Tractica: AI market expanding, annual revenue of $50B by 2025 projected

Monday October 28, 2019 0 comments Tags: Boulder, Tractica, artificial intelligence, Alan Varghese

BOULDER -- Global revenue for cloud and enterprise data center hardware for artificial intelligence (AI) will reach almost $50 billion annually by 2025, according to a new report from Tractica.

Advances in technology have played a major part in enabling AI expansion and market penetration, the report notes. In turn, AI applications are driving the development of new silicon and system architectures, storage and networking options, and delivery models.Tractica_logoUSE 

Meanwhile, enterprises are not abandoning on-premise computing and while hyperscalers have been driving AI implementation in the cloud, there is corresponding demand for on-premise and colocated solutions from early adopter enterprises.

“Innovations in computing, chipsets, storage, and networking will continue into the future, and these functions will get refined and optimized in order to support artificial intelligence,” said Alan Varghese, Tractica principal analyst.

“Hybrid architectures such as public-private clouds will continue to find traction, and the industry will innovate unique implementations that move fluidly between hyperscaler data centers, colocation providers, edge sites, and on-premise.”

Tractica’s report, “Artificial Intelligence in Cloud and Enterprise Data Center Hardware”, examines the AI applications in business, consumer, and government that are driving requirements in AI infrastructure, especially the compute, storage, and networking functions in cloud and enterprise data centers.

The report also catalogs the changing nature of the market, ecosystem, vendors, and technologies, including the underlying semiconductors powering the next generation in AI. Market forecasts include infrastructure hardware spend from 2018 to 2025 segmented by region, function, chipset, delivery model, and enterprise vertical.

An Executive Summary of the report is available for free download on the Tractica website.