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# AI Software secured largest share as Global AI revenue increased 20.7% in 2021
- URL: https://www.techloy.com/artificial-intelligence-spending-increases-20-7-yoy/
- Published: 2022-10-13T14:57:36.000Z
- Updated: 2022-10-13T14:57:36.000Z
- Author: Emmanuel Oyedeji
- Tags: / Artificial Intelligence, / Insights

The global Artificial Intelligence (AI) market which includes software, hardware, and services for AI-centric and AI-non-centric applications grew 20.7% to reach $383.3 billion, in a report by IDC.

The AI software market held the largest share in the overall AI market accounting for more than $340 billion, a 36.6% YoY growth, and nearly 90% of the total spending in 2021.

The AI Software which is divided into 4 smaller categories – AI Applications Delivery & Deployment, AI Applications, AI System Infrastructure Software, and Artificial Intelligence Platforms, saw the AI Application category take nearly 50% of the total AI software revenue while the Artificial Intelligence Platforms delivered the strongest YoY growth of 36.6% of the four groups.

![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/2022/10/IDC-Artificial-Intelligence-Spending-Grew-20.7--Worldwide-in-2021--According-to-IDC---2022-Sep--F-1.png)

In the other categories of the AI market, the AI service market saw a 22.4% YoY to $24 billion in revenue, a far cry from the AI software's $340 billion, as demand for expertise in AI specialization continues to rise, while the AI Hardware market settled as the smallest, with $18.8 billion in revenue - it, however, grew 38.9% over the year as AI systems, servers, and storage purchases increased.

The Artificial intelligence market is expected to reach nearly $450 billion in 2022, and continue a double-digit expansion over the next 5 years as the demand for artificial intelligence technology continues to increase across various verticals.