The global AI market is expected to grow more than 50%
AI is the buzzword these days, and the market has huge growth potential. PR Newswire, citing QY Research, reported that the global AI market could grow 52.6% (compounded annually) from $2.65 billion in 2017 to $78 billion by 2025. IBM (IBM) has been the largest player in the AI market.
IBM, citing IDC, reported that it is ahead of Microsoft (MSFT) and Google (GOOG) in the AI market. As the chart below shows, IBM’s AI market share in 2017 was 9.6%, whereas Microsoft and Google held less than 2% of the market each. Microsoft and Amazon (AMZN) (also an upcoming player in the market) both managed to grow their market share percentage by triple digits year-over-year, while IBM’s grew by double digits.
Watson is a fast-growing business for IBM
IBM’s AI solution, Watson, has a major presence in the healthcare, Internet-of-Things, retail, financial, insurance, education, and transportation sectors. The number of organizations using Watson grew 70% in the last quarter, and in the healthcare vertical, IBM integrated Watson Health with Medtronic (MDT), one of the world’s largest medical device companies.
Watson Health has been growing its presence in the healthcare sector, especially in oncology. A couple of years back, IBM acquired cloud-based healthcare company Truven Health for $2.6 billion, and IBM has partnered with Pfizer (PFE) for drug discovery.