China's AI market is poised for significant growth, with its value projected to reach $26.44 billion by 2026, according to a report by market research firm International Data Corporation (IDC).
This report also projected that China's AI spending will soar to an impressive $14.75 billion in 2023, solidifying its position as a dominant player, commanding nearly 10% of the global AI market.
Fueling the momentum is the increasing interest exhibited by enterprises embarking on digital transformation journeys. The report highlighted that the growing enthusiasm in the AI landscape serves as a catalyst, igniting a wave of diverse demands within the Chinese market. From revolutionizing industries to streamlining operations, the appetite for AI solutions knows no bounds.
Looking at the Techloy chart below, analysts predict that the hardware segment will maintain its dominance in the China market, capturing a significant 56% share. In contrast, AI services, which encompass AI software solutions, consulting, and other related services, will hold the least share of the market throughout the forecast period leading up to 2026.