AI global market revenue registers a growth of 20.7% in 2021; AI Software captures largest share

Registering a growth of around 20.7 percent in comparison to the previous year, global revenues for the Artificial Intelligence market have totaled revenue of $383.3 billion in 2021, stated a report by the International Data Corporation (IDC). The details, which were obtained by IDC’s Worldwide Semiannual Artificial Intelligence Tracker, provided the revenues for the entire AI market including software, hardware, and services for both AI-centric and AI non-centric applications. In addition to that, IDC also expects the AI market value to grow to $450 billion by 2022 following which it will maintain a year-over-year growth rate in the high teens throughout the five-year forecast. Among all the categories, while AI Software has emerged with the largest share in the overall AI market with a delivery of over $340 billion in 2021. The four AI Software categories include AI Applications Delivery & Deployment, AI Applications, AI System Infrastructure Software, and Artificial Intelligence Platforms. Out of these, AI Platforms delivered the strongest year-over-year growth at 36.6 percent, albeit from a smaller baseline. AI Applications, on the other hand, represented nearly half of the total revenue. In addition to this, as the statement reveals, within the AI Applications category, while AI Customer Relationship Management (CRM) Applications and AI Enterprise Resource Management (ERM) Applications each delivered about 16 percent of the category total, the remainder was delivered by the myriad of other AI Applications available in the market. AI can be a source for fast-tracking digital transformation: IDC Speaking on the same, associate vice president, Data & Analytics at IDC, Rasmus Andsbjerg said, “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. 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.” On the other hand, the AI Tracker also showed that AI-centric applications also registered slow growth in their share of the AI Software market. In 2021, AI-centric applications captured 12.9 percent of the market, with 29.3 percent year over year growth rate.