Worldwide revenues for the Artificial Intelligence (AI) market, including software, hardware, and services for both AI-centric and AI non-centric applications, totaled $383.3 billion in 2021, an increase of 20.7% over the prior year, according to an International Data Corporation (IDC) Worldwide Semiannual Artificial Intelligence Tracker. IDC expects the AI market value will reach nearly $450 billion in 2022 and maintain a year-over-year growth rate in the high teens throughout the five-year forecast.
“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 Rasmus Andsbjerg, associate vice president, Data & Analytics at IDC. “The reality is, AI offers solutions to everything we are facing at the moment. AI can be a source for fast-tracking digital transformation journeys, enable cost savings in times of staggering inflation rates and support automation efforts in times of labor shortages.”
AI software again accounted for the largest share of the overall AI market in 2021. Combined, the four AI software categories – AI application delivery & deployment, AI applications, AI system infrastructure software and Artificial Intelligence platforms – delivered more than $340 billion in market value in 2021, with AI applications representing nearly half the total. Artificial Intelligence platforms delivered the strongest year-over-year growth at 36.6%, albeit from a smaller baseline.
Within the AI applications category, AI customer relationship management (CRM) applications and AI enterprise resource management (ERM) applications each delivered about 16% of the category total. The remainder was delivered by the myriad of other AI applications available in the market. With nearly 300 companies vying for opportunities to gain share, the AI applications market remains highly competitive.
