China Artificial Intelligence Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Software, & Services), By Technology (Machine Learning, NLP, Computer Vision, Robotics & Automation, & Expert Systems), and China Artificial Intelligence Market Insights, Industry Trend, Forecasts to 2035

China Artificial Intelligence Market Insights Forecasts to 2035

• The China Artificial Intelligence Market Size Was Estimated at USD 19.73 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 34.09 % from 2025 to 2035
• The China Artificial Intelligence Market Size is Expected to Reach USD 497.32 Billion by 2035

According to a Research Report Published by Spherical Insights & Consulting, the China artificial intelligence market is anticipated to reach USD 497.32 billion by 2035, growing at a CAGR of 34.09 % from 2025 to 2035. The market growth is driven by innovation in smart cities, manufacturing, healthcare, and consumer tech is being fuelled by large datasets, robust government support, significant private investment, and a dynamic tech ecosystem of giants and start-up’s, with an emphasis on self-reliance and global leadership.

Market Overview

The China Artificial Intelligence Market is defined as the massive and the rapidly growing ecosystem encompassing the development, application and commercialization of AI technologies with China for the strategic goal of achieving the global AI leadership. It includes the wide range of the applications, software, hardware and services designed for the creation of the machines that mimic human intelligence functioning like the learning, reasoning and the perception. This market revolves around the ability of the computers to perform the task traditionally requiring human intelligence. AI is widely integrated across diverse sectors, including, healthcare, finance, transportation, manufacturing, retail, and the public services.

The future opportunities in China’s Artificial Intelligence Market are extensive, driven by the robust government support and a massive data pool, and rapid applications across the key industry. A key adoption in China’s push for the smart cities that use the AI, IoT, and big data to manage traffic, public services and security more efficiently. These creates the opportunities for innovation in computer vision, predictive analytics, and the real time monitoring system.

Report Coverage

This research report categorises the market for the China artificial intelligence market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the China artificial intelligence market recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the China artificial intelligence market.

Driving Factors

The China Artificial Intelligence Market is booming due to its massive user’s base generating the huge data, strong government backing via national plans like fierce domestic market protection, leading talent pool, and advancements in computing power for self-sufficiency, driving adoption in smart cities, healthcare, and manufacturing. A huge consumer bases a protected internet ecosystem allow local tech firms to thrive and rapidly deploy AI applications without the intense western competition. The massive investments in the data centres and energy infrastructure supports the growing AI demand. There is a growing need in the manufacturing, finance and the transportation pushes AI adoption, improving the efficiency and the productivity.

Restraining Factors

China Artificial Intelligence Market faces restrain from strict, evolving regulations, high technical costs and barrier for SMEs, the talent shortages, geopolitical tech restrictions, and the data governance complexities, and balancing the innovation with the social control and security concern slowing development compared to others.

Market Segmentation

The China Artificial Intelligence Market share is classified into by component and by technology.

• The software segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period.

The China Artificial Intelligence Market is divided by component into hardware, software, and services. Among these, the software segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. It is dominated because the AI capabilities are generally offered via flexible, scalable, and application-focused software solutions that may be widely adopted across sectors without requiring significant upfront hardware investments.

• The machine learning segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period.

The China Artificial Intelligence Market is divided by technology into machine learning, natural language processing, computer vision, robotics and automation, and expert systems. Among these, the machine learning segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. It is dominated because it is widely used in data-driven tasks such as predictive analytics, recommendations, and fraud detection, feeding industries ranging from finance to e-commerce, and plays a critical role in enabling other AI areas such as computer vision and robotics, leveraging China's massive data availability for continuous learning and automation.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the China artificial intelligence market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Baichuan AI
• Bytedance
• SenseTime
• Minimax
• Moonshot AI
• Baidu, Inc.
• Tencent
• Others

Recent Developments:

• In July 2025, Chinese start up Zhipu AI (Z.ai) launched the GLM-4.5 model, claiming an agentic architecture and output-token costs up to 87% lower than DeepSeek, underscoring intensifying competition within China’s artificial intelligence market.

• In January 2025, Chinese start-up DeepSeek gained global attention after launching its reasoning model DeepSeek-R1, alongside earlier MoE-based DeepSeek-V3 and DeepSeek-Coder models, highlighting cost-efficient innovation within China’s rapidly advancing artificial intelligence market.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at China, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the China Artificial Intelligence market based on the below-mentioned segments:

China Artificial Intelligence Market, By Component

• Hardware
• Software
• Services

China Artificial Intelligence Market, By Technology

• Machine Learning
• NLP
• Computer Vision
• Robotics & Automation
• Expert Systems