AI Infrastructure Market: Size, Share, and Growth Forecasts

The 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.

Some of the AI infrastructure companies in the 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), Imagination Technologies (UK), Cambricon Technologies Corp. Ltd. (China), Graphcore (UK), Gyrfalcon Technology Inc (US).

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Hybrid segment in deployment type to hold second largest share of AI infrastructure market during the forecast period

Hybrid deployment model holds the second largest market share in AI infrastructure market during forecast period. The advantage of a hybrid cloud is its increased agility; therefore, it is widely accepted by enterprises to gain a competitive advantage. Automotive, healthcare, and industrial organizations started adopting hybrid infrastructure that combines different technologies and methodologies such as virtualization, private clouds, and other internal IT resources.

China in APAC to account for the largest market share and highest growth rate during the forecast period

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. As multinational and domestic enterprises increasingly transit to cloud services providers (CSPs) and co-location solutions, the growth of AI data centers in China continues to evolve. The demand for AI data centers in the country has increased due to organizations seeking enhanced connectivity and scalable solutions for their growing businesses. Various government reforms and initiatives, such as the establishment of free trade in Shanghai, are attracting international investors.

APAC to account for the largest market share and highest growth rate during the forecast period

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.

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. Similarly, the Chinese government is speeding up the construction of new infrastructure projects such as 5G networks and data centers, bolstering information services for the expanding market. Also, the government announced the establishment of the Next Generation Artificial Intelligence Development Plan, which promises policy support, central coordination, and investments of more than USD 150 billion by 2030.