AI Infrastructure Global Market Opportunities And Strategies To 2034

The AI infrastructure market is segmented by offerings into hardware and server software. The hardware market was the largest segment of the AI infrastructure market segmented by offerings, accounting for 56.51% or $32.19 billion of the total in 2024. Going forward, the server software segment is expected to be the fastest growing segment in the AI infrastructure market segmented by offerings, at a CAGR of 31.57% during 2024-2029.

The AI infrastructure market is segmented by function into training and inference. The training market was the largest segment of the AI infrastructure market segmented by function, accounting for 70.74% or $40.3 billion of the total in 2024. Going forward, the inference segment is expected to be the fastest growing segment in the AI infrastructure market segmented by function, at a CAGR of 27.13% during 2024-2029.

The AI infrastructure market is segmented by technology into machine learning, deep learning and other technologies. The machine learning market was the largest segment of the AI infrastructure market segmented by technology, accounting for 55.22% or $31.46 billion of the total in 2024. Going forward, the deep learning segment is expected to be the fastest growing segment in the AI infrastructure market segmented by technology, at a CAGR of 32.28% during 2024-2029.

The AI infrastructure market is segmented by deployment type into on-premises, cloud and hybrid. The cloud market was the largest segment of the AI infrastructure market segmented by deployment type, accounting for 53.23% or $30.32 billion of the total in 2024. Going forward, the hybrid segment is expected to be the fastest growing segment in the AI infrastructure market segmented by deployment type, at a CAGR of 34.81% during 2024-2029.

The AI infrastructure market is segmented by end-user into enterprises, government organizations and cloud service providers. The cloud service providers market was the largest segment of the AI infrastructure market segmented by end-user, accounting for 46.86% or $26.7 billion of the total in 2024. Going forward, the enterprises segment is expected to be the fastest growing segment in the AI infrastructure market segmented by end-user, at a CAGR of 30.61% during 2024-2029.

North America was the largest region in the AI infrastructure market, accounting for 37.84% or $21.56 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the AI infrastructure market will be Asia Pacific and North America where growth will be at CAGRs of 28.19% and 27.10% respectively. These will be followed by Middle East and Eastern Europe where the markets are expected to grow at CAGRs of 26.34% and 25.19% respectively.

The global AI infrastructure market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 13.96% of the total market in 2023. Nvidia Corp. was the largest competitor with a 2.69% share of the market, followed by Intel Corp. with 2.15%, Microsoft Corporation with 1.80%, Amazon.com, Inc. with 1.34%, Google LLC (Alphabet Inc.) with 1.32%, Advanced Micro Devices, Inc. (AMD) with 1.25%, International Business Machines Corporation. with 1.16%, Micron Technology Inc. with 0.97%, Dell Technologies Inc. with 0.72% and Sensetime Group Inc. with 0.55%.

This report describes and explains the AI infrastructure market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global AI infrastructure market reached a value of nearly $56.97 billion in 2024, having grown at a compound annual growth rate (CAGR) of 29.99% since 2019. The market is expected to grow from $56.97 billion in 2024 to $186.27 billion in 2029 at a rate of 26.73%. The market is then expected to grow at a CAGR of 24.74% from 2029 and reach $562.68 billion in 2034.

Growth in the historic period resulted from the increasing digital transformation, growth of edge computing and favorable government initiatives and investments. Factors that negatively affected growth in the historic period were tighter AI regulations and privacy concerns related to data collection and surveillance.

Going forward, the increasing demand for cloud services, rising volume of data generation, growth of IoT (internet of things) devices and increasing adoption of AI (artificial intelligence) will drive the growth. Factor that could hinder the growth of the AI infrastructure market in the future include scalability issues and limited skilled workforce.

The top opportunities in the AI infrastructure markets segmented by offerings will arise in the server software segment, which will gain $72.93 billion of global annual sales by 2029. The top opportunities in the AI infrastructure markets segmented by function will arise in the training segment, which will gain $90.59 billion of global annual sales by 2029. The top opportunities in the AI infrastructure markets segmented by technology will arise in the machine learning segment, which will gain $64.83 billion of global annual sales by 2029. The top opportunities in the AI infrastructure markets segmented by deployment type will arise in the cloud segment, which will gain $75.54 billion of global annual sales by 2029. The top opportunities in the AI infrastructure markets segmented by end-user will arise in the enterprises segment, which will gain $55.52 billion of global annual sales by 2029. The AI infrastructure market size will gain the most in the USA at $45.21 billion.

Market-trend-based strategies for the AI Infrastructure market include developing innovative composable GPU (graphics processing unit), focusing on infrastructure and commodities critical to powering AI development, focusing on strategic investments, strategic partnerships, expanding data center capacities and focusing on advancements in technologies such as artificial intelligence of things (IoT).

Player-adopted strategies in the AI infrastructure market include focus on expanding its business capabilities through new product launch and strategic investment.

To take advantage of the opportunities, the analyst recommends the ai infrastructure focus on composable GPU solutions to improve scalability and performance, focus on critical infrastructure and commodities to strengthen ai foundations, focus on large-scale strategic investments to accelerate ai infrastructure growth, focus on integrated ai-telecom infrastructure to meet rising compute demands, focus on AI-IoT integration to enable intelligent and automated systems, focus on server software to capture high-growth opportunities in ai infrastructure, focus on inference to capitalize on the fastest-growing ai infrastructure segment, focus on deep learning to leverage the fastest-growing ai infrastructure segment, focus on hybrid infrastructure to capture the fastest-growing ai deployment opportunity, expand in emerging markets, focus on strategic partnerships to accelerate innovation and market expansion, focus on tiered pricing models to address diverse buyer segments, focus on targeted thought leadership to influence high-intent buyers, focus on account-based marketing to convert enterprise clients, focus on enterprise adoption to capture the fastest-growing ai infrastructure segment.

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