AI Infrastructure Market Size, Share, Growth, Trends, and Global Industry Analysis: By Offering (Hardware, Processor, CPU, GPU, FPGA, ASIC, Memory, Storage, Networking, and Server Software), By Technology (Machine learning and Deep learning), By Function (Training and Inference), By Deployment Type (On-premises, Cloud and Hybrid), By End User (Enterprise, Government organization, and Cloud service provider), and Region Forecast 2020-2031

AI Infrastructure Market size was valued at US$ 30.2 billion in 2023 and is expected to grow at a CAGR of 27.3% from 2024 to 2030. The global market provides a detailed overview of the market, which can be segmented by offering, technology, function, deployment type, end user, and region. By offering, the market has been segmented into hardware, processor, CPU, GPU, FPGA, ASIC, memory, storage, networking, and server software. The hardware segment procured the maximum revenue share in the market in 2021. Processors, storage, memory, and interconnects are hardware components required to create an AI infrastructure. Small in size, more effective, and more potent xeromorphic chip-based systems are expected to display huge hardware devices in the upcoming years due to the rapid advancement of technology. By technology, the AI Infrastructure has been segmented into machine learning and deep learning. The machine learning segment registered the largest revenue share in the market in 2021 and is anticipated to lead the market owing to its aids in the development of new goods and provides businesses with a picture of trends in consumer behavior and operational business patterns. An important portion of the operations of numerous of today's top businesses, like Google, Facebook, and Uber, revolve around machine learning. By function, the market has been segmented into training and inference.

The training segment accounted for a significant revenue share in the market in past years and is expected to have a significant revenue share in upcoming years. By deployment type, the market has been segmented into on-premises, cloud, and hybrid. The cloud deployment mode segment held the highest revenue share in the market owing to reduced operational expenses, fuss-free deployment, high scalability, fast data accessibility, easy access to crucial data, and low capital requirements are just a few benefits of cloud deployment mode. Based on the end user, the segment has been segregated into enterprise, government organizations, and cloud service providers. The enterprise segment acquired a significant revenue share in the market in past years and would expect to maintain its dominance throughout the forecasted period through the usage of artificial intelligence across numerous businesses around the world.

AI Infrastructure Market Key Development:

• In July 2022, Google entered into a partnership with Northwell Health, the largest healthcare system in New York. This partnership focused to use Googles machine learning (ML), artificial intelligence (AI), and cloud capabilities. In addition, the partnership would intensify the health systems digital transformation by utilizing cloud technology and artificial intelligence (AI), to enhance clinician experience, patient care, and operational efficiency.
• In May 202, Google Cloud announced Vertex AI, a new managed machine learning platform that is meant to make it easier for developers to deploy and maintain their AI models.
• In Dec 2021, Oracle Corporation acquired Cerner Corporation, an American supplier of health information technology services, devices, and hardware. This acquisition aimed to assist Oracle to scale up its cloud business in the hospital and health system market.