AI Infrastructure Market Projected to reach $50.6 billion by 2025 | Key players include Intel Corporation, NVIDIA Corporation, IBM, Samsung Electronics and Google

According to the new market research report on the "AI Infrastructure Market by Offering (Hardware, Software), Technology (Machine Learning, Deep Learning), Function (Training, Inference), Deployment Type (On-Premises, Cloud, Hybrid), End User, and Region - Global Forecast to 2025", The global AI infrastructure market is projected to grow from USD 14.6 billion in 2019 to USD 50.6 billion by 2025, at a CAGR of 23.1%. Major factors driving the AI infrastructure market include rising focus on parallel computing in AI data centers, increasing adoption of cloud machine learning platform, improving computing power and declining hardware cost, growing volume of data generated in industries such as automotive and healthcare.

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Hardware segment is expected to hold larger share of global AI infrastructure market, by offering, during forecast period

Hardware devices required to build AI infrastructure include processors, memory, storage, and interconnects. With rapid technological advances, smaller, more efficient, and more powerful neuromorphic chip-based systems are expected to replace large hardware devices in the coming years. There is increasing competition between established companies and start-ups in the market, leading to the launching and development of hardware products and software platforms to run machine learning algorithms and other AI programs. The hardware segment is expected to continue to lead the AI infrastructure market in the coming years owing to the rising demand for hardware devices with high computing power to run various AI algorithms/solutions.

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AI Infrastructure Market for Enterprises in APAC is Estimated to Grow at Highest CAGR During Forecast Period

High technological developments across various data centers of enterprises have generated and stored large volumes of data. Complexities within the IT infrastructure encourage these data centers to adopt virtualization technology, thereby driving the growth of enterprise data centers. Also, the utilization of advanced big data solutions for operational data explosion is impacting the future requirements for AI-based servers. Enterprises include automotive, banking & finance, healthcare, retail and e-commerce, media and entertainment organizations, etc. The exponential growth of retail and e-commerce data has created the growing need for powerful data centers where a massive number of servers connected through data center networks can work together to provide online services. The adoption of new technologies in healthcare creates new requirements for the IT network to manage a large volume of patient data, and organizations must ensure that their IT systems can deal with the data traffic issue and meet the performance requirements. All these needs are likely to result in the increasing number of data centers.

North America is Expected to hold Largest Share of Global AI Infrastructure Market During Forecast Period

The US and Canada are expected to adopt AI-based servers at a high rate. These countries are technologically developed economies in North America because of their strong focus on investing in R&D activities for the development of new technologies. The North American AI infrastructure market is further segmented into the US, Canada, and Mexico. The US is one of the major contributors to the North American AI infrastructure market. The US is one of the leading countries in the world to adopt AI technology. In addition, the presence of prominent AI technology providers in the country, such as IBM, Google, Microsoft, NVIDIA, Intel, Facebook, MetaMind, Tute Genomics, and Amazon.com, is boosting the growth of the AI infrastructure market in this region.

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Key players operating in the AI infrastructure market are Intel Corporation (US), NVIDIA Corporation (US), IBM (US), Samsung Electronics (South Korea), Google (US), Microsoft (US), Micron Technology (US), Amazon Web Services (US), CISCO (US), Oracle (US), ARM (UK), Xilinx (US), Advanced Micro Devices (AMD) (US), Dell (US), HPE (US), Habana Labs (Israel), and Synopsys Inc. (US).

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