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進入《TAIPEI TIMES》 Local software market to grow thanks to AI: IDC
Minister of Science and Technology Wu Tsung-tsong, center, and guests pose for a photograph at the launch ceremony for the Taiwan AI Center of Excellence in Taipei on Mar 28, 2023. Photo: Wu Po-hsuan, Taipei Times
TRENDS: The AI sector’s compound annual growth rate is expected to be the highest among all segments in the local software market by 2027, the market research firm said
/ Staff writer, with CNA
Taiwan’s software market is expected to grow to US$4.13 billion by 2027 from US$2.57 billion last year, with the artificial intelligence （AI） sector playing a major role boosting growth, International Data Corp （IDC） said in a report on Friday.
The US-based market research firm said the compound annual growth rate （CAGR） of Taiwan’s software market is expected to reach 9.9 percent by 2027, with the CAGR for the AI sector likely to be as high as 25.9 percent, the highest among all segments in the local software market.
The forecast indicates robust demand for AI applications in Taiwan, IDC said.
Many tech giants and start-ups have intensified efforts to develop the AI sector, IDC Taiwan senior research manager Shirley Tsai （蔡秀宜） said in the report.
With AI technology improving, and products and services hitting the stores, as well as the presence of ChatGPT, enterprises and the general public have no limits regarding their idea of what AI applications can achieve, Tsai said, adding that she expects the AI business to grow at speed.
Citing a boom in AI applications, US-based graphics processing unit designer Nvidia Corp on Wednesday projected that its sales for this quarter would hit US$11 billion, jumping 64 percent from a year earlier and beating an early market estimate of US$7.2 billion.
On Saturday, Nvidia cofounder and CEO Jensen Huang （黃仁勳） spoke at National Taiwan University’s commencement ceremony in Taipei, saying that AI is expected to create “golden opportunities” for industries in Taiwan.
Analysts have said the growth in AI applications is expected to offset effects caused by the weakness of the consumer electronics business, which is facing inventory adjustments.
Taiwan’s software as a service sector, which includes cloud-based software and licensing delivery models, is expected to grow to US$2.45 billion in 2027 from about US$1.12 billion last year, with a CAGR of 16.8 percent, the IDC report said.
The nation’s cybersecurity as a service sector — a form of managed cybersecurity that is delivered through cloud technology — is expected to grow to US$470 million in 2027, up from US$210 million last year, it said.
IDC Taiwan senior market analyst Yvette Lin （林雅惠） said in the report that she expects enterprises to continue investing in cybersecurity to tackle increasing threats from cyberattacks and sudden market changes.
新聞來源：TAIPEI TIMES
