South Korea Artificial Intelligence (AI) Market Insights Forecasts to 2032.
- The South Korea Artificial Intelligence (AI) Market Size was valued at USD 1.83 Billion in 2022.
- The Market is Growing at a CAGR of 27.5% from 2022 to 2032.
- The South Korea Artificial Intelligence (AI) Market Size is expected to reach USD 20.7 Billion by 2032.
- South Korea is expected to Grow the fastest during the forecast period.
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The South Korea Artificial Intelligence (AI) Market Size is expected to reach USD 20.7 Billion by 2032, at a CAGR of 27.5% during the forecast period 2022 to 2032.
South Korea has made significant investments in Artificial Intelligence (AI) technology, viewing it as an essential foundation for both forthcoming technological and economic development. In order to boost the nation's ability to compete in the internationally competitive artificial intelligence landscape, the South Korean government, in collaboration with private firms, is investing in research and development for artificial intelligence, talent cultivation, and infrastructural upgrading. In the Republic of Korea, AI has gained applications in a variety of industries, such as financial services, automotive, manufacturing, healthcare, retail, and others. AI is being used by businesses to automate, optimize processes, analyze data, and improve consumer experiences. South Korea has multiple world-class AI research facilities, such as the Korea Advanced Institute of Science and Technology (KAIST). In addition, the country focuses on artificial intelligence education to develop a trained workforce capable of meeting the ever-present demand for AI practitioners. Additionally, the South Korean government has undertaken a number of programs to promote the adoption of AI, such as the "I-Korea 4.0" plan, which focuses on nurturing fourth-generation technologies such as AI. South Korea also boasts a flourishing ecosystem of AI firms focusing on cutting-edge applications for artificial intelligence. Concurrently, South Korean IT corporations such as Samsung and LG are significantly contributing to AI research as well as the development of products.
This research report categorizes the market for South Korea Artificial Intelligence (AI) Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea Artificial Intelligence (AI) Market. Recent market developments and competitive strategies such as expansion, product launch, and 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-segments of the South Korea Artificial Intelligence (AI) Market.
South Korea Artificial Intelligence (AI) Market Report Coverage
|Market Size in 2022:||1.83 Billion|
|Forecast Period 2022-2032 CAGR:||27.5%|
|2032 Value Projection:||USD 20.7 Billion|
|Historical Data for:||2018-2021|
|No. of Pages:||200|
|Tables, Charts & Figures:||120|
|Segments covered:||By Offering, By Technology, By Application, By End-Use Industry and COVID-19 Impact Analysis.|
|Companies Covered:||Samsung, LG Electronics, Kakao, Naver, SK Inc., KT Corporation, Microsoft Corporation, AIBrain, Riiid, Moloco, Qraft, 42dot, AKA Intelligence, Google LLC, Amazon Web Services, Inc., Siemens, Cisco and other key venders.|
|Pitfalls & Challenges:||COVID-19 Empact, Challenge, Future, Growth, & Analysis|
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South Korea is widely regarded as one of the key players in the global AI landscape, with its artificial intelligence (AI) sector expanding rapidly. This expansion is being driven by aggressive government programs, large investments, and an increased emphasis on AI research and development. South Korea's artificial intelligence market is fast increasing, owing to a surge in AI applications across a variety of sectors such as BFSI, healthcare, manufacturing, automotive, retail & e-commerce, and telecom, among others. The technology market has experienced a considerable increase in artificial intelligence-focused firms, garnering investment from domestic as well as foreign investors. South Korea is also known for its technological ingenuity. AI advancements, which include machine learning, natural language processing, and computer vision are propelling the artificial intelligence market forward. The country has a robust R&D infrastructure, with prominent technology businesses, startups, and university institutions actively participating in the continuous development of AI technologies. Leading South Korean firms are significantly leveraging AI to provide cutting-edge products and services. Furthermore, South Korea is actively engaging in AI research and development with global organizations and other countries. Collaborations such as these aid in the flow of information and contribute to the development of AI technologies.
- In 2022, the software segment is witnessing a higher growth rate over the forecast period.
Based on the offering, the South Korea Artificial Intelligence (AI) Market is segmented into hardware, software, and services, due to the widespread adoption of AI applications in various industries. Among these, the software segment is witnessing a higher growth rate over the forecast period. In the AI industry, software refers to platforms, programs, and technologies that use artificial intelligence (AI) algorithms to do tasks. This includes machine learning platforms, speech recognition systems, natural language processing software, and other similar technologies. Given South Korea's increasingly digital economy and the country's emphasis on technological innovation, the software market is anticipated to be significant.
- In 2022, the machine learning segment accounted for the largest revenue share of more than 37.8% over the forecast period.
On the basis of technology, the South Korea Artificial Intelligence (AI) Market is segmented into machine learning, natural language processing, machine vision, autonomous & sensor technology, and others. Among these, the machine learning segment is dominating the market with the largest revenue share of 37.8% over the forecast period. Machine learning, or ML is a branch of AI, which employs algorithms based on statistics to enable computer systems to "learn" from data. Applications based on machine learning are commonly utilized in South Korean industries such as finance, healthcare, and logistics for goals such as predictive modeling, identifying fraud, and supply chain management. Machine learning models are being developed by companies for statistical analysis, fraud detection, recommendation systems, and targeted advertising, among other applications.
- In 2022, the finance and marketing & sales segment is witnessing significant CAGR growth over the forecast period.
On the basis of application, the South Korea Artificial Intelligence (AI) Market is segmented into finance, security, human resources, law, marketing & sales, operations, supply chain management, and others. Among these, the finance and marketing & sales segment is witnessing significant CAGR growth over the forecasted period, because of the tremendous ROI, these industries may accomplish using artificial intelligence (AI). AI is being employed in the banking industry for a wide range of uses, from trading with algorithms and risk mitigation to financial scoring and identifying fraudulent transactions. Artificial intelligence (AI) is being used by both fintech startups and major financial institutions to enhance decision-making and interaction with customers. Furthermore, artificial intelligence (AI) is playing an important role in marketing and sales by offering consumer data, streamlining client interactions, optimizing marketing material, and anticipating sales trends. AI is being used by many e-commerce sites to endorse products and increase conversion rates.
- In 2022, The BFSI segment accounted for the largest revenue share of more than 34.2% over the forecast period.
On the basis of end-use industry, the South Korea Artificial Intelligence (AI) Market is segmented into BFSI, retail & e-commerce, automotive, transportation & logistics, government & defense, healthcare & life sciences, telecom, energy & utilities, manufacturing, agriculture, IT/ITES, media & entertainment, and others. Among these, the BFSI segment is dominating the market with the largest revenue share of 34.2% over the forecast period, because it has the ability to further enhance consumer experiences and business efficiency improvements. AI is used in the financial services industry for credit scoring, fraud detection, personalized financial advising, risk management, customer support, and algorithmic trading. Artificial intelligence (AI) can assist financial organizations in increasing operational efficiency, improving customer experiences, and making smarter, data-driven decisions. Chatbots and AI-powered assistants are also frequently employed to improve customer service. To increase efficiency and provide personalized financial services, analytics using AI and data-driven decision-making are used.
The report offers the appropriate analysis of the key organizations/companies involved within the South Korea Artificial Intelligence (AI) 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
- LG Electronics
- SK Inc.
- KT Corporation
- Microsoft Corporation
- AKA Intelligence
- Google LLC
- Amazon Web Services, Inc.
Key Target Audience
- Market Players
- Government Authorities
- Consulting and Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
- On August 2023, Kakao, plans to introduce a new artificial intelligence foundation model to balance performance and cost efficiency, as well as services integrated to the model after October this year. Kakao is also expected to strengthen its social interaction function by introducing a feature that will allow users to share daily content that expires after 24 hours, similar to the Instagram story function
- On August 2023, South Korea's Hyundai Motor Group said that it will make a strategic investment in Tenstorrent, an artificial intelligence (AI) semiconductor startup company. The group said in a statement that the investment will be used to accelerate Tenstorrent's design and development of AI chiplets and its machine learning (ML) software roadmap. The newly developed high-performance semiconductors will be applied to central processing units (CPU) and neural processing units (NPU) for future vehicles and mobility solutions.
- On July 2023, South Korea’s LG Group introduced an upgraded version of its artificial intelligence software, and demonstrated how it can be used across its businesses ranging from electronics to chemicals. LG’s foundation model Exaone 2.0, an update to the original version unveiled in 2021, can understand images and learn information in Korean and English. The new version was trained on about 45 million theses and patents as well as 350 million images. The company plans to sell Exaone across industries, including health care and clean energy, starting this year. The general public can access some of its features for free.
- On July 2023, LG AI Research has teamed up with the Korean Intellectual Property Office (KIPO) to develop the world's first patent screening system using hyperscale artificial intelligence. Under their agreement, the two will jointly develop Patent Expert AI for use in administrative services such as search, classification and summary of patent documents.
This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the South Korea Artificial Intelligence (AI) Market based on the below-mentioned segments:
South Korea Artificial Intelligence (AI) Market, By Offering Type
- Customizable AI
- Edge AI
- AI Marketplaces
- Professional Services
- Managed Services
South Korea Artificial Intelligence (AI) Market, By Technology Type
- Machine Learning
- Deep Learning
- Supervised Learning
- Unsupervised Learning
- Reinforcement Learning
- Natural Language Processing (NLP)
- Natural Language Understanding (NLU)
- Natural Language Generation (NLG)
- Machine Vision
- One-Dimensional Vision
- Two-Dimensional Vision
- Three-Dimensional Vision
- Autonomous & Sensor Technology
South Korea Artificial Intelligence (AI) Market, By Application
- Human Resources
- Marketing & Sales
- Supply Chain Management
South Korea Artificial Intelligence (AI) Market, By End-Use Industry
- Retail & E-commerce
- Transportation and Logistics
- Government & Defense
- Healthcare & Life Sciences
- Energy & Utilities
- Media & Entertainment
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