-

Artificial Intelligence Software Market to Reach $126.0 Billion in Annual Worldwide Revenue by 2025, According to Tractica

More than 330 AI Use Cases Will Contribute to Market Growth Across 28 Industries with the Strongest Enterprise AI Opportunity in Automotive, Consumer, Financial Services, Telecommunications and Retail Sectors

BOULDER, Colo.--(BUSINESS WIRE)--Artificial intelligence (AI) within the consumer, enterprise, government, and defense sectors is migrating from a conceptual “nice to have” to an essential technology driving improvements in quality, efficiency, and speed. According to a new report from Tractica, the top industry sectors where AI is likely to bring major transformation remain those in which there is a clear business case for incorporating AI, rather than pie-in-the-sky use cases that may not generate return on investment for many years.

“The global AI market is entering a new phase in 2020 where the narrative is shifting from asking whether AI is viable to declaring that AI is now a requirement for most enterprises that are trying to compete on a global level,” says principal analyst Keith Kirkpatrick. According to the market intelligence company, AI is likely to thrive in consumer (Internet services), automotive, financial services, telecommunications, and retail industries. Not surprisingly, the consumer sector has demonstrated its ability to capture AI, thanks to the combination of three key factors – large data sets, high-performance hardware and state-of-the-art algorithms. Tractica estimates that many of the top enterprise AI verticals will follow and replicate a strategy similar to the consumer Internet companies. Annual global AI software revenue is forecast to grow from $10.1 billion in 2018 to $126.0 billion by 2025.

Tractica’s report, “Artificial Intelligence Market Forecasts,” provides a quantitative assessment of the market opportunity for AI across the consumer, enterprise, government, and defense sectors. The study includes market sizing, segmentation, and forecasts for 333 AI use cases, including more than 200 unique use cases. Tractica has added use cases spread across multiple industries, including energy, manufacturing, retail, consumer, transportation, public sector, media and entertainment, telecommunications, and financial services. Global market forecasts, segmented by use case, technology, geography, revenue type, and meta category, extend through 2025. An Executive Summary of the report is available for free download on the firm’s website.

About Tractica

Tractica, an Informa business, is a market intelligence firm that focuses on emerging technologies. Tractica’s global market research and consulting services combine qualitative and quantitative research methodologies to provide a comprehensive view of the emerging market opportunities surrounding Artificial Intelligence, Robotics, User Interface Technologies, Advanced Computing and Connected & Autonomous Vehicles. For more information, visit www.tractica.com or call +1.303.248.3000.

Contacts

Sherril Hanson
+1.303.248.3338
press@tractica.com

Tractica


Release Summary
Strong revenue growth will occur in the AI software market as use cases are expected to demonstrate return on investment across several industries
Release Versions

Contacts

Sherril Hanson
+1.303.248.3338
press@tractica.com

Social Media Profiles
More News From Tractica

Omdia: AI Demand Drives 94.1% Surge in Semiconductor Forecast for 2026

LONDON--(BUSINESS WIRE)--Omdia has raised its 2026 semiconductor revenue forecast to 94.1% year-over-year (YoY), driven by exceptional growth in DRAM and NAND as AI demand continues to outpace global supply. Memory ICs are now expected to account for more than 50% of total semiconductor revenue in 2026. AI demand has exceeded the industry’s current ability to produce and package chips, with bottlenecks across high bandwidth memory (HBM), advanced packaging, and node capacity expected to persist...

Omdia: Global Smartphone Shipments Fell 6% in 2Q26 as Supply-side Pressures Reshape the Market

LONDON--(BUSINESS WIRE)--Global smartphone shipments fell 6% year on year (YoY) to 272.0 million units in 2Q 2026, according to Omdia. This follows the front-loaded demand seen in 1Q26 which gave way to the adjustment phase of the memory cost cycle. Persistently high memory prices disrupted supply, increased component costs and forced vendors to rethink pricing, product portfolios and channel strategies. The result has been a sharply polarized market, with vendors' performance increasingly dete...

Omdia: Global Smartphone Market Down 4% in 2Q26 While Apple and Samsung Soared

LONDON--(BUSINESS WIRE)--According to Omdia’s latest research, global smartphone shipments fell 4% year-on-year in 2Q26 as the ongoing memory crisis disrupted supply and pushed up component costs. The current dynamic has created severe market polarization, reflecting stark differences in vendors’ mitigation strategies which vary according to their priorities, scale, price-band focus, and core audience demographics. In particular, Samsung and Apple bucked the downward trend, growing shipments an...
Back to Newsroom