Hardware constituted both the smallest and fastest growing segment jumping at a rate of 389% YoY.
As per reports, the Artificial Intelligence (AI) market is expected to reach $450 billion in 2022. This includes software, hardware, and services for both AI-centric and non-centric applications. The total revenue in AI came up to $383.3 billion in 2021, a 20.7% YoY increase. This value is said to reach nearly $450 billion in 2022.
Rasmus Andsbjerg, associate vice president, Data & Analytics at IDC, 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 labour shortages.”
AI Software has consistently had the largest share in the overall AI market, combined all four AI Software categories – AI Applications Delivery & Deployment, AI Applications, AI System Infrastructure Software, and Artificial Intelligence Platforms. Artificial Intelligence Platforms delivered the strongest YoY growth at 36.6%.
In the AI applications market, nearly 300 companies are vying for opportunities to gain share. For AI-centric applications, 12.9% of the market was captured. AI non-centric applications, where AI technologies are integral to certain workflows of the application, but if those technologies were removed, the application would still be able to function.
In terms of software, 47.3% of AI Software purchases were deployed to the public cloud, while the AI Services market saw its total value increase 22.4% YoY to $24 billion in 2021.
AI Hardware was both the smallest ($18.8 billion) and fastest growing (38.9% YoY) segment of the AI market, that was driven by efforts to build dedicated AI systems. While both AI Servers and AI Storage delivered strong growth in 2021 – 39.1% and 32.9% respectively – server purchases were notably larger at $15.6 billion.