The latest research released by the International Data Corporation (IDC), predicts that the worldwide revenues for the international artificial intelligence (AI) market are set to grow 19.6% year over year in 2022 to $432.8 billion. The AI market including software, hardware and services is expected to break the $500 billion mark in 2023.
In 2022, the spending for AI software is expected to decline slightly and that for AI hardware and services shall grow more quickly. The following year will also show the same trend.
The compound annual growth rate (CAGR) forecast over the next 5 years of the different categories of the AI market are:
- AI Services- 22%
- AI Hardware- 20.5%
- AI platforms- 34.6%
- AI System Infrastructure Software- 14.1%
- AI Lifecycle Software- 38.9%
- AI Business Services- 21.9%
“AI has emerged as the next major wave of innovation. AI solutions are currently focused on business process problems and range from human augmentation to process improvement to planning and forecasting, empowering superior decisioning and outcomes. Advancements in language, voice and vision technologies, and multi-modal AI solutions are revolutionizing human efficiencies,” said Ritu Jyoti, group vice president, Worldwide Artificial Intelligence (AI) and Automation Research at IDC. “Overall, AI plus human ingenuity is the differentiator for enterprises to scale and thrive in the era of compressed digital transformation.”
AI market growth in 2021 and 2022
- In the AI Software category, during the first half of 2021, AI Applications accounted for 47% of spending, followed by AI System Infrastructure Software with 35% share. In terms of growth, AI Platforms are expected to perform the best and AI System Infrastructure Software will be the slowest growing segment.
- In the AI Applications segment, AI ERM will grow the fastest over the next several years relative to AI CRM and the rest of AI Applications.
- In the first half of 2021, AI hardware grew the most in terms of market share with a jump of 0.5%, relative to the Software and Services categories. It will reach 5% market share in 2022 with year-over-year growth of 24.9%.
- AI Storage had a larger growth relative to AI Server in the first half of 2021. According to IDC, this trend will reverse in 2022 and AI Server will see 26.1% growth compared to 19.7% growth for AI Storage.
- Within the AI Services category, AI IT Services had a 20.4% year-over-year growth in the first half of 2021 and its worldwide spending reaching $18.4 billion. This growth will improve to 22% in 2022. IDC expects overall AI Services spending to reach $52.6 billion by 2025.Image and Research Source: IDC Forecasts Companies to Increase Spend on AI Solutions by 19.6% in 2022
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