LONDON, July 8, 2020 /PRNewswire/ -- The worldwide market for artificial intelligence software will expand to $98.8 billion by 2025, rising by a factor of six from $16.4 billion in 2019 — despite the varying effects of the COVID-19 pandemic across different industries, according to Omdia.
The artificial intelligence (AI) software market has experienced tremendous growth over the past several years. While the COVID-19 pandemic has dampened growth forecasts for the market, its impact is uneven across industry sectors. While some industries are retrenching—such as energy, oil, gas, and mining—a few markets, like healthcare, are accelerating AI adoption. Omdia has developed four market scenarios based on the duration of the pandemic and the severity of its economic effect. Omdia's moderate scenario presented in this press release foresees continued double-digit growth ahead, although the cumulative market size for 2019-2025 will be reduced by 22 percent compared to the pre-COVID forecasts.
End users focus on what AI software can do. As a result, Omdia has built a taxonomy of 340 AI use cases across 23 industry sectors that captures the software opportunity related to AI. The use cases explain how and why customers are deploying AI. They help distinguish market reality, i.e., actual deployment and usage, from market hype. Use cases driving the AI software market include voice/speech recognition, video surveillance, customer service and marketing virtual digital assistants (VDAs), network/IT operations monitoring and management, and supply chain and inventory management.
"Economic effects from the COVID-19 pandemic have widened the dichotomy between early AI adopters—the 'AI haves'—and the trailing followers—the 'AI have nots,'" said Omdia senior analyst, Neil Dunay. "Industries that have pioneered AI deployments and have the largest AI investments are likely to continue to invest in what they view as proven, indispensable technology for cost cutting, revenue generation, and enhancing customer experience."
The Artificial Intelligence Software Market Forecasts report from Omdia provides a quantitative assessment of the market opportunity for AI software. Global market forecasts, segmented by scenario, use case, industry, technology, geography, horizontal market, and meta category, extend through 2025. An Executive Summary of the report is available for free download on the firm's website.
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*The majority of IHS Markit technology research products and solutions were acquired by Informa in August 2019 and are now part of Omdia.