How big is the AI Infrastructure Market?

The AI Infrastructure Market size is expected to reach USD 68.46 billion in 2024 and grow at a CAGR of 20.12% to reach USD 171.21 billion by 2029. Read More

What is the current AI Infrastructure Market size?

In 2024, the AI Infrastructure Market size is expected to reach USD 68.46 billion. Read More

Who are the key players in AI Infrastructure Market?

Intel Corporation, Nvidia Corporation, Samsung Electronics Co. Ltd, Micron Technology Inc. and Sensetime Group Inc. are the major companies operating in the AI Infrastructure Market. Read More

Which is the fastest growing region in AI Infrastructure Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029). Read More

Which region has the biggest share in AI Infrastructure Market?

In 2024, the North America accounts for the largest market share in AI Infrastructure Market. Read More

What years does this AI Infrastructure Market cover, and what was the market size in 2023?

In 2023, the AI Infrastructure Market size was estimated at USD 54.69 billion. The report covers the AI Infrastructure Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the AI Infrastructure Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

AI Infrastructure Market Trends

Statistics for the 2023 & 2024 AI Infrastructure market trends, created by Mordor Intelligence™ Industry Reports. AI Infrastructure trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of AI Infrastructure Industry

Hardware Segment Cornerstone of AI Infrastructure

Market Size and Growth: The hardware segment is the backbone of the AI Infrastructure market. In 2022, it accounted for 73.70% of the market share, valued at $34.52 billion. It is expected to grow at a CAGR of 19.19%, reaching $100.29 billion by 2028.
Processor Subsegment Leads: Processors were valued at $20.73 billion in 2022 and are forecasted to reach $57.56 billion by 2028, driven by the increasing complexity of AI algorithms requiring more powerful processing.
Customization Trend: Companies are shifting towards custom AI chips, like Huawei's Ascend 910 AI processor, which demonstrated twice the training speed of common cards using TensorFlow.
Edge Computing Influence: The rise of edge computing is shaping AI processor development. Manufacturers are focusing on processors that enable real-time data processing at the point of use, particularly in IoT applications.
Hybrid Processors: Companies are developing hybrid AI processors that combine CPUs with GPUs or Neural Processing Units (NPUs), enhancing versatility and efficiency for diverse AI applications.

AI Infrastructure Market: Projected Operational Responsiveness From Edge Computing, by Industry, in Percentage (%), Global, 2024

Understand The Key Trends Shaping This Market

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North America to Hold Major Market Share

Cloud Segment: Catalyst for AI Democratization

Rapid Growth Trajectory: The cloud segment, valued at $16.12 billion in 2022, is projected to grow at a 20.22% CAGR, reaching $49.29 billion by 2028. This growth is outpacing the overall market CAGR, signaling the critical role of cloud solutions in AI infrastructure.
Democratization of AI: Cloud-based AI infrastructure lowers adoption barriers, making AI technologies accessible to businesses of all sizes. This democratization accelerates digital transformation and fosters innovation.
Scalability and Flexibility: Cloud platforms offer unmatched scalability, enabling enterprises to easily manage AI workloads, such as model training and inference, which are data-intensive.
AI-as-a-Service Proliferation: The rise of AI-as-a-Service (AIaaS) allows companies to access pre-trained models and toolsets. For example, Nvidia's DGX Cloud offers supercomputing services for AI model training, while Salesforce’s AI Cloud delivers enterprise-ready AI tools.
Strategic Collaborations: Collaborations between AI hardware providers and cloud platforms, such as Google Cloud’s partnership with Singapore’s Smart Nation initiative, are creating sector-specific AI cloud solutions.
Market Outlook: The AI Infrastructure market will continue to evolve with the hardware and cloud segments developing synergistically. As AI applications proliferate, the demand for scalable, robust infrastructure will grow, spurring further specialization in AI hardware and cloud-native solutions.