AI and Semiconductor - a Server GPU Market Size is valued at USD 16.6 Bn in 2023 and is predicted to reach USD 134.9 Bn by the year 2031 at a 30.2% CAGR during the forecast period for 2024-2031.
AI and semiconductor – a server GPU market is defined as manufacturing graphics processing units (GPUs) tailored to data centres and servers. The integration of artificial intelligence (AI) with semiconductors, namely in the realm of server GPUs (Graphics Processing Units), signifies a pivotal advancement in the progression of computer technology. Server GPUs are dedicated hardware specifically designed to enhance the speed of intricate calculations, such as those utilized in artificial intelligence (AI) and machine learning (ML) algorithms, within data centers and cloud environments.
Artificial intelligence, machine learning, data analytics, and scientific computing are some of the activities that these GPUs excel at performing in parallel. The market has grown substantially due to advancements in semiconductor technology driven by the increasing demand for AI capabilities across many sectors. These developments satisfy the needs of AI-powered apps and services. The proliferation of edge computing, which shifts data processing away from reliance on common cloud servers and into the location of data production, is driving up demand for artificial intelligence and semiconductor-a-server GPUs. Several factors, including the exponential expansion of AI and ML applications and the increasing prevalence of virtualization in corporate and data centre environments, drive the GPU server market.
However, the market growth is hindered by the high price of GPU systems, and smaller firms may be unable to participate in the AI and semiconductor server GPU industry. Another difficulty is the technical complexity and the quick rate of technological improvements, which necessitates specialist knowledge and regular upgrades. The global market has been hit hard by the COVID-19 pandemic, and there has been a domino effect on supply chains, consumer demand, and economic activity worldwide due to the COVID-19 epidemic. It created problems in several areas because it slowed product development, altered consumer behaviour, and interrupted manufacturing.
Competitive Landscape
Some Major Key Players In The AI and Semiconductor - a Server GPU Market:
- Nvidia Corporation
- Advanced Micro Devices, Inc
- Intel Corporation
- Qualcomm
- Imagination Technologies Limited
- ASUSTeK Computer
- INSPUR Co., Ltd.
- Huawei Technologies
- GIGA-BYTE
- Penguin Computing
- Advantech Co., Ltd.
- Dell Inc
- Fujitsu
- Exxact Corporation
- Samsung Electronics Co. Ltd
- Alibaba Cloud (China)
- Vultr
- Linode LLC.
- Amazon Web Services, Inc.
- IBM Corporation
- Other Prominent Players
Market Segmentation:
The AI and semiconductor - a server GPU market is segmented based on Facility Type, Configuration Type, Form Factor, End-Use By Facility Type, By Configuration Type, By Form Factor, By End-Use. By Facility Type, the market is divided into Data Centers, HPC Clusters, and Blockchain Mining Facilities. As per the Configuration Type, this market is categorised into Single GPU, Dual to Quad GPU, and High-Density GPU. According to Form Factor, the market is segmented into Blade Server and Rackmount Server. At last, the End-Use market comprises Cloud Computing and HPC Applications.
Based On The End-Use, The Cloud Computing Segment Is Accounted As A Major Contributor To The AI And Semiconductor - A Server GPU Market.
The cloud computing AI and semiconductor - a server GPU market is expected to hold a major global market share. Reasons for this expansion include the rising need for efficient data processing, the proliferation of cloud services, and the rising demand for high-performance computing in artificial intelligence applications. Furthermore, cloud computing offers dependable data backup and disaster recovery solutions, enhancing the continuity of business operations.
Dual To Quad GPU Segment To Witness Growth At A Rapid Rate.
The dual to quad GPU industry markets are expected to witness a meteoric rise in sales of GPUs because more powerful computing is required to meet the growing demand. Data centres, cloud computing, and sophisticated research projects can all benefit from these GPUs, which enable more complicated AI and machine learning applications. The trend toward more graphics processing units (GPUs) per server improves parallel processing, which is perfect for jobs that demand intensive data processing and is fueling the segment's expansion.
In The Region, The North American AI And Semiconductor - A Server GPU Market Holds A Significant Revenue Share.
The North American AI and semiconductor - a server GPU market is expected to record the highest market revenue share in the near future. It can be attributed to the area's established technological landscape, the abundance of top tech companies, rising investments in artificial intelligence, and a strong technological infrastructure in the region. The market expansion is also aided by strong infrastructure and substantial investments in research and development. In addition, Asia Pacific is anticipated to expand in the global AI and semiconductor - a server GPU market because of its booming tech sector, more spending on artificial intelligence and data centres, and more people using cloud services. The existence of rapidly expanding economies and the region's emphasis on innovation are also factors in this expansion.
Recent Developments:
- In February 2024, ServiceNow, the industry-leading digital workflow provider, and NVIDIA, the market leader in artificial intelligence solutions for telecommunications companies, announced a new relationship that will see the development of generative AI solutions tailored to the needs of telecommunications companies to improve customer service.
- In February 2024, Qualcomm Technologies unveiled its seventh-generation 5G modem-to-antenna solution, the Snapdragon® X80 5G Modem-RF System, demonstrating its commitment to innovation. Snapdragon X80 achieves several world firsts with its integrated 5G AI Processor and 5G-Advanced architecture. These include the first 5G modem with fully integrated NB-NTN satellite communications support, a 6-antenna smartphone architecture, 6X carrier aggregation, and an extension of the mm Wave range for fixed wireless access customer premise equipment (CPE) based on artificial intelligence.
AI and Semiconductor - a Server GPU Market Report Scope
Report Attribute |
Specifications |
Market Size Value In 2023 |
USD 16.6 Bn |
Revenue Forecast In 2031 |
USD 134.9 Bn |
Growth Rate CAGR |
CAGR of 30.2 % from 2024 to 2031 |
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
Historic Year |
2019 to 2023 |
Forecast Year |
2024-2031 |
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
Segments Covered |
By Facility Type, By Configuration Type, By Form Factor, By End-Use |
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
Competitive Landscape |
Nvidia Corporation, Advanced Micro, Intel Corporation, Qualcomm, Imagination, ASUSTeK Computer, INSPUR Co., Ltd., Huawei Technologies, GIGA-BYTE, Penguin Computing, Advantech Co., Ltd., Dell Inc, Fujitsu, Exxact Corporation And other market players |
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |