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IDC Forecasts Better Growth For Global AI Market In 2021

Worldwide revenues for the artificial intelligence (AI) market, including software, hardware, and services, are forecast to grow 16.4 percent year-over-year in 2021 to $327.5 billion – and by 2024, the market is expected to break $500 billion.

According to IDC’s Worldwide Semi-annual Artificial Intelligence Tracker, of the three technology categories, software represented 88 percent of the total AI market revenues in 2020, but was the slowest growing category, with a five-year CAGR of 17.3 percent.

AI applications took the largest share of revenue at 50 percent in 2020. In terms of growth, the AI software platforms market is forecast to be strongest, with a five-year CAGR of 32.7 percent.

“The global pandemic has pushed AI to the top of the corporate agenda, empowering business resilience and relevance,” said Ritu Jyoti, program vice president for AI Research at IDC.

“AI is becoming ubiquitous across all the functional areas of a business. Advancements in machine learning, conversational AI and computer vision AI are at the forefront of AI software innovations, architecting converged business and IT process optimisations, predictions and recommendations, and enabling transformative customer and employee experiences.”

In terms of 1H 2020 vendor share, the top companies in the AI server market were Dell, HPE, Huawei, IBM, Inspur, and Lenovo. Each of these companies brought in more than $250 million in the first half of 2020.

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