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AI Server Market Size

Report ID: GMI8081
Published Date: Feb 2024
Report Format: PDF

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AI Server Market Size

AI Server Market size was valued at USD 38.3 billion in 2023 and is estimated to register a CAGR of over 18% between 2024 and 2032. As AI continues to evolve and expand into various industries, the demand for powerful server infrastructure capable of supporting these sophisticated algorithms and applications rises. This dynamic landscape fosters a competitive market environment, encouraging continuous innovation and expansion within the AI server industry.

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For instance, in November 2023, KX introduced KDB.AI Server Edition, a high-performance, scalable vector database tailored for time-oriented generative AI and contextual search. It is easily deployable via Docker in various environments, including cloud, on-premises, and hybrid systems. This enables businesses to swiftly harness their AI capabilities with streamlined setup processes, facilitating quick adoption and utilization. This release strengthens the AI server market by presenting an appealing, high-performance choice, addressing the changing needs of tech-savvy consumers.

AI Server Market Report Attributes
Report Attribute	Details
Base Year:	2023
AI Server Market Size in 2023:	USD 38.3 Billion
Forecast Period:	2024 - 2032
Forecast Period 2024 - 2032 CAGR:	18%
2032 Value Projection:	USD 177.4 Billion
Historical Data for:	2018 - 2023
No. of Pages:	220
Tables, Charts & Figures:	250
Segments covered:	Servers, hardware, end user
Growth Drivers:	Increasing demand for AI applications Continuous advancements in AI-specific hardware Growing investments by governments, enterprises, and research institutions in AI research and development initiatives The increasing adoption of cloud-based AI services
Pitfalls & Challenges:	Cost of high-performance hardware Energy consumption and efficiency

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The growing adoption of AI technologies across various industries acts as a significant catalyst for the expansion of the AI server industry. As organizations seek to leverage AI for improved decision-making, automation, and efficiency, the demand for robust server infrastructure capable of handling complex AI workloads escalates. This trend underscores the pivotal role of AI servers in facilitating the deployment and scalability of AI solutions across diverse sectors, propelling market growth.

Though the AI server market experiences dynamic growth, it poses barriers due to the high costs associated with AI server infrastructure, hardware, software, and maintenance expenses. However, this investment ensures optimal performance and reliability, fostering long-term benefits for organizations. Despite these upfront costs, the advanced capabilities of AI servers empower businesses to streamline operations, drive innovation, and gain a competitive edge in the rapidly evolving technological landscape.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of AI server reached USD 38.3 billion in 2023 and is set to expand at over 18% CAGR from 2024 to 2032, propelled by the ongoing evolution of AI across various industries and the high demand for powerful server infrastructure.

The AI training server segment accounted for 37% of the market share in 2023, owing to their increasing use in handling the intensive computational demands of training complex machine learning models.

North America held more than 32% of the market share in 2023, attributed to the increasing collaborations between AI server manufacturers, software developers, and AI solution providers in the region.

Some of the leading AI server firms are ADLINK Technology Inc., Dell Technologies Inc., Global Unichip Corporation, Hewlett Packard Enterprise, Huawei Technologies Co., Ltd., IBM Corporation, Lenovo Group Limited, Nvidia Corporation, Super Micro Computer, Inc., and ZTE Corporation.