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AI Hardware Expected to Show Significant Growth Bolstered by New Product Innovation

A new report from market intelligence firm Tractica examining the hardware infrastructure supporting Artificial Intelligence found that many new hardware products designed specifically for AI will emerge in the next few years. Titled, “Artificial Intelligence Hardware and Software Infrastructure”, the report found that the worldwide market for AI-driven hardware and software will grow from $3.5 billion in 2016 to $115.4 billion by 2025.

Hardware infrastructure when broken downs into three key segments – compute, networking, and storage – shows that compute has made the greatest progress in the last couple of years. Storage and networking have yet to see major innovations relating to AI applications, but this may change as more R&D is expected to go into these areas.  The result will be new products that are designed specifically for AI which will contribute to AI growth.

The report also breaks the AI-driven hardware market into six segments: cloud infrastructure, server, storage, PC cards, PC workstations, and networking products. Tractica predicts that servers and cloud infrastructure will achieve the majority of sales made as the market expands.

“Today, cloud service providers are providing the best value by combining many AI software and hardware options at a low price and these providers have figured out the best way to monetize AI technology,” said Anand Joshi, principal analyst. “As AI workloads become commonplace, innovations in storage and networking will lead to a more specialized infrastructure for AI.”

The report further details business opportunities, market dynamics, and technology issues in the AI hardware infrastructure market, segmenting market forecasts y world region. Average selling prices, hardware unit shipments, revenue, and market forecasts from 2016 to 2025 are also included.