ai infrastructure market

AI Infrastructure Market Share, Size, Trends, Industry Analysis Report, By Technology (Machine Learning, Deep Learning), End-Use (Enterprises, Government Organizations, Cloud Service Providers); By Deployment; By Offering; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Jan 2022
  • Pages: 114
  • Format: PDF
  • Report ID: PM2218
  • Base Year: 2021
  • Historical Data: 2018 - 2020

Report Summary

The global AI infrastructure market was valued at USD 23.54 billion in 2021 and is expected to grow at a CAGR of 27.6% during the forecast period. The increasing number of cross-industry collaborations and partnerships, tied with the increasing adoption of cybersecurity technologies, artificial intelligence, IoT, robots, industrial automation, and machine vision technology, is attributed to the artificial intelligence infrastructure industry demand.

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Moreover, deep learning algorithms, along with machine learning algorithms, may assist enterprises in achieving network efficiencies. For instance, companies need to install automated infrastructure management tools in their data centers. Thus, these factors may accelerate the artificial intelligence infrastructure market development in the approaching years.

The onset of the COVID-19 outbreak has shown some challenges and ambiguities for various businesses. It positively affects the next-generation tech domain that comprises artificial intelligence because of the compulsory work-from-home (WFH) policy in the period.  For instance, in April 2020, Google introduced AI-enabled chatbot, “Rapid Response Virtual Agent,” for call centers. This chatbot is created to answer the customer's issues that might be undergoing at the time of the pandemic over voice, chat, and other social channels. Thus, the arrival of COVID-19 brings an upsurge in the global artificial intelligence infrastructure market.

AI Infrastructure Market

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Industry Dynamics 

Growth Drivers
Increased data traffic and the need for high-computing power is one of the key factors that thrust the growth of the global artificial intelligence infrastructure market. GPU/CPU manufacturers, including NVIDIA, Intel, Huawei, Samsung, and Qualcomm, have significantly invested in the advancement of chips that are harmonious with artificial intelligence solutions. Apart from CPUs and GPUs, Application-Specific Integrated Circuits (ASICs) and Field-Programmable Gate Arrays (FPGAs) are also being developed for artificial intelligence applications.

For instance, Google built a new ASIC called Tensor Processing Unit (TPU). Such supportive initiatives undertaken by the key manufacturers are likely to support the artificial intelligence infrastructure industry growth. Moreover, increasing acceptance of cloud-based services has been perceived across several application areas, including governmental organization, education, BFSI, healthcare, among others.

The world of enterprises and guidance has always been seeking new teaching tools and approaches to bid efficient and interactive learning to the students. In addition, there are significant benefits related to the use of cloud-based services ineffective storage, managing, and interpreting data has become essential. As per Cisco Systems, the worldwide IP traffic is estimated to be around 1.2 ZB per year or 96 EB per month in 2021; the global IP traffic will reach 3.3 ZB per year. Hence, it becomes an important factor for all computing-based devices.

Report Segmentation

The market is primarily segmented on the basis of offering, deployment, technology, end-use, and region.

By Offering

By Deployment

By Technology

By End-Use

By Region

  • Hardware
    • Processor
    • Storage
    • Memory
  • Software
  • On-Premises
  • Cloud
  • Hybrid
  • Machine Learning
  • Deep Learning
  • Enterprises
  • Government Organizations
  • Cloud Service Providers
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Spain, Netherlands, Austria)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Insight by Offering

The hardware segment is accounted for the largest revenue in the global artificial intelligence infrastructure market. The demand for AI hardware is significantly rising on account of its use in diverse applications such as machine learning, robotic process automation, and biometrics. In addition, the significant opportunities from developing countries demand advanced IT products, and escalating demand for artificial intelligence hardware in a high-performance computing data center is expected to boost the growth of the AI infrastructure market.

Companies have often created new opportunities in the global artificial intelligence infrastructure market including Non-Volatile Memory, artificial intelligence optimized storage system, high-speed interconnect, and programmable switches. The industries and businesses are adopting artificial intelligence hardware including pharmaceutical and healthcare, manufacturing, and financial services industries. Therefore, the demand for artificial intelligence infrastructure is becoming a key factor for artificial intelligence infrastructure market growth worldwide.

Moreover, the artificial intelligence software and services segment is expected to demonstrate the highest CAGR, owing to the increasing amount of digital data is accelerating the need for data mining and analytics to retrieve applicable information from images, videos, speech, and audio. Furthermore, AI applications including video analytics, inference, sparse matrices, primitives, and multi-hardware communication capabilities, are accelerating the segment growth over the approaching years.

Insight by Technology

The machine learning technology segment is recorded with the largest revenue share in 2021 and is expected to lead the artificial intelligence infrastructure market in the forecasting years. Artificial intelligence in machine learning provides systems the capability to learn automatically and enhance their performance by using experience deprived of being programmed explicitly.

With the introduction of AI machine learning, the contribution of AI infrastructure market has grown up towards various applications such as cloud service providers and governmental organizations. Besides, the rise in the technological proliferation of data with an immense need to descend maximum information from available data can provide the use of machine learning in artificial intelligence.

The machine learning technology segment is also projected to be the fastest-growing segment during the forecast period. This is due to the AI and machine learning have been broadly adopted to confront the COVID-19 crisis. With respect to this, several organizations are utilizing machine learning to scale up customer communications, comprehend the spread of COVID-19, and help accelerate research and treatment processes. Therefore, the demand for machine learning technology is growing robustly and contributing to segmental growth worldwide.

Geographic Overview

Geographically, Asia Pacific is accounted with the highest shares in the global market in 2021 and is likely to dominate the artificial intelligence infrastructure market over the upcoming scenario. The investment primarily drives the AI infrastructure market in the Asia Pacific region from the private technology company towards AI development on account of the availability of economic workforces along with massive volume and a broad range of data generated by the users of mobile internet and several applications.

The large amount of data produced enables AI systems to generate more innovative insights, thus, offering companies to reduce costs, improve productivity, scale operations, and enhance more targeted products and services to consumers. These aforementioned factors are likely to strengthen sales across North America in the forthcoming years.

Moreover, North America and Europe are also expected to contribute a significant share in the global market during the forthcoming years. For instance, the Europe commission has planned to invest USD 2.8 billion from the budget of USD 10.5 billion during 2021-2027 in order to promote AI across the European economy and society. Hence, it may positively influence the demand for a global artificial intelligence infrastructure market that creates lucrative opportunities in the near future.

Competitive Insight

Some of the major players operating in the global AI infrastructure market include Advanced Micro Devices, Inc, Amazon Web Service, Cadence Design Systems, Cisco, Dell, Google, Graphcore, Gyrfalcon Technology, Hewlett Packard Enterprise Development LP, IBM, Imagination Technologies, INTEL, Micron Technology, Microsoft, NVIDIA, Samsung Electronics, Sensetime, SK Hynix, Tenstorrent, Toshiba, Wave Computing, and Xilinx.

AI Infrastructure Market Report Scope

Report Attributes

Details

Market size value in 2021

USD 23.54 billion

Revenue forecast in 2030

USD 197.39 billion

CAGR

27.6% from 2022 - 2030

Base year

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Segments covered

By Offering, By Deployment, By Technology, By End-Use, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key companies

Advanced Micro Devices, Inc, Amazon Web Service, Cadence Design Systems, Cisco, Dell, Google, Graphcore, Gyrfalcon Technology, Hewlett Packard Enterprise Development LP, IBM, Imagination Technologies, INTEL, Micron Technology, Microsoft, NVIDIA, Samsung Electronics, Sensetime, SK Hynix, Tenstorrent, Toshiba, Wave Computing, and Xilinx.

Key Take-Away
Polaris Market Research
AI Infrastructure Market Size Global Report, 2022 - 2030