AI Infrastructure Market by Offering (Hardware, Services, Software), Deployment (On-Cloud, On-Premise), End-Users - Global Forecast 2024-2030
The AI Infrastructure Market size was estimated at USD 36.52 billion in 2023 and expected to reach USD 45.11 billion in 2024, at a CAGR 24.08% to reach USD 165.40 billion by 2030.
The AI infrastructure market refers to the ecosystem of hardware, software, and services that support the deployment, scaling, and management of artificial intelligence (AI) applications and machine learning (ML) models for various end-use industries. The AI infrastructure includes specialized processors such as GPUs, TPUs, ASICs, memory and storage solutions, networking equipment, software platforms for model training, and consulting services to facilitate AI adoption. The increasing need for high-performance computing platforms to process large datasets and the rising edge-to-cloud AI infrastructure worldwide are surging the demand for AI Infrastructure solutions. Additionally, the government initiatives promoting smart manufacturing and Industry 4.0 facilities contribute to market growth. However, the design complexities, deployment, and maintenance issues may limit the adoption of AI infrastructure solutions. The vulnerability to cyberattacks and data breach incidents poses challenges to the market. Moreover, the technological advancements and integration of AI infrastructure with 5G technology is expected to facilitate a new era of ultra-low latency and high-bandwidth applications, opening up additional opportunities for the market.
Regional Insights
The Americas represent a highly developed infrastructure with significant growth in investments associated with AI research and development and the presence of significant global market players. The United States, Canada, and Mexico are major countries with rising consumer demands, boosting the adoption of AI infrastructure solutions. In the European Union, countries such as France and Germany are spearheading efforts to increase investments in research and development to develop AI technology. Government initiatives and policies play an essential role in driving AI adoption across various industries in the Asia-Pacific region. Governments in countries including China, Japan, and India have recognized the importance of AI for future economic growth and are heavily investing in research and development (R&D) programs to boost innovation. Additionally, the thriving startup ecosystem contributes significantly to the market growth.
Market Insights
- Market Dynamics
The market dynamics represent an ever-changing landscape of the AI Infrastructure Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.- Market Drivers
- Need for high-performance computing platforms to process large datasets
- Government initiatives promoting smart manufacturing and industry 4.0 facilities
- Rise of edge-to-cloud AI infrastructure worldwide
- Market Restraints
- Complexity of designing, deploying, and maintaining AI infrastructure
- Market Opportunities
- New technological integration and advancements in AI infrastructure
- Emerging 5G network deployment in AI infrastructure
- Market Challenges
- Vulnerability to cyberattacks and data breaches
- Market Segmentation Analysis
- Offering: Innovative solution and services catering to specific needs of the AI ecosystem
- Deployment: Increasing utilization of the cloud-based AI infrastructure focusing on the agility and swift deployment of AI-powered services
- End-Users: Rising deployment of the AI infrastructure into the enterprises and Government entities
- Market Disruption Analysis
- Porter’s Five Forces Analysis
- Value Chain & Critical Path Analysis
- Pricing Analysis
- Technology Analysis
- Patent Analysis
- Trade Analysis
- Regulatory Framework Analysis
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the AI Infrastructure Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the AI Infrastructure Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Recent Developments- Saudi Arabia Partners with China to Create Arabic-based AI System
The King Abdullah University of Science and Technology (KAUST) in Saudi Arabia established a strategic partnership with two Chinese universities to develop a specialized AI system for the Arabic language. This initiative involves the collaboration of a Chinese-American professor at KAUST, along with the School of Data Science at the Chinese University of Hong Kong, Shenzhen (CUHKSZ) and Shenzhen Research Institute of Big Data (SRIBD).
AMD to Acquire Open-Source AI Software Expert Nod.ai
Advanced Micro Devices Inc. entered into a definitive agreement to acquire Nod.ai, a move aimed at expanding its open AI software capabilities. This strategic acquisition is expected to accelerate the development of open-source compiler technology, enabling the creation of portable and high-performance AI solutions across AMD's product portfolio.
SambaNova Unveils the SN40L, Powering its Full Stack AI Platform
SambaNova Systems introduced its SN40L AI chip, which exhibits the capability to run models with up to 5 trillion parameters. This cutting-edge chip is designed with dense and sparse computing capabilities, along with large and fast memory, to assist enterprises in deploying generative AI with superior performance.
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the AI Infrastructure Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
Key Company Profiles
The report delves into recent significant developments in the AI Infrastructure Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Advanced Micro Devices Inc., Amazon Web Services, Inc., Appinventiv Technology Pvt. Ltd., Cerebras Systems, Cisco Systems, Inc., DataRobot, Inc., Fortinet, Inc., G-Core Labs S.A., Google LLC by Alphabet Inc., Graphcore Limited, Groq, Inc., Hailo Technologies Ltd., Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., Intel Corporation, International Business Machines Corporation, Lenovo Group Limited, Lightmatter, Inc., Meta Platforms, Inc., Micron Technology Inc., Microsoft Corporation, Mythic, Inc., NEC Corporation, Nutanix, Inc., NVIDIA Corporation, OpenAI OpCo, LLC, Oracle Corporation, Pure Storage, Inc., Salesforce, Inc., SambaNova Systems, Inc, Samsung Electronics Co., Ltd., SAP SE, SenseTime Group Inc., Siemens AG, Sony Group Corporation, Synopsys Inc., and Toshiba Corporation.
Market Segmentation & Coverage
This research report categorizes the AI Infrastructure Market to forecast the revenues and analyze trends in each of the following sub-markets:- Offering
- Hardware
- CPU & GPU
- Memory & Storage
- Networking Equipment
- Services
- Data Ingestion & Integration
- Data Preprocessing & Feature Engineering
- Data Storage & Management
- Machine Learning Frameworks & Libraries
- Model Deployment & Serving
- Model Training & Validation
- Monitoring & Maintenance
- Security & Compliance
- Software
- Deployment
- On-Cloud
- On-Premise
- End-Users
- Cloud Service Providers
- Enterprises
- Government
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
Please Note: PDF & Excel + Online Access - 1 Year
- Americas
- Hardware
- Market Drivers
- 1. Preface
- 1.1. Objectives of the Study
- 1.2. Market Segmentation & Coverage
- 1.3. Years Considered for the Study
- 1.4. Currency & Pricing
- 1.5. Language
- 1.6. Stakeholders
- 2. Research Methodology
- 2.1. Define: Research Objective
- 2.2. Determine: Research Design
- 2.3. Prepare: Research Instrument
- 2.4. Collect: Data Source
- 2.5. Analyze: Data Interpretation
- 2.6. Formulate: Data Verification
- 2.7. Publish: Research Report
- 2.8. Repeat: Report Update
- 3. Executive Summary
- 4. Market Overview
- 5. Market Insights
- 5.1. Market Dynamics
- 5.1.1. Drivers
- 5.1.1.1. Need for high-performance computing platforms to process large datasets
- 5.1.1.2. Government initiatives promoting smart manufacturing and industry 4.0 facilities
- 5.1.1.3. Rise of edge-to-cloud AI infrastructure worldwide
- 5.1.2. Restraints
- 5.1.2.1. Complexity of designing, deploying, and maintaining AI infrastructure
- 5.1.3. Opportunities
- 5.1.3.1. New technological integration and advancements in AI infrastructure
- 5.1.3.2. Emerging 5G network deployment in AI infrastructure
- 5.1.4. Challenges
- 5.1.4.1. Vulnerability to cyberattacks and data breaches
- 5.2. Market Segmentation Analysis
- 5.2.1. Offering: Innovative solution and services catering to specific needs of the AI ecosystem
- 5.2.2. Deployment: Increasing utilization of the cloud-based AI infrastructure focusing on the agility and swift deployment of AI-powered services
- 5.2.3. End-Users: Rising deployment of the AI infrastructure into the enterprises and Government entities
- 5.3. Market Trend Analysis
- 5.3.1. Strong presence of experienced AI infrastructure technology providers and research institutes with an enormous number of patent registrations in the Americas
- 5.3.2. Government initiatives and rising penetration of global tech vendors are shaping the future of AI infrastructure in the APAC region
- 5.3.3. Emphasized regulation and standards for AI deployment and advancing AI governance across EMEA
- 5.4. Cumulative Impact of High Inflation
- 5.5. Porter’s Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
- 5.6. Value Chain & Critical Path Analysis
- 5.7. Regulatory Framework Analysis
- 6. AI Infrastructure Market, by Offering
- 6.1. Introduction
- 6.2. Hardware
- 6.3. Services
- 6.4. Software
- 7. AI Infrastructure Market, by Deployment
- 7.1. Introduction
- 7.2. On-Cloud
- 7.3. On-Premise
- 8. AI Infrastructure Market, by End-Users
- 8.1. Introduction
- 8.2. Cloud Service Providers
- 8.3. Enterprises
- 8.4. Government
- 9. Americas AI Infrastructure Market
- 9.1. Introduction
- 9.2. Argentina
- 9.3. Brazil
- 9.4. Canada
- 9.5. Mexico
- 9.6. United States
- 10. Asia-Pacific AI Infrastructure Market
- 10.1. Introduction
- 10.2. Australia
- 10.3. China
- 10.4. India
- 10.5. Indonesia
- 10.6. Japan
- 10.7. Malaysia
- 10.8. Philippines
- 10.9. Singapore
- 10.10. South Korea
- 10.11. Taiwan
- 10.12. Thailand
- 10.13. Vietnam
- 11. Europe, Middle East & Africa AI Infrastructure Market
- 11.1. Introduction
- 11.2. Denmark
- 11.3. Egypt
- 11.4. Finland
- 11.5. France
- 11.6. Germany
- 11.7. Israel
- 11.8. Italy
- 11.9. Netherlands
- 11.10. Nigeria
- 11.11. Norway
- 11.12. Poland
- 11.13. Qatar
- 11.14. Russia
- 11.15. Saudi Arabia
- 11.16. South Africa
- 11.17. Spain
- 11.18. Sweden
- 11.19. Switzerland
- 11.20. Turkey
- 11.21. United Arab Emirates
- 11.22. United Kingdom
- 12. Competitive Landscape
- 12.1. Market Share Analysis, 2023
- 12.2. FPNV Positioning Matrix, 2023
- 12.3. Competitive Scenario Analysis
- 12.3.1. Saudi Arabia Partners with China to Create Arabic-based AI System
- 12.3.2. AMD to Acquire Open-Source AI Software Expert Nod.ai
- 12.3.3. SambaNova Unveils the SN40L, Powering its Full Stack AI Platform
- 12.3.4. EY Announces Launch of Artificial Intelligence Platform EY.ai Following USD 1.4 Billion Investment
- 12.3.5. Partnership to Launch UAE as the World's First AI Nation
- 12.3.6. Jio Platforms Ties up with NVIDIA to Build Cloud-based AI Infrastructure
- 12.3.7. Tata Partners With NVIDIA to Build Large-Scale AI Infrastructure
- 12.3.8. Microsoft Expands UAE's G42 Partnership to Include Cloud, AI Tools
- 12.3.9. Google Cloud and NVIDIA Expand Partnership to Advance AI Computing, Software and Services
- 12.3.10. Contextual AI and Google Cloud Partner to Bring Generative AI to the Enterprise
- 12.3.11. Nutanix Simplifies Adoption of Generative AI with New Nutanix GPT-in-a-Box Solution
- 12.3.12. VAST Data Launches Unified Data Platform for the Age of AI
- 12.3.13. AMD Announces Plan to Invest USD 135 Million to Expand Adaptive Computing Research, Development and Engineering Operations in Ireland
- 12.3.14. Lenovo to Invest USD 1 Billion over 3 Years on Expansion and Optimisation of AI Infrastructure
- 12.3.15. Hewlett Packard Enterprise acquires Pachyderm to expand AI-at-scale capabilities with reproducible AI
- 13. Competitive Portfolio
- 13.1. Key Company Profiles
- 13.2. Key Product Portfolio
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