AI Server Market Analysis

AI Server Market Analysis

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Based on servers, the market is divided into AI data server, AI training server, AI inference server and others. The AI training server segment accounted for a market share of over 36% in 2023 and is projected to grow over USD 55 billion by 2032. These servers are built to handle the heavy computational needs of training complex machine learning models. With scalable designs and optimized hardware, AI training servers help organizations accelerate model development and innovation.
 

As the demand for advanced AI solutions grows, AI training servers are becoming more important, leading to significant market dominance. Furthermore, growing investment in AI research and development is boosting the demand for AI training servers as researchers require powerful computational resources to test new algorithms and models.
 

Based on the hardware, the AI server market is categorized into GPU, ASIC, FPGA, CPU and others. The GPU segment holds a market share of around 51% in 2023. The growth of the segment can be attributed to their powerful processing capabilities, which are ideal for tasks like deep learning and neural network training. With thousands of cores, GPUs speed up complex computations, allowing for quick model iterations and better performance.
 

As AI applications spread across industries, the demand for GPU is rising. Their ability to handle large datasets and deliver high speed makes them the preferred choice for advanced AI development and deployment. Furthermore, the design and manufacture of PCBs have evolved to support the integration of complex GPU layouts and high-speed signaling required for AI workloads. AI server providers are leveraging advanced PCB technologies to optimize performance and reliability while accommodating dense configurations of GPUs.
 

North America AI server market accounted for 32% of the revenue share in 2023. Organizations in North America are increasingly using AI in technology, finance, and healthcare for data analysis, pattern recognition, and decision-making. Collaborations among AI server manufacturers, software developers, and solution providers are delivering integrated AI solutions to customers. 
 

For instance, in May 2023, American multinational front-runners 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.
 

The increasing adoption of AI technologies to enhance automation, optimize production processes, and drive efficiency across industries will fuel market growth in Europe. Increasing demand for AI-enabled solutions in the automotive, manufacturing, and healthcare sectors are propelling AI server market expansion in the region. For instance, in August 2023, Quanta Computer approved capacity expansion at its production bases in Germany to meet robust customer demand for AI servers.
 

China's dynamic startup ecosystem is creating many AI-driven companies, all requiring high-performance AI servers to develop and deploy their solutions. For instance, in August 2024, Moonshot, a Chinese generative AI startup raised USD 300 million in a new funding round, led by Tencent Holdings. The new funding round increased the company’s valuation to around USD 3.3 billion. This is expected to drive the growth of the market in the country.