The global citizen services AI market was valued at USD 9.1 billion in 2023 and is expected to grow at a CAGR of 43.7% during the forecast period. The growing use of citizen services AI technology across a variety of end-use industry verticals including government, manufacturing, transportation, and healthcare, as it develops and learns for each task, managing crucial public services, providing inadequate implementation, and analytical information, that is expected to boost the growth of the global market throughout the study period.
Citizen services artificial intelligence (AI) is a particular application of artificial intelligence technology, which merely means the application of AI in different government public services. Using this technology can transform how any government operates and learns from every task it undertakes. It can provide analytical information, manage public services effectively, and implement public resources suitably with the right information and analysis based on evidence.
Services for citizens AI is the use of AI-driven solutions to a wide range of citizen demands, from boosting public safety and encouraging community involvement to streamlining administrative procedures and boosting service delivery. As governments all over the world realize how AI can transform the public sector and make services more personalized, user-friendly, and responsive to consumers' needs, the citizen services AI market has experienced tremendous growth.
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Moreover, the increasing need for digital transformation in government sectors, enhanced automation, and automation of manual processes to relieve pressure are further likely to create huge growth opportunities for the global market.
In recent years, cloud AIs have gained significant popularity and traction, as it help to enhance various cloud-based services and applications due to the faster delivery time with very low latency as compared to others and real-time tracking facilities. To shrink administrative issues, carry out various complex tasks, and rectify resource allocation issues, many large market players operating globally are focusing on the development of more advanced and innovative solutions/services, which are likely to contribute significantly to the market growth in the next coming years.
For instance, in December 2022, Deloitte & Snowflake, introduced its Artificial Intelligence solution as a part of Deloitte’s Digital delivery platform to help the state, federal, & local government clients to bolster decision-making & enhance citizen services through this platform.
The outbreak of the COVID-19 pandemic has positively impacted the growth of the citizen services AI market. The rapid increase in the spread of the deadly coronavirus has resulted in higher production of these types of technology, as almost all educational institutions gradually turned towards online study programs with AI-powered smart learning. Moreover, companies were highly focused on AIs deployed check-in options for patients to adjust to the needs of the time during the pandemic period.
The research report offers a quantitative and qualitative analysis of the Citizen Services AI Market to enable effective decision-making. It covers the key trends and growth opportunities anticipated to have a favorable impact on the market. Besides, the study covers segment and regional revenue forecasts for market assessment.
The citizen services AI market report details key market dynamics to help industry players align their business strategies with current and future trends. It examines technological advances and breakthroughs in the industry and their impact on the market presence. Furthermore, a detailed regional analysis of the industry at the local, national, and global levels has been provided.
Growth Drivers
The increasing employability and expansion of digitalization in a variety of organizations, which have made their respective operations and procedures efficient and more-faster along with the growing awareness regarding the AI technologies among businesses to engage with enormous data manually are key factors expected to fuel the global citizen services ai market growth over the anticipated period.
Furthermore, the enhanced citizen satisfaction across the globe by the implementation of the Internet of Things and various other technologies such as machine learning and innovative biometric systems along with its capabilities to assist in addressing citizen grievances is further projected to boost the demand and growth of the market.
The market is primarily segmented based on technology, components, organization size, deployment mode, verticals, and region.
By Technology |
By Component |
By Organization Size |
By Deployment Mode |
By Verticals |
By Region |
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The technology is gaining high popularity and traction as it can reliably and quickly scan, parse, and react to anomalies and automatically improves the overall performance with the experience, which in turn drives the segment market growth at a rapid pace. In addition, it also enables a variety of government agencies to deliver more sophisticated, economical, and better citizen services, which results in its higher adoption across numerous governments, especially from developing countries like India and China.
The solutions segment growth is mainly driven by the continuous rise in the incorporation of artificial intelligence across various organizations to manage & receive information effectively and service investigations from government organizations more effectively. Moreover, the rising awareness regarding the ability of these solutions to extract data, provide real-time insight, and aid decision-making abilities coupled with the growing integration across several end-use verticals including transportation, healthcare, and manufacturing are likely to create potential growth opportunities in the coming years.
The SME segment is expected to register the fastest growth rate throughout the projected period on account of the growing adoption of advanced AI services/solutions among SMEs due to its numerous benefits including enhanced digital infrastructures, better operational efficiency, and improved finance access of SMEs coupled with its ability to minimize the human-related errors.
Additionally, AI can also perform many mundane tasks for SMEs such as scheduling business meetings and answering common business customer requests, among others along with performing various attractive marketing campaigns and evaluating customer-buying behavior, which is anticipated to boost the segment market growth soon.
The on-premises segment registered the highest market revenue share in 2022 and is expected to continue its position over the coming years. The growth of the segment market can be attributed to the rapidly growing use of on-premises citizen services due to their capabilities to work with mass amounts of computing power and are very helpful and crucial for customers needing prompt decision-making for data manipulation.
The cloud-based deployment segment is expected to grow fastest at a high CAGR during the forecast period, which is mainly driven by an extensive increase in the need and demand for cloud-based tools, optimized infrastructure, and high demand for virtualization, and cloud storage. With the increasing awareness of the benefits of these solutions, the deployment of natural language processing and machine learning tools in artificial intelligence is also likely to grow in the cloud.
The healthcare segment is likely to grow fastest and is expected to account for considerable market share over the study period owing to the rapid surge in the implementation of artificial-intelligence-powered solutions to boost patient care along with the growing adoption of this technology as a result of the pandemic around the world. However, the government and public sector held the largest market in terms of revenue in 2021, due to the increasing prevalence among government agencies around the globe to boost citizen engagement and satisfaction with the current pace of technological innovations and rising expectations of citizens.
The regional market growth is mainly attributed to the increasing deployment of AI solutions for citizen services, widespread use of AI in various end-user applications, and the presence of the most developed markets of the world in the region. In addition, the governments in the region are heavily investing in R&D activities along with the strong IT infrastructure and ecosystem in countries like the US, Canada, and Mexico, which is creating huge demand and growth opportunities for the market.
Asia Pacific region is expected to be the fastest growing region in the citizen services AI market, which is mainly accelerated by increasing implementation of 5G technology in countries like China, India, South Korea, and Japan and various committed strategies that have been implied by government agencies in these countries coupled with the massive increase in start-up enrollment across the region.
Some of the major players operating in the global citizen services ai market include IBM Corporation, NVIDIA, Microsoft Corporation, AWS, Accenture, Automation Anywhere, Pegasystems Inc., OpenText, Amazon Web Services Inc., Intel Corporation, Alibaba Group Holding Limited, Tencent Holdings Ltd., ServiceNow Inc., ADDO, Alfresco, Voyager Labs, Waymo, and Baidu.
Report Attributes |
Details |
Market size value in 2024 |
USD 13.06 billion |
Revenue Forecast in 2032 |
USD 237.39 billion |
CAGR |
43.7% from 2024 – 2032 |
Base year |
2023 |
Historical data |
2019 – 2023 |
Forecast period |
2024 – 2032 |
Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
Segments Covered |
By Technology, By Component, By Organization Size, By Deployment Mode, By Verticals, By Region |
Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
Key Companies |
IBM Corporation, NVIDIA, Microsoft Corporation, AWS, Accenture, Automation Anywhere, Pegasystems Inc, OpenText, Amazon Web Services Inc., Intel Corporation, Alibaba Group Holding Limited, Tencent Holdings Ltd., ServiceNow Inc., ADDO, Alfresco, Voyager Labs, Waymo, and Baidu. |
Navigate through the intricacies of the 2024 citizen services AI market with precision, thanks to the comprehensive statistics on market share, size, and revenue growth rate assembled by Polaris Market Research Industry Reports. This thorough analysis not only provides a glimpse into the historical context but also extends its reach with a market forecast outlook until 2032. Immerse yourself in the richness of this industry analysis by securing a complimentary PDF download of the sample report.
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The global citizen services AI market size is expected to reach USD 237.39 billion by 2032.
Key players in the citizen services ai market are IBM Corporation, NVIDIA, Microsoft Corporation, AWS, Accenture, Automation Anywhere, Pegasystems Inc, OpenText, Amazon Web Services Inc., Intel Corporation.
North America contribute notably towards the global citizen services ai market.
The global citizen services ai market expected to grow at a CAGR of 43.7% during the forecast period.
The citizen services AI market report covering key segments are technology, component, organization size, deployment mode, verticals, and region.