Artificial Intelligence Market Revenues to Touch $156 Billion This Year

Artificial Intelligence Market Revenues to Touch $156 Billion This Year

The artificial intelligence solutions are currently a fast-growing market and are forecasted to reach up to $156 billion in 2020 – claims a study.

The global revenues for artificial intelligence solutions include services, software, and hardware. The AI market is projected to touch $156.5 billion this year – an increase of 12.3% over the previous year. These findings are according to the latest research study by the International Data Corporation (IDC).

In 2020, the majority of the software revenue ($120.4 billion) came from the AI applications and AI Software Platforms contributing the rest. This surge is still lesser than 2019 – this is due to the ongoing economic downturn brought by the pandemic. However, the investment in AI across industries will recover rapidly, indicated the “Worldwide Semiannual Artificial Intelligence Tracker” by IDC.

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In the digital era, software is the primary AI technology set, delivering nearly 80% of the entire AI revenue. Furthermore, the global AI market revenue is likely to exceed $300 billion by 2024. This is a five-year CAGR of 17.1%.

As per the study, the AI-powered customer relationship management (CRM) solutions have the most demand in the AI applications market with 20%. The enterprise relationship management (ERM) applications got the second segment, with 17% of the total market share.

In addition to the above segments, popular solutions include AI for content workflow and management applications, collaborative applications, and production applications. For vendor share, Adobe is at the top for AI-powered CRM apps, while Microsoft is in most demand for the AI non-centric CRM apps. For the remaining AI apps market, IBM is in top position under the AI-centric category, while Microsoft tops under the AI non-centric type.

IDC claims services as the second-largest AI category, which is most likely to touch $18.4 billion in 2020. This is a 13% surge YOY. Among the AI services market, AI-powered IT services account for about 80% of the revenue and AI business services making up the rest. In its essence, IBM, Accenture, Deloitte, Infosys, and Cognizant have the most market share.

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Besides, the AI hardware, including server and storage revenues, is expected to reach $13.4 billion soon – indicating a 10.3% YOY growth. In the case of vendor share, the top competitors in the AI Server are Dell, HP, and Inspur. And in terms of the AI Storage market, Dell, NetApp, and HP are the top companies.

According to Ritu Jyoti, Programme VP of Artificial Intelligence Research at IDC, as mentioned in the company blog post – “AI applications continue to be at the forefront of digital transformation (DX) initiatives, driving both innovation and improvement to business operations.”