Deep Learning Software Market to Surpass $10 Billion by 2024

Advertising, Finance, and Media are Early Adopter Markets for Enterprise Deep Learning, with Other Industries Soon to Follow

Deep learning is emerging as one of the most important technologies in enterprise computing – yet it is also one of the most misunderstood and oversold software systems ever developed.  A new report from Tractica finds that, despite some significant limitations, deep learning is a key enabling technology that will raise a number of false expectations, yet ultimately will have a profound impact on how data is utilized across a wide range of industries, disrupting traditional business models while also facilitating new ones.

As a branch of the broader discipline of machine learning, deep learning emulates a biological system by creating a simulated software network of mathematical neurons, and the resulting neural net builds a model that is capable of adapting itself to new data.  While the concept for biologically-inspired computer programs dates back to at least 1950, during the early days of the artificial intelligence (AI) movement, Tractica’s analysis indicates that rapid advances in the field are now being spurred by three key market trends:

  1. Vast increases in the amount of data
  2. Significant improvements in machine learning algorithms
  3. Exponential advances in hardware speed

The market intelligence firm forecasts that annual software revenue for enterprise applications of deep learning will increase from $109 million in 2015 to $10.4 billion in 2024.

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“Deep learning is already proving its value in sectors like advertising services, investments, and media,” says principal analyst Bruce Daley.  “Thanks to the growth of areas like electronic medical records (EMRs), wearable devices, and the Internet of Things (IoT), deep learning will have an increasingly greater impact on sectors such as medicine, manufacturing, consumer finance, networking and data storage, and oil and gas.”

Daley adds that the technology also has the potential to disrupt more traditional industries, such as automotive, agriculture, education, law, philanthropies, and retail.

Tractica’s report, “Deep Learning for Enterprise Applications”, examines the market for deep learning across 15 industry sectors, including 10-year revenue forecasts for the period from 2015 through 2024.  The report forecasts software revenue, services revenue, and hardware sales, and provides segmentation by delivery method (cloud, device, and data center) as well as world region.  An Executive Summary of the report is available for free download on the firm’s website.

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