AI Infrastructure Market Expected to Reach $309.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “AI Infrastructure Market," The AI infrastructure market was valued at $23.5 billion in 2021, and is estimated to reach $309.4 billion by 2031, growing at a CAGR of 29.8% from 2022 to 2031.

Artificial intelligence makes it possible for machines to learn from previous experiences and adjust to new inputs to perform tasks like humans. Such capabilities of AI-based technology enable machines to automate much more complex tasks such as driving cars (self-driving cars), holding conversations (conversational bots), filtering e-mail (spam and fraud detectors), and other things. Such factors drive the AI infrastructure market forecast. Furthermore, growing demand to improve operational efficiency and the rising cost of manual labor. In addition, increasing digital dependence and implementation of industry 4.0 trends are expected to offer remunerative opportunities for expansion of the AI infrastructure market during the forecast period.

On the basis of deployment mode, the on-premise segment captured the largest AI infrastructure market size in 2021 and is expected to continue this trend throughout the forecast period. This is attributed to the numerous advantages offered by the on-premise deployment such as a high level of data security and safety. Industries prefer on-premise model owing to high data security and less data breach as compared to cloud based deployment models, which further drive the demand for on-premise deployment model within the sectors. However, the cloud segment is expected to exhibit highest growth during the forecast period. Factors such as rise in the adoption of cloud-based AI infrastructure due to low cost and easier maintenance drives the growth of the market. In addition, it provides flexibility & scalability to boost business process, which propels the growth of the AI infrastructure industry.

Region-wise, North America dominated the market share in 2021 for the AI infrastructure market. Adoption of AI infrastructure growing steadily to meet increasing demands from today’s businesses to enhance their business process and improve the customer experience will provide lucrative opportunities for the market in this region. However, Asia-Pacific is expected to exhibit highest growth during the forecast period. This is attributed to increase in penetration of advanced technology and higher adoption of cloud-based solution and services, and artificial intelligence are particularly fueling regional market growth.

The outbreak of COVID-19 is anticipated to provide numerous opportunities for the market to grow during the forecast period. This is attributed to significant investment in advanced technologies such as cloud technology, big data, artificial intelligence, and machine learning, due to rise in adoption of cloud-based solution & services across the globe. In addition, various companies are seeking for cost-effective solutions to boost their productivity to attract consumers toward cloud-based solution and to increase their financial benefits.

Furthermore, the pandemic brought big challenges in the manufacturing sector from supply chain disruptions and drop in workforce availability to raw material shortages. Thus, manufacturers had to rely on the power of their data and analytics to stay competitive and innovate ahead. Such factors prompted the demand for AI infrastructure solutions in the manufacturing sector.

With augmented analytics, manufacturers will be able to analyze key data such as the production capabilities of the production lines, shipping timings, schedules of their workforce, and their warehousing space availability. In addition, with the insights gained from the analyzed data, manufacturers will be able to make a calculated pivot to start manufacturing products, such as face masks during the pandemic, that are in demand to bring in much-needed revenue to sustain, which is expected to provide lucrative growth opportunities for the AI infrastructure market in the upcoming year.

KEY FINDINGS OF THE STUDY

• By component, the hardware segment accounted for the largest AI infrastructure market share in 2021.
• By deployment mode, the on-premise segment accounted for the largest AI infrastructure market share in 2021.
• By technology, the machine learning segment accounted for the largest AI infrastructure market share in 2021.
• On the basis of end-users, the enterprise segment accounted for the largest AI infrastructure market share in 2021.
• Based on application, the AI training segment accounted for the largest AI infrastructure market share in 2021.
• Region wise, North America generated highest revenue in 2021.

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.