Digital Lifescapes

As we approach 2025, the global Artificial Intelligence (AI) market is poised for significant growth. Traditional AI spending is rising, while Generative AI (GenAI) struggles to meet lofty expectations. This apparent dichotomy presents challenges and opportunities for vendors and business leaders navigating the complex world of AI implementation. Let's explore the overall situation. Traditional AI: A Pragmatic Approach In the coming year, we expect to see a surge in traditional AI spending as enterprises seek pragmatic, ROI-driven solutions. This trend is driven by a growing recognition of the limitations and risks associated with GenAI projects, which have shown alarmingly high failure rates of 80 to 90 percent in proof-of-concept stages. The trend towards traditional AI is further supported by data from Amazon Web Services (AWS), which revealed that over 85 percent of AI projects in 2024 were not based on GenAI.  This insightful statistic underscores the continued relevance and ...

In 2024, every business can be a technology-driven business. The quest for business technology leadership skills, and digital transformation, will gain new momentum as more organizations seek ways to drive net-new digital growth. Large enterprises will invest more than $19.4 billion worldwide in Generative Artificial Intelligence (GenAI) solutions in 2023, according to the latest market study by International Data Corporation (IDC). This spending, which includes GenAI software as well as related infrastructure hardware and IT or business services, is expected to more than double in 2024 and reach $151.1 billion in 2027 -- that's with a compound annual growth rate (CAGR) of 86.1 percent over the 2023-2027 forecast period. Artificial Intelligence Market Development Despite the recent IT headwinds in 2023, business leaders accelerated their exploration of GenAI solutions to help boost their digital business transformation. "In 2024, the shift to AI everywhere will enter a critic...

Demand and spending on Artificial Intelligence (AI) ) within the Asia-Pacific region will grow to reach $78.4 billion in 2027, according to the latest market study by International Data Corporation (IDC). The increase in AI spending reflects a shift toward leveraging technology to transform operations, improve customer experiences, and maintain a competitive edge in a rapidly changing market. IDC forecasts a compound annual growth rate (CAGR) of 25.5 percent for the period 2022-2027. Artificial Intelligence Market Development With a market share of 28.5 percent in 2023, the Professional Services industry is the primary leader in AI application adoption, growing at a CAGR of 22.4 percent during the forecast period. AI investment in professional services is on AI infrastructure provisioning, where end-users gain access to the resources for computing and storage, and for AI system development or the provision of AI services. In the banking industry, AI is revolutionizing customer experien...

Most digital transformation is enabled by cloud solutions. Worldwide spending on public cloud services is forecast to reach $1.35 trillion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). Although annual spending growth is expected to slow slightly over the 2023-2027 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 19.9 percent. "Cloud now dominates tech spending across infrastructure, platforms, and applications," said Eileen Smith, vice president at IDC . Public Cloud Services Market Development IDC believes that most organizations have adopted the public cloud as a cost-effective platform for hosting enterprise applications, and for developing and deploying customer-facing solutions. Looking forward, the cloud computing model remains well positioned to serve customer needs for innovation in application development and deployment -- including as data, artificial intelligence ...

Global demand for public cloud computing services continue to grow. Worldwide revenue for the public cloud services market totaled $545.8 billion in 2022 -- that's an increase of 22.9 percent over 2021, according to the latest worldwide market study by International Data Corporation (IDC). Software as a Service (SaaS) applications continued to be the largest source of public cloud services revenue by far, accounting for more than 45 percent of the total in 2022. Infrastructure as a Service (IaaS) was the second largest revenue category with 21.2 percent of the total, while Platform as a Service (PaaS) and Software as a Service System Infrastructure Software (SaaS SIS) delivered 17 percent and 16.7 percent respectively. Public Cloud Services Market Development "Given the economic challenges of the past year, it's easy to conclude that we are in a period where a focus on constraining new expenditures and optimizing the use of existing cloud assets will dominate CIOs' pri...

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth...

Throughout most industries, CEOs are focused on their digital transformation initiatives. While the economic outlook for this year includes many uncertainties, one thing remains certain -- the role of technology as the enabler for digital business growth. With that reality in mind, worldwide Information Technology (IT) spending will total $4.6 trillion in 2023, an increase of 5.5 percent from 2022, according to the latest market study by Gartner. Despite continued global economic turbulence, all regions worldwide are projected to have positive IT spending growth in 2023. Business technology investment is somewhat resilient to market conditions. Business Technology Market Development "Macroeconomic headwinds are not slowing digital transformation," said John-David Lovelock, vice president at Gartner . "IT spending will remain strong, even as many countries are projected to have near-flat gross domestic product (GDP) growth and high inflation in 2023." Prioritization ...

The 5G Core (5GC) mobile network infrastructure is the first to operate solely in the software layer. A new study finds that cloud-native Evolved Packet Core (EPC) functions and 5GC are key drivers for new telecom value creation and growth. With the ongoing adoption of cloud-based packet core networks, it is the first time the telecom industry has relied on the core network to introduce something above and beyond enhanced mobile broadband (eMBB). According to the latest worldwide market study by ABI Research, cloud packet core revenue will grow from $11 billion in 2022 to reach $16 billion in 2027. Telecom Network Cloud Market Development In a modular and increasingly disaggregated ecosystem characterized by vertical and horizontal openness, technology choices for software, hardware, and services that underpin packet core buildouts are fundamental for CSPs to expand existing MBB business and explore new growth opportunities. ABI Research now forecasts that, for MBB, core network applic...

Organizations are now in the digital business transformation era, where acting as a digital-first enterprise is a CEO mandate, and a strategic differentiator to ensure future prosperity and growth. Enterprise investment in business technology and related digital application growth initiatives has been remarkably robust, in spite of the currently projected outlook of global economic headwinds. Worldwide information technology (IT) and business services revenue will grow by 5.7 percent this year and is forecast at 5.2 percent for 2023, according to the latest worldwide market study by International Data Corporation (IDC). Business Technology Market Development IDC has maintained its outlook for the worldwide Services market against the backdrop of a potential global recession. Worldwide GDP growth worsened since earlier in the year and is now expected to grow by 2.7 percent this year and 2.4 percent in 2023. IDC remains cautiously optimistic based on reported results from vendors in the ...

While the consumer metaverse growth potential has attracted much of the media attention, it's the commercial apps growth trajectory that has gained the focus of savvy IT vendors. The enterprise metaverse opportunity  -- including immersive collaboration, digital twin, and simulation software and services revenue -- will approach $60 billion in revenue by 2030. Additional revenue from the augmented and virtual reality market would add billions in new growth for software and services. Enterprise Metaverse Market Development "The metaverse, being a long-term vision, means the buildup to this future is just as intriguing as the final product, and in this regard, it is the enterprise markets that are leading ahead of the consumer segment," said Michael Inouye, principal analyst at ABI Research . For example, efforts on the standardization front are being driven through the enterprise space. The Digital Twin Consortium directly targets industrial, while the Metaverse Standards ...

Business technology innovation offers solutions to many of today's challenges. It's a catalyst for fast-tracking digital transformation, enabling cost savings during a period of high inflation, and enabling workflow automation during IT talent shortages. Worldwide revenues for the artificial intelligence (AI) market -- including software, hardware, and services -- totaled $383.3 billion in 2021, that's an increase of 20.7 percent over the prior year, according to the latest market study by International Data Corporation (IDC). IDC now forecasts that the AI market value will reach nearly $450 billion in 2022, and maintain a year-over-year growth rate in the high teens throughout their five-year forecast period. Artificial Intelligence Market Development "Across all industries and functions, end-user organizations are discovering the benefits of AI technologies, as increasingly powerful AI solutions are enabling better decision-making and higher productivity," said ...

Ongoing concerns about economic volatility and access to skilled digital transformation talent are top-of-mind for many CEOs and CFOs. And, business technology investment is being re-prioritized as more executive leadership teams focus on strategic business outcomes. Meanwhile, spending on artificial intelligence (AI) will reach nearly $118 billion in 2022 and surpass $300 billion in 2026, according to the latest worldwide market study by  International Data Corporation (IDC). The ongoing incorporation of AI into a wide range of products will drive a compound annual growth rate (CAGR) of 26.5 percent over the 2022-2026 forecast period. This is more than four times greater than the five-year CAGR of 6.3 percent for overall worldwide IT spending during the same period. Artificial Intelligence Market Development The past two years have accelerated the use of AI in IT systems, and organizations are now more willing to take advantage of the efficiency benefits and enhanced capabilities ...

Looking ahead, many Chief Executive Officers (CEOs) continue to selectively invest in new strategic digital transformation projects that enable a significant competitive advantage. Some additional investments may go towards improving existing IT infrastructure and operations.  Worldwide IT spending is now projected to total $4.5 trillion in 2022 -- that's an increase of 3 percent from 2021, according to the latest updated estimate by Gartner. For now, most CIOs will be relieved that their budget is safe from major cuts. While IT spending is expected to grow in 2022, it will be at a slower pace than in 2021 -- partly due to a 5 percent cutback on spending for personal computers, media tablets, and printers. Digital Transformation Market Development "Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exch...

Today's business leaders face mounting pressures to improve their Environmental, Social, and Governance (ESG) skills. Because the initial steps to the formulation of a sustainable enterprise transformation can be daunting for the C-suite, demand for ESG business strategy consulting has increased. According to the latest worldwide market study by International Data Corporation (IDC), ESG business services spending will grow to $158 billion in 2025 with a five-year compound annual growth rate (CAGR) of 32.3 percent. "In 2022, all enterprises are being pushed to transform and fundamentally change the way they do business to become sustainable enterprises," said Dan Versace, research analyst at IDC . ESG Business Consulting Market Development Owing to increased pressure from customers, investors, and regulators, savvy organizations are just beginning to understand the business case for actionable Corporate Sustainability strategies. Those organizations that develop and implem...

Enterprise demand for data analytics insight and IT optimization continue to drive applications for business intelligence solutions. Meanwhile, CIOs consider new use cases for neural networks, machine learning, and natural language processing. Overall spending on Artificial Intelligence (AI) in the United States will grow to $120 billion by 2025, representing a compound annual growth rate (CAGR) of 26 percent over the 2021-2025 forecast period. Moreover, all 19 U.S. industries in the latest worldwide market study by International Data Corporation (IDC) are forecast to deliver AI spending growth of 20 percent or more. The U.S. also accounts for more than half of all AI spending worldwide. Artificial Intelligence Market Development Retail will remain the largest U.S. industry for AI spending throughout the forecast, while Banking will be the second-largest industry. Together, these two industries will represent nearly 28 percent of all AI spending in the United States in 2025 and will ac...

New wireless network technology is already a fundamental component of every enterprise CIO or CTO agenda in 2022. However, IT vendors and telecom providers must assess the broader enterprise connectivity technology landscape in order to determine where private cellular networks will add value. According to the latest worldwide market study by ABI Research, the overall market for private cellular networks within enterprise industry verticals will reach $109 billion by 2030. This includes radio access network (RAN), edge networks, core network deployments, as well as vendor professional services revenues, which alone will contribute $47 billion (44 percent) to the overall market size in 2030. Private Cellular Network Market Development "These numbers essentially tell two stories," said Leo Gergs, senior analyst at ABI Research . "The first is that they illustrate the immense opportunity for cellular connectivity within enterprise verticals. The second is that the high perc...

Artificial Intelligence (AI) and Big Data are the foundation for smart technologies and business analytics. Moreover, AI combined with human ingenuity is now viewed as the differentiator for enterprises to scale and thrive in the era of Digital Transformation. Worldwide revenues for the AI market -- including software, hardware, and services -- are forecast to grow 19.6 percent year-over-year in 2022 to $432.8 billion, according to the latest market study by International Data Corporation (IDC). Furthermore, the market is expected to break the $500 billion mark in 2023. However, the upside opportunities are also being hampered by numerous practical solution deployment challenges.  Artificial Intelligence Market Development "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...

Cloud computing solutions continue to move closer to the edge of networks across the globe, where compute and storage are located near the source of the data. Worldwide spending on edge computing is forecast at $176 billion in 2022 -- that's an increase of 14.8 percent over 2021. Enterprise and service provider spending on hardware, software, and services for edge solutions is forecast to sustain this pace of growth through 2025 when spending will reach nearly $274 billion, according to the latest worldwide market study by International Data Corporation (IDC). IDC defines edge as the technology-related actions that are performed outside of the centralized data center, where edge computing is the intermediary between the connected endpoints and the core IT environment. Characteristically, the edge is distributed, software-defined, and flexible. Edge Computing Market Development "Edge computing continues to gain momentum as digital-first organizations seek to innovate outside of...

Many senior executives remain upbeat about the potential of a business technology investment to drive digital business growth. Worldwide information technology (IT) spending is projected to total $4.5 trillion in 2022 -- that's an increase of 5.1 percent over 2021, according to the latest market study by Gartner. Despite the potential impacts of the COVID-19 pandemic and commercial disruption fueled by the Omicron variant, economic recovery with high expectations for digital market prosperity will continue to boost technology investments. Hybrid Enterprise IT Market Development "2022 is the year that the future returns for the CIO," said John-David Lovelock, vice president at Gartner . "They are now in a position to move beyond the critical, short-term projects over the past two years and focus on the long term." Simultaneously, staff skills gaps, wage inflation, and the demand for digital transformation talent will push CIOs to rely more on consultancies and ma...

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice ...