AI Server Market Size - By Servers (AI Data, AI Training, AI Inference), By End User (IT & Telecommunication, Transportation and Automotive, BFSI, Retail and Ecommerce, Healthcare and Pharmaceutical, Industrial Automation), By Hardware & Forecast, 2024 - 2032

AI Server Market Size - By Servers (AI Data, AI Training, AI Inference), By End User (IT & Telecommunication, Transportation and Automotive, BFSI, Retail and Ecommerce, Healthcare and Pharmaceutical, Industrial Automation), By Hardware & Forecast, 2024 - 2032

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.
 

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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.

AI Server Market Trends

The rising demand for specialized AI hardware, like GPUs and TPUs, is a key trend propelling the AI server industry forward. These hardware components offer unparalleled performance for complex computations required in AI tasks. As organizations invest in advanced AI applications, the need for hardware optimized specifically for these workloads grows, fueling the adoption of AI servers equipped with GPUs and TPUs to meet the demands of modern AI-driven solutions.

For instance, in January 2024, NVIDIA unveiled the GeForce RTX™ 40 SUPER Series GPUs, such as the RTX 4070 SUPER, GeForce RTX 4080 SUPER, and RTX 4070 Ti SUPER, enhancing gaming experiences and fueling AI-powered PCs. These GPUs, built on the Ada Lovelace architecture, offer up to 52 shader TFLOPS, 836 AI TOPS, and 121 RT TFLOPS, empowering gaming, content creation, and innovation. This launch significantly strengthens the market by introducing technologically advanced components with premium features, further amplifying its appeal and broadening consumer options.

AI Server Market Analysis

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Based on servers, the AI training server segment held over 37% of the market share in 2023. These servers specialize in handling the intensive computational demands of training complex machine learning models. With scalable architectures and optimized hardware configurations, AI training servers empower organizations to expedite model development and innovation. As the demand for sophisticated AI solutions grows, the prominence of AI training servers continues to expand, driving significant market dominance.

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Based on the hardware, the GPU servers segment accounted for 55% of the AI server market share in 2023, attributed to their unparalleled processing power tailored for parallel computing tasks like deep learning and neural network training. Leveraging thousands of cores, GPUs accelerate complex computations, enabling rapid model iterations and enhanced performance. As AI applications continue to proliferate across industries, the demand for GPU servers surges, driven by their ability to handle massive datasets and deliver remarkable speed, making them the preferred choice for cutting-edge AI development and deployment.

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North America AI server market recorded around 32% of the revenue share in 2023. With the robust growth of the technology finance and healthcare sectors, several organizations are leveraging AI for data analysis, pattern recognition, and decision-making. The increasing collaborations between AI server manufacturers, software developers, and AI solution providers in the region are helping deliver integrated solutions and end-to-end AI capabilities to customers.
 

For instance, in May 2023, American multinational frontrunners Oracle and Microsoft discussed a deal to rent servers from each other when out of capacity to cater to large-scale AI cloud customers. The proliferation of AI applications and the subsequently growing awareness of security and privacy issues associated with AI data processing will also contribute to regional market growth.

AI Server Market Share

Nvidia Corporation, Super Micro Computer, Inc. and Dell Technologies Inc. hold a significant market share of over 29% in the AI server industry. Leading players in the AI server industry are constantly engaging in growth-based strategies, including partnerships and investments, initiatives to reinforce their market footprint. Technological upgrades and new server launches are also actively undertaken by these firms to cater to the thriving end-user requirements. By collaborating with leading hardware manufacturers and software developers, these firms harness synergies to offer comprehensive AI server solutions catering to diverse customer needs.

Moreover, strategic acquisitions enable companies to expand their product portfolios, integrate cutting-edge technologies, and enhance their competitive edge in the rapidly evolving AI landscape. Proactive marketing initiatives and targeted branding campaigns have played a crucial role in elevating companies' visibility and reputation within the AI server industry. Through thought leadership content, industry event participation, and targeted advertising, these companies effectively communicate their expertise and value proposition to potential customers, fostering trust and confidence in their AI server solutions.

AI Server Market Companies

Major companies operating in the AI server industry 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.
• ZTE Corporation

AI Server Industry News

• In August 2023, NVIDIA disclosed that system manufacturers would deliver AI-ready servers to support the VMware Private AI Foundation with NVIDIA to help companies deploy and customize generative AI applications through their proprietary business data.
• In April 2022, IBM released z16, its most recent mainframe computer server equipped with AI and chips developed in Albany to protect businesses and consumers from hackers before transactions.

The AI server market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and shipments (units) from 2018 - 2032, for the following segments

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Market, By Servers

• AI Data
• AI Training
• AI Inference
• Others

Market, By Hardware

• GPU
• ASIC
• FPGA
• Others

Market, By End User

• IT & Telecommunication
• Transportation and Automotive
• BFSI
• Retail and Ecommerce
• Healthcare and Pharmaceutical
• Industrial Automation
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA

Frequently Asked Questions (FAQ)

What is the size of the AI server market?

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.

Why is the demand for AI training servers growing?

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.

How big is the North America AI server industry?

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.

Who are the major participants in the AI server market?

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.