Skip to main content

Artificial Intelligence Global Revenue will Reach $554.3B

The global market for intelligent business technology solutions continues to evolve, as more CIOs and CTOs seek ways to automate routine tasks and associated business processes. The solutions have gained momentum in the marketplace as offerings matured and became mainstream across many industries.

Worldwide revenues for the artificial intelligence (AI) market -- including software, hardware, and services -- are forecast to grow 16.4 percent year-over-year in 2021 to $327.5 billion, according to the latest worldwide market study by International Data Corporation (IDC).

Artificial Intelligence Solutions Market Development

By 2024, the market is expected to break the $500 billion mark with a five-year compound annual growth rate (CAGR) of 17.5 percent and total global revenues reaching $554.3 billion.

Among the three technology categories, software represented 88 percent of the total AI market revenues in 2020. However, it is the slowest growing category with a five-year CAGR of 17.3 percent.

Within the AI software category, AI Applications took the largest share of revenue at 50 percent in 2020. In terms of growth, the AI Software Platforms market is forecast to be the strongest with a five-year CAGR of 32.7 percent.

The slowest will be AI System Infrastructure Software with a five-year CAGR of 13.7 percent while accounting for roughly 36 percent of AI software revenues. Within the AI Applications market, AI ERM is expected to grow slightly stronger than AI CRM over the next five years.

"The global pandemic has pushed AI to the top of the corporate agenda, empowering business resilience and relevance," said Ritu Jyoti, vice president at IDC. "AI is becoming ubiquitous across all the functional areas of a business. Advancements in Machine Learning, Conversational AI, and Computer Vision AI are at the forefront of AI software innovations, architecting converged business and IT process optimizations, predictions and recommendations, and enabling transformative customer and employee experiences."


The AI Services category grew slower than the overall AI market with 13 percent annual revenue growth in 2020. However, it is forecast to grow 17.4 percent year over year in 2021, outperforming the overall AI market by approximately 1 percent.

Its five-year CAGR is expected to be 18.4 percent with revenues reaching $37.9 billion by 2024. This technology category breaks down into two market segments: IT Services and Business Services. IT Services is the larger of the two, accounting for nearly 80 percent of all AI Services revenues.

From a growth perspective, IT Services for AI tends to grow faster than Business Services for AI except for 2024, where Business Services for AI is forecast to perform slightly higher than both IT Services for AI and the overall AI Services market.

Though the pandemic interrupted the momentum of worldwide AI services market growth, enterprise demand for AI capabilities to support business resiliency and augment human productivity sustained double-digit expansion in 2020, even as other discretionary projects experienced delays.

According to the IDC assessment, client demand for technical expertise to develop, implement, and manage AI applications drives IT services expansion, while increasing adoption of AI-enabled automation within business processes boosts spending on business services.

Overall, the competitive landscape in both IT services markets for AI is a highly fragmented one where players from across the services value chain continue to invest in technology assets, innovation resources, and expertise in applying AI to solve industry- and domain-specific problems for clients.

Artificial Intelligence Infrastructure Market Growth

The AI hardware market is the smallest category with approximately a 5 percent share of overall AI revenues in 2020. The share is forecast to increase slightly in 2021 at the expense of AI software.

The AI server market grew faster than the AI storage market in 2020, but these results are expected to reverse in 2021 when AI storage is forecast to grow 31.8 percent year-over-year compared to 26.4 percent for the AI server market.

By 2024, AI hardware is forecast to be a $30.5 billion market with AI Servers representing an 82 percent revenue share. The AI server and storage markets continue to see rapid growth, providing an increasingly specialized and innovative infrastructure foundation under the entire AI landscape.

While the number of vendor companies tracked in each market is the same, the competitive landscape of the AI server market is more fragmented than the AI storage market, where the top 3 companies accounted for 49 percent market share in 1H 2020.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun

Why a Distributed Workforce will Raise Productivity

While most senior executives at progressive organizations have already evolved their human resource policies to accommodate employee desire for flexible working models, others still resist change. Unfortunately, many of the laggards are now experiencing the "Great Resignation" phenomenon. The global pandemic required business leaders to rethink when, where, and how their knowledge workers and front-line employees perform their work. Yet even with the ongoing pandemic recovery slowly underway, some organizations are still trying to determine their workforce approach. According to the latest worldwide market study and recent survey data from International Data Corporation (IDC), stability and geography will likely define the balance of future work strategies. Distributed Workforce Market Development On a global basis, physical office sites are expected to be the dominant location for work as legacy organizations eventually find themselves in a more stable environment. However,