Global Citizen Services AI Market Size, Share & Industry Trends Analysis Report By Component (Solution and Services), By Technology, By Deployment Mode (On-premises and Cloud), By Organization Size, By Vertical, By Regional Outlook and Forecast, 2022 - 2028

Analysis of Market Size & Trends

The Global Citizen Services AI Market size is expected to reach $48.6 billion by 2028, rising at a market growth of 39.8% CAGR during the forecast period.

Citizen service in AI refers to the application of AI technology to various government public services. By providing analytical information, public service management, and technological proficiency, the use of AI can transform government functioning and operations. Implying AI will prompt efficiency and provide adequate and evidence-based information and analysis.

Improvising citizen services, demand for digital transformation in the government sector, and rising costs of automation of manual processes to alleviate pressure are amongst some elements that drive the business development of the artificial intelligence for citizen services. Also, the reduction in administrative burdens, complex task performance, and help to resolve allocation issues led to the growth of the market.

Artificial intelligence has considerable applications in varied government organizations. In road traffic management real-time data collection from CCTV cameras, consumer service centres manned by robots, and traffic flow optimization uses AI for enhanced results. Using algorithms and machine learning techniques enormous amounts of data to identify statistical behaviours and models to make precise predictions are the key components for governments.

Assisting in shrinking administrative issues, carrying out complex tasks, and rectifying resource allocation issues have constructive and practical opportunities for citizen service AI. AI is used in countless ways, thereby, making lives more convenient and interesting. From voice recognition to self-driving cars, chatbots, online shopping, healthcare technologies, streaming services, and education to factory and warehouse systems life has eased due to adoption of AI in citizen services.

COVID-19 Impact Analysis

AI industry observes stronger career prospects during the pandemic. The need for isolated contacts that can facilitate safety is the driving force for the production of new technologies. No contact pickup and delivery, or reservation systems in the hospital & restaurants. Almost all educational institutions gradually turning to online study program cultures with AI-powered smart learning have prompted the growth of the industry. Companies are launching AI-powered check-in options for patients to adjust to the need of the time. As a result, the citizen service in AI market has benefited from the outbreak of COVID-19.

Market Growth Factors

Ai Adoption Would Enable Faster Decision Making

The employability and expansion of digitalization in the organisations have made the procedures efficient and faster. With the introduction of AI technologies business do not have to engage themselves with enormous data manually. By engaging into more intelligent processing and data management capabilities, the productivity of organisations will increase. Use of AI and analytics in the organisations will make data procurement more precise and help to row themselves in a competitive market.

The Advent of New Technologies

Due to the enhanced citizen satisfaction by the implementation of the internet of things (IoT), and other emerging technologies, like machine learning and biometric systems, governments along with various organisations are exploring the adoption of artificial intelligence in citizen services. Corporations have the highest regard for emerging technologies as they will assist them in addressing citizen grievances. Technology that helps in direct interaction with citizen-centred services is being preferred and adopted by the government and the public & private sectors.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The below illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships & Collaborations.

Market Restraining Factor

Less Availability of Skilled Workers Along with Infrastructure Inefficiency

A sturdy framework and environment are essential for any government organisation to build up comprehensive end-to-end AI-based citizen services. As most organizations do not have the basic infrastructure and manpower, it has been observed that they are unable to properly comply with these technologies for citizen services. Since there is little or poor knowledge among government agencies, the deployment of any digital solutions to citizen services becomes difficult.

Component Outlook

By component, citizen services AI market is divided into solution and services. In 2021, the solution segment dominated the citizen services AI market with maximum revenue share. By incorporating artificial intelligence various organisations are deploying citizen service solutions to manage & receive information and service requests from citizens as well as servicing investigations from government organizations.

Technology Outlook

On the basis of technology, citizen services AI is fragmented into machine learning, natural language processing, image processing, face recognition and others. In 2021, the natural language processing segment generated prominent revenue growth in the citizen services AI market. Healthcare sectors are prominently to play a key role in the new market as artificial intelligence-based text-mining tools are being adopted, allowing the physician to swiftly search through large amounts of medical literature.

Organization Size Outlook

Based on organization size, citizen services AI is bifurcated into large enterprise and SMEs. The SMEs segment procured a promising revenue share in the citizen services AI market in 2021. AI is considerably affecting the SME business environment. The efficiency of the public administration has been enhanced, digital infrastructures have been secured, improved finance access of SMEs', management skills eased and experimentation and innovation cost has been reduced.

Deployment Mode Outlook

By deployment mode, citizen services AI is classified into On-premises and cloud. In 2021, the on-premise segment registered the largest revenue in the citizen services AI market. This is because the use of on-premise citizen services is cheaper and can work with mass amounts of computing power. Being economical or favouring capital expense over operational expenses, customers are more likely to invest in on-premise services. It is also very helpful for customers who need prompt decision-making for data manipulation. These factors would support the market growth in this segment.

Vertical Outlook

On the basis of verticals, the citizen services AI is segmented into transportation, healthcare, government & public sector, energy & utility, agriculture, and education & training. The government & public sector segment recorded the highest revenue in the citizen services AI in 2021. By utilizing various advanced technologies like artificial intelligence and machine learning, the government is speeding up the delivery of citizen services. Now citizens don't have to wait in lines and can expect immediate responses and services.

Citizen Services AI Market Report Coverage

Report Attribute	Details
Market size value in 2021	USD 4.9 Billion
Market size forecast in 2028	USD 48.6 Billion
Base Year	2021
Historical Period	2018 to 2020
Forecast Period	2022 to 2028
Revenue Growth Rate	CAGR of 39.8% from 2022 to 2028
Number of Pages	335
Number of Tables	553
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Companies Strategic Developments, Company Profiling
Segments covered	Component, Technology, Deployment Mode, Organization Size, Vertical, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Ai Adoption Would Enable Faster Decision Making The Advent of New Technologies
Restraints	Less Availability of Skilled Workers Along with Infrastructure Inefficiency

Regional Outlook

Region wise, the citizen services AI market is analysed across North America, Europe, Asia-Pacific and LAMEA. In 2021, the North America region accounted for the maximum revenue share in the citizen services AI market. Being a repository of a developed market, artificial intelligence services are being used for citizen redressal. From mass data collection, and automated surveillance to face recognition AI technologies are employed to address the rising need for better citizen services.

Free Valuable Insights: Global Citizen Services AI Market size to reach USD 48.6 Billion by 2028

KBV Cardinal Matrix - Citizen Services AI Market Competition Analysis

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; IBM Corporation and Oracle Corporation are the forerunners in the Citizen Services AI Market. Companies such as OpenText Corporation, Genpact Limited, Software AG are some of the key innovators in Citizen Services AI Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ServiceNow, Inc., Microsoft Corporation, IBM Corporation, Accenture PLC, Amazon Web Services, Inc. (Amazon.com, Inc.), Nvidia Corporation, Intel Corporation, Alibaba Group Holding Limited, Tencent Holdings Ltd., and Pegasystems, Inc.

Recent Strategies Deployed in Citizen Services AI Market

» Partnerships, Collaborations and Agreements:

• Sep-2022: Amazon Web Services collaborated with SK Telecom, the information and communications technology division of SK Group. SK Telecom is a South Korea-based telecommunications firm. Under this collaboration, both organizations would work together to develop new computer vision services, which include optimizing classification, extraction, and analysis to derive insights from images. The integration of SK's expertise in AI and AWS's scalability, and elasticity would advance innovation in AI. Additionally, this collaboration would make computer vision applications easier and more economical to develop, use and advance.
• Mar-2022: Microsoft extended its partnership with AT&T, a US-based global telecommunications company, providing internet access, security, private networking, etc. services. This partnership involves a service named AT&T Private 5G Edge, which is co-developed by Microsoft. AT&T Private 5G Edge, a platform that uses CBRS and AT&T spectrum. Microsoft along with AT&T aims to advance the consolidation that private wireless solutions require, increasing the speed of deployment. Additionally, under this partnership, both organizations would work on AT&T Private Edge.
• Jan-2022: Amazon Web Services extended its partnership with Telenor, a Norwegian-based state-owned telecommunications company, providing data, communication, and telecom services. The extended partnership between AWS and Telenor involves jointly investing in go-to-market activities in various industries including, manufacturing, logistics, supply chain, etc. Additionally, with this partnership, both companies aim to develop the telecommunications industry.
• Sep-2021: Synaptics partnered with Edge Impulse, a US-based firm, providing Machine Learning Solutions. This partnership integrates Synaptics’ Katana™ Ultra Low-Power Edge AI Platform and Edge Impulse's software development platform. This combination provides Synaptics' clients to develop custom models for the Katana platform that would significantly upgrade time to market for battery-powered connected devices at the edge.
• Feb-2021: FogHorn teamed up with IBM, a US-based technology company, primarily into providing software, IT services, hardware, consulting, etc. FogHorn would cash on IBM's cloud expertise, which would enable FogHorn to better serve its clients by enabling them to make well-informed decisions with their data immediately. Additionally, this partnership enables FogHorn to reduce waste, energy consumption, and better up-time.
• Jan-2021: AlefEdge partnered with Netris, a US-based company, providing a cloud-like platform that allows networking and non-networking people to have authority over applications. This partnership provides users with an important tool that allows them to build and manage applications and services.
• Sep-2020: AlefEdge partnered with NTT, a Japan-based global company providing, information technology and consulting services. This partnership would improve the capability to develop edge applications and has the potential to significantly transform everything IoT, social media, etc.
• Sep-2020: AlefEdge came into partnership with NetFoundry, a distributed company providing an open source zero trust networking platform. This partnership integrates NetFoundry’s architecture and AlefEdge's Defined Mobile Edge (SD-ME) platform, enabling AlefEdge to offer organizations to create secure 5G-like applications.
• Jul-2020: IBM teamed up with EY, a Big 4 accounting firm providing a wide variety of services including, assurance, taxation, valuations, risk management, etc. to organizations across the world. This collaboration involves integrating EY's regulatory knowledge, strategy, and business consulting expertise with IBM's technology and hybrid cloud portfolio to advance IBM's clients toward the cloud and help them update and modify their businesses.
• Jul-2020: Google partnered with Orange, a France-based global telecommunications company, primarily into providing cloud computing, network, data, and analytics services. This partnership integrates Google's expertise in cloud technologies, analytics, AI, and Orange's know-how in information, and communication technology services. Additionally, this strategic partnership strengthens Google Cloud's market position in Europe.
• Jul-2020: TIBCO teamed up with Microsoft, a US-based global technology company, providing consumer electronics, personal computers, accessories, etc. This collaboration involves the inclusion of Azure AI to TIBCO, providing customers with more flexibility, less time lag, etc.
• May-2020: IBM came into collaboration with NVIDIA intending to advance analytics and employ applications at the edge. NVIDIA, an American global technology company, provides integrated circuits, laptops, robotics and edge computing, etc. This collaboration integrated IBM's Edge Application Manager with NVIDIA's EGX to help its clients deliver next-generation IoT, 5G-based, and AI services.

» Mergers and Acquisitions:

• Nov-2022: Synaptics acquired Emza Visual Sense, an Israel-based firm, primarily into providing visual sensors. This acquisition reinforces Synaptics' market position and allows it to introduce Human Presence Detection (HPD) solutions.
• May-2022: Google took over MobiledgeX, an edge computing firm providing a marketplace for edge computing resources and services. This acquisition aligns with Google's plan of action to become the open-source champion of operator cloud-native network transformation.
• Mar-2022: Microsoft acquired Nuance Communications, a US-based company that provides speech recognition solutions, healthcare AI solutions and omnichannel customer engagement. This acquisition enables healthcare services providers, a better opportunity to provide economical, attainable healthcare services, and allows organizations in other industries to better serve the needs of their clients.
• Feb-2022: AlefEdge acquired CareerGig, a marketplace engaged in linking freelancers with companies across all industries. This acquisition would lead to the first ever edge developer community, providing developers with the necessary tools to develop applications to improve private mobile networks.
• Mar-2021: Microsoft took over The Marsden Group, a global technology group, providing industrial technology. This acquisition strengthened Microsoft's potential to create customer value by experimenting and providing deep industry solutions formed on edge, Microsoft cloud, and AI.

» Product Launches and Expansions:

• Oct-2022: IBM introduced three libraries in the Embeddable AI product portfolio. These three new libraries allow IBM's independent software partners and their development teams a trouble-free path to develop AI solutions through pre-trained models and runtime orchestration.
• Mar-2022: Synaptics launched the Edge AI evaluation kit (EVK), built on low-power Katana SoC. The Evaluation kit integrates sound, motion, and vision detection software and hardware with wireless and wired connections to untangle the development of edge AI. This product would complete a comprehensive portfolio including software, hardware, technical support, and wireless connectivity, benefitting Synaptics' clients by enabling them to get their IoT ideas to the market.
• Jun-2021: IBM introduced IBM Cloud Pak for Network Automation, a hybrid cloud AI-powered automation software intended to use by communications service providers (CSPs), and can run in varied environments. This product enables IBM to provide better services to its clients in the telco industry, by using AI-powered automation which solves the problem of limited automation and less real-time visibility.

» Geographical Expansions:

• Feb-2022: Amazon Web Services expanded its global footprint by offering AWS Local Zones services in 32 new metropolitan areas in 26 countries across the world. AWS Local Zones are a kind of AWS infrastructure deployment that brings storage, computing, and other services closer to the end-users.

Scope of the Study

Market Segments Covered in the Report:

By Component

• Solution
• Services

By Technology

• Machine Learning
• Natural Language Processing
• Image Processing
• Face Recognition
• Others

By Deployment Mode

• On-premises
• Cloud

By Organization Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By Vertical

• Government & Public Sector
• Healthcare
• Transportation
• Energy & Utilities
• Education & Training
• Agriculture

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• ServiceNow, Inc.
• Microsoft Corporation
• IBM Corporation
• Accenture PLC
• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Nvidia Corporation
• Intel Corporation
• Alibaba Group Holding Limited
• Tencent Holdings Ltd.
• Pegasystems, Inc.