IDC, renowned for its market analysis in various sectors, has published predictions about the size of the AI market. Below are the relevant links:
According to the released data, the size of the AI market in 2021 is predicted to be about $328B, and it is expected to reach $500B by continuing to grow at a CAGR of 17.5% by 2024. For reference, considering that the global smartphone market size in 2019 is about $400B to $500B, this is a prediction that the size of the AI market will grow to a level similar to that of the smartphone market by 2024.
According to sectoral analysis, 88% of AI sector revenue in 2020 came from software. The software includes all of the application, platform, CRM, ERM, and infrastructure. Currently, application software accounts for the largest portion of the total as 50%. One surprising thing is that AI-related hardware sales account for only 5% of total AI sales in 2020.
The above forecasts far exceed the numbers in IDC's report published a year ago. For example, a year ago, the IDC report predicted the AI market size in 2024 to be $300B, but a recent report predicts that this number will be achieved in 2021.
To date, AI technology has a strong tendency to be perceived as an aid to advance existing business models. In addition, AI technology is not necessarily required, but there are relatively many cases that are applied to fields where it is good, and there are still no companies that generate large-scale sales with only AI technology. However, as can be seen from the above report, the size of the AI market itself has grown significantly, and it is expected that it will no longer become a niche market, but a major market. Perhaps the “AI Break Even Point (BEP)”, that is, the point that creates value beyond the cost of investment in the AI field, I think, may come sooner than expected.