Global AI Infrastructure Market Size to worth USD 536.5 Billion by 2033: Forecast Analysis Report

Global AI Infrastructure Market Size to worth USD 536.5 Billion by 2033

According to a research report published by Spherical Insights & Consulting, the Global AI Infrastructure Market Size is Expected to Grow from USD 34.6 Billion in 2023 to USD 536.5 Billion by 2033, at a CAGR of 31.54% during the forecast period 2023-2033.  

Browse key industry insights spread across 210 pages with 110 Market data tables and figures & charts from the report on the Global AI Infrastructure Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Technology (Machine Learning and Deep Learning), By Deployment (On-Premise, Cloud, and Hybrid), By End-User (Enterprises, Government Organizations, and Cloud Services Providers (CSPs)), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.           

AI infrastructure is an integrated environment of hardware (like GPUs and TPUs) and software designed specifically for AI and machine learning workloads. It provides a critical backbone for efficient data processing, model training, and deployment. In addition to providing scalability, flexibility, and support for the entire lifecycle of AI development, AI infrastructure is strategically significant and facilitates the effective execution of complex AI activities across several sectors while assuring security and compliance in critical operations. Businesses and cloud service providers, such as those in BFSI, healthcare, retail, and e-commerce, are anticipated to offer lucrative market growth opportunities for key market players. Further, the new AI infrastructure product launches and strategic partnerships for efficient integration of AI manufacturing innovative and improved products are providing market opportunity. The increasing demand for high-performance computing to drive data-rich and AI-enabled use cases in academic and industrial settings is driving the market. The increasing investment in AI and digital R&D innovation especially by clinical research organizations is contributing to driving the market. On the contrary, the compatibility issues associated with the legacy systems owing to the lack of processing power, storage capabilities, and flexibility required for AI infrastructure is challenging the market.

The hardware segment dominated the market with the largest revenue share in 2023.

Based on the components, the AI infrastructure market is classified into hardware, software, and services. Among these, the hardware segment dominated the market with the largest revenue share in 2023. The growing need for specialized chips and processors to manage the intricate calculations needed by AI and machine learning algorithms is driving the market in the hardware segment.

The machine learning segment dominated the market with the largest revenue share in 2023.

Based on the technology, the AI infrastructure market is classified into machine learning and deep learning. Among these, the machine learning segment dominated the market with the largest revenue share in 2023. The use of machine learning helps in making predictions that minimize raised errors. The continuous advancement in machine learning and application to address industry-specific challenges and challenges is driving the market demand.

The on-premise segment held the largest revenue share of the AI infrastructure market in 2023.

Based on the deployment, the AI infrastructure market is classified into on-premise, cloud, and hybrid. Among these, the on-premise segment held the largest revenue share of the AI infrastructure market in 2023. An on-premise AI platform operates AI services and apps inside the physical environment of the company. Organizations in sectors like healthcare and finance need to have strict control over data privacy, and they frequently deploy on-premise AI technology to keep sensitive data under control.

The cloud service providers (CSPs) segment accounted for the largest share of the AI infrastructure in 2023.

Based on the end-user, the AI infrastructure market is classified into enterprises, government organizations, and cloud services providers (CSPs). Among these, the cloud service providers (CSPs) segment accounted for the largest share of the AI infrastructure in 2023. Companies view the public cloud as the main means of delivering the advantages of generative AI in terms of workflow automation, productivity, and operational efficiency.

North America is estimated to hold the largest share of the AI infrastructure market over the forecast period.

North America is estimated to hold the largest share of the AI infrastructure market over the forecast period. Favorable US government policies and subsidies to build AI infrastructure in North America are driving the market expansion. With the headquarters of well-known cloud computing service providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, North America leads the world in this region. Scalable AI infrastructure solutions are made possible by the availability and use of cloud services.

Asia Pacific is predicted to have the highest CAGR growth in the AI infrastructure market over the forecast period. The use of AI-integrated systems is being positively impacted by the growing digitalization of the banking, financial services, and insurance (BFSI), healthcare, and telecommunication industries is contributing to driving the market. Further, the region's growing demand for AI infrastructure can be attributed to several factors, including developing startup ecosystems and rising internet and smartphone usage.

Competitive Analysis

Major key players in the global AI infrastructure market include NVIDIA Corporation, Advanced Micro Devices, Inc., SK HYNIX INC., SAMSUNG, Micron Technology, Inc., Intel Corporation, Google, Amazon Web Services, Inc., Tesla, Microsoft, Meta, Graphcore, Groq, Inc., Shanghai BiRen Technology Co., Ltd., Cerebras, and Others.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In October 2024, Crusoe Energy Systems LLC, a vertically-integrated AI infrastructure company, Blue Owl Capital Inc., a leading alternative asset manager, and Primary Digital Infrastructure, an advisory and investor firm focused on the data center industry, announced a $3.4 billion joint-venture to fund purpose-built data center capacity at the previously announced Lancium Clean Campus in Abilene, Texas.

• In September 2024, NetApp, the intelligent data infrastructure company, announced new developments in its collaboration with industry leaders to accelerate AI innovation. By providing the intelligent data infrastructure required to make GenAI work, NetApp is helping organizations tap into one of the most important developments for business and IT in the last decade.

• In February 2024, Singtel’s Digital InfraCo, the data center subsidiary, is solidifying its position as the leading infrastructure provider in the region, particularly in AI computing. The company signed four MOUs with key industry players, including Nvidia, regional renewable energy suppliers, technology businesses for efficiency improvements, and five higher learning institutes for talent development.

• In February 2024, Microsoft announced a major investment into Europe with a $2.1 billion commitment to expand its artificial intelligence (AI) and cloud infrastructure in Spain.

• In June 2023, Lenovo announced it has reached record annual AI infrastructure revenue of over US$2 billion and unveiled the next phase of its growth strategy, with an additional US$1 billion investment over three years to accelerate artificial intelligence (AI) deployment for businesses around the world.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the AI infrastructure market based on the below-mentioned segments:

Global AI Infrastructure Market, By Component

• Hardware
• Software
• Services

Global AI Infrastructure Market, By Technology

• Machine Learning
• Deep Learning

Global AI Infrastructure Market, By Deployment

• On-Premise
• Cloud
• Hybrid

Global AI Infrastructure Market, By End-User

• Enterprises
• Government Organizations
• Cloud Services Providers (CSPs)

Global Talent Intelligence Software Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa