AI Infrastructure Market by Technology, Region - Global Forecast to 2027

Global AI infrastructure market is projected to grow from USD 28.7 billion in 2022 to USD 96.6 billion by 2027, at a CAGR of 27.5% during the forecast period from 2022 to 2027.

Key companies in the AI infrastructure market are NVIDIA Corporation (US), Intel Corporation (US), Oracle Corporation (US), Samsung Electronics Co., Ltd. (South Korea), Micron Technology, Inc (US), Advanced Micro Devices, Inc. (US), International Business Machines (IBM) Corporation (US), Google LLC (US), Microsoft Corporation (US), Amazon Web Services, Inc. (US) , SK Hynix, Inc. (South Korea), MIPS (US), Toshiba Corporation (Japan).

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Opportunity: Rising need for co-processors due to slowdown of Moore’s Law

Moore's law states that the number of transistors per square inch on integrated circuits will double about every 18 months until at least 2020. In April 2015, Intel Corporation stated that it could sustain Moore's law for another few years by developing 7 nm and 5 nm fabrication technologies. However, moving forward, it would be challenging to further reduce the size of processors; doing so would also reduce the space between electrons and holes, which will create problems such as current leakage and overheating in ICs. These problems would lead to slower performance, higher power consumption by ICs, and a further reduction in durability.

Challenge: Concerns regarding data privacy in AI platforms

AI has several applications in the healthcare industry. However, the adoption of AI in the industry is restricted to an extent owing to data privacy concerns. Patients' health data is protected under federal laws in many countries, and any breach or failure to maintain its integrity can result in legal and financial penalties. As AI used for patient care requires access to multiple health datasets, it is essential for AI-based tools to adhere to all data security protocols mandated by governments and regulatory authorities.

The market in Asia Pacific holds the largest market share and highest growth rate and is expected to retain its position during the forecast period. The high growth is due to the presence of most populous countries such as China and India.

The market in China among APAC countries, holds the largest market share and highest growth rate and is expected to retain its position during the forecast period. The AI infrastructure market in China is growing rapidly.

India is one of the world's fastest-growing economies, with a huge interest in AI's worldwide development. The Indian government recognizes the potential and is taking all necessary steps to steer the country and place it among the leaders in AI. Despite the favorable ecosystem, the government is trying to overcome to achieve rapid progress in AI.