NEW DELHI: The Artificial Intelligence (AI) market value is likely to touch nearly USD 450 billion this year and maintain a year-over-year growth rate in the next five years, a new report said.
As per International Data Corporation (IDC)., the AI market's global revenues, which include software, hardware, and services for both AI-centric and AI non-centric applications, reached USD 383.3 billion in 2021, a rise of 20.7 percent from the previous year.
Rasmus Andsbjerg, associate vice president, Data & Analytics at IDC, said that end-user organizations are "discovering the benefits of AI technologies across all industries and functions, as increasingly powerful AI solutions are enabling improved decision-making and higher productivity." The truth is that AI has answers for every problem we are now having. In times of skyrocketing inflation rates, Andsbjerg said, "Artificial Intelligence can be a source for accelerating digital transformation journeys, enabling cost reductions, and supporting automation efforts."
The largest segment of the global AI market in 2021 was AI software.
The market value of the four categories of AI software such as AI Applications, AI Applications Delivery and Deployment, AI System Infrastructure Software, and Artificial Intelligence Platforms, was over USD 340 billion in 2021, with AI Applications accounting for about half of that value.
Though starting from a smaller basis, Artificial Intelligence Platforms showed the largest year-over-year growth at 36.6 percent .
The AI Applications market is still quite competitive, with nearly 300 businesses fighting for possibilities to increase share, according to IDC. The market for AI services saw its whole value rise 22.4 percent yearly to USD 24 billion in 2021.
The AI market's AI Hardware category was both the lowest (USD 18.8 billion) and fastest-growing (389.1 percent year-on-year).