Steady Expansion Forecast for Artificial Intelligence Server Market, Projected to Reach $62.95 Billion by 2029

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Artificial Intelligence Server Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The size of the artificial intelligence server market has seen significant growth lately. The market size, which is expected to be at $24.53 billion in 2024, is projected to reach $29.53 billion in 2025 following a compound annual growth rate (CAGR) of 20.4%. The substantial growth in the past was due to factors such as an increase in computational power, a surge in demand for automation, a decrease in the cost of robotics, a heightened need for precision and accuracy, and the development of explainable AI.

Artificial Intelligence Server Market Size Forecast: What's the Projected Valuation by 2029?
Expectations are high for a substantial expansion in the artificial intelligence server market size in the coming years. The projection estimates a growth to $62.95 billion by 2029, with a compound annual growth rate (CAGR) of 20.8%. This predicted surge during the forecasted period can be linked to factors such as customization, adaptability, amplified usage of AI in decision-making processes, the escalating prominence of robotic process automation (RPA), emphasis on the interaction between humans and robots, and the development in AI ethics and regulations. Additionally, forecasted trends for this period include integration with 5G technology, evolution in sensor technologies, collaborative robotics (cobots), technological progressions in AI, and swarm robotics enhanced by AI coordination.

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What Are the Drivers Transforming the Artificial Intelligence Server Market?
The proliferation of artificial intelligence (AI) tasks across diverse industries is anticipated to stimulate the expansion of the AI server market. AI tasks pertain to the computational actions and processes encompassing the implementation of AI programs and algorithms. AI servers, specifically engineered and optimized to accommodate high-performance computing needs of AI, are pivotal to AI workloads. The AI tasks within an AI server adeptly process and scrutinize copious amounts of data through intricate algorithms, facilitating capabilities like machine learning training and inference to be performed more swiftly, accurately, and scalable. For instance, a report by Social Shepherd, a British digital marketing firm, revealed in January 2024 that about 68% of workers desire more integration of AI technology by their employers in their work environment, with 56% already engaging with AI daily. Moreover, as per the IBM Global AI Adoption Index 2022 by IBM, a survey of 7,502 businesses in May 2022 disclosed that 35-36% of global firms have already begun implementing AI and 42-64% are examining its potential. In addition, 64% of enterprises opine that AI will bolster business productivity, while 42% reckon it will make job processes more efficient. Thus, the surge in AI tasks across numerous sectors is set to propel the escalation of the AI server market.

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What Long-Term Trends Will Define the Future of the Artificial Intelligence Server Market?
Leading organizations in the artificial intelligence server market are shifting their focus towards the launch of creative products like edge AI servers in order to elevate their market revenue. Essentially, an edge AI server is a computing equipment that does AI calculations at the network edge, which is usually where the data is produced - be it a camera, a car, or a medical apparatus. For example, in December 2023, BrainChip Holdings Ltd., an Australian tech firm, teamed up with Unigen, an American company known for offering cost-effective, high-grade wireless charging solutions. Together, they launched an upgraded version of the Unigen Cupcake Edge AI server. This gadget is architected to operate complex AI applications at the edge, implying the processing of data is done nearer to where it is produced rather than being dependent on the internet or cloud. BrainChip's Akida neuromorphic processor is at the core of this technology, equipping the device with high effectiveness, accuracy, and energy-saving capabilities. Therefore, it is a flexible solution that is applicable to a broad variety of use cases.

Which Segments in the Artificial Intelligence Server Market Offer the Most Profit Potential?
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 Firms Dominate the Artificial Intelligence Server Market by Market Share and Revenue in 2025?
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

Which Regions Offer the Highest Growth Potential in 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.

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