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AI Infrastructure Market

AI Infrastructure Market Size, Share & Segment By Offering (Hardware, Software) By Technology (Deep Learning, Machine Learning) By Deployment (On-Premises, Cloud, Hybrid) By Function (Inference, Training) By End-User (Government Organizations, Cloud Service Providers, Enterprises), By Regions, And Global Forecast 2022-2028

Report Id: SNS/SEMI/2591 | July 2022 | Region: Global | 133 Pages

Report scope & Overview:

The AI Infrastructure Market Size was valued at USD 28.8 billion in 2021 and is expected to reach USD 141.5 billion by 2028, and grow at a CAGR of 25.5% over the forecast period 2022-2028.

AI infrastructure refers to the platforms on which organisations can build intelligent applications that are predictive, self-healing, and require minimal human intervention. New age technologies such as IoT, Mobility, and Big Data are putting a strain on IT infrastructure. The need for intelligent infrastructure to harness the power of AI platforms is more apparent than ever.

Ai Infrastruture Market

Every stage of the machine learning workflow is covered by AI infrastructure. It enables data engineers, data scientists, DevOps teams, and software engineers to manage and access computing resources for training, deploying, and testing artificial intelligence algorithms. Using AI infrastructure, the workload is mapped to the appropriate configuration of virtual machines and servers. Organizations can use AI infrastructure to work on capacity planning, storage management, resource utilisation, anomaly detection, threat detection, and analysis.

 

MARKET DYNAMICS:

KEY DRIVERS:

  • Cloud machine learning platform adoption is increasing.

  • Increasing data traffic necessitates the use of powerful computing resources.

  • Increasing cross-industry collaborations and partnerships.

RESTRAINTS:

  • A scarcity of AI hardware experts and skilled workforce.

OPPORTUNITIES:

  • AI-based tools for elderly care have a growing potential.

  • FPGA-based accelerators are in high demand.

CHALLENGES: 

  • AI algorithm unreliability

  • Concerns about data privacy in AI platforms.

IMPACT OF COVID-19: 

During the COVID-19 pandemic, digital transformation using artificial intelligence and hybrid cloud is widely used. During quarantine, a new internet infrastructure procedure was critical in supporting retail supply chains. Companies are shifting their investments in order to capitalise on the opportunity provided by new infrastructure, and they are being flexible and open-minded in their approach. The pandemic is expected to have a negative impact on the global AI Infrastructure market overall.

Based on Offering, the AI infrastructure market is segmented into Hardware, and Software. To keep up with the increasing amount of data generated by applications, advanced AI solutions require new software and hardware on a regular basis. These AI-based solutions, for example, require updates around annotation and collation of data sources, as well as accessible creating, processing, and fine-tuning models as newer data becomes available. AI technology, particularly deep learning, has become one of the most important computational workloads for organisations, and its use will increase.

Based on Deployment, the AI infrastructure market is segmented into On-Premises, Cloud, and Hybrid. During the forecast period, the hybrid deployment model has the second largest market share in the AI infrastructure market. Because of the increased agility of a hybrid cloud, it is widely accepted by enterprises seeking a competitive advantage. Organizations in the automotive, healthcare, and industrial sectors have begun to use hybrid infrastructure, which combines various technologies and methodologies such as virtualization, private clouds, and other internal IT resources.

Based on Technology, the AI infrastructure market is segmented into Deep Learning, and Machine Learning. Based on function, the AI infrastructure market is segmented into Inference, and Training. Based on end-user, the AI infrastructure market is segmented into Government Organizations, Cloud Service Providers, and Enterprises.

COMPETITIVE LANDSCAPE:

The key players in the AI infrastructure market are Amazon Web Services, Google LLC, IBM Corporation, Microsoft Corporation, Oracle Corporation, Cisco Systems Inc., Intel Corporation, Micron Technology Inc., Nvidia Corporation and Samsung Electronics.

MARKET SEGMENT:

BY OFFERING

  • Hardware

  • Software

BY TECHNOLOGY

  • Deep Learning

  • Machine Learning

BY DEPLOYMENT

  • On-premises

  • Cloud

  • Hybrid

BY FUNCTION

  • Inference

  • Training

BY END USER

  • Government Organizations

  • Cloud Service Providers

  • Enterprises

AI Infrastructure Market

REGIONAL ANALYSIS:

The Asia Pacific market has the largest market share and the highest growth rate, and it is expected to maintain its position during the forecast period. The presence of the most populous countries, such as China and India, accounts for the rapid growth.

China's market has the largest market share and the highest growth rate among APAC countries, and it is expected to maintain its position during the forecast period. China's AI infrastructure market is rapidly expanding. The growth of AI data centres in China continues to evolve as multinational and domestic enterprises increasingly shift to cloud service providers (CSPs) and co-location solutions. The country's demand for AI data centres has increased due to organisations seeking improved connectivity and scalable solutions for their expanding businesses.

India is one of the world's fastest-growing economies, with a keen interest in the global development of artificial intelligence. The Indian government recognises the potential and is taking all necessary steps to steer the country and position it among the leaders in artificial intelligence. Despite a favourable ecosystem, the government is attempting to overcome obstacles in order to achieve rapid progress in AI. Similarly, the Chinese government is hastening the construction of new infrastructure projects such as 5G networks and data centres, which will improve information services for the rapidly expanding market.

REGIONAL COVERAGE:

  • North America

    • USA

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • The Netherlands

    • Rest of Europe

  • Asia-Pacific

    • Japan

    • south Korea

    • China

    • India

    • Australia

    • Rest of Asia-Pacific

  • The Middle East & Africa

    • Israel

    • UAE

    • South Africa

    • Rest of Middle East & Africa

  • Latin America

    • Brazil

    • Argentina

    • Rest of Latin America

 

AI Infrastructure Market Report Scope:
Report Attributes Details
Market Size in 2021 US$ 28.8 Billion
Market Size by 2028 US$ 141.5 Billion
CAGR CAGR of 25.5% From 2022 to 2028
Base Year 2021
Forecast Period 2022-2028
Historical Data 2017-2020
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • By Product (Lighting Controls, Hvac Controls, Surveillance Products, Access Controls)
• By Standard (Wi Fi And Infrared, En Ocean, Bac Net, Z Wave, Zigbee, Dali, Knx)
Regional Analysis/Coverage North America (USA, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Netherlands,
Rest of Europe), Asia-Pacific (Japan, South Korea,
China, India, Australia, Rest of Asia-Pacific), The
Middle East & Africa (Israel, UAE, South Africa,
Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
Company Profiles Amazon Web Services, Google LLC, IBM Corporation, Microsoft Corporation, Oracle Corporation, Cisco Systems Inc., Intel Corporation, Micron Technology Inc., Nvidia Corporation and Samsung Electronics.
Key Drivers • Cloud machine learning platform adoption is increasing.
• Increasing data traffic necessitates the use of powerful computing resources.
RESTRAINTS • A scarcity of AI hardware experts and skilled workforce.


Frequently Asked Questions (FAQ) :

The market value is expected to reach USD 141 billion by 2028.

The market has been segmented with respect to offering, technology, deployment, function and end-user.

Asian pacific region is expected to dominate the AI infrastructure Market.

Yes, and they are Raw material vendors, Distributors/traders/wholesalers/suppliers, Regulatory authorities, including government agencies and NGO, Commercial research & development (R&D) institutions, Importers and exporters, Government organizations, research organizations, and consulting firms, Trade/Industrial associations, End-use industries.

Manufacturers, Consultants, Association, Research Institutes, private and university libraries, suppliers, and distributors of the product.


Table of Content:

1. Introduction

1.1 Market Definition

1.2 Scope

1.3 Research Assumptions

 

2. Research Methodology

 

3. Market Dynamics

3.1 Drivers

3.2 Restraints

3.3 Opportunities

3.4 Challenges

 

4. Impact Analysis

4.1 COVID 19 Impact Analysis

4.2 Impact of the Ukraine-Russia War

 

5. Value Chain Analysis

 

6. Porter’s 5 forces model

 

7.  PEST Analysis

  

8. AI infrastructure Market Segmentation, by offering

8.1Introduction

8.2 Hardware

8.3 Software

 

9. AI infrastructure Market Segmentation, by equipment technology

9.1Introduction

9.2 Deep Learning

9.3 Machine Learning

 

10. AI infrastructure Market Segmentation, by deployment

10.1 Introduction

10.2 On-premises

10.3 Cloud

10.4 Hybrid

 

11. AI infrastructure Market Segmentation, by function

11.1 Introduction

11.2 Inference

11.3 Training

 

12. AI infrastructure Market Segmentation, by end-user

12.1 Introduction

12.2 Government Organizations

12.3 Cloud Service Providers

12.4 Enterprises

 

13. Regional Analysis

13.1 Introduction

13.2 North America

13.2.1 USA

13.2.2 Canada

13.2.3 Mexico

13.3 Europe

13.3.1 Germany

13.3.2 UK

13.3.3 France

13.3.4 Italy

13.3.5 Spain

13.3.6 The Netherlands

13.3.7 Rest of Europe

13.4 Asia-Pacific

13.4.1 Japan

13.4.2 South Korea

13.4.3 China

13.4.4 India

13.4.5 Australia

13.4.6 Rest of Asia-Pacific

13.5 The Middle East & Africa

13.5.1 Israel

13.5.2 UAE

13.5.3 South Africa

13.5.4 Rest

13.6 Latin America

13.6.1 Brazil

13.6.2 Argentina

13.6.3 Rest of Latin America

 

14. Company Profiles

14.1 IBM Corporation

14.1.1 Financial

14.1.2 Products/ Services Offered

14.1.3 SWOT Analysis

14.1.4 The SNS view

14.2 Amazon Web Services

14.3 Google LLC

14.4 Microsoft Corporation

14.5 Oracle Corporation

14.6 Cisco Systems Inc.

14.7 Intel Corporation

14.8 Micron Technology Inc.

14.9 Nvidia Corporation

14.10 Samsung Electronics

 

15. Competitive Landscape

15.1 Competitive Benchmark

15.2 Market Share analysis

15.3 Recent Developments

 

16. Conclusion

 

An accurate research report requires proper strategizing as well as implementation. There are multiple factors involved in the completion of a good and accurate research report and selecting the best methodology to complete the research is the toughest part. Since the research reports, we provide play a crucial role in any company’s decision-making process, therefore we at SNS Insider always believe that we should choose the best method which gives us results closer to reality. This allows us to reach a stage wherein we can provide our clients best and most accurate investment to output ratio.

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The 5 steps process:

Step 1: Secondary Research:

Secondary Research or Desk Research as the name suggests is a research process wherein, we collect data through readily available information. In this process, we use various paid and unpaid databases to which our team has access and gather data through the same. This includes examining listed companies’ annual reports, Journals, SEC filling, etc. Apart from this, our team has access to various associations across the globe across different industries. Lastly, we have exchange relationships with various universities as well as individual libraries.

Secondary Research

Step 2: Primary Research

When we talk about primary research, it is a type of study in which the researchers collect relevant data samples directly, rather than relying on previously collected data.  This type of research is focused on gaining content-specific facts that can be sued to solve specific problems. Since the collected data is fresh and first-hand therefore it makes the study more accurate and genuine.

We at SNS Insider have divided Primary Research into 2 parts.

Part 1 wherein we interview the KOLs of major players as well as the upcoming ones across various geographic regions. This allows us to have their view over the market scenario and acts as an important tool to come closer to accurate market numbers. As many as 45 paid and unpaid primary interviews are taken from both the demand and supply sides of the industry to make sure we land an accurate judgment and analysis of the market.

This step involves the triangulation of data wherein our team analyses the interview transcripts, online survey responses, and observation of on-field participants. The below-mentioned chart should give a better understanding of part 1 of the primary interview.

Part 2: In this part of the primary research the data collected via secondary research and part 1 of the primary research is validated with the interviews with individual consultants and subject matter experts.

Consultants are those set of people who have at least 12 years of experience and expertise within the industry whereas Subject Matter Experts are those with at least 15 years of experience behind their back within the same space. The data with the help of two main processes i.e., FGDs (Focused Group Discussions) and IDs (Individual Discussions). This gives us a 3rd party nonbiased primary view of the market scenario making it a more dependable one while collation of the data pointers.

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