Global Multimodal AI Market Research Report: Forecast (2024-2030)

Market Definition

Multimodal Artificial Intelligence (AI) refers to the solutions & services that enhances the ability of the end-users to make accurate predictions & draw meaningful insights. It also helps the business organizations to make precise decision & elevate their customer experience.

Market Insights & Analysis: Global Multimodal AI Market (2024-30):

The Global Multimodal AI Market size was valued at around USD 1.2 billion in 2023 and is estimated to grow at a CAGR of around 33.40% during the forecast period, i.e., 2024-30. Governments of the developing & developed nations are making significant investments to upgrade the country’s digital infrastructure owing to which there has been growth in internet penetration rates. According to the World Bank, in 2023, internet penetration in China reached around 77.5%, a growth of about 2% compared to 2022.

Similarly, Asia-Pacific, the Middle East & Europe are also registering higher internet penetration. This growth in internet penetration & higher smartphone accessibility is creating a conducive environment for digital services. As a result, the various businesses are shifting operations to the online channel to gain an edge over their competitors. Hence, various industry verticals are opting for different solutions, such as multimodal AI, driving the Global Multimodal AI market.

Governing Authorities are increasingly setting in motion digitalization initiatives to streamline administrative processes and enhance governance effectiveness. These digitalization initiatives help to provide services to consumers more efficiently, transparently, and easily accessible, consequently reducing bureaucratic inefficiencies. Therefore, the governments of countries with bureaucratic inefficiencies are compelling the adoption of digital technologies, augmenting the Global Multimodal AI market.

Furthermore, business organizations in private IT & Telecom sectors are increasingly deploying 5G networks to enhance connectivity and enable seamless exchange of large volumes of data between the end-users. For instance,

• In 2023, the government of India passed a law, “National Defense Authorization Act for Fiscal Year 2024”, owing to which the deployment of 5G networks in military bases and other Department of Defense (DOD) facilities would become necessary.

The deployment of 5G networks in various countries in the upcoming years will result in larger data volumes. As a result, the end-user organizations would need solutions that transmit data to platforms with minimal latency, enabling real-time monitoring and analysis. Thus, the different industry verticals would seek multimodal AI solutions to revolutionize user experiences, uplifting the Global Multimodal AI market in the forthcoming years.

Global Multimodal AI Market Driver:

Increasing Digital Banking Uplifting the Demand for the Multimodal AI Solutions – In recent years, countries such as the Netherlands, Denmark, the UK, etc., have witnessed a surge in the online banking user population. According to Expatica Communications, in 2023, more than 89% of the individuals residing in the Netherlands use online banking. Similarly, consumers in the US, India, etc., prefer digital banking services to make transactions rather than visiting the banks. According to the survey conducted by Forbes Advisor, in 2023, more than 78% of adult individuals in the US now prefer banking through mobile phones & applications. The increasing number of users on mobile banking applications often results in site traffic. As a result, the banks require multimodal AI solutions to offer seamless and interactive experiences to consumers, driving market growth.

In addition, the increasing inclination of consumers toward digital banking services has made consumers more susceptible to online fraudulent risks. As a result, financial institutions, like banks, insurance companies, etc., are amalgamating multimodal AI solutions to identify suspicious transactions, authenticate users, and mitigate risks more effectively, driving the Global Multimodal market.

Furthermore, the consumers' data stored in the servers of banks & other financial institutions is critical & holds paramount importance. Therefore, regulatory authorities, like the European Commission, Gulf Standardization, etc., are implementing stringent data security regulations. As a result, the banks & other financial institutions would use solutions, including multimodal AI, to detect anomalies, identify suspicious activities, and authenticate users, uplifting the Global Multimodal AI market in forthcoming years.

Global Multimodal AI Market Opportunity:

Expansion of Telecom Network to Uplift the Demand for the Multimodal AI Market – With the proliferation of smartphones, tablets, and other connected devices, individuals nowadays require seamless communication channels that help them communicate with consumers in different geographical boundaries. This demand for global connectivity requires a robust telecom infrastructure. As a result, telecom companies are increasingly expanding their networks to enable instant voice calls, video conferences, text messaging, and data sharing, fostering interpersonal connections on a global scale. For instance,

• In 2023, Bharti Airtel, a telecom operator, announced its plans to deploy over 30,000 network sites in approximately 60,000 villages in India.

Moreover, these solutions facilitate easy, faster & interactive real-time interactions and data exchanges. Hence, the telecom network expansion would compel the major telecom operators to use multimodal AI solutions to address network issues, minimize downtime, and enhance overall service reliability in the forthcoming years.

Global Multimodal AI Market Challenge:

Data Complexity & Integration to Hinder the Market Growth – Multimodal AI solutions are hinged on data fusion techniques that help the solutions build a more complete and accurate understanding of the underlying data. However, the dependency on these techniques makes multimodal AI solutions highly complex. In addition, multimodal AI solutions process & analyze data, such as text, images, audio, video, and sensor inputs, generally procured from multiple modalities. Therefore, these solutions' amalgamation with heterogeneous data sources requires specialized algorithms and architectures. As a result, small business organizations are apprehensive about using these solutions to avoid complexity, hampering Global Multimodal AI market growth.

In addition, the amalgamation of multimodal solutions within the company's existing systems & workflows requires seamless interoperability and compatibility with diverse platforms and environments. As a result, the end-users require complementary hardware & software, which puts additional financial strain on the enterprises. Therefore, small-scale business organizations restrain themselves from seeking multimodal AI solutions, hindering market growth.

Global Multimodal AI Market Trend:

Rising R&D on Autonomous Vehicles to Augment the Market Growth – In recent years, countries like the US, India, etc., experienced a surge in road accidents caused by poor road infrastructure, Speeding, and Driving Under the Influence (DUI). According to the Road & Transport Authority of India, road accidents in India, recorded a rise of around 11.9% in 2022, as compared to 2021. These accidents cause injuries and often lead to fatalities. The surging road accidents are resulting in market players like Google, Tesla, etc., to research & develop autonomous cars to offer a safer transportation alternative for consumers and their families. For instance,

• Jaguar Land Rover launched three new technology hubs to facilitate the research & development of self-driving cars in Europe.

These cars require solutions that create a comprehensive and accurate representation of the environment. Hence, automotive manufacturers use multimodal AI, uplifting market growth.

Global Multimodal AI Market (2024-30): Segmentation Analysis

The Global Multimodal AI Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:

Based on Deployment:

• Cloud
• On-Premises

Cloud held a dominant share in the Global multimodal AI Market since cloud platforms provide scalability, flexibility, and easy accessibility. Cloud platforms offer higher scalability and elasticity than on-premises servers, enabling organizations to rapidly scale up or down their computational resources based on fluctuating demand for multimodal AI services. Moreover, the cloud-based platforms help the end-users to deploy the multimodal services at scale without significant upfront investments in hardware or infrastructure. As a result, the industry verticals tend to incline towards the cloud-based platforms, enhancing its market share in the Global Multimodal AI market.

Based on End Users:

• Media & Entertainment
• BFSI
• Healthcare
• Automotive & Transportation
• Telecom
• Retail & E-commerce
• Others

Retail & E-Commerce hold a notable share in the Global Multimodal AI Market over the past few years. Online shopping provides flexibility to shop without the constraints of visiting the stores. The online platforms enable the consumers to browse and compare products before their purchase. In addition, these online shopping platforms offer quick doorstep delivery services. As a result, the working or aged population is significantly inclining towards these platforms. According to the survey conducted by Big Commerce, an e-commerce platform, in 2023, almost 75% of individuals aged 18-44 make purchases online.

The rising inclination of individuals towards e-commerce platforms results in higher traffic on shopping websites & applications. As a result, the e-commerce market players are using multimodal AI to enhance consumer experience. The multimodal solutions provide more accurate and personalized product recommendations, improving the relevance and effectiveness of product discovery for users.

Global Multimodal AI Market (2024-30): Regional Projection

Geographically, the Global Multimodal AI Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Asia-Pacific leads the Global Multimodal AI Market due to rapid urbanization, digital transformation & population growth. With the surge in the population, there is a pressing need for innovative technologies to address complex challenges in industry verticals like transportation, healthcare, education, and government. As a result, the industry verticals are adopting multimodal AI solutions to process & analyze diverse data & build smarter and more efficient urban environments.

Further, the governments of the Asia-Pacific countries are increasingly laying initiatives and implementing national strategies & regulatory frameworks to promote digitalization across different industry verticals. Therefore, the adoption & deployment of multimodal AI solutions across sectors will continue to increase, driving market growth in the forthcoming years.

Global Multimodal AI Industry Recent Development:

• 2024: Amazon: The company started using multimodal AI named ‘Package Decision Engine’ to guarantee optimal packaging & safeguarding of products against damage and streamline delivery processes.

Gain a Competitive Edge with Our Global Multimodal AI Market Report

• Global Multimodal AI Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Multimodal AI Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.