Global AI market projected to reach $4.8 trillion by 2033

The global artificial intelligence market is undergoing massive expansion across multiple sectors. UN Trade and Development (UNCTAD) projects the global AI market will reach $4.8 trillion by 2033, representing a 25-fold increase over ten years. However, UNCTAD warns of a widening digital divide, noting that fewer than one-third of developing countries have national AI strategies and 118 countries are currently absent from major AI governance forums.

In the specialized sector of Physical AI—technology integrated into robots, vehicles, and industrial machinery—the market is expected to grow from $3.5 billion in 2025 to $58.1 billion by 2035, with a CAGR of 32.4%. This growth is driven by advancements in humanoid robots, foundation models, and edge computing, particularly in manufacturing, logistics, and healthcare.

Simultaneously, the AI market for supply chain management is forecasted to grow at a CAGR of 37.29% through 2035. Companies are increasingly adopting AI for demand forecasting, inventory management, and logistics optimization. Recent industry developments include Oracle introducing AI agents into its Fusion Cloud SCM to automate daily workflows and Gather AI launching a partner program for AI-driven inventory monitoring.