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.
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.