China's Overall AI Market would Remain High-speed Growth in the Next Five Years

International Data Corporation (IDC) and Inspur jointly released the Evaluation Report on the Development of China's Artificial Intelligence Computing Power 2019-2020 at the 2019 Artificial Intelligence Computing Conference hosted by the Information and Electronic Engineering Department of Chinese Academy of Engineering (CAE). The report predicted that with an annual compound growth rate of 44.9%, China's overall artificial intelligence (AI) market would maintain a high growth rate in the next five years, exceeding USD 17 billion.

According to different kinds of technologies, IDC divided the AI market into hardware, software and service. The report demonstrated that the hardware market was the most prominent in China’s AI market; it was estimated that by 2021, it would account for more than 50% of the whole market, with the server market contributing to above 85% of the entire hardware market. By 2023, the hardware market would reach USD 8.3 billion.

In terms of the application penetration in AI industry, Internet still secured the first place, accounting for 62.4% of the market share of AI computing investment in China. Its typical application scenarios included, in E-commerce, precision marketing, image recognition and intelligent customer services, as well as video content review, face recognition and intelligent writing. Internet was followed by government and the financial sector, which registered the fastest growth rate exceeding 100%.

The report predicted that AI chip market would also continue to develop at a fast speed, with a compound growth rate of 53% in the following five years. At the same time, there would be various kinds of chips to meet the need of different fields, industries and application scenarios, which also showed that the AI chip market would flourish in the future.

October 15, 2019

Source: Xinhua News Agency

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