-

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: Netflix to Reach 400 Million Subscribers by 2031, Maintaining Global Streaming Lead Despite Industry Consolidation

LONDON--(BUSINESS WIRE)--Netflix is forecast to reach nearly 400 million subscribers worldwide by the end of 2031, reinforcing its position as the world’s leading subscription streaming platform despite growing consolidation across the industry. New forecasts from Omdia presented at NEM Dubrovnik 2026 indicate that scale, profitability and audience reach will increasingly shape the next phase of streaming competition. Omdia’s forecasts highlighted Netflix's continued expansion despite increasin...

Omdia Appoints Theresa Lanowitz as Principal Analyst for Vulnerability and Risk Management

LONDON--(BUSINESS WIRE)--Omdia has appointed Theresa Lanowitz as Principal Analyst covering vulnerability and risk management within its Cybersecurity go-to-market research practice, bringing decades of experience in software development, industry analysis, and cybersecurity leadership to the role. Lanowitz joins Omdia from LevelBlue, the AT&T cybersecurity spinoff, where she served as Chief Evangelist, leading strategic marketing, communications, public relations, content, and industry out...

Omdia: Semiconductor Market Surpasses $300bn Quarterly Revenue in 1Q26 as Memory Market Shifts Historical Patterns

LONDON--(BUSINESS WIRE)--Following a record-setting year for the semiconductor industry, the start of the new year has continued the momentum, as semiconductor revenue grew 27% in 1Q26 from 4Q25 to reach $319bn, according to new research form Omdia. Memory revenue drove the increase, rising over 80% sequentially in 1Q26 from 4Q25. Since Omdia began tracking the semiconductor market at a quarterly level in1Q02, this 27% quarter-over-quarter (QoQ) growth is the highest observed. The market has no...
Back to Newsroom