Latest News- AI Inference Market: GPU is expected to lead the Component segment during 2025-2029

The AI Inference Market is being driven by Proliferation of edge AI and the expansion of the Internet of Things (IoT) ecosystem

The AI Inference Market is expected to grow at a CAGR of 19.4% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 128854 million. The global AI inference market is undergoing a significant transformation, marked by the emergence of edge inference as a preferred approach over centralized, cloud-based processing. Edge inference, which involves executing machine learning models directly on endpoint devices, is gaining traction due to its ability to address key business demands. These include reduced latency for real-time responses, heightened data privacy, enhanced operational reliability, and cost savings from minimized data transmission and cloud computing. By processing data at the source, edge inference eliminates the need for data round-trips to distant servers, enabling instantaneous responses essential for applications such as autonomous navigation, interactive augmented reality, and industrial automation. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • GPU
  • CPU
  • ASIC
  • FPGA
• Technology
  • Machine learning models
  • Generative AI
  • Natural language processing
  • Computer vision
• Deployment
  • Cloud
  • Edge
  • On-premises
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • Middle East and Africa
  • South America

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Proliferation of edge AI and the expansion of the Internet of Things (IoT) ecosystem
• Explosive growth and mainstream adoption of generative AI and large language models (LLMs)
• Deepening enterprise integration for business process optimization and enhanced customer experiences

However, the market also witnesses some limitations, which are as follows:

• Escalating energy consumption and environmental sustainability concerns
• Critical hardware supply chain constraints and prohibitive costs
• Navigating a fragmented and evolving global regulatory landscape

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Market Scope in AI Inference Market Research Report

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Research Analysis Overview

The AI inference market is witnessing significant advancements with the integration of model interpretability to address data privacy concerns and ethical implications. Hardware acceleration through cloud computing platforms, distributed computing, parallel processing, and GPU acceleration are key technologies driving market growth. Model compression, quantization techniques, knowledge distillation, pruning methods, and low-power inference are essential for edge computing and real-time applications. Online and incremental learning, transfer learning, domain adaptation, few-shot learning, and zero-shot learning are crucial for enhancing AI models' adaptability. Dataset bias detection, data imbalance handling, outlier detection methods, and anomaly detection algorithms ensure data quality and reliability in AI inference.

Market Research Overview

The global IT software market encompasses businesses specializing in the creation and distribution of application, system, and database software. Notably, the application software sector focuses on developing software for specific business or consumer needs, including enterprise and technical applications, as well as cloud-based solutions. Technavio's market analysis calculates the IT software market size based on the consolidated revenue of companies providing various software offerings, including those leveraging advanced technologies such as machine learning models, neural network architecture, deep learning algorithms, and natural language processing. These technologies enable advanced capabilities in areas like predictive analytics, automation, and personalized user experiences.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/