Compared to a few years ago, the artificial intelligence (AI) market is starting to solidify around real-world applications with the pace of change being faster than it ever has been before, as startups and technology providers rush to create platforms and targeted niche solutions for solving specific enterprise problems.
According to a new report from Tractica, the rising tide of AI adoption across multiple industries will drive significant growth during the next decade, and the market intelligence firm forecasts that annual worldwide AI software revenue will increase from $3.2 billion in 2016 in 2016 to $89.8 billion by 2025. This forecast is a significant upgrade of Tractica’s previous projection for AI market revenue, which was published in 2Q17, due to an improved outlook for a number of specific use cases across multiple industries.
“Artificial intelligence is already key to how consumer internet companies operate today, allowing them to roll out hyper-personalized services by following an ‘AI first’ strategy,” says research director Aditya Kaul. “The rest of the market in the enterprise and government sectors is still catching up on adopting AI and has yet to fully understand its value, including the breadth and depth of use cases, the technology choices surrounding AI, and the implementation strategies.”
However, adds Kaul, the gap will close quickly in the years ahead, with the consumer sector’s share of total AI revenue shrinking from 26% in 2016 to 8% by 2025, even as its revenue in terms of absolute dollars increases more than sevenfold during the same period. Tractica’s analysis indicates that this trend will be driven by surging enterprise adoption of AI systems, which will outpace the growth of the consumer market.
Tractica’s report, “Artificial Intelligence Market Forecasts”, provides a quantitative assessment of the market opportunity for AI software, hardware, and services. The report includes market sizing, segmentation, and forecasts for 266 AI use cases distributed across 29 industries. The market forecasts include segmentation by the six fundamental AI technologies: machine learning, deep learning, computer vision, natural language processing (NLP), machine reasoning, and strong AI. An Executive Summary of the report is available for free download on the firm’s website.