India Vision AI Market Outlook to 2028

India Vision AI Market Overview

In recent years, the India Vision AI Market has experienced substantial growth, this is reflected by the India computer vision AI market reaching a valuation of USD 920 million in 2023 driven by the increasing adoption of AI technologies across various sectors, including healthcare, automotive, retail, and manufacturing.

The Indian Vision AI market is dominated by several key players who have established themselves through continuous innovation and strategic partnerships. Leading companies include Tata Consultancy Services (TCS), Infosys, Wipro, Tech Mahindra, and HCL Technologies.

In 2023, Infosys acquired an AI startup specializing in Vision AI technologies for INR 1.5 billion. This acquisition aims to strengthen Infosys's AI capabilities and expand its portfolio of AI-driven solutions, enhancing its competitive edge in the market and driving innovation across various sectors.

Bengaluru, known as the Silicon Valley of India, dominates the Vision AI market driven by the presence of numerous tech companies and startups. The region's robust infrastructure, coupled with a favorable business environment and government support for AI initiatives.

India Vision AI Market Segmentation

The India Vision AI market is segmented by various factors like product, application, and region.

By Product: India Vision AI Market is segmented by product type into hardware, software, and services. In 2023, the hardware segment, particularly AI-enabled cameras, dominated the market due to their critical role in enhancing security and surveillance systems across public and private sectors. The growing adoption of smart city initiatives and the integration of AI in automotive safety systems further contributed to the segment's dominance.

By Application: India Vision AI Market is segmented by application into healthcare, automotive, retail, and manufacturing. In 2023, the healthcare segment dominated the market due to the increasing adoption of Vision AI in diagnostic and patient monitoring applications. The ability of AI to enhance diagnostic accuracy and improve patient outcomes has driven its widespread acceptance in the healthcare industry.

By Region: India Vision AI Market is segmented by region into North, South, East, and West. In 2023, the South region, especially Bengaluru, dominated the market due to its status as a technological hub, housing numerous AI startups and established tech companies. The region's strong infrastructure and government support for AI research and development have further bolstered its market leadership.

India Vision AI Market Competitive Landscape

Company

Establishment Year

Headquarters

Tata Consultancy Services (TCS)

1968

Mumbai, India

Infosys

1981

Bengaluru, India

Wipro

1945

Bengaluru, India

Tech Mahindra

1986

Pune, India

HCL Technologies

1976

Noida, India

Wipro: In 2023, Wipro announced the Wiprpo Enterprise AI-Ready Platform. This platform leverages IBM's Watsonx AI and data platform to help clients create enterprise-level, fully integrated and customized AI environments. It provides tools, large language models, streamlined processes, and robust governance to accelerate AI adoption.

HCL Technologies: In 2024, HCL Technologies launched of the HCLTech Enterprise AI Foundry. This platform combines data engineering with cognitive infrastructure to accelerate Generative AI (Gen AI)-led transformation. It addresses the complexities associated with industrial-scale AI foundation models, data silos, and the overload of tools and frameworks, enabling seamless integration across IT and data assets.

India Vision AI Market Analysis

India Vision AI Market Growth Drivers

Adoption in Healthcare: The integration of Vision AI in healthcare is a significant growth driver. By 2024, hospitals and clinics across India had adopted AI-driven diagnostic tools. AI-powered predictive analytics have become instrumental in identifying individuals at high risk for diseases like diabetes, cardiovascular disorders, and cancer. The Ministry of Health and Family Welfare reported that the use of Vision AI in radiology alone reduced diagnosis time by an average of 30 minutes per patient, improving patient outcomes and operational efficiency.

Surge in Smart City Projects: The government's push for smart city projects has accelerated the demand for Vision AI technologies. By 2024, various smart cities in India had incorporated AI-driven surveillance and traffic management systems. According to the Ministry of Housing and Urban Affairs, these systems managed hundreds surveillance cameras and streamlined traffic flow in urban areas, reducing congestion and improving safety.

Automotive Industry Innovations: Vision AI is revolutionizing the automotive industry in India, particularly in autonomous vehicles and advanced driver assistance systems (ADAS). At the Bharat Mobility Global Expo 2024, Tata Motors showcased a range of advanced vehicles and technologies, including ADAS (Advanced Driver Assistance Systems) for enhanced safety. The Society of Indian Automobile Manufacturers (SIAM) noted a marked increase in vehicle safety ratings and customer satisfaction.

India Vision AI Market Challenges

Data Privacy Concerns: Data privacy remains a significant challenge in the Vision AI market. By 2024, the Indian Computer Emergency Response Team (CERT-In) reported over 200,000 data breach incidents involving AI systems. The lack of stringent data protection regulations and consumer awareness exacerbates the issue, necessitating robust cybersecurity measures and compliance frameworks to protect sensitive information.

Shortage of Skilled AI Professionals: The Vision AI market in India faces a critical shortage of skilled AI professionals. In 2024, the National Association of Software and Service Companies (NASSCOM) estimated a gap of 150,000 AI specialists required to meet industry demands. This talent shortage hampers the development and deployment of AI solutions, underscoring the need for focused AI education and training programs.

India Vision AI Market Government Initiatives

National AI Strategy: The Indian government launched the National AI Strategy to promote AI innovation and adoption. The Union Cabinet approved an investment of INR 104.17 billion for the national-level India AI mission. The strategy aims to position India as a global leader in AI technology.

AI Research Hubs: In 2024, the government established AI research hubs in major cities like Bengaluru, Hyderabad, and Pune. These hubs received funding of INR 5 billion to support cutting-edge research and development activities, providing state-of-the-art facilities and resources for AI researchers and startups. This initiative aims to accelerate AI advancements and commercialization.

India Vision AI Future Market Outlook

The India Vision AI Market is poised for remarkable growth, driven by expansion of AI in autonomous vehicles, AI-driven smart city projects, and integration of AI in healthcare.

Future Market Trends

Expansion of AI in Autonomous Vehicles: Over the next five years, the Vision AI market will see advancements in autonomous vehicle technologies. By 2028, it is projected that thousands of autonomous vehicles will be equipped with advanced Vision AI systems, enhancing safety and driving experiences. This trend is supported by the growing investment in AI research by automotive giants and favorable government policies.

AI-Driven Smart City Projects: The implementation of AI-driven smart city projects will accelerate, with an estimated 200 smart cities incorporating Vision AI technologies by 2028. These projects will involve AI-enabled surveillance cameras and traffic management systems, improving urban infrastructure and living standards. Government initiatives and funding will play a crucial role in this expansion.
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