening the industry's vulnerability to geopolitical dynamics.

China Artificial Intelligence (AI) Market

Segmental Coverage

China Artificial Intelligence (AI) Market – By Solution

Based on solution, China Artificial Intelligence (AI) Market is divided into Hardware, Software, and Solution segments. The hardware segment encompasses the physical components and devices essential for AI applications, while the software segment involves the development and implementation of AI algorithms and programs. The solutions segment focuses on comprehensive AI solutions tailored to specific industry needs, driving innovation and efficiency. Among these, the solutions segment holds significant importance, as it addresses the holistic integration of AI technologies, fostering advancements and applications across diverse sectors in the rapidly evolving AI landscape in China.

China Artificial Intelligence (AI) Market – By Technology

Based on technology, China Artificial Intelligence (AI) Market is divided into Deep Learning, Machine Learning, Natural Language Processing (NLP), and Machine Vision segments. Deep learning stands out as the largest segment, reflecting the country's significant focus on advancing sophisticated neural network-based technologies. The segment's dominance underscores the growing importance of leveraging complex algorithms and data patterns to drive innovations and developments in the China AI Market.

China Artificial Intelligence (AI) Market – By End Use

Based on end use, China Artificial Intelligence (AI) Market is divided into Healthcare, BFSI, Law, Retail, Advertising & Media, and Others (Automotive & Transportation, Manufacturing, and Agriculture) segments. The healthcare segment is the largest end user in the China Artificial Intelligence (AI) Market. The segment encompasses the integration of AI technologies to enhance healthcare services, diagnostics, and treatment. The application of AI in healthcare has witnessed significant growth, improving patient care, diagnosis accuracy, and overall efficiency. Other notable segments include BFSI (Banking, Financial Services, and Insurance), Law, Retail, Advertising & Media, as well as additional sectors like Automotive & Transportation, Manufacturing, and Agriculture falling under the "Others" category. However, healthcare stands out as the prominent and impactful segment in the China AI Market by end use.

Competitive Landscape

Major players in the China Artificial Intelligence (AI) Market include Alibaba, Baidu, Tencent, SenseTime, iFlytek, Cambricon Technologies, Google, and IBM. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of Report

By Solution

• Hardware

• Software

• Solution

By Technology

• Deep Learning

• Machine Learning

• Natural Language Processing (NLP)

• Machine Vision

By End Use

• Healthcare

• BFSI

• Law

• Retail

• Advertising & Media

• Others (Automotive & Transportation, Manufacturing, Agriculture)

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. China Artificial Intelligence Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growth of Data-based AI and advancement in deep learning
         2. Potential R&D in AI system
      2. Restraints
         1. Limited number of AI experts
      3. Opportunities
         1. Growth in ethical AI development to boost the adoption of AI technology
      4. Challenges
         1. Data security and privacy concerns
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. China Artificial Intelligence Market Marketing Strategies
5. China Artificial Intelligence Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Solution
         1. Hardware
         2. Software
         3. Solution
      2. By Technology
         1. Deep Learning
         2. Machine Learning
         3. Natural Language Processing (NLP)
         4. Machine Vision
      3. By End Use
         1. Healthcare
         2. BFSI
         3. Law
         4. Retail
         5. Advertising & Media
         6. Others (Automotive & Transportation, Manufacturing, Agriculture)
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. China Artificial Intelligence Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Escalating Geopolitical Tensions on China Artificial Intelligence Market
8. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Alibaba
   2. Baidu
   3. Tencent
   4. SenseTime
   5. iFlytek
   6. Cambricon Technologies
   7. Google
   8. IBM
   9. Other Prominent Players
9. Key Strategic Recommendations
10. Research Methodology
    1.    Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Region
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       China Artificial Intelligence Segmentation              

Figure 2       China Artificial Intelligence Market Value Chain Analysis            

Figure 3       Company Market Share Analysis, 2023         

Figure 4       China Artificial Intelligence Market Size, By Value (USD Billion), 2019–2030            

Figure 5       China Artificial Intelligence Market Share, By Solution, By Value, 2019–2030           

Figure 6       China Artificial Intelligence Market Share, By Technology Outlook, By Value, 2019–2030          

Figure 7       China Artificial Intelligence Market Share, By End Use, By Value, 2019–2030           

List of Tables

Table 1        China Artificial Intelligence Market Size, By Value (USD Billion), 2019–2030  

Table 2        China Artificial Intelligence Market Size, By Solution, By Value, 2019–2030   

Table 3        China Artificial Intelligence Market Size, By Technology Outlook, By Value, 2019–2030 

Table 4        China Artificial Intelligence Market Size, By End Use, By Value, 2019–2030

Table 5        Alibaba Company Overview

Table 6        Alibaba Financial Overview

Table 7        Baidu Company Overview

Table 8        Baidu Financial Overview

Table 9        Tencent Company Overview

Table 10      Tencent Financial Overview

Table 11      SenseTime Company Overview

Table 12      SenseTime Financial Overview

Table 13      iFlytek Company Overview

Table 14      iFlytek Financial Overview

Table 15      Cambricon Technologies Company Overview

Table 16      Cambricon Technologies Financial Overview

Table 17      Google Company Overview

Table 18      Google Financial Overview

Table 19      IBM Company Overview

Table 20      IBM Financial Overview