The global AI Infrastructure Market is anticipated to reach USD 223.45 billion by 2030 and is projected to grow at a CAGR of 30.4% from 2024 to 2030, according to a new report by Grand View Research, Inc. Artificial intelligence is undergoing a significant transformation fueled by the rapid market growth. AI infrastructure provides the essential resources businesses need to leverage the true power of artificial intelligence.

The surging demand for generative AI necessitates robust infrastructure to handle complex computations. Businesses can develop and deploy AI models faster, accelerating their ability to bring AI-powered solutions to market. Cloud-based solutions eliminate the need for expensive on-premise hardware management, freeing up resources for core AI development. In addition, continuous advancements in AI technologies, particularly in deep learning and neural networks, are expanding the capabilities of AI systems, making them more sophisticated and impactful. Such factors are further driving the market growth.

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AI Infrastructure Market Report Highlights

Based on components, the hardware segment held the market with the largest revenue share of 63.0% in 2023. The increasing demand for specialized chips and processors to compute complex algorithms drives the segment growth. With the rise in AI in systems, more powerful chips are required to process the data. The chips help reduce energy consumption and increase performance

Based on technology, the machine learning segment held the market with the largest revenue share of 58.4% in 2023. Increasing data, advancements in algorithm models, and the rise in cloud computing drive the market growth. Machine learning helps AI systems automatically learn and improve from experience without the need for programming. It's used in AI infrastructure to handle complex patterns in large databases

Based on application, the training segment led the market with the largest revenue share of 71.4% in 2023. Training helps develop models specialized in specific tasks such as language translation, voice recognition, or anomaly detection in network traffic

Based on deployment, the on-premise segment held the market with the largest revenue share of 50.0% in 2023. This is due to the increasing demand for low-latency data transfer, reduced operational costs, and customized AI infrastructure solutions. With on-premise infrastructure deployment, organizations can customize the setup based on their requirements. On-premise deployment offers control over data security.

Based on end-user, the enterprise segment is expected to grow at the fastest CAGR over the forecast period. The increasing digital transformation of businesses and the increasing complexity of data are expected to drive market growth. Enterprises use AI infrastructure for data management, storage, and processing; they also need AI infrastructure for operational efficiency

North America dominated the market with the revenue share of 38.4% in 2023. North America is home to many of the world's leading tech companies, such as Google, Amazon, Microsoft, and IBM, which offer cloud-based services