According to a report by the International Data Corporation (IDC), the global revenue of the artificial intelligence market is expected to grow by 15.2% year-on-year in 2021 to reach $341.8 billion. A substantial amount that is expected to climb further in 2022 with a growth of 18.8%. A look back at this survey which highlights the AI solutions market. Software, Hardware, Services, a review of the market related to these three categories of AI solutions and offers.
The situation of the AI software market over the next five years
If today, the AI solutions market for companies reaches 342 billion dollars, it is expected that in 2024, the 500 billion dollar mark could be crossed. While software accounts for 88% of the global AI market, services and hardware are expected to grow much faster in the coming years.
As for AI software in general, applications account for 50% of revenues. In terms of growth, AI platforms have the highest five-year compound annual growth rate (CAGR) at 33.2%. Below, find the graph of the overall evolution according to the software categories:
Ritu Jyoti, vice president for AI and automation research at IDC commented on the results:
“Disruption is destabilizing, but it can also serve as a catalyst for innovation and transformation. 2020 was the year that accelerated digital transformation and reinforced the value of enterprise AI. We have now entered the realm of AI-enhanced work and decision making across all functional areas of a business. Responsible creation and use of AI solutions that can detect, predict, react and adapt quickly is an important business imperative.”
AI services: an ever-expanding market
The AI services market was estimated to be worth $19.4 billion in 2020. which is the fastest growing compared to hardware and software. For 2021, it is expected to grow by 19.3%. Over the next five years, it is expected to enjoy the highest CAGR at 21%. Find a histogram of the services market, with the IT services market in blue and the business services market in turquoise.
Jennifer Hamel, head of research at Intelligent Analytics and Automation Services, states:
“Client demand for expertise in developing production-level AI solutions and establishing the right organizational, platform, governance, business process and talent strategies to ensure sustainable adoption of AI at scale is driving expansion in the IT and business services segments.”
Hardware is the fastest growing market
Currently, dedicated AI hardware accounts for 5% of the overall AI market. Nevertheless, it is expected to grow the fastest in 2021 at 29.6% year-on-year. It is also expected to hold the best growth spot in 2022. Over the next five years, its CAGR is estimated at 19.4%. See below its evolution by region, with servers in blue and storage in turquoise:
Peter Rutten , research director, Infrastructure Systems, Platforms and Technologies at IDC adds:
“The AI server and storage market was less affected than expected by the COVID-19 pandemic and is now rapidly regaining momentum, particularly at the edge. The infrastructure of choice is focused around massively parallel computing using coprocessors and server clusters with fast interconnects and networks.”
To conclude, six companies generated more than $500 million each in 2020 in the server market. They are Dell, Hewlett Package Enterprise (HPE), Huawei, IBM, Inspur and Lenovo. Together, these six behemoths hold 62% of the global server market. On the storage side, HPE, Dell, Huawei and IBM are also represented, along with NetApp and Hitachi. Each of these firms generated at least $100 million in the storage market for a combined market share of 68 percent.
Translated from Le marché mondial de l’intelligence artificielle en entreprise atteindra 342 milliards de dollars en 2022
