AI Infrastructure Anticipated to Hit $420 Billion By 2033
The AI infrastructure market has been expanding steadily due to the rising need for AI-driven solutions across various industries, including healthcare, banking, retail, manufacturing, and the automotive sector according to the Financial News Media.
According to the report, graphics processing units are frequently employed to accelerate AI workloads due to their capacity for parallel computing. As companies recognize how AI can boost productivity, creativity, and competitive advantage, there is an increasing demand for robust AI infrastructure.
Another report by Precedence Research says that the global AI infrastructure market size, valued at USD 37B in 2023, is anticipated to reach around USD 421B by 2033, growing at a CAGR of 27.53% from 2024 to 2033.
The report states, “The need for artificial intelligence (AI) infrastructure is growing as companies in a variety of sectors incorporate AI into their operations to obtain insights, automate procedures, and improve decision-making. This covers both software frameworks and tools for AI development and deployment, as well as hardware like GPUs, TPUs, and specialist AI chips.”
Active tech companies in the market this week include Avant Technologies, Inc., C3 AI, Snowflake, NVIDIA, and Marvell Technology, Inc. who are each helping to influence how AI-related infrastructure is built.
Precedence Research further highlights the impact of cloud computing, noting, “The increasing ubiquity of cloud computing offers resources that are both affordable and scalable for the implementation of artificial intelligence (AI) infrastructure. By providing AI-specific services and solutions, cloud service providers allow businesses to access strong computing resources without having to make a sizable upfront hardware investment.”
As of right now, the AI infrastructure market benefits from a thriving ecosystem of developers, academics, and businesses. Each in their ways are fostering innovation in AI services, software, and hardware.
Currently, North America holds the largest share of the global market, driven by fierce competition and continuous innovation to enhance the effectiveness, scalability, and performance of AI infrastructure products.
Companies in this market frequently engage in mergers and acquisitions to bolster their AI capabilities and expand their market share. The demand for high-performance computing power to train and implement AI models, along with advancements in AI algorithms and applications, continues to drive this market’s growth.
It’s expected that this market will continue to see increases in mergers and acquisitions as companies, platforms, and firms seek to increase efficiency vertically and horizontally.
Originally posted on OpenDataScience.com
Read more data science articles on OpenDataScience.com, including tutorials and guides from beginner to advanced levels! Subscribe to our weekly newsletter here and receive the latest news every Thursday. You can also get data science training on-demand wherever you are with our Ai+ Training platform. Interested in attending an ODSC event? Learn more about our upcoming events here.
