AI Infrastructure market is growing and growing fast.
AI technology has constantly been evolving for the past couple of decades and has now reached a point where its applications are everywhere around us.
“Artificial Intelligence is the new electricity,” said the famous computer scientist Andrew Ng. As with electricity in the past century, AI is revolutionizing the way we live and the world we live in.
In this context, let us see what trends govern the changes happening in the AI Infrastructure market for the next five years.
Organizations around the world have come to terms with the fact that AI is changing everything. They realize that every industry is changing on a macro level, and on a micro-level, it has a solid impact on business strategy and decision-making.
The market prediction for AI Infrastructure from the year 2020 to 2025 is about 21%, which is a significant change, considering the timeframe. It seems like more companies are recognizing the importance of getting behind the AI wagon or face the risk of stagnation.
What are the factors enabling this growth and its changing trends?
Growth Drivers and Scope of AI Infrastructure Market
The major growth drivers of the AI Infrastructure Market are:
- The growth in networking infrastructure
- Many organizations experienced in the AI industry are broadening their infrastructure and related requirements
- Many countries around the world and their governments are now heavily investing in AI ecosystems.
- Automation is happening in many end-user industries. These growth drivers are crucial for the industry and you will see elaborations on some of them as you read along.
The long consideration and experimentation phase of AI technology is over. Now, it's the adoption phase. This advance from the controlled lab settings and smaller infrastructure comes with the need of having a large scale computing resources and infrastructure - Think CPUs and GPUs, networking infrastructure, storage facilities, and reliable, efficient security.
The breadth of the current AI Infrastructure market is almost as follows:
- Software End-users
- Business Enterprises/Organizations
- Governments Geography - key players
- North America - USA and Canada
- Europe - UK, Germany, France, Italy, Spain, and the rest of Europe
- Asia-Pacific - India, China, Japan, South Korea, and the rest
- Latin America
- Middle-East - Saudi Arabia, UAE, Qatar, Israel, and the rest
- Africa - South Africa (majorly) and the rest Now that we know the drivers and scope of the AI Infrastructure market, let us see the key upcoming trends for the near future.
Key Trends for the Future
Businesses and organizations are recognizing the importance and convenience of having AI-powered systems in their daily operations. The automation improves efficiency and cuts costs and resources in most cases. An example of this would be AI-powered chatbots interacting with customers in real-time and solving the most common problems.
Another key trend is that AI Infrastructure powered solutions are constantly demanding the latest hardware & software integration. Scalable processing, collation of data source, polishing models with new data input, etc., are examples.
This trend almost goes without saying, but AI Infrastructure is very much necessary for innovation, research, & development. In some instances, AI is even used for logical and creative solutions. These attributes are only going to contribute to the expanding market dynamics positively.
The next key trend in the AI Infrastructure is creating a suitable infrastructure for AI development. This is almost a symbiotic relationship, we could say. AI Infrastructure being used to develop AI solutions. So cool!
Furthermore, AI Infrastructure in Europe is projected to witness significant growth in the next five years. Many governments, Germany is a key player here, and private companies investing in huge AI-powered projects and, in some instances, collaborating to achieve shared goals.
A highly competitive market can also be seen as a trend, but it holds true even now. But, we know that competition among firms to up their AI game will get even fiercer as more players come in, and more innovations happen.
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