Latest News- AI Model Hosting Market: GPU is expected to lead the Platform segment during 2025-2029

The AI Model Hosting Market is being driven by Proliferation and escalating complexity of generative AI models

The AI Model Hosting Market is expected to grow at a CAGR of 27.6% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 23183.7 million. The global AI model hosting market is experiencing significant growth due to the increasing prevalence of large-scale, computationally intensive AI models. These models, which can consist of hundreds of billions or even trillions of parameters, require specialized hardware infrastructure and sophisticated software orchestration for efficient inference. Self-hosting these models is often impractical and economically unviable for most enterprises due to their size and complexity. Consequently, there is a growing demand for specialized AI model hosting platforms that offer managed access to the necessary resources on a consumption basis. This trend is expected to continue, as the development and release of new, large-scale AI models accelerates in the post-January 2023 period. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Platform
  • GPU
  • CPU
  • FPGA
• Deployment
  • Public
  • Private
  • Hybrid
• Price
  • Pay-per-use
  • Subscription
  • Freemium
• End-user
  • Finance
  • Healthcare
  • Retail
  • Industrial
  • Others
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Europe
    • Germany
    • UK
    • France
  • South America
  • Middle East and Africa

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

• Proliferation and escalating complexity of generative AI models
• Democratization of AI development and widespread enterprise adoption
• Increasing demand for real time and low latency AI applications at edge

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

• Prohibitive costs and technical complexity of specialized infrastructure
• Navigating fragmented and evolving landscape of data security and regulatory compliance
• Pervasive vendor lock-in and a lack of interoperability across hosting ecosystems

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Market Scope in AI Model Hosting Market Research Report

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Research Analysis Overview

In the AI model hosting market, key aspects include model serving architecture for efficient inference, performance tuning for model accuracy improvement, data security measures for protection, compute resource utilization for optimal efficiency, predictive analytics platforms for insights, automation for deployment, and ML model monitoring for reliability. Cost-effective infrastructure, model scalability, secure model deployment, model retraining frequency, model lifecycle management, AI model governance, version control, data pipeline optimization, model explainability, security, bias mitigation, and machine learning pipeline optimization are also essential elements.

Market Research Overview

The AI model hosting market is a segment of the larger global IT software industry, specifically focusing on companies providing application software solutions for deploying and managing artificial intelligence models. This market encompasses model deployment pipelines, API request latency optimization, GPU resource allocation, and container orchestration services. Companies in this sector generate revenue through the provision of specialized software and infrastructure to streamline AI model development, deployment, and management for businesses. Technavio's market analysis calculates the size of the AI model hosting market based on the combined revenues of these businesses.. 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/