Autonomous Agents Market Size, Share & Trends Analysis Report By Deployment Type (Cloud, On-Premise), By Organization Size (SMEs, Large Enterprises), By Industry Vertical (IT and Telecommunication, Manufacturing, Transportation and Mobility, Healthcare, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global autonomous agents market revenue was valued at USD 2.10 billion in 2023. It is estimated to reach USD 49.67 billion by 2032, growing at a CAGR of 42.12% during the forecast period (2024–2032). In recent years, there has been a rise in the applications of AI, which has increased in almost every field and has driven the demand for autonomous agents. The rapid growth of IoT devices, which can provide massive data to be used by autonomous agents to function, further boosts market expansion. Moreover, leading market participants are launching novel autonomous agents with advancements in AI technology to augment their offerings, thereby creating opportunities for market growth.

Autonomous agents refer to software or hardware entities that can perform independently and autonomously inside complex and dynamic environments without direct human oversight or involvement. These agents possess the capacity to sense their surroundings, make determinations, and carry out activities to accomplish their goals. Autonomous agents encompass several examples, such as self-driving cars, autonomous drones, virtual agents in computer games, and software bots that carry out automated operations on the Internet. AI technologies, such as natural language processing, machine learning, context awareness, and computer vision, enable them to carry out many jobs, including trading, driving, controlling, and learning. These agents have a pivotal significance in several domains, encompassing transportation, logistics, manufacturing, and healthcare since they enhance efficiency, safety, and productivity.

Highlights

• Cloud-based deployment dominates the deployment type segment
• Transportation and mobility dominate the industry vertical segment 
• North America is the highest shareholder in the global market

Market Dynamics

Market Drivers

Increasing AI Applications 

The growing prevalence of AI applications in various fields is a major factor contributing to the emergence of autonomous agents. IBM reports that the worldwide rate of AI use has steadily grown, reaching 35%, representing a four-point gain compared to the previous year. AI is utilized across several industries, such as healthcare, banking, transportation, and manufacturing, to address intricate issues and enhance operational efficiency. These applications utilize sophisticated algorithms, machine learning, and data analysis approaches to extract important insights and streamline decision-making processes. With the increasing need for effective and intelligent solutions, there is a corresponding need for autonomous AI systems and agents that can adapt and function independently without continuous human interaction.

Rapid Growth of IoT Devices

The widespread use of IoT devices equipped with sensors and connected to the Internet offers a large amount of data that autonomous agents can utilize for various activities, such as predicting maintenance needs and optimizing supply chains. Statista predicted that the global count of Internet of Things (IoT) devices will nearly double, increasing from 15.1 billion in 2020 to over 29 billion by 2030. By 2030, China is expected to have the largest concentration of IoT devices, totaling over 8 billion consumer gadgets. Therefore, the widespread adoption of IoT devices is expected to drive the global market.

Market Restraint

Limited Adaptability and Contextual Understanding in Autonomous AI and Agents

The practical application of autonomous AI and agents is hindered in numerous domains by their limited adaptability and contextual understanding. These limitations stem from the intricacy of human interactions and the ever-changing character of real-world situations. Although AI systems may perform exceptionally in particular activities within predetermined boundaries, they frequently encounter difficulties when confronted with novel circumstances or managing unpredictable surroundings. Moreover, AI systems face a difficult problem in comprehending and effectively reacting to many cues and environmental conditions, known as contextual understanding. Hence, these variables exert an adverse effect on the overall market expansion.

Market Opportunities

Launch of Novel Autonomous Agents

The key players in the global autonomous agents market are introducing novel autonomous agents to enhance their portfolio. For instance, in July 2023, Amazon unveiled the introduction of agents for Amazon Bedrock, a novel functionality that enables developers to generate fully controlled agents swiftly. Agents for Amazon Bedrock expedite the deployment of generative AI applications that can efficiently execute tasks by making API calls to enterprise systems. Agents surpass Foundation Models by comprehending user requests, breaking down complex tasks into manageable steps, engaging in dialogue to gather additional information, and executing appropriate actions to fulfill the request.

Similarly, in August 2023, Dropzone AI, a startup dedicated to automating the tedious and lengthy task of examining security alerts, announced today that it has secured USD 3.5 million in seed funding. The company has also introduced its autonomous AI security agent. This software product utilizes large language models (LLMs) to replicate proficient security analysts' cognitive processes and methodologies. These factors present an opportunity for market expansion.

Regional Analysis

Based on region, the global autonomous agents market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America's autonomous agents market share is expected to expand substantially during the forecast period. The North American market is projected to dominate, primarily due to the presence of key industry players like Google, IBM, and Microsoft, as well as the widespread adoption of AI technologies and applications. Moreover, there is a rapid and increasing acceptance of self-driving automobiles in the United States. Autonomous Vehicle Pilots Across America reports that more than 50% of communities in the United States plan to enhance their road infrastructure to accommodate self-driving vehicles. The U.S. Department of Transportation (USDOT) worked with a diverse group of industry, academic, state, local, safety, advocacy, and transportation stakeholders to create the Automated Vehicles Comprehensive Plan. This plan aims to facilitate the secure advancement, testing, and incorporation of automated vehicle technologies. Hence, the revised regulatory framework and favorable government laws surge market prospects for autonomous vehicles, fueling demand for autonomous agents in the region.

Moreover, the prominent participants in the market are using various strategic measures to augment their market dominance. For instance, in November 2023, DataStax, a company that provides real-time, scalable data for generative AI applications, announced an enhanced partnership with Amazon Web Services (AWS). This partnership includes the development of new generative AI technologies and integrating products and technologies for better market reach. Collectively, the companies are offering generative AI solutions that empower clients to enhance efficiency and rapidly create and implement precise generative AI applications that drive unique consumer experiences. DataStax offers cutting-edge generative artificial intelligence solutions utilizing the capabilities of AWS. They assist their clients in harnessing the potential of large language models (LLMs) to develop autonomous agents and other real-time artificial intelligence technologies. Therefore, these elements contribute to the growth of the regional market.

Asia-Pacific is expected to hold the highest market growth due to increased investments in AI and cloud computing, population growth and urbanization, and developing potential in sectors like automotive, consumer goods, and healthcare. Government entities, public sector institutions, and NGOs have initiated the allocation of funds for pilot initiatives utilizing AI in diverse areas such as traffic management, road and public safety, and digitalization of government documents. INAI (Intel Al) was founded in October 2020 in Hyderabad through a collaboration between the Telangana government, Intel India, the International Institute of Information Technology, Hyderabad (IIIT-H), and the Public Health Foundation of India (PHFI). The center will prioritize addressing difficulties in India's healthcare and smart mobility sectors, aiming to promote the use of AI in the country. This, in turn, would increase the demand for autonomous agents.

Furthermore, prominent market participants are releasing innovative autonomous products, boosting the need for autonomous agents. For instance, in June 2023, Minus Zero, a start-up based in Bengaluru, introduced what it asserts to be India's inaugural autonomous vehicle equipped with a camera-sensor suite. The autonomous car lacks a steering wheel and instead depends on camera-based sensors instead of the conventional LiDAR and radar technology. The start-up asserts that the vehicle may be outfitted with Level 5 autonomous capabilities, enabling it to operate without human intervention in any environmental or geographical limitations. Thus, the aspects above are anticipated to bolster the market's growth.

Segmental Analysis

The global market is segmented by deployment type, organization size, and industry vertical.

Based on deployment type, the global market is divided into cloud and on-premise. 

The cloud-based deployment segment owns the highest market share. Cloud-based autonomous agents are software programs or entities that function independently and make decisions using predetermined rules, algorithms, or machine learning models. They rely on cloud computing infrastructure for their operations. These agents depend on cloud computing resources for their activities, encompassing storage, processing power, and networking capabilities. This enables them to easily expand their capacity, access extensive datasets, and cooperate with other systems or agents. Moreover, cloud-based autonomous agents include virtual assistants like Amazon Alexa or Google Assistant, autonomous vehicles, chatbots, and automated trading systems. These agents showcase the capacity to utilize cloud computing and AI technology to develop intelligent systems that can function independently in many fields.

Based on organization size, the global autonomous agents industry is divided into SMEs and large enterprises.

Large enterprises have an employee base of 250 or more individuals. The company's annual revenue exceeds 1.5 billion euros, and its total assets amount to over 2 billion euros. Although these enterprises are not widespread, their large scale and capacity to dominate a specific market result in them generating the majority of overall revenue when considering all business sizes. Large companies often utilize autonomous agents because they can comprehensively evaluate substantial amounts of data and generate significant insights. These agents can execute activities such as data cleansing, pattern identification, and predictive analysis, hence facilitating organizations in making data-informed decisions with enhanced efficiency.

Based on industry verticals, the global market is bifurcated into IT and telecommunication, manufacturing, transportation and mobility, healthcare, and others. 

The transportation and mobility segment dominates the global market. The implementation of automation in the automotive industry is expected to drive the expansion of the transportation and mobility segment during the forecast period. The automotive industry is making substantial investments in autonomous vehicles, which depend on advanced autonomous agents to observe their surroundings, make decisions, and navigate securely. Autonomous agents can improve driving safety, efficiency, and convenience by carrying out activities including navigation, collision avoidance, and traffic management.

McKinsey & Company predicts that autonomous driving has the potential to generate a substantial income of USD 300 billion to USD 400 billion by 2035. In the near future, Tesla, Volkswagen, Ford, General Motors, and Waymo will introduce fully autonomous models of their vehicles. Nissan has declared their intention to incorporate Pro PILOT technology into a total of 20 distinct vehicle types by the year 2022. Consequently, expanding self-driving vehicles is anticipated to stimulate the need for associated technologies and services, such as autonomous agents.

Impact of covid-19

The COVID-19 pandemic has caused a global healthcare crisis, resulting in a change in healthcare delivery in most areas. Most unrelated surgeries were postponed in the first half of 2020 to slow the spread of the virus and reduce the strain on healthcare infrastructure. According to Indiana University researchers, healthcare visits declined by approximately 40% in the first six weeks of the pandemic in the U.S, from early March to mid-April.

Following the relaxation of constraints, there has been a general decrease in people postponing seeking care and treatment in healthcare facilities. Furthermore, the slowdown in clinical trial enrollment has pushed back the launch of novel treatments. These considerations may have had a detrimental influence on the autoinjector industry, particularly with its usage in healthcare facilities beginning in early 2020.

However, the overall effect on the autoinjectors market is considered positive, especially during the forecast period, due to several factors. In the biologics space, there has been a shift toward higher delivery volumes and less frequent dosing, which can be achieved through suitably customized autoinjectors.

The COVID-19 pandemic has accelerated the trend of self-injection, allowing patients to be more involved and in charge of their treatment. The trend boosted newer technology in the autoinjector market for improved regulation of injection speed, injection site discomfort, and treatment of anxiety.

Recent Developments

October 2023- HumanSignal introduced Adala, a framework for an Autonomous Data (Labelling) Agent. Adala presents a novel method for data processing by providing a flexible platform for automatically implementing specialized agents that perform various data labeling tasks.

November 2023- OpenAI unveiled its autonomous agent, Jarvis, during the DevDay event.