Global AI spending will reach €300 billion by 2026

• Global spending on artificial intelligence (including software, hardware and services for AI-centric systems) will increase by 2026, according to a new forecast from IDC It is expected to exceed $300 billion.
• Additionally, the global market value of artificial intelligence solutions will exceed $450 billion in 2022 and climb further over the next five years.
• The entire global AI spending is controlled by AI software in four areas: AI application delivery and deployment, AI applications, AI system infrastructure software, and AI platforms.
• According to IDC, the artificial intelligence application industry remains very competitive, with more than 300 companies in the industry.
• The artificial intelligence hardware industry is the smallest but fastest-growing segment of the artificial intelligence business.

A new estimate from IDC predicts that the global market for artificial intelligence solutions will be worth nearly $450 billion in 2022 and will continue to grow over the next five years.

Global artificial intelligence spending will continue to increase

According to IDC’s Global Semi-Annual Artificial Intelligence Tracking Report, global artificial intelligence software, hardware and service revenue reached US$383.3 billion in 2021, an increase of 20.7% from 2020 %.

Global spending on AI, including software, hardware and services for AI-centric systems, is expected to exceed $300 billion by 2026. The continued adoption of AI across commodities will generate a compound annual growth rate (CAGR) of 26.5% from 2022 to 2026. That’s more than four times the 6.3% compound annual growth rate for global IT spending during the same five-year period.

AI application delivery and deployment, AI applications, AI system infrastructure software, and AI platforms account for the majority of global AI spending.

Four areas of artificial intelligence software dominate the entire artificial intelligence market: artificial intelligence application delivery and deployment, artificial intelligence applications, artificial intelligence system infrastructure software, and artificial intelligence platforms . By 2021, these categories will be worth more than $340 billion, with AI applications accounting for about half of the total. Artificial intelligence platforms grew 36.6% year-over-year.

According to IDC, the artificial intelligence application market remains very competitive, with approximately 300 players competing in the field. Customer relationship management applications (CRM) and AI-powered enterprise resource management applications (ERM) are the major players in this category, accounting for approximately 16% of the total.

AI-centric applications, defined by IDC as applications with artificial intelligence technology as the core and important to their functionality, accounted for 12.9% of the market share in 2021, growing 29.3% year-on-year. The remaining market share is taken up by apps that are not AI-centric, or those where AI technologies are fundamental to a specific app’s workflow but would still function if those technologies were removed.

In 2021, AI-centric applications accounted for 12.9% of global AI spending

Cloud-deployed AI software is growing steadily, and IDC predicts that by 2022, new Cloud deployments of acquired AI software will exceed on-premises deployments. Data show that 47.3% of AI software purchases were deployed to public clouds, an increase of 4 percentage points from 2020 and an increase of 8.4 percentage points from 2019.

Another growing industry is the artificial intelligence services market, with its total value growing at 22.4% annually. According to IDC, the AI ​​IT services industry is growing 21.9% annually to $18.8 billion due to customer demand for production-grade AI solutions. Additionally, growing demand for AI governance, business process and people strategy solutions is driving global AI spending in the AI ​​Business Services segment to grow by 24.2% annually.

$18.8 billion in AI hardware growth attributed to attempts to build systems that can handle growing compute and storage needs

AI hardware is the smallest but fastest-expanding of the AI ​​markets part. IDC attributes the $18.8 billion in AI hardware growth to attempts to build purpose-built AI systems that can handle the growing computing and storage demands of AI models and data sets. AI servers and storage grew 39.1% and 32.9% respectively in global AI spending, with server purchases totaling $15.6 billion.

Rasmus Andsbjerg, vice president of data and analytics at IDC, said: “Across all industries and functions, end-user organizations are discovering the benefits of AI technology as increasingly powerful AI solutions are enabling better decision-making and Higher productivity. The reality is that AI provides solutions to everything we are facing right now. AI can be a source of fast-tracking digital transformation journeys, saving costs in a time of staggering inflation rates, and improving workforce Support automated efforts during periods of shortage.”

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