Latest News- AI-Specific Server Market: CPU-based is expected to lead the Processor Type segment during 2025-2029

The AI-Specific Server Market is being driven by Unprecedented demand fueled by generative AI and large language models

The AI-Specific Server Market is expected to grow at a CAGR of 42.6% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 604253.7 million. The AI-specific server market is witnessing a significant shift from a component-centric approach to a system-level design philosophy. This transition signifies that the market is no longer solely focused on the capabilities of individual accelerators, but rather on the comprehensive performance of entire computing platforms, encompassing silicon to software. Leading hardware designers and hyperscale cloud providers are aggressively embracing this trend. In March 2024, NVIDIA showcased this evolution with the introduction of its Blackwell platform. The event was not merely about the launch of the B200 GPU, but rather the presentation of a comprehensive system architecture. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Processor Type
  • CPU-based
  • ASIC-based
  • GPU-based
  • FPGA-based
• Component
  • Hardware
  • Software
  • Services
• Deployment
  • On-premises
  • Cloud
• End-user
  • IT and telecom
  • Automotive
  • BFSI
  • Healthcare
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • 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: 

• Unprecedented demand fueled by generative AI and large language models
• Symbiotic cycle of increasing model complexity and exponential data growth
• Strategic imperative of enterprise digital transformation and sovereign AI

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

• Critical supply chain constraints and component concentration
• Extreme power consumption and data center infrastructure limits
• Prohibitive total cost of ownership and specialized skill scarcity

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Market Scope in AI-Specific Server Market Research Report

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Research Analysis Overview

The AI-specific server market encompasses advanced technologies such as AI inference engines, model training pipelines, and server rack designs. Cooling systems and data center cooling are crucial for power usage effectiveness, while network topologies and data storage solutions ensure efficient data handling. Security hardening, model explainability, and data preprocessing are essential for maintaining data integrity. Feature engineering, model compression, and quantization techniques optimize model performance. Knowledge graph embedding, natural language processing, computer vision systems, time series forecasting, anomaly detection, predictive maintenance, risk management, capacity planning, disaster recovery, backup and restore, system monitoring, performance analysis, log analysis, and security auditing are key applications driving market growth.

Market Research Overview

The AI-specific server market is a segment of the global IT software industry, focusing on companies providing hardware and software solutions for artificial intelligence (AI) applications. This market encompasses GPU acceleration technologies, server virtualization, and AI model deployment. Companies in this sector offer products and services for data center optimization, enabling efficient processing of large datasets and complex AI workloads. The market's size is determined by the combined revenue generated by these businesses, including cloud-based solutions.. 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/