Revenue for the artificial intelligence (AI) market is forecast to grow 15.2 percent in 2021 to $341.8 billion, according to the latest IDC report.
The market is forecast to accelerate further in 2022 with 18.8 percent growth and remain on track to break the $500 billion mark by 2024.
AI Software occupied 88 percent of the overall AI market. However, in terms of growth, AI Hardware is estimated to grow the fastest in the next several years. From 2023 onwards, AI Services is forecast to become the fastest growing category.
Ritu Jyoti, group vice president for AI and Automation Research at IDC, said: “We have now entered the domain of AI-augmented work and decision across all the functional areas of a business. Responsible creation and use of AI solutions that can sense, predict, respond, and adapt at speed is an important business imperative.”
AI has emerged as an essential component of the future enterprise, fueling demand for services partners to help organizations clear the many hurdles standing between pilot projects and enterprise AI.
Jennifer Hamel, research manager, Analytics and Intelligent Automation Services, said: “Client demand for expertise in developing production-grade AI solutions and establishing the right organization, platform, governance, business process, and talent strategies to ensure sustainable AI adoption at scale drives expansion across both IT services and business services segments.”
The top 3 companies in IT Services for AI are IBM, Accenture, and Tata Consultancy Services.
Each of the three companies achieved over $1 billion in revenues and combined for a total of 26 percent market share.
The top 3 companies in Business Services for AI in 2020 are Ernst & Young, Accenture, and Deloitte, accounting for a combined share of 46 percent.
Major AI Server suppliers are Dell, HPE, Huawei, IBM, Inspur, and Lenovo. Together, they held 62 percent of overall market share.
Leading AI Storage suppliers are Dell, HPE, Hitachi, Huawei, IBM, and NetApp. These six companies had a combined market share of 68 percent.