Western European revenues for cognitive and AI systems to hit $1.5bn in 2017
The latest note from analyst firm IDC argues that Western European revenues for cognitive and AI systems will reach $1.5 billion (£1.2bn) in 2017, an increase of 40% over last year.
In its latest published report titled “Worldwide Semiannual Cognitive/Artificial Intelligence Systems Spending Guide”, IDC also states that the spending on these advanced solutions will continue to see significant corporate investment over the next several years, achieving a CAGR of 42.5% through 2020, when revenues will be more than $4.3 billion.
Banking, retail, and discrete manufacturing are the three largest Western European industries to invest in cognitive and AI systems, although cross-industry applications have the largest share across all industries. By 2020, these industries – including cross-industry applications – account for almost half of all IT spending on cognitive and artificial intelligence systems. The total finance sector (banking, insurance, and securities) will account for 22% of cognitive spending in 2020.
However, the fastest growing sectors to 2020 are distribution and services (professional services, retail and transportation) with a CAGR of 60.8% to 2020, the public sector (education, government, healthcare provider) with a CAGR of 60.8%, and infrastructure (telecommunications, utilities) with a CAGR of 60.1%
IDC argues Western Europe represents 12.1% of spending on cognitive and artificial intelligence systems in 2017, but its overall growth in spending at a CAGR of 42.5% lags the worldwide market, which shows a CAGR of 54.4% from 2015 to 2020. Western Europe’s share of spending will fall to 9.5% of the world by 2020 and the region loses its second place to the Asia/Pacific region (including Japan).