How Much is the AI Market Going to be Worth This Year?
It has expected that the total worldwide revenue of the AI market expected to be $156.5 billion in 2020. It includes software, hardware, and services related to artificial intelligence, which is 12.3% more than in 2019.
Software is the primary field delivering about 80% of the total AI revenue. This software includes all major AI applications and AI software platforms. AI applications alone provide nearly $120 billion in 2020, followed by AI software platforms $4.3 billion.
In the AI applications market, Customer Relationship Management (CRM) AI applications have 20% share and Enterprise Risk Management (ERM) AI Applications has 17% share and these are the two most significant segments of the AI application market.
Key Players in AI Applications:
- MicrosoftKreato CRM
- Spiro Technologies
- Adobe systems
Among the players mentioned above, Adobe is leading in AI-centric CRM applications and Microsoft is leading in AI-non centric CRM applications. In ERM AI-centric applications, Ceridian takes the top spot and Intuit makes a top spot in AI-non centric ERM applications. IBM and Microsoft are leading in AI-centric and AI non-centric in the rest of the AI application market.
“The role of AI Applications in enterprises is rapidly evolving. It is transforming how your customers buy, your suppliers deliver, and your competitors compete. AI applications continue to be at the forefront of digital transformation (DX) initiatives, driving innovation and improvement to business operations,” said Ritu Jyoti, program vice president, Artificial Intelligence Research at IDC.
CRM AI Applications expected to take center stage within the AI Applications market, both in terms of its sheer size and growth opportunities, in the coming years. “Customer Experience (CX) is a new brand. Leading CRM vendors drive the intersection of CRM and CX, which helps build strategies that improve your customers’ and your employees’ experience with your business,” added Ritu.
The second-largest category in the AI market is AI services, which will reach about $18.4 billion in 2020, an increase of 13% compared to the previous year. The demand for deploying AI-enabled technologies in business analytics and automation programs has increased the AI services vendor landscape.
Top 5 Companies in the AI Service Market:
These five companies have captured nearly one-third of AI services market capital in 2019. AI hardware revenues will reach $13.4 billion in 2020. This hardware includes both server and storage. The market represents 10.3% year over year, which is significantly less than the previous year with 33.4% growth.
Top 3 Companies in AI Hardware Market:
- Hewlett Packard Enterprise
These are the top three players with double-digit share market price. Dell technologies hold the top spot in the AI hardware category.