Companies to Spend Almost $342 Billion on AI Solutions in 2021

Worldwide revenues for the bogus intelligence (AI) market, together with software program, {hardware}, and providers, is estimated to develop 15.2% 12 months over 12 months in 2021 to $341.8 billion, in response to the most recent launch of the Worldwide Information Company (IDC) Worldwide Semiannual Artificial Intelligence Tracker. The market is forecast to speed up additional in 2022 with 18.8% progress and stay on monitor to interrupt the $500 billion mark by 2024. Among the many three know-how classes, AI Software program occupied 88% of the general AI market. Nevertheless, when it comes to progress, AI {Hardware} is estimated to develop the quickest within the subsequent a number of years. From 2023 onwards, AI Providers is forecast to develop into the quickest rising class.

Inside the AI Software program class, AI Purposes has the lion’s share at almost 50% of revenues. By way of progress, AI Platforms is the strongest with a five-year compound annual progress price (CAGR) of 33.2%. The slowest might be AI System Infrastructure Software program with a five-year CAGR of 14.4% whereas accounting for roughly 35% of all AI Software program revenues. Inside the AI Purposes market, AI ERM is predicted to develop barely stronger than AI CRM over the subsequent 5 years. In the meantime, AI Lifecycle Software program is forecast to develop the quickest among the many markets inside AI Platforms.

“Disruption is unsettling, however it could actually additionally function a catalyst for innovation and transformation. 2020 was the 12 months that accelerated digital transformation and strengthened the worth of enterprise AI,” stated Ritu Jyoti, group vp for AI and Automation Research at IDC. “We’ve got now entered the area of AI-augmented work and choice throughout all of the purposeful areas of a enterprise. Accountable creation and use of AI options that may sense, predict, reply, and adapt at pace is a crucial enterprise crucial.

The AI Providers market was estimated at $19.4 billion in 2020, representing the quickest progress relative to {hardware} and software program. For 2021, it’s forecast to develop at 19.3%. Over the subsequent 5 years, it’s anticipated to take pleasure in the very best CAGR at 21%. This know-how class breaks down into two segments: IT Providers and Enterprise Providers. IT Providers is the bigger of the 2, accounting for almost 80% of all AI Providers revenues. From a progress perspective, the 2 markets are related with five-year CAGRs of 21%. Total, AI Providers is predicted to be a $50 billion market by 2025.

Nearly 190 corporations had been included within the AI Providers market on this launch of the AI Tracker. Beneath IT Providers for AI, the Prime 3 corporations in 2020 had been IBM, Accenture, and Tata Consultancy Providers. Every of the three corporations achieved over $1 billion in revenues and mixed for a complete of 26% market share. Past them, one other eight corporations generated greater than $500 million every. The Prime 3 corporations in Enterprise Providers for AI in 2020 had been Ernst & Younger, Accenture, and Deloitte, accounting for a mixed share of 46%. Outdoors of those high 3, there have been one other 9 corporations that broke the $100 million mark throughout 2020. Total, the aggressive panorama in each providers markets for AI stays extremely fragmented the place many gamers from throughout the providers worth chain proceed to put money into know-how belongings, innovation assets, and experience in making use of AI to unravel industry- and domain-specific issues for shoppers.

AI {Hardware} is the smallest class with 5% share of the general AI market. Nonetheless, it’s forecast to develop the quickest in 2021 at 29.6% 12 months over 12 months. It is usually anticipated to carry the very best progress spot in 2022. Over the subsequent 5 years, its CAGR is estimated at 19.4%. This know-how class breaks down into two markets: Server and Storage. Server has the bigger share at roughly 82% whereas Storage is forecast to have higher progress with a five-year CAGR of twenty-two.1%.

“The marketplace for AI servers and storage was much less impacted than anticipated by the COVID-19 pandemic and is now quickly selecting up steam once more, particularly on the edge,” stated Peter Rutten, analysis director, Infrastructure Programs, Platforms and Applied sciences at IDC. “The infrastructure of selection is coalescing round massively parallel compute utilizing co-processors and server clusters with quick interconnects and networks.”

In AI Server market, there have been a complete of six corporations that generated over $500 million every in 2020; they’re (in alphabetical order) Dell, HPE, Huawei, IBM, Inspur, and Lenovo. Collectively, they held 62% of total market share. In the meantime, within the AI Storage market, there have been additionally six corporations that achieved over $100 million every in 2020; they’re (in alphabetical order) Dell, HPE, Hitachi, Huawei, IBM, and NetApp. These six corporations had a mixed market share of 68%.

The IDC Worldwide Semiannual Artificial Intelligence Tracker publishes AI vendor share and market forecast knowledge on a semi-annual foundation. It offers knowledge and insights into all the important thing know-how areas – server, storage, software program, and providers – constructed on IDC’s complete methodology involving vendor product, market, and workload modeling. Over 700 corporations are at present revealed within the Tracker, making certain that the aggressive panorama is nicely represented throughout all of the three know-how classes. Information is offered on a complete of 27 nations and 5 rest-of areas. On this July 2021 launch, we’re including deployment kind segmentation on the software program knowledge for the primary time. Via its broad and in-depth protection, the Tracker might be relied on by customers to evaluate which areas throughout the AI market are anticipated to develop throughout these unusually difficult instances and optimize their enterprise plans accordingly. Within the subsequent launch, scheduled for January 2022, IDC will increase the Tracker with extra market particulars, particularly within the software program area.

About IDC Trackers

IDC Tracker merchandise present correct and well timed market measurement, vendor share, and forecasts for a whole lot of know-how markets from greater than 100 nations across the globe. Utilizing proprietary instruments and analysis processes, IDC’s Trackers are up to date on a semiannual, quarterly, and month-to-month foundation. Tracker outcomes are delivered to shoppers in user-friendly Excel deliverables and on-line question instruments.