AI Server Market

AI Server Market Size

The global 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 is gaining increasing acceptance across many sectors, the need for sturdy servers to support these complex algorithms and applications is also increasing. This is evident by KX, which introduced its KDB.AI Server Edition-a scalable high-performance vector database tailored for contextual search and time-oriented generative AI-in the last week of November 2023. The product can be deployed using Docker into cloud, on-premises, or hybrid environments, while going through streamlined setup processes that allow the corporations to use their AI capabilities.

This launch will further bolster the AI server industry by delivering a compelling performance offering to meet the evolving needs of tech-savvy consumers. The product can be deployed using Docker into cloud, on-premises, or hybrid environments, while going through streamlined setup processes that allow the corporations to use their AI capabilities. This launch will further strengthen the AI server industry by delivering a compelling performance offering to meet the evolving needs of tech-savvy consumers.

Growing investments are also promoting the development of AI, thereby increasing demand for high-performance AI servers. Governments fund the AI supercomputing centers and innovation hubs, whereas enterprises fund to enhance AI infrastructure by improving automation, analytics, and customer engagement. These increasing investments further drive innovation in AI server architecture, enhancing performance and efficiency across industries.

In September 2024, Lenovo constructed a new research and development laboratory in Bangalore and commenced the manufacture of premium AI server systems at their factory in Puducherry. The factory will assemble AI and GPU servers, over 60 percent of which will be sold overseas within the Asia Pacific region.

AI Server Market Trends

• Cloud and hybrid AI server deployment is one of the prominent trends in the market. Organizations are adopting agile and elastic cloud options, which could easily be scaled up or down in line with fluctuating workload needs. Hybrid clouds are also gaining much importance as they serve both the on-premises and off-premises workload by balancing security and access to data.
  
• The rising adoption of edge AI computing is another key trend in AI server market. The workloads are now being situated closer to data generation sources as organizations seek to enhance real-time processing and reduce their dependency on centralized cloud infrastructure. Thus, resulting in an increased demand for AI servers specialized for edge deployment. These feature compact designs, energy efficient and powerful AI accelerators. Autonomous vehicles, smart manufacturing, and healthcare industries are leading in the application of edge AI technology.
  
• In November 2024 Vecow Co., Ltd. introduced the next-gen edge AI server platforms. It is powered by Intel Xeon D Series, Intel Xeon Scalable processors, and AMD EPYC processors. These servers are designed especially for the embedded and industrial markets, enabling efficient data processing at the edge to reduce latency and boost operational efficiency.
  
• Some key features include support for autonomous vehicles, where real-time AI inference ensures reduced latency for tasks like object detection. In industrial automation, Vecow’s edge AI servers enhance predictive maintenance and process optimization. The 2U form factor of the RMS-4000/3000 series is ideal for space-constrained environments.
  

AI Server Market Analysis

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Based on server type, the market is divided into AI data server, AI training server, AI inference server and others. The AI training server segment accounted for a AI server market share of around 37% and is projected to grow by 2032.

• These AI training servers are built to process the heavy calculations needed for training complex machine learning models. These servers have flexible designs and specialized hardware that help companies build models faster. As more companies need advanced AI solutions, more are buying AI training servers.
  
• In November 2024, HPE introduced new AI supercomputing solutions designed for machine learning (ML) training, it includes Cray EX4252 with AMD 5th Gen EPYC processors and EX154n with 224 Nvidia Blackwell GPUs. It also launched Slingshot Interconnect 400 for faster networking and E2000 storage for improved I/O performance. The ProLiant Compute XD680 (Intel Gaudi 3) and XD685 (Nvidia H200, Blackwell, AMD MI325Xs) enhance AI workloads with liquid cooling and Cray Supercomputing Software for optimized ML training.
  

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Based on the hardware, the AI server market is categorized into GPU servers, ASIC servers, FPGA servers and others. In 2023, the GPU servers segment holds a market share of 55% due to their unparalleled processing power tailored for parallel computing tasks like deep learning and neural network training.

• GPUs have many processing units that help perform complex calculations faster for AI systems. As more companies start using AI, they need more GPU servers. These servers can quickly handle large amounts of data, which makes them important for building and running AI systems.
  
• As GPUs are becoming more important, companies such as AOS are developing advanced components that ensure stable power delivery and optimize performance.
  
• For instance, in January 2025, Alpha and Omega Semiconductor (AOS) created a new power management system for Nvidia Blackwell GPUs used in AI servers. This system helps save energy, reduces power waste, and keeps the system running smoothly. It helps run powerful applications while using less energy in new GPU systems.
  

Based on the end user, the AI server market is categorized into IT & telecommunications, transportation and automotive, BFSI, retail and e-commerce, healthcare and pharmaceuticals, and industrial automation.

• Companies in these areas are investing in AI to make their operations smoother. To support this, there are AI server solutions designed for the specific challenges of each industry.
  
• ASUS is coming forward to meet the rising need for AI solutions. They are putting AI applications into their servers, especially for industries like healthcare. This mix of AI and servers is all about making things run better and helping with digital changes. Their special AI server setups deal with the specific issues that different industries face. They help with handling data and streamlining work processes.
  

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• U.S. holds an AI server market share of 8.7 billion in 2023. More companies in technology, finance, and healthcare are now using AI to analyze data, find patterns, and make decisions. Companies that manufacture AI servers are working along with software developers and AI solution providers to provide customers with complete AI systems.
  
• In January 2025, Hewlett Packard Enterprise (HPE) made a deal to supply AI servers to X. They’re working on setting up a strong system for advanced AI.
  
• These new servers can handle heavy machine learning and processing. They have fast memory and liquid cooling, which helps speed things up. HPE’s system will improve X's AI capabilities. This could lead to better real-time content checks, smart recommendations, and even creating new AI content.
  

AI Server Market Share

• The top 7 companies in AI server industry, are NVIDIA, Super Micro Computer, Dell, Huawei, IBM, Fujitsu, and ZTE, holding around 45% of the market in 2023.
  
• NVIDIA is teaming up with other companies to boost its AI server skills. In November 2024, it partnered with Cisco to create AI servers optimized for heavy GPU tasks. These servers use NVIDIA's advanced platforms, like the HGX platform with H100 and H200 Tensor Core GPUs. This partnership makes it easier for businesses to adopt AI by offering a flexible and secure infrastructure to meet their needs. Cisco also has customizable AI PODs for specific uses.
  
• Numerous companies are focusing on energy efficiency while designing AI servers. In October 2024, Super Micro and Fujitsu announced initiatives toward the development of energy saving AI servers together. They are working on liquid-cooled systems for generative AI, as well as for greener AI data centers. Also, a platform that uses the Fujitsu FUJITSU-MONAKA processor is in development and is planned to be released by 2027. The core objective is to minimize energy consumption and reduce the negative impact on the ecosystem in line with industry environmentally sustainable goals.
  

AI Server Market Companies

Major players operating in the AI Server industry are:

• ADLINK Technology
• Dell Technologies
• Fujitsu
• Global Unichip
• Hewlett Packard
• Huawei
• IBM
• Nvidia
• Super Micro
• ZTE
  

Major AI server companies strengthen their market positions by working together through partnerships and mergers, while investing heavily in research to develop better products. By focusing on innovation, these companies can bring new AI technologies to their servers. A good example is how Nvidia teamed up with Cisco in November 2024 to create AI servers, showing how companies work together to grow in this market. These companies also regularly launch new products to meet customer needs and build their presence worldwide.

AI Server Industry News

• In December 2024, Asus moved forward with its AI solutions. They are now connecting AI applications with servers to support improvements in digital healthcare. The AI server market in Taiwan is shifting. Companies like Asus are focusing on AI to boost patient care and make medical processes smoother.
  
• In October 2024, Cisco introduced the UCS C885A M8 AI server and preconfigured AI infrastructure stacks to support enterprise AI workloads. The 8U rack server, built on Nvidia’s HGX platform, delivers high-performance computing for LLM training, fine-tuning, inferencing, and retrieval-augmented generation (RAG).
  
• In June 2024, Foxconn announced to produce AI servers at its facilities in India. The announcement is in line with the company’s strategy of significant expansion of operations in India and diversification of its manufacturing capabilities.
  
• In June 2024 Advantech has launched the AIR-520 Edge AI Server which utilizes Phison’s aiDAPTIV+ technology in its pursuit to accelerate genAI applications. The solution integrates an AMD EPYC 7003 CPU with NVIDIA RTX GPU cards, SQ ai100 AI SSDs, and an Edge AI SDK that facilitates LLM (large language model) fine tuning and hardware-level data protection.
  
• In September 2023, Wistron secured AI server baseboard orders from both NVIDIA and AMD, becoming the first company to achieve this milestone. The company is set to ship AMD’s MI300 series baseboards in Q4 2023, while also fulfilling urgent orders for NVIDIA DGX/HGX H100 servers, including 3,000 units for a non-U.S. cloud provider by February 2024.
  

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 Server
• AI Training Server
• AI Inference Server
• Others

Market, By Hardware

• GPU Servers
• ASIC Servers
• FPGA Servers
• Others

Market, By End Use

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

The above information is 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