Domestic AI market to grow at an average annual rate of 17.8%
The growth rate of the AI hardware market will slow down, but
The service and software market will rise significantly On the 3rd, Korea IDC announced in its report, ‘Domestic Artificial Intelligence 2019-2023 Market Outlook,’ that the domestic AI market will grow by an average of 17.8% per year over the next five years, reaching a scale of over 640 billion won in 2023.
▲ Domestic AI Market Outlook 2019-23 [Graph = Korea IDC]
This report covers the major trends in the domestic AI market in 2019 and the future market outlook for related sub-markets. We also analyzed growth factors that have a positive impact on the domestic AI market and factors that hinder growth.
IDC predicted in the report that the hardware market for AI accounted for the largest revenue in the entire AI market in 2019, but it is expected to show a low growth rate in the future and account for a smaller proportion than the consulting and development-related services market for AI implementation after 2022.
The business of implementing AI applications and platforms for improving work process efficiency and automating business is increasing, and both the service and software markets are expected to grow at an average annual growth rate of more than 30% over the next five years.
According to the report, AI is gaining attention across industries as the most critical technology initiative that will change the future. Organizations are experiencing innovative improvements in business efficiency and productivity by focusing on high-value tasks instead of unproductive repetitive manual tasks through the application of AI.
In addition, the report emphasized that the introduction of AI technology can create powerful effects not only by simply improving work efficiency, but also by discovering data insights for complex phenomena that are difficult for people to solve, and by utilizing them for immediate business decision-making, future predictions, and recommendations.
The domestic AI sector is a latecomer in the global market in terms of both technology and human resources. However, considering the country’s high ICT infrastructure and education level and its rapid acceptance of new technologies, the report predicted that it could grow rapidly through bold investment and challenges by the public and corporate sectors.
