Market Competition Analysis and Future Development Prospects of the Visual AI Industry
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Artificial intelligence is a key driving force in the new wave of technological revolution and industrial transformation. Accelerating the development of next-generation AI is a strategic issue for China to seize the opportunities presented by this revolution and transformation.
AI, or artificial intelligence, includes visual AI as a subfield, commonly referred to as "computer vision," which focuses on pattern recognition and image processing. As the name suggests, computer vision enables computers to "see" like humans, acquiring the ability to perceive, recognize, and understand the objective world. It also involves related algorithms such as machine learning and deep learning, empowering computers with skills like facial recognition, image recognition, image segmentation, image reconstruction, image generation, and object detection. These capabilities allow AI to replace humans in hazardous scenarios and repetitive production tasks, saving labor and improving efficiency.
The application of intelligent visual technology in assembly processes effectively avoids potential safety risks caused by collisions during module assembly, ensuring zero damage to batteries. Subsequent processes such as battery pack gluing, lid closing, and tightening are all automated by robots based on digital twin technology. Using visual technology with deep learning algorithms for multiple quality assurances, the installation process achieves a measurement accuracy of less than 0.1 millimeters, ensuring the battery pack meets the highest sealing standards.
Visual AI is widely applied across various industries, including security, retail, marketing, and healthcare. In the security sector, applications include access control and smart cameras, significantly improving efficiency in security checks and management through facial recognition technology.
With the continuous development of visual technology, deep learning, and high-precision imaging, the application scenarios of visual AI will continue to expand. Visual AI offers significant advantages in speed, accuracy, and environmental adaptability, enabling it to replace human vision and better support industrial automation and the intelligent development of various industries.
In recent years, China's AI industry has made significant progress in technological innovation, industrial ecosystems, and integrated applications, positioning itself in the global first tier. According to the China Academy of Information and Communications Technology, the core AI industry in China reached 508 billion yuan in 2022, an 18% year-on-year increase.
By the end of 2022, there were 27,255 AI companies globally, with 4,227 in China, accounting for about 16% of the total. China's AI industry has formed three major development clusters in the Yangtze River Delta, Beijing-Tianjin-Hebei region, and the Pearl River Delta. Companies like Baidu, Alibaba, Huawei, Tencent, iFlytek, CloudWalk, and JD.com have established AI platforms capable of supporting rapid industry growth.
Similar to the AI market's industrial chain, the visual AI market is divided into foundational, technical, and application layers. The foundational layer includes hardware support (such as chips for computing power and front-end devices for data collection), underlying technical support, and vast data resources. The technical layer comprises software products, solutions, and platforms built on various recognition technologies. The application layer encompasses diverse scenarios for visual AI applications.
Market Competition Analysis and Future Development Prospects of the Visual AI Industry
Visual AI is a rapidly developing branch of AI, focusing on the analysis and interpretation of visual data such as images and videos. It involves using machine learning algorithms and deep learning neural networks to identify patterns, classify objects, and extract meaning from visual information. It is transforming how humans process and analyze image and video data, with broad applications across industries.
The emergence of AI algorithms, particularly deep learning, has significantly propelled the development of the visual AI industry. Computer vision is the largest segment of the AI industry, with its market size far exceeding other subfields.
Among domestic AI companies, 42% utilize computer vision technology, followed by speech and natural language processing at 24% and 19%, respectively—combined, they match the share of computer vision. Visual AI holds immense value in applications such as security video analysis, financial identity verification, mobile and internet entertainment, retail product recognition, industrial manufacturing, advertising, autonomous driving, and medical imaging analysis.
The development of the visual artificial intelligence industry is driven by technological advancements: on one hand, the emergence of AI chips such as GPUs, FPGAs, and ASICs has significantly enhanced computational capabilities, breaking through the limitations of traditional CPUs; on the other hand, the rise of AI algorithms, particularly deep learning, has greatly improved the recognition capabilities of visual AI. The improvements in hardware computing power and software algorithms have both played crucial roles in advancing visual artificial intelligence.
Globally, the sales of the visual AI market reached $11.351 billion in 2022 and are expected to grow to $21.810 billion by 2029, with a compound annual growth rate (CAGR) of 10.51% (2023-2029). The Chinese market has seen rapid changes in recent years, with a market size of $2.812 billion in 2022, accounting for approximately 24.77% of the global market. It is projected to reach $6.172 billion by 2029, representing 28.30% of the global market share.
In 2021, the core products of China's computer vision technology and related industries reached market sizes of 99 billion yuan and 307.9 billion yuan, respectively. These figures are expected to grow to 187.3 billion yuan and 577.1 billion yuan by 2025.
SenseTime has consistently ranked first in the past five years, holding a market share of 23.1% in 2022. Following SenseTime are Hikvision, AInnovation, Megvii, CloudWalk, and Smart Eye, with market shares of 8.3%, 8.1%, 8.0%, 3.3%, and 2.2%, respectively.
With the continuous development of visual technology, deep learning, and high-precision imaging, the application scenarios of visual artificial intelligence will continue to expand. Currently, visual AI is widely used in the automotive manufacturing sector. In the future, as quality control, intelligence, and lightweight trends in automobiles demand higher standards for inspection, these factors will drive the increasing demand for visual AI in industrial manufacturing. During the 14th Five-Year Plan period, China will further deepen industrial restructuring, leading to the continuous expansion of downstream application areas for visual artificial intelligence.