IDC expects AI revenue to approach $450 billion this year

Global spending, including software, hardware and services for AI-centric systems, will exceed $300 billion by 2026, a compound annual growth rate (CAGR) 26.5% higher than the 2022-2026 forecast.

IDC’s AITracker forecast indicates that the global AI market revenue will reach nearly $450 billion in 2022.

In addition, IDC expects revenue in this market to maintain a year-over-year growth rate of teens over the next five years.

The AI ​​market includes software, hardware, and services for AI-centric and non-AI-centric applications.

IDC states that AI-centric applications are applications or modules of AI technology that are critical to running them.

AI non-centric applications include applications where the AI ​​component is not essential to make it work.

IDC notes that with this broad definition, its research can consider vendors that incorporate AI capabilities into their software, but those applications are not specifically designed for AI capabilities.

In contrast, the IDC Worldwide AI Spending Guide uses a very specific definition of applications using AI as a key part of their functionality.

The AI ​​Spending Guide currently indicates that global spending, including software, hardware, and services for AI-centric systems, will exceed $300 billion by 2026, with a higher compound annual growth rate (CAGR) than forecast for 2022-2026 26.5%.

After IDC found that big data and analytics (BDA) spending in Australia and New Zealand is expected to grow at a compound annual growth rate of 13.3% over the five-year period from 2021 to 2026 and reach $8.9 billion by 2026, AITracker released its latest forecast, to In 2022, this expenditure is $5.5 billion.

Of these, banks, federal or central government, and telecommunications are the top three sectors that dominate A/NZBDA spending.

The banking sector will have the highest share of spending in 2022 at 17.8%, followed by the government share at 12.3%. Telecom shares are slightly lower than these. Nonetheless, it remains a promising investment area for BDA solution providers, with the industry expected to hold an 8.6% market share by 2026.

The largest share in banking can be attributed to the continued deployment of analytics tools and platforms in use cases such as cyber threat detection and prevention, improving customer onboarding experience, core transformation, and adaptive fraud prevention and detection.

The Australian and New Zealand governments have found major BDA applications in critical infrastructure management, border, customs, immigration management and defence robotics use cases.

In telecommunications, infrastructure and network process insights, 360-degree customer and customer management, and platform operations automation and orchestration are the top three use cases driving industry adoption of BDA technology.

The guide also highlights some country-specific data points.

Government initiatives are one of Australia’s key growth drivers. The expansion of the 2030 Digital Economy Strategy highlights data analytics as one of the key technologies to help Australia engage in initiatives such as the Digital Atlas, Modern Manufacturing Strategies and Consumer Data Rights.

Meanwhile, New Zealand, which offers scale, price and flexibility advantages for cloud adoption, has caught the attention of several tech companies. Furthermore, the penetration of IoT coupled with multi-cloud infrastructure provides a favorable ecosystem for the growth of the big data analytics market.

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Published on 09/19/2022