Ability of AI-based technology to enable machines to automate complex tasks such as driving cars, holding conversations, filtering e-mail, and other things, growing demand for improving operational efficiency, and the rising cost of manual labor drive the growth of the global AI Infrastructure Market. Increasing digital dependence and implementation of industry 4.0 trends present new growth opportunities for the global market in the coming years.
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The AI infrastructure market is segmented on the basis of component, deployment mode, technology, application, end user, and region. By component, it is divided into hardware, software and services. By deployment mode, it is classified into on-premise, hybrid and cloud. On the basis of technology, it is bifurcated into machine learning and deep learning. By application, the market is classified into AI training, inferencing and others. By end user, the market is categorized into enterprises, government and cloud service providers (CSPs). Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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Based on region, North America was the largest market in 2021, capturing more than one-third of the global AI infrastructure market, owing to high concentration of artificial intelligence solution vendors in the region. However, the market in Asia-Pacific is expected to lead in terms of revenue and manifest the fastest CAGR of 36.0% during the forecast period. This is due to the ongoing rapid digital transformation trends in this region.
The key players that operate in the AI infrastructure market analysis Alphabet Inc., Amazon.com, Inc., IBM Corporation, Intel Corporation, Micron Technology, Inc., Microsoft Corporation, NVIDIA Corporation, Oracle Corporation, Samsung and Toshiba Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the AI infrastructure industry.
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Covid-19 Scenario
- The AI infrastructure market exhibited notable growth during the outbreak of the COVID-19 pandemic. This is due to the rise in need for artificial intelligence among enterprises to meet their customers’ needs and upsurge their revenue opportunity.
- Many businesses invested in AI-based solutions to ease the increasing complexity of the IT needs of many businesses during the pandemic.
- In addition, surge in investment in AI based technology by various private sectors such as healthcare and medical research to fight the pandemic propelled the growth of the market.
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