AI Server Market Share, Key Trends, Growth Drivers, and Forecast for 2025 - 2031

Diligence Insights has released its latest study on the Global AI Server Market, highlighting key trends, drivers, and market forecasts.

The global AI server market size was valued at $186.87 billion in 2025 and is projected to reach $970.69 billion by 2031, growing at a CAGR of 31.6% during the forecast period. North America holds the largest share of the AI server market, driven by the rapid adoption of artificial intelligence across various industries, significant investments in technology, and a robust ecosystem of tech companies and research institutions.

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The AI server market is expected to witness significant growth in the future due to the increasing adoption of AI and machine learning technologies across various industries, growing volumes of data generated by digital activities, and advancements in GPU technology. However, the high initial costs associated with AI server infrastructure, lack of skilled workforce with expertise in AI and machine learning technologies, and compatibility issues between AI servers and existing IT infrastructure are restraining the growth of the market.

Furthermore, expansion of AI server production capacity by major manufacturers to meet the rising demand, growing popularity of cloud services and the need for AI capabilities as a service, and advancements in AI chip design and the development of specialized processors for AI workloads are the key trends propelling the AI server market.

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Increasing adoption of AI and machine learning technologies across various industries is Driving the AI Server Market

The increasing adoption of AI and machine learning technologies across various industries is significantly impacting the AI server market, increasing demand for AI in sectors such as healthcare, finance, and automotive, where organizations are leveraging AI for data analytics, operational efficiency, and innovation.
• For example, in November 2023, KX launched the KDB.AI Server Edition, a high-performance vector database designed to enhance the scalability of AI applications, addressing challenges faced by enterprises in deploying AI solutions.
Additionally, major tech companies are significantly increasing their capital expenditures to support AI infrastructure;
• Microsoft reported a 66% year-over-year increase to $11 billion in 2023.
• Alphabet's capital expenditures nearly doubled to $12 billion.
This investment trend underscores the critical role of AI servers in processing large datasets and executing complex AI algorithms. Furthermore, the integration of AI in cloud services is driving the demand for AI servers that deliver AI capabilities as a service, facilitating broader access to advanced AI technologies.
• According to a recent report, AI server penetration is expected to grow from 8.8% of all servers in 2023 to 30% by 2029, reflecting the increasing reliance on AI across various applications.
As organizations continue to prioritize AI for competitive advantage, the AI server market is set to expand rapidly, driven by innovations and investments in high-performance computing solutions.

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By Hardware, the GPU Segment is projected to be the Largest Segment in the AI Server Market

GPU (Graphics Processing Unit) is the largest segment in the AI server market, driven by its powerful processing capabilities that are ideal for tasks like deep learning and neural network training. With thousands of cores, GPUs speed up complex computations, allowing for quick model iterations and better performance. As AI and machine learning technologies continue to advance and become more widely adopted across various industries, the demand for powerful GPUs to accelerate these workloads is rising significantly.
• In 2023, the GPU segment held a dominant position in the AI server market, capturing more than a 56% share, underscoring its importance in the AI ecosystem.
Manufacturers like NVIDIA and AMD are at the forefront of developing faster and more energy-efficient GPUs capable of handling increasingly complex AI algorithms and larger data volumes. These advancements are vital as AI applications become more intricate and widespread.
• In November 2023, NVIDIA launched its new line of AI servers equipped with the latest A100 Tensor Core GPUs, designed to support a wide range of AI applications. The company further showcased its advanced AI server solutions and deep learning research for autonomous driving at GTC 2024 in March 2024, highlighting the GB6181 AI accelerator capable of supporting high-performance AI workloads with up to eight NVIDIA H100 Tensor Core GPUs.
The ecosystem supporting GPU development is robust, featuring extensive software libraries and frameworks that facilitate easier integration into AI systems, reducing development times and enhancing the versatility of GPUs. The combination of increasing AI adoption, advancements in GPU technology, supportive ecosystem, and the launch of new GPU-powered AI server solutions is driving the high growth rate of the GPU segment in the AI Server market.

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Some of the Players in the hydrogen market are:
• Foxconn
• Hewlett-Packard Enterprise Company
• Intel Corporation
• Inventec Corporation
• MiTAC International Corporation
• Nvidia Corporation
• Quanta Computer Inc.
• Super Micro Computer, Inc.
• Wistron Corporation
• Wiwynn Corporation

The report offers insights into the following aspects:

• Analysis of major market trends, factors driving, restraining, threatening, and providing opportunities for the market.
• Analysis of the market structure by identifying various segments and sub-segments of the market.
• Understand the revenue forecast of the market for North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
• Analysis of opportunities by identification of high-growth segments/revenue pockets in the market.
• Understand major player profiles in the market and analyze their business strategies.
• Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market.

CONTACT:
Andrew Nowik
info@diligenceins.com

About Diligence Insights:

Diligence Insights is a leading market intelligence and advisory firm committed to delivering insights that uncover the subtle shifts capable of reshaping entire industries. We specialize in identifying the "butterfly effects" that can significantly influence market dynamics. Our comprehensive research reports offer exclusive data, in-depth analysis, key industry trends, and a detailed view of the competitive landscape-empowering businesses to make informed, strategic decisions.

This release was published on openPR.