Artificial Intelligence - Indonesia

  • Indonesia
  • The market size in the Artificial Intelligence market is projected to reach €2.20bn in 2024.
  • The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.60%, resulting in a market volume of €9.95bn by 2030.
  • In global comparison, the largest market size will be in the United States (€46.03bn in 2024).
 
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Analyst Opinion

The Artificial Intelligence market in Indonesia is experiencing rapid growth, fueled by increasing adoption of digital technologies, growing health consciousness among consumers, and the convenience of online health services. The market's elevated growth rate can be attributed to advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. Factors such as government initiatives, investments, and partnerships are also impacting the market's growth rate.

Customer preferences:
Consumer behavior in Indonesia is rapidly evolving as the country embraces technological advancements and digitalization. With the increasing use of smartphones and internet penetration, consumers are becoming more open to adopting Artificial Intelligence (AI) solutions. This trend is particularly prominent in the healthcare sector, where there is a growing demand for AI-powered medical devices and virtual healthcare services. The convenience and efficiency offered by these technologies are attracting a large number of consumers, especially in urban areas where access to quality healthcare is limited. Additionally, the rise in chronic diseases and the need for remote monitoring and management have further accelerated the adoption of AI in the healthcare industry.

Trends in the market:
In Indonesia, the Artificial Intelligence market is experiencing a surge in demand for AI-powered solutions in various industries, such as finance, healthcare, and transportation. This trend is fueled by the government's push for digital transformation and the rise of startups focusing on AI technologies. As such, there is a growing need for skilled AI professionals, leading to the establishment of AI training programs and collaborations between academic institutions and industry players. This trajectory of AI adoption is significant as it has the potential to drive economic growth, improve efficiency, and enhance customer experiences. However, it also raises concerns about job displacement and data privacy. Industry stakeholders must closely monitor and adapt to these trends to stay competitive in the rapidly evolving AI market in Indonesia.

Local special circumstances:
In Indonesia, the Artificial Intelligence Market is rapidly growing due to the country's large population and increasing digital literacy. The government is actively promoting the adoption of AI through initiatives such as the National AI Strategy. Additionally, the country's diverse cultural and linguistic landscape presents unique challenges for AI development, with local languages and customs needing to be accounted for. Furthermore, the country's regulatory environment has been favorable towards AI innovation, leading to increased investment in the market.

Underlying macroeconomic factors:
The growth of the Artificial Intelligence Market in Indonesia is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with progressive policies and significant investments in AI are seeing rapid market growth, while those with regulatory obstacles and limited resources face slower growth. Furthermore, the increasing adoption of AI solutions in various industries, such as healthcare, finance, and manufacturing, is driving the demand for advanced AI technologies in Indonesia.

Methodology

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.

Visión general

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