Machine Learning to Surge Past $110 Billion in 2025, Growing 30% Faster Than the Rest of the AI Market

March 16, 9:33 am

The machine learning market has seen explosive growth in recent years, more than doubling in size since 2020. As global demand for AI-driven solutions accelerates, machine learning remains the fastest-growing sector in the AI revolution, expanding significantly faster than the broader market.

According to data presented by AltIndex.com, the machine learning industry is on track to surpass the $110 billion mark in 2025, growing 30% faster than the rest of the AI market.

Machine Learning Market Growth Outpaces Every Other AI Sector

While the entire AI industry has skyrocketed in recent years, the rise of machine learning has been exceptional. This technology has transformed industries from finance to healthcare, revolutionized everything from predictive analytics to generative AI and drew record-breaking investments from both tech giants and startups. With surge of investments, machine learning has more than doubled in size in just five years, outpacing all other AI industry segments.

This momentum will continue in 2025, with the market set to reach a record valuation and maintain a double-digit growth advantage over the rest of the AI sector. According to Statista Market Insights survey, the global machine learning market will hit a $113 billion value this year, expanding by an impressive 42.6%. Although this marks a slowdown from the nearly 56% growth rate seen in 2024, machine learning remains the fastest-growing AI segment by a wide margin.

For example, natural language processing, the second-largest segment of the AI market, is projected to reach a $48.3 billion valuation, growing 32% year-over-year, which is 30% slower than machine learning. Statistics show machine learning is increasing 30% faster than AI robotics and the broader AI market, both forecasted to rise by around 32% in 2025.

Meanwhile, the autonomous and sensor technology sector will see only half the growth rate of machine learning, increasing by less than 20% and reaching a $35 billion value in 2025. The computer vision sector is lagging even further, with a projected 13.5% growth rate and a total market value of $29.2 billion this year.

Machine Learning to Make up 46% of Total AI Market Value in 2025, Up 3% From Last Year

As businesses across industries continue ramping up their investments in machine learning, its dominance within the AI market is expanding. Last year, it accounted for 43% of the total AI market value, followed by natural language processing (19%), computer vision (14%), and autonomous and sensor technology (13%).

With its market valuation reaching a record-breaking $113 billion, machine learning’s share of the AI industry is expected to increase by 3% and hit 46% in 2025. According to Statista projections, this upward trajectory will continue, with machine learning expected to account for more than 60% of the total AI market value by the end of the decade.

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