What Fueled The Previous Growth In The Artificial Intelligence Server Market?
The artificial intelligence server market has seen considerable growth due to a variety of factors.
• There has been remarkable growth in the artificial intelligence server market size in the past few years. It is projected to expand from $24.53 billion in 2024 to $29.53 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 20.4%.
Factors contributing to this growth include enhanced computational capability, a surge in automation demand, a decrease in robotics costs, a heightened need for precision and accuracy, and the emergence of explainable AI.
What Can Be Expected from the Artificial Intelligence Server Market Size?
The artificial intelligence server market is expected to maintain its strong growth trajectory in upcoming years.
• The artificial intelligence server market is projected to witness considerable growth in the ensuing years, with the estimation pegging the value at $62.95 billion in 2029, growing at a CAGR of 20.8%.
The evolution throughout this projected period is likely due to factors such as customizability and adaptability, wider usage of ai for decision-making processes, heightened adoption of robotic process automation (RPA), increased emphasis on human-robot interaction, and advancements in artificial intelligence ethics and legislation. The forecast period is also expected to see major trends like integration with 5G technology, sensor technology improvements, the rise of collaborative robotics (cobots), advancements in AI technology, and the incorporation of swarm robotics with AI coordination.
What Are the Critical Driver Fuelling The Artificial Intelligence Server Market's Growth?
The expansion of artificial intelligence (AI) related tasks across numerous sectors is predicted to spearhead the development of the artificial intelligence server market. These AI workloads denote the computational responsibilities and processes needed for the functioning of AI applications and algorithms. AI servers provide an essential function in managing AI workloads, as they are specially engineered to tackle the high-performance computing requirements of AI applications. These AI workloads are tasked with processing and analyzing massive amounts of data with intricate algorithms within an AI server. This empowers the server to execute actions like machine learning training and inference with amplified speed, precision, and scalability. For illustration, Social Shepherd, a UK-based digital marketing company, issued a report in January 2024 stating that roughly 68% of employees wish for more AI technology implementation in their workplaces, with 56% already using AI daily. Moreover, as per the IBM Global AI Adoption Index 2022 by IBM, a technology firm from the US, a survey of 7,502 businesses in May 2022 revealed that 35–36% of worldwide companies were in the process of adopting AI, and 42–64% were exploring its potential. Approximately 64% of these businesses anticipate that AI will boost their productivity, while 42% expect it to make job processes more efficient. Thus, the proliferation of AI workloads in various industries contributes significantly towards the growth of the artificial intelligence server market.
How Is The Artificial Intelligence Server Market segmented?
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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How Are New Trends Impacting The Size Of The Artificial Intelligence Server Market?
In efforts to boost their profits, major businesses in the artificial intelligence server market are unveiling innovative goods like edge AI servers. This server, typically housed on the device that generates the data (like a camera or car), carries out AI computations at the network edge. For example, an upgraded version of the Unigen Cupcake Edge AI server was launched by BrainChip Holdings Ltd., an Australian technology firm, and Unigen, a US company offering economical, high-quality wireless charging solutions in December 2023. This device has been engineered to execute sophisticated AI applications at the edge, hence processing data in close proximity to its source instead of being dependable on the cloud or internet access. Utilising BrainChip’s Akida neuromorphic processor, the device boasts high efficiency, accuracy, and energy-saving features, making it suitable for a broad spectrum of applications.
Who Are the Key Players 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
What Is The Most Dominant Region 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.
