MENA Artificial Intelligence Market (By Solution: Hardware, Software & Services; By Technology; By End-use) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The MENA artificial intelligence market size was estimated at around USD 17.31 billion in 2023 and it is projected to hit around USD 702.77 billion by 2033, growing at a CAGR of 44.83% from 2024 to 2033.

Key Pointers

• By Technology, the deep learning technology segment held the largest revenue share in 2023.
• By Technology, the machine vision is expected to expand at the highest CAGR between 2024 to 2033.
• By End-use, the Banking, Financial Services, and Insurance (BFSI) end-use segment led the market share in 2023.
• By End-use, the healthcare sector is poised for significant CAGR in the forecast period.
• By Solution, the software segment held the largest revenue share of 36% in 2023.
• By Solution, the service segment is poised to experience a significant CAGR throughout the forecast period.

MENA Artificial Intelligence Market Overview

The Middle East and North Africa (MENA) region has witnessed significant growth and adoption in the field of Artificial Intelligence (AI) in recent years. As technology continues to shape various industries, AI has emerged as a key driver of innovation and efficiency across the MENA region.

MENA Artificial Intelligence Market Growth

The MENA artificial intelligence (AI) market is experiencing robust growth, driven by several key factors. Foremost among these is the proactive support from regional governments, who are investing significantly in fostering AI development and adoption. This commitment is evident through strategic initiatives, incentives, and infrastructure development aimed at creating a conducive environment for AI innovation. Additionally, the ongoing digital transformation across diverse industries in the region plays a pivotal role. As businesses increasingly embrace technology to enhance efficiency and competitiveness, the demand for AI solutions has surged. The MENA region's wealth of data availability is another critical growth factor, providing a rich foundation for the development of sophisticated AI applications. This data-driven landscape empowers organizations to extract valuable insights, driving informed decision-making. Despite challenges, including the need for skilled professionals and ethical considerations, the MENA AI market's growth trajectory remains promising, with a clear emphasis on technological advancement, government support, and a rising awareness of AI's transformative potential.

Report Scope of the MENA Artificial Intelligence Market

MENA Artificial Intelligence Market Dynamics

What are the Drivers of Artificial Intelligence Market?

• Digital Transformation Across Industries: The MENA region is witnessing a widespread digital transformation across various industries. As businesses embrace technological advancements to stay competitive, there is a heightened demand for AI solutions to optimize processes, enhance decision-making, and drive innovation.
• Data Proliferation and Advanced Analytics: The availability of vast amounts of data, coupled with advancements in data analytics, is a significant driver for AI growth. The MENA region's data-rich environment provides a solid foundation for the development of sophisticated AI applications that extract valuable insights and improve operational efficiency.

What are the Restraints of Artificial Intelligence Market?

• Integration Complexity: Integrating AI solutions into existing infrastructures can be complex and time-consuming. Many organizations face challenges in seamlessly incorporating AI technologies into their operations, hindering the pace of adoption.
• High Initial Costs: The initial costs associated with implementing AI solutions can be prohibitive for some businesses. While the long-term benefits are substantial, the upfront investment in technology, infrastructure, and training may act as a deterrent for smaller enterprises.

What are the Opportunities of Artificial Intelligence Market?

• Industry-Specific Applications: The diverse industries in the MENA region, including healthcare, finance, energy, and logistics, present ample opportunities for specialized AI applications. Customized solutions can address industry-specific challenges, driving innovation and efficiency.
• AI in Healthcare Transformation: The healthcare sector in the MENA region offers significant opportunities for AI-driven transformation. Applications such as predictive analytics, personalized medicine, and telehealth can enhance patient care, optimize workflows, and improve overall healthcare outcomes.

Technology Insights

In 2023, the deep learning technology segment secured the largest share of market revenue. This technology empowers machines to enhance their performance through learning from experience and data, proving particularly effective with unstructured data such as images, videos, and language. Its applications are vast, notably within autonomous vehicles, where deep neural networks play a crucial role in tasks like object detection, recognition, road mapping, and decision-making processes. The market has experienced significant growth due to the intricate capabilities of deep learning, especially in addressing challenges associated with complex data-driven applications like text, content, and speech recognition.

The machine vision is expected to witness a notable CAGR during forecast the period. Automation is a prevailing trend in machine learning, aiming to minimize manual labor in constructing and deploying models. The rise of automated machine learning (AutoML) platforms is democratizing machine learning capabilities, enabling non-experts to expedite model building.

Furthermore, embedded analytics featuring built-in machine learning models have become a mainstream capability in business intelligence platforms. Marketers are leveraging machine learning-driven behavioral analytics tools to enhance user retention strategies. These tools analyze user interactions with websites or applications, identifying signs of disengagement or potential customer churn. Armed with this data, marketers can proactively take measures to retain users and increase customer lifetime value. For example, if a user exhibits reduced activity on a platform, personalized offers or content can be delivered to reignite their interest.

End-use Insights

In 2023, the Banking, Financial Services, and Insurance (BFSI) end-use segment dominated the market share. Artificial Intelligence (AI) is playing a pivotal role in streamlining credit scoring and underwriting processes within the sector. Machine learning models are utilized to analyze extensive datasets, enabling a more accurate assessment of borrowers' creditworthiness. This trend empowers financial institutions to make improved lending decisions, subsequently reducing the risk of default and enhancing the overall efficiency of the loan origination process. Furthermore, traditional banks are evolving into AI-driven entities to offer new value propositions and elevate customer experiences. AI systems swiftly analyze large volumes of transaction data to identify irregularities and potential fraud, thereby enhancing security measures.

The healthcare sector is poised for significant CAGR in the forecast period. AI is instrumental in analyzing vast datasets, including clinical trial data and health records, amassed by healthcare organizations, providing actionable insights for decision-making. Generative AI holds the potential to enhance operational efficiency, customize experiences, and improve data connectivity in the healthcare industry. Noteworthy collaborations between major players are contributing to industry expansion. For instance, in August 2022, Google announced a partnership with Cognizant. In this collaboration, Cognizant is entrusted with creating healthcare solutions utilizing Google's Language and Learning Models (LLMs). The primary aim of this venture is to leverage advanced AI capabilities to address diverse challenges in the healthcare sector, opening up new opportunities for growth within the LLM market.

Solution Insights

In 2023, the software segment held the largest revenue share of 36%. Notably, significant mergers and acquisitions (M&A) by major players have been instrumental in propelling market growth. An illustrative example is the acquisition announced in July 2022, where IBM Corporation acquired Databand.ai, Ltd., a provider of data observability software. This strategic move enhances IBM Corporation's research and development (R&D) efforts, strengthening its position in automation and artificial intelligence. By integrating Databand.ai Ltd. with IBM observability through IBM Watson Studio and Instana APM, IBM is well-equipped to address the complete spectrum of observability across IT operations. Additionally, prudent advancements in information storage capacity, high computing power, and parallel processing capabilities contribute to the growth of high-end AI software, catering to dynamic end-user verticals.

The service segment is poised to experience a significant CAGR throughout the forecast period. Enterprises are making substantial investments in AI services to unlock the potential of their businesses. These services encompass a broad spectrum of activities, including forecasting, planning, predictive maintenance, and the implementation of customer service chatbots. The scope of AI services also extends to integration, maintenance, and support tasks. Over the projection period, the service segment is expected to witness substantial growth. Key players' involvement in mergers and acquisitions continues to drive market expansion. An instance of this is the completion of Google LLC's acquisition of the cybersecurity company Mandiant in September 2022. This strategic move aims to provide clients with an end-to-end security operations suite, encompassing both on-premises and cloud contexts, along with additional capabilities.

Key Companies

• Advanced Micro Devices
• Omdena Inc.,
• DevisionX,
• Baidu, Inc.
• Google LLC
• IBM
• Intel Corporation
• Intelmatix
• Digital Energy
• Gleac

MENA Artificial Intelligence Market Segmentations:

By Technology

• Deep Learning
• Machine Learning
• Natural Language Processing (NLP)
• Machine Vision

By Solution

• Software
• Hardware
• Services

By End-use

• Media & Entertainment
• BFSI
• IT & Telecommunication
• Healthcare
• Automotive & Transportation
• Oil & Gas
• Others