Opportunities and Challenges Impacting the AI Infrastructure Market Growth


Posted November 5, 2020 by ctom7000

The drivers, challenges, and restraints impacting the AI infrastructure market growth.

 
Major factors driving the market for AI infrastructure include increasing adoption of cloud machine learning platform, escalating demand for AI hardware in high-performance computing data centers, rising focus on parallel computing in AI data centers, growing volume of data generated in industries such as automotive and healthcare, improving computing power and declining hardware cost, growing number of cross-industry partnerships and collaborations, and expanding AI applications in industries such as healthcare, automotive, finance, and tourism.

The global AI infrastructure market is projected to grow from USD 14.6 billion in 2019 to USD 50.6 billion by 2025, at a CAGR of 23.1%.

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Key Market Players

Key players operating in the AI infrastructure market are Intel Corporation (US), NVIDIA Corporation (US), IBM (US), Samsung Electronics (South Korea), Google (US), Microsoft (US), Micron Technology (US), Amazon Web Services (US), CISCO (US), Oracle (US), ARM (UK), Xilinx (US), Advanced Micro Devices (AMD) (US), Dell (US), HPE (US), Habana Labs (Israel), and Synopsys Inc. (US).

The market in North America and Europe is one of the key factors restraining the growth of the AI infrastructure market.

AI Infrastructure Market for Deep Learning Technology is Estimated to Grow at Higher CAGR During Forecast Period

AI infrastructure for deep learning technology enables a machine to build a hierarchical representation. For instance, the first layer of the captured image could scan for simple edges, followed by a layer that collects edge-forming shapes (such as rectangle or circle). The final layer could identify machine parts. After scanning several layers to identify the required data, the neural network can collate the features into an algorithm that can recognize the overall image. The growing adoption of robots, cybersecurity applications, IoT, industrial automation, and machine vision technology has created a large volume of data.

AI Infrastructure Market for Cloud Service Providers in APAC is Estimated to Grow at Highest CAGR During Forecast Period

Cloud service providers (CSPs) offer network services, infrastructure, or business applications in the cloud to various companies from industries such as automotive, healthcare, retail, and manufacturing. The cloud mainly addresses 3 areas of operations: software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS). The number of data center providers and cloud companies is likely to increase owing to the high efficiency and economies of scale offered by cloud computing.

China Is Expected to Grow at Highest CAGR in AI Infrastructure Market During Forecast Period

The AI infrastructure market in China is growing rapidly. As multinational and domestic enterprises increasingly transit to cloud services providers (CSPs) and collocation solutions, the AI data center growth in China continues to evolve. The demand for AI data centres in the country has exceeded the available supply as organizations seek enhanced connectivity and scalable solutions for their growing businesses. Investments by the Chinese government for stimulating technological developments have led to an increase in the adoption of cloud-based services such as Big Data Analytics and Internet of Things (IoT).

North America is Projected to Hold Largest Market Share during Forecast Period

At present, North America accounts for the largest share of the global AI infrastructure market, and a similar trend is likely to continue in the near future. The US and Canada are expected to adopt AI-based servers at a high rate. These countries are technologically developed economies in North America because of their strong focus on investing in R&D activities for the development of new technologies. The North American AI infrastructure is further segmented into the US, Canada, and Mexico. The US is one of the major contributors to the North American AI market. The US is one of the leading countries in the world to adopt AI technology.
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Issued By Tom
Country United Arab Emirates
Categories Technology
Tags ai infrastructure market
Last Updated November 5, 2020