The latest IDC report has revealed the top suppliers in the artificial intelligence (AI) market.
Revenues for the AI market — including software, hardware, and services, are forecast to grow 12.3 percent to $156.5 billion in 2020.
Worldwide AI revenues will be surpassing $300 billion in 2024 with a five-year compound annual growth rate (CAGR) of 17.1 percent, IDC said.
Software is the largest AI technology group delivering roughly 80 percent of all AI revenue. Most of the software revenue comes from AI Applications ($120.4 billion in 2020) with AI Software Platforms ($4.3 billion) delivering the remainder.
CRM AI Applications and ERM AI Applications are the two largest segments with 20 percent and 17 percent share of the AI Applications market.
Other key segments include AI for Content Workflow and Management Applications, Production Applications, and Collaborative Applications.
While software will remain the largest category throughout the forecast, it will also see the slowest growth with a five-year CAGR of 16.7 percent.
“AI applications continue to be at the forefront of digital transformation (DX) initiatives, driving both innovation and improvement to business operations,” said Ritu Jyoti, program vice president, Artificial Intelligence Research at IDC.
CRM AI Applications are expected to take center stage within the AI Applications market, both in terms of its size and growth opportunities. Leading CRM vendors are driving the intersection of CRM and CX, that help build strategies that improve both your customers’ and your employees’ experience with your business.
Top AI suppliers
Adobe had the top spot for AI-centric CRM Applications.
Microsoft was #1 in AI non-centric CRM Applications.
Ceridian takes the top spot in AI-centric type in the AI Applications market.
Intuit takes the top spot in AI non-centric type in the AI Applications market.
IBM is in first position under AI-centric type in the rest of the AI Applications market.
Microsoft occupies the top spot under AI non-centric type in the rest of the AI Applications market.
AI services forecasts to increase 13 percent to $18.4 billion in 2020. Within the AI services market, AI IT Services accounts for nearly 80 percent of the category’s revenue with AI Business Services delivering the rest.
“The pandemic has interrupted the momentum of AI services market growth in nearly all regions,” said Jennifer Hamel, research manager, Analytics and Intelligent Automation Services. “Enterprise demand for AI capabilities to support business resiliency and augment human productivity will sustain double-digit expansion in 2020 even as other discretionary projects experience delays.”
The top 5 AI services companies in terms of market share – IBM, Accenture, Deloitte, Infosys, and Cognizant – captured roughly one third of the worldwide AI services market in 2019.
IDC expects AI hardware (server and storage combined) revenues to reach $13.4 billion in 2020, representing 10.3 percent growth, which is a significant drop from the prior year when it grew 33.4 percent.
Within the hardware market, AI Storage is forecast to grow 11.4 percent this year. AI Server is expected to grow 10.1 percent. AI Server is responsible for more than 80 percent of total AI hardware revenues.
The AI hardware market is forecast to grow at 35.5 percent next year, led by AI Storage, which is expected to grow 43.1 percent year over year.
The top 3 companies in AI Server are Dell, Hewlett Packard Enterprise (HPE), and Inspur.
The top AI Storage suppliers are Dell Technologies, NetApp, and Hewlett Packard Enterprise, IDC said.
