IDC forecasts global AI spending to go past half-trillion mark by 2023IDC forecasts global AI spending to go past half-trillion mark by 2023
Bulk of AI spending is on software, but hardware, services gaining ground
February 16, 2022
Worldwide spending in the artificial intelligence market is set to grow 19.6% year-over-year in 2022 to $432.8 billion on its way to breaching the $500 billion mark by 2023, according to a new IDC report.
Spending on AI software remains dominant at 88.3% for this year, although its share has been slightly declining as hardware and services gain ground. Nearly half of funds spent on software were for applications while 35% were for system infrastructure software.
Within software, platforms will be the fastest growing (34.6% CAGR) while the slowest is system infrastructure software at 14%.
IDC expects AI services to see the fastest spending growth at a compound annual growth rate (CAGR) of 22%. Hardware is set to grow by 20.5%.
Within AI services, IT enjoyed 20.4% year-over-year growth in the first half of 2021 with worldwide spending reaching $18.4 billion. IDC forecasts this to improve to 22% in 2022 and remain there through the end of the forecast period.