Causal AI market to hit more than US$543.73 million
The global causal AI market is expected to reach more than US$543.73 million by 2032, according to a new report published by Polaris Market Research.
The market was was valued at US$18.45 million in 2022, representing a CAGR of 40.3% during the forecast period.
Causal AI, short for Causal Artificial Intelligence, is an area of artificial intelligence that focuses on understanding and modelling causal relationships between variables.
In traditional AI and machine learning, the emphasis is often on correlational relationships, where patterns are identified in data without necessarily understanding the underlying cause and effect.
Causal AI goes beyond correlation and aims to identify cause-and-effect relationships, allowing AI systems to make predictions and decisions based on an understanding of how variables influence one another. By understanding causality, AI models can better simulate real-world scenarios and provide more reliable and interpretable results.
Growth Opportunities in Causal AI Market
The growing adoption and utilisation of big data analytics drive the market's growth. The proliferation of data has created a need for advanced analytics techniques to extract valuable insights. Causal AI techniques can uncover causal relationships within large datasets, helping businesses identify hidden patterns and make more accurate predictions.
The latest Worldwide Big Data and Analytics (BDA) Spending Guide from International Data Corporation (IDC) predicts that Australia and New Zealand (ANZ) will spend USD$8.9 million on BDA solutions over the five years between 2021 and 2026, growing at a compound annual growth rate of 13.3%. In 2022, these expenses are expected to total USD$5.5 million.
The growing prominence of big data analytics drives the demand for causal AI. By combining the power of big data analytics with causal AI techniques, organisations can unlock deeper insights, improve decision-making, address the limitations of correlation-based analyses, and achieve more accurate predictions and actionable outcomes.
An increase in company funding is fuelling the research and development activities in the Causal AI field. CausaLens, a company specialising in Causal AI, has successfully raised USD 45 million in a Series A funding round in 2022. Molten Ventures and Dorilton Ventures took the lead in the funding round. This substantial investment will empower causaLens to expand its operations and bring the remarkable advantages of Causal AI to organisations across various sectors and geographical regions. The funding will support the company's efforts in advancing the adoption and application of Causal AI, enabling businesses to leverage its transformative capabilities for improved decision-making and insights.
Causal AIMarket Report Key Highlights
Platform segment is anticipated to witness faster growth in the coming years due to the growing need for data integration and preprocessing. Healthcare & Life Sciences segment accounted for the larger market share owing to the complex healthcare challenges, growing demand for precision medicine and personalised care. APAC is projected to register a higher growth rate in the study period owing to the rise in the AI adoption rate in healthcare, retail, BFSI, industrial and automation sectors.
North America is expected to grow larger revenue share owing to the growing investments in computational technology.
