Worldwide revenues for the artificial intelligence market, including software, hardware and services, are forecasted to grow 16.4% year over year in 2021 to $327.5 billion, according to the latest release of the International Data Corporation Worldwide Semiannual Artificial Intelligence Tracker. By 2024, the market is expected to break the $500 billion mark with a five-year compound annual growth rate (CAGR) of 17.5% and total revenues reaching $554.3 billion.

Among the three technology categories, software represented 88% of total AI market revenues in 2020. However, it is the slowest growing category, with a five-year CAGR of 17.3%. Within the AI software category, AI applications took the largest share of revenue at 50% in 2020. In terms of growth, the AI software platforms market is forecast to be the strongest, with a five-year CAGR of 32.7%. The slowest will be AI system infrastructure software, with a five-year CAGR of 13.7% while accounting for roughly 36% of AI software revenues. Within the AI applications market, AI ERM is expected to grow slightly stronger than AI CRM over the next five years.