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Artificial Intelligence Server Market Forecast 2025-2034: Evaluating Growth Factors, Segments, and Emerging Trends
What combination of drivers is leading to accelerated growth in the artificial intelligence server market?The expansion of artificial intelligence (AI) tasks across a multitude of sectors is predicted to fuel the artificial intelligence server market's growth in the future. AI tasks entail the computational operations linked to the implementation of AI applications and algorithms. AI servers are vital to AI tasks as they are expressly created and fine-tuned to manage the demanding computing requirements of AI applications. AI tasks in an AI server are aimed at effectively processing and scrutinizing large chunks of data via advanced algorithms, thus enabling the server to carry out operations such as machine learning training and inference with improved pace, precision, and scalability. For example, a report by Social Shepherd, a UK digital marketing firm, revealed that about 68% of workers wanted a greater inclusion of AI technology at their workplaces in January 2024. Currently, AI is used daily by 56% of workers. Moreover, an IBM poll of 7,502 businesses in May 2022, according to the IBM Global AI Adoption Index 2022, indicated that 35-36% of the world's companies were already deploying AI, and 42-64% were investigating its capabilities. AI is believed by 64% of corporations to boost business productivity, with 42% seeing it as a way to streamline work processes. Thus, the increase in artificial intelligence (AI) tasks in a number of sectors is anticipated to boost the artificial intelligence server market's growth.
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What is the projected compound annual growth rate (CAGR) of the artificial intelligence server market from 2025 to 2034, and what factors influence it?
The size of the artificial intelligence server market has seen a significant increase over the past few years. The market is expected to expand from a size of $24.53 billion in 2024 to $29.53 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 20.4%. The historical growth of this market has been fueled by several factors including the rise in computational power, growing preference for automation, cost-cutting in robotics, increased requirement for precision and accuracy, as well as the development of explainable AI.
The market size of the artificial intelligence server is predicted to undergo a massive growth in the forthcoming years. The projected growth rate would make the market worth around $62.95 billion in 2029, expanding at a compound annual growth rate (CAGR) of 20.8%. Factors contributing to this growth during the prediction period include personalization and flexibility, increased reliance on AI for informed decision making, surge in Robotic Process Automation (RPA), a focus on interaction between humans and robots, and advancements in AI ethics and regulations. Notable trends for the prediction period encompass integration with 5G technology, progress in sensor technologies, the use of cooperative robots (cobots), technological progress in AI, and swarm robotics accompanied with AI coordination.
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What new trends are reshaping the artificial intelligence server market and its opportunities?
Key players in the artificial intelligence server market are channeling their efforts towards the launch of novelty products, including edge AI servers, with the aim of boosting their market revenue. An edge AI server is a specialized computing unit that conducts AI computations at the brink of a network, commonly within the device that generates the data, for example, a medical device, car, or camera. For instance, in December 2023, BrainChip Holdings Ltd, a technological firm from Australia, paired with Unigen, a US-based organization offering economical, top-quality wireless charging solutions, to bring forth a novel version of the Unigen Cupcake Edge AI server. This apparatus is engineered to operate intricate artificial intelligence (AI) applications at the edge, implying it is capable of data processing nearer to its origin point, saving the need for cloud or internet connections. With BrainChip's Akida neuromorphic processor, the equipment delivers high efficiency, accuracy, and energy conservation, making it a flexible solution for numerous use cases.
What are the major segments of the artificial intelligence server market and their role in driving growth?
The artificial intelligence server market covered in this report is segmented -
1) By Server Type: Artificial Intelligence (AI) Data Server, Artificial Intelligence (AI) Training Server, Artificial Intelligence (AI) Inference Server, Other Servers
2) By Hardware Architecture: GPU Servers, ASIC Servers, FPGA Servers, Other Server Architectures
3) By AI Server Infrastructure: Cloud, On-Premise, Edge
4) By End-Use: IT And Telecommunication, Transportation And Automotive, Banking, Financial Services, and Insurance (BFSI), Retail And E-Commerce, Healthcare, Pharmaceutical, Industrial Automation
Subsegments:
1) By Artificial Intelligence (AI) Data Server: Storage Servers, Database Servers, Distributed Data Servers
2) By Artificial Intelligence (AI) Training Server: GPU-Based Training Servers, CPU-Based Training Servers, Hybrid Training Servers
3) By Artificial Intelligence (AI) Inference Server: Edge Inference Servers, Cloud Inference Servers, On-premises Inference Servers
4) By Other Servers: High-Performance Computing (HPC) Servers, Rack Servers, Blade Servers
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Which regions are key players in the growth of the artificial intelligence server market?
North America was the largest region in the artificial intelligence server market in 2024. The regions covered in the artificial intelligence server market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the key firms paving the way for growth in the artificial intelligence server market?
Major companies operating in the artificial intelligence server market report are Google LLC, Microsoft Corporation, Dell Technologies Inc., Huawei Technologies Co. Ltd., Tencent Holdings Limited, Amazon Web Services Inc., Lenovo Group Limited, Intel Corporation, accenture* PLC, IBM Corporation, Cisco Systems Inc., Oracle Corporation, Fujitsu Limited, Salesforce Inc., NVIDIA Corporation, Hewlett Packard Enterprise, ZTE Corporation, Super Micro Computer Inc., Epam Systems, Dawning Information Industry Co. Ltd., GIGA-BYTE Technology Co. Ltd., Inspur Group, ADLINK Technology Inc., Talkweb Information System Co., Ltd., Lambda, Nettrix Inc., H3C, Enginetech
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What Is Covered In The Artificial Intelligence Server Global Market Report?
• Market Size Forecast: Examine the artificial intelligence server market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the artificial intelligence server market for a structured understanding.
• Key Players Overview: Analyze major players in the artificial intelligence server market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the artificial intelligence server market.
• Segment Contributions: Evaluate how different segments drive overall growth in the artificial intelligence server market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the artificial intelligence server market.
• Industry Challenges: Identify potential risks and obstacles affecting the artificial intelligence server market.
• Competitive Landscape: Review strategic developments in the artificial intelligence server market, including expansions, agreements, and new product launches.
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